UGO Impact of Corporate Social Responsibility On Customer Loyalty and Satisfaction in The UK Supermarket

Impact of Corporate Social Responsibility on Customer Loyalty and Satisfaction in the
UK Supermarket Industry
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Table of Contents
Abstract......................................................................................................................................4
List of Acronyms........................................................................................................................5
Chapter One- Introduction.........................................................................................................6
1.1 Background of Research..................................................................................................6
1.2 Statement of Problem.......................................................................................................7
1.3 Research Question............................................................................................................7
1.4 Research Aim and Objectives..........................................................................................8
1.5 Scope of Study.................................................................................................................8
1.6 Relevance of Study..........................................................................................................8
1.7 Outline of the Study.........................................................................................................8
Chapter 2 Literature Review....................................................................................................10
2.1 Introduction....................................................................................................................10
2.2 Historical and Conceptual Background of CSR.............................................................10
2.2.1 The 1950s................................................................................................................10
2.2.2 The 1960s................................................................................................................10
2.2.3 The 1970s................................................................................................................11
2.2.4 The 1980s................................................................................................................12
2.2.5 The 1990s................................................................................................................13
2.2.6 2000s till Present.....................................................................................................15
2.3 CSR Definitions.............................................................................................................16
2.3 CSR Benefits..................................................................................................................18
2.4 Customer Loyalty (CL)..................................................................................................19
2.5 Customer Loyalty Constructs.........................................................................................21
2.6 The Link between CSR and Customer Loyalty.............................................................22
2.7 Conclusion......................................................................................................................24
Chapter 3 Research Methodology............................................................................................25
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3.1 Introduction....................................................................................................................25
3.2 Research Approach.........................................................................................................25
3.3 Research Design.............................................................................................................26
3.4 Research Method............................................................................................................27
3.5 Area of Research............................................................................................................28
3.6 Target Population...........................................................................................................28
3.7 Sampling........................................................................................................................28
3.8 Questionnaire Administration........................................................................................29
3.9 Data Analysis.................................................................................................................29
3.10 Ethical Considerations.................................................................................................29
Chapter 4 Results and Discussion............................................................................................31
4.1 Demographic Profile......................................................................................................31
4.2 CSR and Customer Loyalty...........................................................................................32
4.3 CSR................................................................................................................................34
4.4 Customer Trust...............................................................................................................36
4.5 Service Quality...............................................................................................................37
4.6 Brand Image...................................................................................................................38
4.7 Customer Satisfaction....................................................................................................38
4.8 Pearson’s Correlations....................................................................................................39
4.9 Hypotheses Validation....................................................................................................41
4.10 Discussion....................................................................................................................42
Chapter 5 Summary, Conclusions, and Recommendations......................................................44
5.1 Introduction....................................................................................................................44
5.2 Summary and Conclusions.............................................................................................44
5.3 Recommendations..........................................................................................................45
References................................................................................................................................46
Appendix A: Questionnaire......................................................................................................56
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Abstract
The UK Supermarket industry is a dynamic and competitive one, that keeps navigating the
preferences of consumers while hovering around technological advancements, and pressures
from regulatory bodies. This industry is a significant industry in the UK that has estimated
value of over £212 billion in 2023. CSR plays a vital role in this industry, while firms are
always competing for winning the loyalties of their customers. Therefore, the aim of this
research is to investigate the impact of CSR initiatives on the positive consumer outcomes
like loyalty. The first stage was to collect relevant literature pertaining to CSR and customer
loyalty to investigate the research problem more comprehensively. Through the literature
analysis, four constructs were identified for CL, which were: Customer satisfaction,
Customer Trust, Service Quality, and Brand Image. These were identified as the independent
variables, whereas CSR was the dependent variable. An online questionnaire had been
administered through MS Forms, which was shared among the research respondents. A total
of 145 research respondents participated in the research. The results of the study indicated
that CSR had a positive and significant relationship with all of the four constructs of CL.
Based on the findings, it was concluded that CSR is essential for customer loyalty in the
supermarket industry.
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List of Acronyms
CSR- Corporate Social Responsibility
CL- Customer Loyalty
SQ- Service Quality
CS- Customer Satisfaction
BI- Brand Image
CT- Customer Trust
CE- Customer Engagement
UK- United Kingdom
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Chapter One- Introduction
1.1 Background of Research

The UK Supermarket industry is a dynamic and competitive one, that keeps navigating the
preferences of consumers while hovering around technological advancements, and pressures
from regulatory bodies. This industry is a significant industry in the UK that has estimated
value of over £212 billion in 2023. However, this is largely dominated by four main players
including Tesco, Sainsbury, Morrisons, and Asda, controlling over 42% of the total market
share in the industry (Sandall et al., 2023). While price sensitivity remains high, there is a
growing demand for improving the quality, value, and convenience of consumers in other to
meet their needs (Erdmann et al., 2023). In most instances, this may be reflected in their
satisfaction and loyalty to continue to do business with brands in the UK supermarket
industry.
In addition to the rising concern for the delivery of value, there is also an increasing focus on
ethical and sustainable practices among consumers and businesses. In this regard, consumers
recognise the activities of supermarket brands and its impact on the society (Jung et al.,
2020). For example, the focus on profit by certain companies may reduce the economic
balance of such societies and such, these companies are mostly required to engage in social
responsibility acts that aims to improve the innerworkings of the environment they work in.
On the other hand, companies are also aware of the risks attached to unsustainable practices
or unethical practices including focusing on aspects of business that increases the financial
growth of the company while ignoring its impacts on society (Khan et al., 2023). Some core
examples include actions like felling of trees, emission of greenhouse gases through
production activities, and the use of unsustainable energy sources. As a result, companies
need to find balance between their business activities and its impact on society. Nonetheless,
the corporate social responsibility is advised and recommended for these companies.
According to Duy (2023), corporate social responsibility (CSR) may be defined as a self-
regulating business model that allows companies and businesses to remain accountable to
itself, its stakeholders, and the public. Tobins and Cheta-Maclean (2023) adds that it is a
model that allows companies to be socially accountable. From the above definitions, it is
plausible to infer that CSR considers that actions of companies to deliver programmes that
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endears it to itself, its customers, stakeholders, and the public. Providing scholarship
programs to students, promoting employee welfare through the initiation of certain
incentives, or providing a community with a digital library are examples of what companies
can do to illustrate CSR.
CSR is important in different ways and may play a role in positive consumer behaviours like
customer satisfaction and consumer loyalty. Customer satisfaction may be defined in several
ways including the extent to which customers are happy with the services of a brand
including the products and the capabilities of the company (Paudel, 2023). On the other hand,
consumer loyalty depicts the willingness and the ability of the consumer to continue to
patronise a brand for a long time even when there are several alternatives (Natarajan and
Veera Raghavan, 2023). CSR is related to customer satisfaction and loyalty in different ways.
Firstly, CSR may encourage customers to do business with their preferred brands because of
the realisation that such transactions can be used to improve the society. In addition,
consumers may also realise that they are benefiting indirectly from doing business with their
preferred brands.
1.2 Statement of Problem

In recent years, there has been an advocacy for CSR initiatives. However, some of the
organisations engaging in these activities do not understand the relevance of engaging in CSR
activities. Hence, for some companies, CSR is done to meet the demands of regulatory bodies
and not the willingness to be accountable to a broader society and the organisation. Hence,
implications such as poor CSR initiatives or CSR initiatives that are done without proper
planning dominate the industry. There are several examples of these including Meier’s
charitable incentives that backfired (Cassar and Meier, 2017). In this regard, the German
company had tried to motivate its employees by offering to donate money to charity for every
hour they worked (Gneezy et al., 2020). However, this did not improve the productivity and
satisfaction of employees. A possible situation is that the company wanted to use such
initiative to reduce tax returns or look good to the public without considering the impact on
the employees. Hence, it is important for companies to realise that engaging in CSR without
ulterior motives can improve the perception of customers if done properly.
1.3 Research Question

