The stakeholder management theory of CSR: A multidimensional approach in understanding customer identification and satisfaction

Abstract

ABSTRAC: Purpose - Based on the principles of the stakeholder management theory, this paper explores the multidimensional perceptions that customers of banking companies have of the corporate social responsibility (CSR) orientations of companies. The paper also explores how these multidimensional perceptions affect customer identification and satisfaction with banking companies. Design/methodology/approach - A structural equation model is tested using information collected from 1,124 banking service customers. Findings - The findings demonstrate that customers' perceptions of customer-related CSR and broad legal and ethical issues have significant positive impacts on customer identification and satisfaction with banking companies. Perceptions of shareholderrelated CSR also significantly boost customer satisfaction. In contrast, perceptions of employee- and community-related CSR do not have any significant effect on customer identification or satisfaction. The findings also confirm the importance of customer identification with the company as a key mediator in their satisfaction responses to multidimensional perceptions of the companies' CSR orientations. Originality/value - The contribution of the paper is based on the exploration of a multidimensional approach, which relies on the principles of the stakeholder management theory, to study customer responses to their perceptions of the CSR orientations of banking companies. Previous scholars have reported mixed findings when exploring customer responses to their perceptions of companies' CSR orientations. However, they have frequently considered customer CSR perceptions either as one-dimensional or a reflective second-order construct. Thus, previous scholars have ignored the possibility of multidimensional CSR perceptions having different effects on customer responses such as identification and satisfaction.