Role of CSR in achieving customers' satisfaction and retention during COVID-19 and post-pandemic period: Empirical evidence from emerging nations

Abstract

BACKGROUND: COVID-19 is an ongoing virus disease also recognized as a coronavirus pandemic that propelled the world to rethink organizational strategies during this unprecedented challenge. Although research on CSR has broadly been done over the past decades; nonetheless, how CSR can contribute a leading role in engaging the stakeholders such as customers during this pandemic period and post-pandemic is an important research gap that ought to be uncovered. OBJECTIVES: This study explores the impact of CSR on external stakeholders like customers and how organizations can dramatically sustain the relationships during the COVID-19 period. First, this study investigates the relationships between CSR and customer satisfaction (CS). Second, this study explores the relationships between CSR and customer retention (CR). Finally, the moderating impact of gender and education were examined among the proposed relationships. METHODS: Using the survey of 500 respondents, this study prospected the linkages among CSR, CS, and CR from China using a convenience sampling approach. The questionnaires were disseminated to Chinese online shoppers between Jan 2020 and March 2020 and explored using SEM model. RESULTS: It found that customers are more attached and satisfied with those organizations that are socially responsible and value their stakeholders, especially during uncertain situations like COVID-19 since presently revealed a positive relationship between CSR and CS. Second, it is found that there is a positive influence of CSR on CR as well. Finally, the study affirmed the positive nexus of gender and education as the moderators among CSR, CR, and CS. CONCLUSION: CSR is always on the front line blending social and environmental goals into business operations, especially during uncertain times and challenges. Undeniably, the COVID-19 pandemic is not only a global health emergency but is also leading to a major global challenge that drives organizations to revisit policies to sustain the relationships with their stakeholders. This study concluded the positive nexus of CSR and affirmed the positive role in sustaining relationships with customers during distinct uncertainties like COVID-19.