To what extent has different CSR initiatives impact customer loyalty and satisfaction?
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1.4 Research Aim and Objectives
The aim of this research is to investigate the impact of CSR initiatives on the positive
consumer outcomes like loyalty and satisfaction. The research intends to explore the
perception of customers on the CSR initiatives by customers with the UK supermarket
industry has impacted their ability to remain loyal and satisfied with the products, quality, and
opportunities of the business. Hence, this objective will be achieved by fulfilling the
following objectives.
1. To identify different CSR initiatives by companies within the UK supermarket

industry.
2. To determine the relationship between CSR initiatives and consumer loyalty.
3. To provide recommendations concerning the development of CSR initiatives to
influence consumer loyalty.
1.5 Scope of Study

The focus of the research is on supermarket industry in the UK with specific consideration on
major supermarket chains.
1.6 Relevance of Study

The current research contributes to the ongoing developments on CSR among organisations
in the UK. The research also reviews the impact of these on consumer behaviour particularly
among retails stores. Hence, the findings of the research provide empirical evidence to
support or change the existing framework relating to the relations between CSR and
consumers’ loyalty and satisfaction. Relating to the practical relevance of this research,
supermarkets in the UK can learn how their CSR initiatives yield positive consumer
outcomes which informs greater strategies for greater impact. In addition, the findings of the
research empower consumers to make informed decisions concerning which supermarket
brand to support.
1.7 Outline of the Study

This research is divided into six chapters with the second chapter focusing on the relevant
aspects of the literature. The review of the literature includes evidence-based studies on the
relationship between CSR and other variables. While analysing recent studies, the research
will explore the theories of CSR and consumer outcomes to draw a link between the research
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variables. In the following chapter, the research will expand on the research methodology by
examining the research methods and providing justifications to the selected research methods.
This will be done by comparing the research methodology with what was conducted in other
studies. Chapter four is concerned about the presentation of results and the interpretation of
the research findings while the following chapter is the discussion chapter where the
researcher will compare the findings of the research with the findings that were established in
the literature. The last chapter which is the chapter six includes the research conclusions and
the recommendations from the research.
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Chapter 2 Literature Review
2.1 Introduction
The aim of this chapter is to analyse the variety of conceptions and theoretical backgrounds
pertaining to corporate social responsibility (CSR), customer loyalty (CL), and customer
satisfaction (CS). For this purpose, all of the three concepts will be explored
comprehensively.
2.2 Historical and Conceptual Background of CSR
2.2.1 The 1950s
Since the 1950s, the concept of CSR has been subjected to academic scrutiny and debate. The
existing belief that firms need to be responsible towards the society is an old concept and it
dates back several decades (Ferramosca and Verona, 2020). It was during the 1930s and
1940s when researchers, academics, and industry professionals focused on identifying the
role of business executives and the performance of corporations in the social context (Kusyk,
2021; Phillips, Schrempf-Stirling and Stutz, 2020). Within decades, the nature of corporate
behaviour and the social expectations changed and therefore, the notion of CSR changed with
respect to it.
The early conception of CSR was put forward by Bowen in 1953. His book :Social
Responsibilities of the Businessman” has been classified as the first book that focused on
discussing the nature of CSR and contributed significantly to existing literature pertaining to
it (Ferramosca and Verona, 2020) . According to Bowen (1953), social responsibilities of
businessmen are to ensure that they adopt policies and decisions that increases the values of
society, as cited in Phillips, Schrempf-Stirling and Stutz (2020). According to Carroll (2008),
Bowen’s approach towards social responsibility of corporations towards society was novel
and innovative concept, which led to the foundations of modern CSR (Kusyk, 2021).
Furthermore, Bowen’s theory of social responsibility of corporations is considered to be the
early works on CSR literature and therefore, Carroll (2008) has called him the “Father of
Corporate Social Responsibility” (Rahman and Wallance-Hadrill, 2022)
2.2.2 The 1960s
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During the 1960s, the interest in the social responsibilities of businesses increased and
therefore, its conception was put forward by a variety of researchers. One such researcher
was Keith Davies, who offered a new definition of CSR(Ferramosca and Verona, 2020).
Based on his definition, CSR was viewed as the businesses decisions to give back to the
community to reap economic benefits and give back to community. Thus, CSR was divided
into categories during this time (Phillips, Schrempf-Stirling and Stutz, 2020). One aspect
supported that CSR supported social causes through ethical values and morality, whereas the
other aspect supported that CSR was adopted because of financial obligations towards the
society (Latapí Agudelo, Jóhannsdóttir and Davídsdóttir, 2019). According to Davis
“social responsibilities of businessmen need to be commensurate with their social power and
that the avoidance of such would lead to a decrease of the firm’s social power” (Latapí
Agudelo, Jóhannsdóttir and Davídsdóttir, 2019).
Other researchers that contributed to CSR during the 1960s include Frederick (1960), Walton
(1967), and McGuire (1963) (Schrempf-Stirling, Palazzo and Phillips, 2016). In Frederick
(1960), the author developed a new CSR framework. According to this framework, there
were five core ideas (Schrempf-Stirling, Palazzo and Phillips, 2016). Social responsibilities
needed to have value, social responsibilities required fulfilment of novel management and
administration philosophies, there was need to recognize the historical and cultural values
behind the context of social responsibilities, to understand that businessman behaved with
respect to their roles in society, and social responsibility required deliberate and continuous
endeavours (Ibrahim, 2021).
On the other hand, McGuire (1963), reported that the firm’s responsibility to society not only
include its legal and economic duties, it also includes fulfilment of the needs and
requirements of the employees and supporting charitable and social causes (Latapí Agudelo,
Jóhannsdóttir and Davídsdóttir, 2019). Walton (1967) reported that a firm’s social
obligation it relevant to its ability to give back to the community (Brin and Nehme, 2019).
2.2.3 The 1970s
During the 1970s, CSR gained further popularity during the 1970s, which led to the
development of its conceptual frameworks and theoretical foundations. Furthermore, the
concept of CSR was further met with criticism and skepticism (Latapí Agudelo,
Jóhannsdóttir and Davídsdóttir, 2019; Zhao et al., 2023). However, the conception of CSR
gained momentum and several researchers attempted to define the concept. Milton Friedman
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(1976) reported that was the wastage of resources of companies to support social causes in
order to give back to society (Zhao et al., 2023). A well-known CSR book was penned down
by Harold L. Johnson in 1971, which provides a multi-lens perspective of CSR (Teck,
Ayadurai and Chua, 2019). Conventional wisdom is the first type of CSR Johnson had
described, which was a socially responsible corporation whose focus was to fulfill the needs
of the stakeholders rather than reaping economic benefits (Brin and Nehme, 2019). The
second type of definition presented by Johnson (1971) was that socially responsible firms
execute their social causes to increase their profitability and performance (Brin and Nehme,
2019). Utility maximization is the third of concept, which suggests that corporates are not
solely interested in reaping profits but have several goals (Latapí Agudelo, Jóhannsdóttir and
Davídsdóttir, 2019). In this definition, Johnson (1971) reported that “A socially responsible
entrepreneur or manager is one who has a utility function of the second type, such that he is
interested not only in his own well-being but also in that of the other members of the
enterprise and that of his fellow citizens” (Latapí Agudelo, Jóhannsdóttir and Davídsdóttir,
2019). Lexicographic view of CSR is the final perspective provided by Johnson (1071). In
this CSR, firms that are driven to increase their profitability are most likely to show socially
responsible behaviour.
In 1979, Carroll gave the most popular theoretical framework of CSR. According to Carroll
(1979), firms have economic, legal, ethical and philanthropic obligations towards the society
(Farcane and Bureana, 2015). The economic aspect of CSR suggests that firms are
responsible for making profits, which they use to support social causes and welfare of the
community where they operate (Kusyk, 2021). The legal obligations suggests that firms are
bounded to follow laws and regulations of the community where they operate, ensuring that
they abide by it (Kusyk, 2021). Ethical obligations propose that firms are expected to behave
morally right and be morally consciousness. Ethical obligations are embodiment of law but
are based on the social norms of society (Kusyk, 2021). Philanthropic obligations suggests
that firms are expected to protect the community where they operate without any legal and
social expectations (Kusyk, 2021).
2.2.4 The 1980s
During the 1980s, the link between CSR and profitability were highlighted by Cochran and
Wood (1984). Based on their work, it was proposed that CSR activities are beneficial in
increasing the corporate image and brand image of corporations and consumers are most
likely to support these firms. Consequently, this increases profitability significantly (Farcane
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and Bureana, 2015). For this purpose, a total of three accounting return measures were
identified by the researchers Cochran and Wood (1984) as identified by Pistoni, Songini, and
Perrone (2016). These included: excess market valuation, ratio of operating earnings and
assets , and ration of operation earnings and sales (Pistoni, Songini, and Perrone, 2016). Their
study showed that there was a link between CSR and profitability. According to Visser and
Tolhurst (2017), other researchers focused on identifying the link between CSR and
profitability using return on assets (ROA) but were unable to finding any link between the
two. According to Allen and Craig, (2016), Thomas M. Jones in 1981 included CSR in the
decision-making process. Researchers such as Tuzzolino and Armandi (1981) gave out a
framework for CSR and reported that it can be evaluated based on five factors. These were
affiliation with the industry, competitiveness and market position, self-actualization,
organizational safety, profitability, and self-actualization (Mosca and Civera, 2017; Visser,
2016).
2.2.5 The 1990s
The 1990s was considered to be the growth era for CSR literature and conceptual frameworks
as it successfully gained international recognition and paved ways for sustainable
development through the process of globalization (Sheehy, 2015). Carroll (2015) reported
that the process of globalization in the 1990s increased and compelled organizations to
expand their operations in different markets and environments (Latapí Agudelo,
Jóhannsdóttir and Davídsdóttir, 2019). For global corporations, this was a period of intense
global competition and to fulfill the demands and requirements of both home and host
countries, firms began to adopt CSR at international levels.
During the 1990s, the conception and notions of CSR changed completely through Carroll’s
CSR Pyramid. The CSR pyramid was based on the four essential components, which were
previously defined in Carroll (1979) (Latapí Agudelo, Jóhannsdóttir and Davídsdóttir,
2019). These elements included economic responsibilities, legal responsibilities, ethical
responsibilities, and philanthropic responsibilities. The foundation of pyramid is the
economic responsibilities, whose absence can lead to absence of the other core elements of
the CSR pyramid (Kusyk, 2021). The economic responsibilities of the firm is to enhanced its
profitability and maximize its operational efficiencies in order to remain competitive and
productive (Kusyk, 2021). Legal responsibilities of the firm is to ensure that the company’s
business activities are conducted based on the laws and regulations established by the
government (Kusyk, 2021). Ethical responsibilities of the firm are not legally written
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regulations but are socially acceptable behaviours, established by the societal norms and
traditions (Kusyk, 2021). It is therefore, essential for corporates to engage in ethical
behaviours to fulfil the need of stakeholders such as customers, investors, and employees
(Phillips, Schrempf-Stirling and Stutz, 2020). Philanthropic responsibilities are the
responsibilities that ensure that the company will contribute to the welfare of society by being
good corporate citizens and therefore, will use financial resources to support social causes
and charitable events (Ibrahim, 2021; Kusyk, 2021).
Figure 2.1: Carroll’s CSR Pyramid (Kusyk, 2021)
Aside from Carroll’s CSR Pyramid, a popular concept of CSR was also put forward by
Elkington, which was known as the Triple Bottom Line. This concept of CSR had three core
elements. These were: economic responsibility, social responsibility, and environmental
responsibility (Zhao et al., 2023). Based on these concepts, firms were responsible for
reaping economic benefits in the community where they operate, while protecting the
environment they operate and supporting charitable causes and protecting the interests of the
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community. This theory was responsible for introducing a new concept of CSR, which was
the environmental aspect (Teck, Ayadurai and Chua, 2019; Zhao et al., 2023). Corporations
were expected to be socially responsible but also were responsible to protect the environment.
Figure 2.2: CSR Triple Bottom (Zhao et al., 2023)
2.2.6 2000s till Present
The popularity of CSR as a concept gained significant attention and popularity in the 2000s
till present times. With increasing pressure coming from different stakeholders, firms had
been focusing on adopting CSR to enhanced their performance and productivity. CSR
adoption increased significantly because of the pressure coming from the stakeholders such
as government, non-governmental agencies, customers, employees, suppliers, vendors, and
shareholders (Latapí Agudelo, Jóhannsdóttir and Davídsdóttir, 2019). Furthermore, firms
were drastically compelled to take their CSR activities and adoption of the next level because
of the concerns regarding the impact of their activities on the environment. Research
demonstrates that at the start of the 21st century, 80% of the business firms in Europe
emphasized on CSR adoption as part of their business strategy to satisfy the needs and
requirements of the stakeholders. The increasing demand of CSR was also attributed to the
demand for publishing CSR reports or report the CSR findings in the annual reports during
this time period.
The European Commission Report (2002) defined CSR as a concept that where firms focus
on addressing the social needs and environment concerns of the society where they operate to
fulfill the needs and requirements of the stakeholders (Latapí Agudelo, Jóhannsdóttir and
Davídsdóttir, 2019).
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Time Line CSR Concept Development
1950s Businesses have social obligations towards the
community where they operated.
1960s CSR has both economical and legal requirements
1970s Development of CSR by Harold L. Johnson in 1971 and
Carroll’s Theory of CSR comprising of economic, legal,
ethical and philanthropic responsibilities
1980s CSR is viewed in the lens of profitability
1990s CSR is viewed in the lens of corporate governance;
CSR Pyramid is developed by Carroll (1990).
2000s-Present CSR is still a multidimensional concept. It is viewed in
the lens of multiple stakeholders
Table 2.1: CSR Conceptual Development Time Line (Self-Developed, 2023)
2.3 CSR Definitions

As mentioned previously, there is no standardized definition of CSR and it is frequently
viewed as a multidimensional concept. This section of the paper seeks to provide some of the
definitions of CSR that are available in literature. According to Du, Bhattacharya and Sen
(2010), CSR is the commitment of businesses to enhance the social welfare of the community
through “discretionary business activities and utilization of corporate resources” (p.8).
Velte (2022) define CSR as a strategy aligned with the triple bottom concept, which proposes
that the companies and businesses are responsible for protecting and maintaining the welfare
of the environment, while contributing towards society, and sustaining economic benefits.
Rodriguez-Gomez et al. (2020) proposed CSR is the part of business strategy of firms that
focuses on the fulfilment of social commitments, emphasis on stakeholders needs and
requirements, and reviewing the impact of business activities on the environment and
community.
Nguyen, Bensemann and Kelly (2018) described CSR as a term that focuses on the links and
associations of businesses with society. These associations allow firms to sustain competitive
edge, increase their profitability, and generate wealth, while at the same time, it also deals
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with social and environmental challenges such as climate change activities, greenhouse
emissions, global warming, environmental deterioration, and accessibility to food, water, and
housing.
Vishwanatha et al. (2020) defined CSR as the continuous commitment of businesses to

remain socially responsible, while sustaining competitive edge, and giving back to the
community where it operates.
Definitions of CSR in Literature

Researchers Definitions
The World Economic CSR is “To do business in a manner that obeys the law,
Forum (2009) produces safe and cost-effective products and services, creates
jobs and wealth, supports training and technology cooperation
and reflects international standards and values in areas such as
the environment, ethics, labour and human rights. To make
every effort to enhance the positive multipliers of our activities
and to minimize any negative impacts on people and the
environment, everywhere we invest and operate. A key element
of this is recognizing that the frameworks we adopt for being a
responsible business must move beyond philanthropy and be
integrated into core business strategy and practice”.
European Commission CSR is an important concept, which organizations use to
(2001) address the social concerns of the society as well as the
environmental concerns to ensure that their business activities
do not harm the community and where organizations continue
to interact with their stakeholders voluntarily.
European Commission CSR is the responsibilities of the organizations towards society
(2011) and they are responsible for “Respect for applicable legislation,
and for collective agreements between social partners, is a
prerequisite for meeting that responsibility”.
Kotler & Lee (2005) CSR is the practice of improving the community and
environment through transparent business practices and
contributing towards the community.
Porter and Kramer CSR includes both sustainable development and socially
(2011) responsible business practices that are responsible for creating
value for the shareholders of the organization.
Lee, Dong-Wook and CSR is the organizational duty of the businesses, corporations,
Jeong-Yang (2017) and firms to fulfil the demands of the community and the
environment.
Table 2.2: Definitions of CSR (Self-Developed, 2023)
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2.3 CSR Benefits
The synthesis of literature demonstrates that CSR has several benefits for both the firms and
society (Rodriguez-Gomez et al., 2020; Vishwanathan et al., 2020). These are discussed as
follows:
1. Improved Brand Image: According to Nave and Ferreira (2019), CSR is

responsible for enhancing the corporate image and reputation. Malik (2015) stated
that firms that act socially responsible successfully attract consumers, allowing them
to sustain competitive edge. A socially responsible firm is most likely to attract
investors. According to Barnette (2019), CSR enhances image of the firm and gives
the community a message that it is its friend. Many businesses focus on establishing
stronger corporate image, engage in CSR to attract customers and other relevant
stakeholders to remain on their good side.
2. Operational Costs Reduction: The synthesis of literature demonstrates that CSR is
beneficial in reducing operational costs. According to Barnett, Henriques and Husted
(2020), the use of waste management and environmental protection practices is
beneficial in reducing operational costs significantly. For instance, it is responsible for
reducing plastic products and packaging as well as designing optimum routes for
delivery vehicles, which help in reducing the impact of business activities on the
environment and the community (Rodriguez-Gomez et al., 2020).
3. CSR and Employer Branding: CSR activities allow businesses to attract new
employees and retain the old ones through their commitment and dedication to
become socially responsible organizations. According to Rangan, Chase and Karim
(2015), CSR adoption is beneficial in fortifying the employer branding and helps in
reducing the turnover rates, which can lead decreased costs pertaining to recruitment,
selection, and training. It is well documented in literature that employees evaluate
their firms based on their CSR adoption and performance, which helps in
determination of personal and organizational values (Tiba, van Rijnsoever and
Hekkert, 2019). Firms that engage in morally corrupt business practices are most
likely to ruin their employer brand and lose their employees to their competitors.
4. CSR and Profitability: CSR activities are responsible for increasing the profitability
of firms in the long term. According to Sprinkle and Maines (2010), firms that engage
are socially responsible are most likely to maintain higher profits as compared to
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firms that are not socially responsible. This is because CSR activities help firms in
building a strong corporate and brand image.
5. Enhanced Relations with Customers: According to Rangan, Chase and Karim
(2015), firms are most likely to retain higher profits because of customer.
Vishwanathan et al. (2020) reported that customers have a high propensity to support
businesses that are involved in CSR practices. Thus, this helps firms to generate
higher revenues through retaining old customers and attracting new customers.
6. Enhanced Relations with Shareholders: According to Vishwanathan et al., (2020),
firms that engage in CSR activities receive investment opportunities and receives
ample capital that can help them to grow. There is significant evidence in literature
that firms that have implemented a strong and robust CSR strategy attract the interest
of shareholders since such firms have higher revenues and profits (Tiba, van
Rijnsoever and Hekkert, 2019; Rangan, Chase and Karim, 2015). Investors and
shareholders are most likely to invest in companies with enhanced financial
performance. CSR is also responsible for improving stock prices of a firm and can
therefore, attract potential investors.
2.4 Customer Loyalty (CL)

Academics, researchers, and business professionals have acknowledged the significance of
customer loyalty (Godefroit-Winkel and Diop-Sall, 2022). Therefore, the concept has been
defined by several researchers over the last few decades as there is no consensus definition of
customer loyalty (Swaen, Demoulin and Pauwels-Delassus, 2021; Ali et al., 2021; Kadhim et
al., 2021). According to Cuesta‐Valiño, Rodríguez and Núñez‐Barriopedro (2019), customer
loyalty is described as the “customer’s dispositional attachment”. Customer loyalty is
defined as the extent of customer’s devotion towards the products or services of a specific
brand. It is also referred as the customer’s devotion to select the products of a preferred brand
over its competitors (Kadhim et al., 2021). According to (Ali et al. (2021), customers that are
loyal to a product, do not exhibit brand switching behaviour. Swaen, Demoulin and Pauwels-
Delassus (2021) reported that customer loyalty is positively associated with customer
satisfaction and therefore, customers that are happy with their preferred brands, are most
likely to buy from them. Slack, Singh, and Sharma (2020) attempted to define customer
loyalty as the combination of customer “attitude and behaviour” to show preference of one
brand over its competitors because of satisfaction. Vevere, Shina and Ganina (2022) reported
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that customer loyalty is the consistent shopping behaviour of the customers as they are highly
satisfied and content with the products or services of a brand they shop from. In another
definition presented by Nwankpa (2019), customer loyalty has been described as the
propensity of the customer to buy the goods or services of the company when competitive
alternatives are available in the market. Customer loyalty is dependent on positive
experiences of customers and therefore, returning customers are most likely to make repeated
purchases from their preferred brand.
Customer loyalty is a multidimensional construct, which comprises of attitudinal customer

loyalty and behavioural customer loyalty (Servera-Francés and Piqueras-Tomás, 2019).
Attitudinal loyalty refers to the attitude of the customer towards the brand that is deemed to
be positive, which is responsible for evoking the strong emotions in customers, evoking them
to remain committed to their preferred brand (Mujahid Hilal and Medis, 2020). Attitudinal
loyalty allow consumers to become resistant to situational barriers. Attitudinal loyalty also
increases through strong communication between the brand and the consumers. According to
Vevere, Shina and Ganina (2022), attitudinal loyalty is also driven by the ethical behaviour of
the company.
Behavioural loyalty is linked with the repeated purchase behaviour of the customer and the
sequence of purchase from a specific brand of their choice (Godefroit-Winkel and Diop-Sall,
2022). Because of strong behavioural intentions, customers are inclined to revisit the brand to
make repeated purchases. According to Cuesta‐Valiño, Rodríguez and Núñez‐Barriopedro
(2019), this repeated purchase behaviour is attributed towards a variety of factors such as
“emotional bonding, inertia, conditioning, and deal-chasing reasons”, which are responsible
for creating positive experiences for the customers. It is effective in driving the companies to
deliver the product based on consumer preferences and requirements, which in turn enables
them to gain competitive edge over their competitors (Ali et al., 2021; Kadhim et al., 2021).
Behavioural loyalty is measured by repeated purchase frequency, repurchase intention, and
situational factors.
Literature analysis has reported that customer loyalty comes from repeated purchase process,
which is converted into customer satisfaction, followed by customer trust, which finally
becomes customer loyalty(Slack, Singh, and Sharma, 2020). Both customer satisfaction and
customer retention have been identified as the primary attributes in relation to customer
loyalty (Nwankpa, 2019; Mujahid Hilal and Medis, 2020; Vevere, Shina and Ganina, 2022).
Customer satisfaction is highly dependent on two factors: perceived value and perceived
20
quality (Swaen, Demoulin and Pauwels-Delassus, 2021). On the other hand, customer
retention is dependent on the tangible and intangible product attributes, relationship with
customers, and credibility and reliability of the brand (Godefroit-Winkel and Diop-Sall,
2022) .
2.5 Customer Loyalty Constructs
The understanding of customer loyalty constructs is pivotal and substantially vital to

comprehend the concept of customer loyalty itself. Previous studies have reported that
customer loyalty constructs are based on both behavioural and attitudinal loyalty (Le, 2023;
Mamusung et al., 2019; Ghaffar Kadhim, 2022; Muflih, 2021; Raza et al., 2020). These
constructs are described and discussed as follows:
 Customer Satisfaction (CS): Customer satisfaction has been identified as an

essential and critical construct of customer loyalty. Customer satisfaction is described
as the complete experience of the customer with the brand in context to attitude or
emotions(Le, 2023). It is the feelings of emotions such as happiness or
disappointment, which stemmed out from drawing out comparisons of the product’s
performance against his or her own expectations. According to Khan, Yasir and Khan
(2021), customer satisfaction is a significant construct in the prediction of customer
loyalty. According to Akbari et al. (2020), customer satisfaction is used in the
prediction of customer loyalty through repeated purchase behaviour and word-of-
mouth referrals. Therefore, customer satisfaction is the positive or negative feelings
that can arise when the customer is happy or unhappy with the product. Therefore,
firms use customer satisfaction as a measure of customer loyalty to develop products
based on customer needs and requirements.
 Service Quality (SQ): The significance of service quality as a construct of customer
loyalty cannot be denied as it is vital for business survival and its ability to sustain
competitive advantage over its competitors (Mamusung et al., 2019). Ghaffar Kadhim
(2022) asserts that the service quality is the intangible commitment between the
service provider and the customer to fulfil their needs and requirements. Raza et al.,
(2020) reported that service quality in marketing as the actual performance versus
predicted performance through measuring customer satisfaction. According to Muflih
(2021), higher the service quality of a firm, the greater it would have the capability to
attract and retain customers. When the needs and requirements of customers are met
21
through high quality service, customers are most likely to spread a positive message
regarding the firm. Therefore, this can result in customers becoming loyal to service
provider.
 Brand Image (BI): The synthesis of literature demonstrates that brand image is also
identified as an important construct of customer loyalty. Marketing literature has
verified that it is an important construct in customer behaviour(Raza et al., 2020).
Previous studies have revealed that brand image is used as an essential indicator for
predicting customer purchase behaviour. Al-Ghamdi and Badawi (2019) reported that
brand image is the intangible asset of a firm, which cannot be replicated and
reproduced. Brand image are the values of the firm that it represents. Therefore,
corporate brand image is embodiment of the company(Aramburu and Pescador, 2019;
Liu et al., 2020) . A strong corporate image, therefore, helps firms to win the loyalty
of its customers.
 Customer Trust (CT): Customer trust is an important construct for customer loyalty
since it helps in retaining new customers (Ajina et al., 2019; Shabbir et al., 2018).
Customer began to trust brands when they considered to be reliable and trustworthy
with a commitment that is undisputable. Previous studies have confirmed that and
stressed on the emphasis of customer trust for customer loyalty since it is used for
maintaining stronger relationships between the brand and its customers (Lee, Kim and
Roh, 2019; Afridi et al., 2018).
2.6 The Link between CSR and Customer Loyalty
The synthesis of literature demonstrates that several studies have been conducted in
investigating the link between CSR and customer loyalty. Islam et at. (2021) have reported
that studies pertaining to CSR and customer loyalty have a gap in literature and therefore,
focused on investigating the relationship between CSR and customer loyalty in the telecom
industry. The results exhibited that CSR and customer loyalty have a positive and direct
relationship and constructs such as customer satisfaction, customer trust, and corporate
reputation act as mediators between the two variables. Similarly, Martínez and Del Bosque
(2013) research also reported the significance of CSR and customer loyalty with customer
trust, customer satisfaction, and customer identification as the mediators. Based on the
analysis of the results, it was revealed that CSR had a significant positive relationship with
customer loyalty with the identified constructs acting as mediators in this relationship.
22
In Osakwe and Yusuf (2021), the impact of CSR on customer loyalty wee investigated. Using
empirical investigation, data had been collected from 435 research participants that were
consumers of retail banks in Nigeria. Data was analyzed statistically and evidence from the
results indicated that CSR and customer loyalty had a positive relationship. Constructs such
as bank reputation and bank trust acted as mediators. The limitations of this study was that it
was conducted in Nigeria and therefore, the findings were limited to this area only. Another
limitation of the study was that further investigations were needed to verify the effects of
brand trust as a mediator on CSR and customer loyalty. The study did not use longitudinal
design and therefore, ability to track respondents was a challenge.
Latif, Pérez and Sahibzada (2020) study focused on investigation the role of CSR in
enhancing customer loyalty by using the following mediators: customer satisfaction,
corporate image, service quality, and corporate reputation in the hospitality sector. The
findings of the study revealed that the relationship between CSR and customer loyalty was
significant and positive. All of the four mediators exhibited mediating effects with customer
satisfaction and corporate image as significant mediators for both CSR and customer loyalty.
In Park and Kim (2020) study, a CL model based on CSR, service quality, customer trust, and
customer satisfaction were designed. Data was retrieved from South Korean mobile
telecommunication companies with a total of 910 participants. The findings demonstrated
that CSR encouraged consumers to become loyal to their existing telecommunication service
providers.
In a comprehensive investigation conducted by Agyei et al. (2022), the objective was to study
the role of CSR in influencing CL with customer engagement (CE) as a mediator. 348
participants from Ghanian insurance companies participated in the research. The findings of
the study demonstrated that CSR and CL had a positive and significant relationship and that
CE acted as partial mediator between the two variables. Godefroit-Winkel, Schill and Diop-
Sall (2022) study focused on investigating the relationship between environmental CSR of
supermarkets and CL. A total of 327 customers from France and 444 participants from
Morocco participated in the study. The findings exhibited environmental CSR had a positive
association with CL. Furthermore, this relationship was also dependent on the level of
environmentalism of the customers. Similarly, Vevere, Shina and Ganina (2022) research
investigated and studied the relationship between CSR and CL in the Latvian retail sector.
Based on the findings, it was reported that CSR played a vital role in influencing CL.
23
The following theoretical framework has been developed based on the literature review:
Figure 2.3: CSR and CL Theoretical Framework (Self-Developed, 2024)
The following hypotheses have been formulated:
H1: CSR positively influences customer trust
H2: CSR positively influences customer satisfaction
H3: CSR positively influences brand image
H4: CSR positively influences service quality
2.7 Conclusion
The aim of the literature review was to present the studies and concepts related to CSR and
CL. Based on the synthesis of literature, it is demonstrated that the definition of CSR is
multifaceted concept, which has changed with respect to time. CL also does not have any
standardized definitions. The synthesis of literature demonstrates that in recent times, the
relationship between CSR and CL has been studied extensively. This relationship is studied
and investigated under several constructs such as brand image, corporate reputation, service
quality, customer engagement, customer trust, and customer satisfaction. The vast majority of
these studies have selected three to four constructs. In this study, 4 constructs have been
selected based on the synthesis of literature. These are brand image, customer trust, customer
satisfaction, and service quality.
24
Chapter 3 Research Methodology
3.1 Introduction
The primary objective of this chapter is to provide the overview on the research methodology,
which has been adopted to collect the primary data. This chapter also provides an explanation
and description of research philosophy, research strategy, and research design adopted.
Finally, it focuses on presenting a concise overview on sampling techniques, questionnaire
administration and design, and data analysis techniques.
3.2 Research Approach

According to Ghauri, Grønhaug and Strange (2020), the selection of research approach is
dependent on the theory and the research. Broadly, there are two categories of research
approach that are used by researchers (Crowther and Lancaster, 2012). These are the
deductive research approach and the inductive research approach (Crowther and Lancaster,
2012; Kane, 2012). The deductive approach is the top-down approach that starts with the
accumulation and analysis of theories, followed by the formulation of hypotheses based on
them (Ghauri, Grønhaug and Strange, 2020). The deductive approach, as reported by
Crowther and Lancaster (2012), aims at testing existing theories. According to Blumberg,
Cooper and Schindler (2014), a deductive research approach is scientific and objective in
nature, and seeks to identify patterns through hypotheses testing of existing theories.
Hypotheses
Hypotheses Data Data
Theory Acception or
Formulation Collection Analysis
Rejection
Figure-3.1 : Deductive Approach to Research (Self-Developed, 2023)
In contrast, the inductive approach, is bottom to top approach, which initiates with the
commencement of measurements and observations that the research acknowledges, which
leads to theory and ends with the development of generalizations and conclusions. According
to Blumberg, Cooper and Schindler (2014), the inductive approach starts from the
25
identification of patterns and ends with the verification of the theories. According to Sekaran
and Bougie (2016), inductive research approach focuses on the development of theories. This
approach is generally adopted by researchers when the existing theory related to the research
topic is not available.
Pattern Conclusions
Observations
Identification
Figure-3.2: Inductive Approach to Research (Self-Developed, 2023)
Because of the scientific and objective nature of this study, the deductive approach of
research will be used to test and evaluate the hypotheses formulated for CSR and CL.
3.3 Research Design

The research design is explained “as the preparing of conditions for the collection and
analysis of the data in such a manner that it combines the research purpose and the research
procedure” (Crowther and Lancaster, 2012). In simple terms, it is the arrangement of the
research project by which the researcher successfully plans and executes the research process.
According to Blumberg, Cooper and Schindler (2014), research designs are ways and
strategies for conducting the research, which start from research philosophy adoption to data
collection methods and data analysis techniques. Sekaran and Bougie (2016) reported that
research design can be categorized in three categories: exploratory research, explanatory
research, and descriptive research.
Descriptive research is considered to be the research that is the one that is responsible for
accurately and precisely describing the population or event under investigation (Crowther and
Lancaster, 2012). It seeks to answer the questions of when, how, where, and what but does
not give answer to why questions. In contrast, explanatory research focuses on exploring why
a phenomenon occurs when the information or theory related to it is limited (Crowther and
Lancaster, 2012). According to Kane (2012), explanatory research is beneficial in
understanding the research topic on basis of why or how it occurs. Sekaran and Bougie
(2016) reported that explanatory research is the “cause and effect” model, which helps in
understanding the trends of the data that hasn’t been investigated and assessed previously.
26
Exploratory research focuses on the investigation of a research problem that is ambiguous
and vague in nature (Christensen et al., 2011). It is used to understand the research problem
under investigation but does not offer outcomes that are conclusive. Exploratory research
starts with generalizations, which are used to identify the research gaps, which helps in the
research direction (Walliman, 2021). Explanatory research is used to identify the research
problem during the preliminary stage of the research process and is qualitative in nature.
This study is descriptive and explanatory in nature as it seeks to investigate the impact of
CSR on CL, using constructs such as BI, SQ, CT, and CS. Based on the previous literature,
these constructs are known to act as mediators. Therefore, this study will be such an
approach to understand the relationship between the two variables.
3.4 Research Method

Research method is described as the use of procedures for data collection and analysis. Based
on the synthesis of professional literature, there are three core categories of research methods
(Greener, 2008; Adams, Khan and Raeside, 2014; Cameron and Price, 2009; Weathington,
Cunningham and Pittenger, 2012). These are qualitative research methods, quantitative
research methods and mixed research methods. Qualitative research methods are subjective
inquiries that focuses on collection of non-numerical data, which cannot be analysed
statistically (Greener, 2008). On the other hand, quantitative research methods focuses on
numerical data, which is expressed in quantities and can be analysed by mathematical and
statistical methods (Greener, 2008). Qualitative research is subjective in nature, whereas
quantitative research is scientific and objective in its approach (Cameron and Price, 2009).
Qualitative research focuses on collecting data that is represented by verbal and written
words, texts, documents, photos, and videos (Adams, Khan and Raeside, 2014). Quantitative
data is expressed in numbers. Qualitative data is analysed using content analysis, narrative
analysis, thematic analysis, and discourse analysis. Quantitative research methods include
mathematical and statistical analysis procedures (Weathington, Cunningham and Pittenger,
2012).
Mixed research methods focuses on collecting both quantitative and qualitative research
methods to explore the research problem and understand it comprehensively through finding
answers of the research questions (Weathington, Cunningham and Pittenger, 2012). The
fundamental basis of adopting mixed methods of research is to take advantage of strengths of
both qualitative and quantitative research methods, which enhances the reliability and
27
integrity of the findings by comparing quantitative and qualitative research findings (Greener,
2008).
For this research, quantitative research methodology had been adopted since it concentrated
on finding the influence of CSR on CL and CS with the UK’s supermarket industry as a case
study. As the deductive research approach had been adopted, quantitative research was
considered to be appropriate for it. Furthermore, the researcher adopted an objective and
scientific approach towards data collection and therefore, a descriptive and explanatory
research approach had been adopted. Therefore, collecting numerical data was considered to
be appropriate and therefore, the quantitative research methodology was the appropriate
research method for this research.
3.5 Area of Research

The area of research in this study was England. The study was restricted to this region where
all of the majority British supermarkets such as Tesco, Sainsbury, Asda, and Morrisons
operate. This region is also considered to be the primary contributor of the British economy
with leading industries such as the software, aerospace, textiles, and chemical industries.
London Stock Exchange is located in London, is considered to be the largest stock exchange
in Europe. This research area was also selected as it was conveniently accessible to the
researcher. Furthermore, this area was selected because of lack of time and funds to collect
the data from other regions.
3.6 Target Population

A population is the sum of “group of units”, which have common attributes and traits and are
appealing to the study (Greener, 2008). For this research, the target population were the
British consumers of the supermarket industry, living in England, and were both male and
female.
3.7 Sampling
Sampling is described as the procedure that emphasizes on the selection of units from the
entire population to study and investigate the research phenomenon, which can be subjected
to generalization based on the findings (Adams, Khan and Raeside, 2014; Weathington,
Cunningham and Pittenger, 2012). According to Cameron and Price (2009), sampling is
considered to be the selection of smaller units from larger units. For this research, simple
28
random sampling technique had been incorporated that is a type of probability sampling
technique. For this research, the targeted population were the customers of the British super
market industry. Therefore, a total of 100 customers of the supermarket industry were
selected by the researcher with 5% percentage error and 95% confidence levels. The
researcher had sent the survey to 100 customers online.
3.8 Questionnaire Administration

The questionnaire had been designed using the research aim and objectives and the literature
review. It was a structured questionnaire, with close ended questions. The questionnaire
collected demographic data, perception on CSR and CL, and had statements that the
customers could rate using the Likert type scale, ranging from 1 to 5. 1 represented strongly
disagree and 5 represented strongly agree. A total of five variables were used. CSR was the
dependent variable, whereas customer satisfaction, customer trust, brand image, and service
quality were assumed to be independent variables. The online questionnaire had been
administered on MS Forms, which was shared online through the use of social media
networking sites such as Facebook and Instagram. At the start of the survey, the researcher
had explained the purpose and aim of the study. The researcher also explained to the research
participants that their participation in the research was voluntary. The researcher had sent 180
questionnaires to 180 research participants. A total of 145 responses were complete, whereas
the remaining 12 incomplete responses were discarded. The final sample size comprised of
145 research participants.
3.9 Data Analysis

As soon as the data had been collected from the questionnaire, it was analysed statistically
using SPSS software. Statistical tests that were used by the researcher included descriptive
statistics, Pearson correlations, and regression analysis.
3.10 Ethical Considerations

Ethical considerations are pivotal for research as they concentrate on ensuring that the
research practices adopted are based on ethics and have not harmed the participants and
society. The ethics committee form had been filled by the researcher and submitted for
approval. The research is compliant to the University’s Ethics Committee standards, and data
29
protection laws. Minors did not participate in the research as only legal adults who were 18
and above were considered. Participants’ participation was not mandatory.
30
Chapter 4 Results and Discussion
4.1 Demographic Profile

The demographic profile of the respondents is tabulated in Table 4.1 As shown in the Table,
the majority of the respondents were males. They represented 56.5% of the sample. 43.5% of
the respondents were females.
In terms of occupation, 23.7% of the respondents selected others and were the majority of the
sample in terms of representation. 22.8% of the respondents were self-employed. 14.3% of
the respondents were students, 21.8% of the respondents were unemployed, and 17.4% of the
respondents were retired.
In terms of the age of the respondents, the majority of them were between the ages 18 to 30.
They made up 39.6% of the sample. 26.3% of the respondents were between the ages 31 to
40. 18.2% of the respondents were between the ages 41 to 50. 14.3% of the respondents were
between the ages 51 to 60. Only 1.6% of the respondents were above the age of 60.
The majority of the respondents had a master’s degree, making 35.5% of the sample. 15.9%
of the respondents were high school students. 8.6% of the respondents had a diploma. 26.2%
of the respondent had a bachelor’s degree. 13.8% of the respondents had a doctorate degree.
In terms of marital status, the majority of the respondents were single. They made 34.% of
the sample. 16.7% of the respondents were married, 19.7% of the respondents were divorced,
9.9% of the respondents identified themselves as widowed, and 19.5% of the respondents
identified themselves as others.
Demographic Profile of The Respondents

Percent
Gender Male 56.5%
Female 43.5%
Occupation Self-Employed 22.8%
Student 14.3%
Unemployed 21.8%
Retired 17.4%
House Wife 0%
31
Others 23.7%
Age 18-30 39.6%
31-40 26.3%
41-50 18.2%
51-60 14.3%
above 60 1.6%
Education Highschool Student 15.9%
Diploma 8.6%
Bachelor’s Degree 26.2%
Master’s Degree 35.5%
Doctorate Degree 13.8%
Marital Status Single 34.5%
Married 16.7%
Divorced 19.7%
Widowed 9.9%
Others 19.5%
Table 4.1: Demographic Profile of Survey Respondents
4.2 CSR and Customer Loyalty
When the research respondents were asked the question “Are you Familiar with CSR?”,
67.8% of them were familiar with the term. This shows that the research respondents had
some knowledge of CSR. Only 32.2% of the research respondents were not familiar with the
term.
32
Are you familiar with CSR?
32.20%
67.80%
Yes No
Figure 4.1: Are you Familiar with CSR? (Self-Developed, 2023)
The research respondents were also asked the following question “Do you think CSR is
important for the supermarket industry of UK?”. For this question, 64.9% of the
respondents asserted yes, which shows that consumers believe that CSR is important for the
supermarket industry. 35.1% of the respondents replied with a no.
Do you think CSR is important for the su-

permarket industry of UK?
35.10%
64.90%
Yes No
Figure 4.2: Do you think CSR is important for the supermarket industry of UK? (Self
Developed, 2023)
33
When respondents were asked “Do you think Customer Loyalty is important for CSR in
the supermarket industry of UK ?”, the majority of the respondents replied that customer
loyalty was important for CSR in the UK’s supermarket industry. They made 59.4% of the
sample. Only 40.6% of the respondents replied no.
Do you think Customer Loyalty is important for

CSR in the supermarket industry of UK ?
40.60%
59.40%
Yes No
Figure 4.3: Do you think Customer Loyalty is important for CSR in the supermarket
industry of UK ? (Self-Developed, 2023)
4.3 CSR
The responses of the CSR statements are summarized in Table 4.2.
For the statement “The supermarket retailer I use is concerned with the society”, 33.6% of the
respondents agreed with it. 20.81% of them strongly disagreed with it. 17.55% of them
disagreed with it. 15.1% of them strongly agreed with it. 13.06% of the respondents were
neutral.
For the second statement “The supermarket retailer I use is concerned with the environment”,
38.36% of the respondents strongly agreed with it. 27.34% of them strongly disagreed with it.
17.14% of them agreed with it. 9.79% of them were neutral. 7.34% of them disagreed with it.
For the third statement “The supermarket retailer I use is concerned with philanthropy and
makes charitable donations”, 35.51% of the respondents strongly agreed with it. 26.53% of
them agreed with it. 23.67% of them strongly disagreed with it. 11.02% disagreed with it.
3.26% of them were neutral. .
34
The statement “The supermarket retailer I use produces sustainable products” was also rated.
The percentage of the respondents that agreed with the statement was 25.71%, whereas the
majority of the participants agreed with and were 42.04% of the sample. 3.67% of the
responses were neutral. 19.49% of the responses strongly disagreed. 8.97% of the responses
disagreed.
For the statement “The supermarket retailer I use cares about the customers”, the majority of
the respondents agreed with the statement, making 38.77% of the sample. 31.83% of them
strongly agreed with it, 12.65% of them were neutral, 8.57% of them disagreed, and 8.16% of
them strongly disagreed with it.
Respondents rated the following “The supermarket retailer I use cares about the employees”,
the vast majority of the respondents agreed with the statement, representing 28.97% of the
sample. 17.55% of them agreed with it. 15.92% of them were neutral. 20.4% of the sample
disagreed, whereas the remaining 17.14% strongly disagreed with it.
“The supermarket retailer I use discloses its CSR activities to the public” statement was also
rated by the respondents. The majority of the respondents strongly disagreed with the
statement, represent 28.5% of the sample.13.46% of the respondents strongly agreed with it.
27.3% of them agreed with it. 21.63% of them were neutral and 8.97% of them disagreed
with it.
Statements Strongly Agree Neutral Disagre Strongly

Agree e Disagree
Percent Percent Percent Percent Percent
The supermarket retailer I use is concerned 15.10 33.6 13.06 17.55 20.81
with the society
with the environment
with philanthropy and makes charitable
donations
The supermarket retailer I use produces 25.71 42.04 3.67 8.97 19.49
sustainable products
The supermarket retailer I use cares about 31.83 38.77 12.65 8.57 8.16
the customers
The supermarket retailer I use cares about 17.55 28.97 15.92 20.40 17.14
the employees
The supermarket retailer I use discloses its 13.46 27.3 21.63 8.97 28.5
CSR activities to the public
Table 4.2: CSR Statements (Self-Developed, 2023)
35
4.4 Customer Trust
Different statements for customer trust were rated by the respondents. For the statement “The
supermarket retailer I use is credible”, 25.36% of the respondents agreed with it. 20% of them
strongly agreed. 13.87 of them were neutral. 17.55% of them disagreed. 23.22% of them
strongly disagreed.
For the statement “The supermarket retailer I use honest and reliable”, 29.3% of the
respondents agreed with it. 26.53% of them strongly disagreed. 7.75% of them were neutral.
15.91% of them disagreed. 20.51% of them strongly disagreed.
For the statement “The supermarket retailer I use is predictable”, 30.61% of the respondents
strongly agreed with it. 18.77% of them agreed with it. 14.6% of them were neutral. 15.1% of
them disagreed, 20.92% of them strongly disagreed.
For the statement, “The supermarket retailer I use has staff that is honest with me”, 46.12%
of the respondents strongly agreed. 15.91% agreed. 1.64% of them were neutral. 17.55% of
them disagreed. 18.78% of them strongly disagreed.
For the statement “The supermarket retailer I use always keeps its promises”, 41.22% of the
respondents agreed with it. 21.63% of them strongly agreed. 9.8% of them were neutral.

Agree e Disagree
The supermarket retailer I use is 20 25.36 13.87 17.55 23.22
credible
The supermarket retailer I use 26.53 29.3 7.75 15.91 20.51
honest and reliable
The supermarket retailer I use is 30.61 18.77 14.6 15.1 20.92
predictable
has staff that is honest with me
always keeps its promises
Table 4.3: Customer Trust (Self-Developed, 2023)
36
4.5 Service Quality
For the statement “The supermarket retailer I use fulfill all of my needs”, 38.77% of the
respondents with it. 25.3% of them strongly agreed. 11.42% of them very neutral. 8.5% of
For the statement “ The supermarket retailer I use is swift and fast”, the respondents rated it.
22% of them agreed with it. 31.02% of them strongly agreed. 9.4% of them very neutral.
For the statement “The supermarket retailer I use offers high quality products”, 28.97% of
them agreed with it. 23.67% of them strongly agreed. 4.5% of them very neutral. 22.44% of
For the statement “The supermarket retailer I use has knowledgeable and experienced
employees”, 25.6% of them agreed with it. 37.34% of them strongly agreed. 11.86% of them
very neutral. 22.78% of them disagreed. 2.42% of them strongly disagreed.
For the statement “The supermarket retailer I use has employees that work with dedication
and professionalism”, 31.42% of them agreed with it. 39.59% of them strongly agreed. 3.26%
of them very neutral. 13.46% of them disagreed. 12.27% of them strongly disagreed.

Agree e Disagree
fulfill all of my needs
swift and fast
offers high quality products
has knowledgeable and
experienced employees
has employees that work with
dedication and professionalism
Table 4.4: Service Quality (Self-Developed, 2023)
37
4.6 Brand Image
For the statement “The supermarket retailer I use has a strong brand image in front of its
customers”, 22.85% of them agreed with it. 41.63% of them strongly agreed. 2.5% of them
For the statement “The supermarket retailer I use has a better brand image than its
competitors”, 13.87% of them agreed with it. 35.92% of them strongly agreed. 4.9% of them
For the statement “I always had a good impression of the supermarket retailer I use”, 38.36%
of them agreed with it. 29.8% of them strongly agreed. 10.2% of them very neutral. 5.3% of
For the statement “The supermarket retailer I use is compatible with my personality”, 32.2%
of them agreed with it. 46.53% of them strongly agreed. 2.04% of them very neutral. 7.75%
of them disagreed. 11.48% of them strongly disagreed.
For the statement “The supermarket retailer I use matches my status quo and style”, 26.82%
of them agreed with it. 32.5% of them strongly agreed. 9.2% of them very neutral. 22.5% of

Agree e Disagree
has a strong brand image in front
of its customers
has a better brand image than its
competitors
I always had a good impression of 29.8 38.36 10.2 5.3 16.32
the supermarket retailer I use
compatible with my personality
matches my status quo and style
Table 4.5:Brand Image (Self-Developed, 2023)
4.7 Customer Satisfaction

For the statement “The supermarket retailer I use has a strong brand image in front of its
customers”, 29.56% of them agreed with it. 32.32% of them strongly agreed. 4.95% of them
38
Respondents were asked to rate the following statement “The supermarket retailer I use has a
better brand image than its competitors”, 26.16% of them agreed with it. 24.53% of them
strongly agreed. 8.45% of them very neutral. 29.13% of them disagreed. 11.73% of them
strongly disagreed.
Respondents were asked to rate the following statement “I always had a good impression of
the supermarket retailer I use”, 35.43% of them agreed with it. 19.78% of them strongly
agreed. 11.42% of them very neutral. 13.24% of them disagreed. 20.13% of them strongly
disagreed.
Respondents were asked to rate the following statement “The supermarket retailer I use is
compatible with my personality”, 28.93% of them agreed with it. 23.23% of them strongly
agreed. 6.54% of them very neutral. 11.95% of them disagreed. 28.35% of them strongly
disagreed.

Agree e Disagree
has a strong brand image in front
of its customers
has a better brand image than its
competitors
I always had a good impression of 19.78 35.43 11.42 13.24 20.13
the supermarket retailer I use
compatible with my personality
Table 4.6: Customer Satisfaction (Self-Developed, 2023
4.8 Pearson’s Correlations

The correlations analysis for CSR and customer trust are summarized in Table 4.7. The
relationship between CSR and customer trust is positive and significant. The value of
correlation coefficient is 0.491.
Correlations CSR Customer Trust

Customer Trust Pearson 1 .491**
Correlation
Sig. (2 tail) .000
39
N 145 145
CSR Pearson .491** 1
Correlation
Sig. (2 tail) .000

N 145 145
Table 4.7: Pearson Correlation between CSR and Customer Trust(Self-Developed, 2023)
The correlations analysis for CSR and service quality are summarized in Table 4.8. The
relationship between CSR and service quality is positive and significant. The value of
Correlations CSR Service Quality

Service Quality Pearson 1 .564**
Correlation
Sig. (2 tail) .000

N 145 145
Correlation
Sig. (2 tail) .000

N 145 145
Table 4.8: Pearson Correlation between CSR and Service Quality (Self-Developed,
2023)
The correlations analysis for CSR and customer trust are summarized in Table 4.9. The
relationship between CSR and brand image is positive and significant. The value of
Correlations CSR Brand Image

Brand Image Pearson 1 .593**
Correlation
Sig. (2 tail) .000

N 145 145
Correlation
40
Sig. (2 tail) .000
N 145 145
Table 4.9: Pearson Correlation between CSR and Brand Image (Self-Developed, 2023)
The correlations analysis for CSR and customer satisfaction are summarized in Table 4.10.
The relationship between CSR and customer satisfaction is positive and significant. The value
of correlation coefficient is 0.576.
Correlations CSR Customer

Satisfaction
Customer Pearson 1 .576**
Satisfaction Correlation
Sig. (2 tail) .000

N 145 145
Correlation
Sig. (2 tail) .000

N 145 145
Table 4.10: Pearson Correlation between CSR and Customer Satisfaction (Self-
Developed, 2023)
4.9 Hypotheses Validation

The following hypotheses had been formulated and validated based on the findings
H1: CSR positively influences customer trust
This hypothesis is validated as the relationship between CSR and customer trust is positive
and significant.
H2: CSR positively influences customer satisfaction
This hypothesis is validated as the relationship between CSR and customer satisfaction is
positive and significant.
H3: CSR positively influences brand image
41
This hypothesis is validated as the relationship between CSR and brand is positive and
significant.
H4: CSR positively influences service quality
This hypothesis is validated as the relationship between CSR and service quality is positive
and significant.
4.10 Discussion
The results of this study revealed that the consumers of the British supermarket industry were
familiar with the term CSR. Furthermore, they were aware that CSR is important for the
supermarket industry of the UK. They were also aware that customer loyalty was an
important variable for CSR in the supermarket industry. These findings are consistent with
the findings in the literature. In this study, the four constructs of customer loyalty were used.
These were: brand awareness, service quality, customer trust, and customer satisfaction.
The first construct used to formulate the first hypothesis was customer loyalty. It helps in
retaining new customers (Ajina et al., 2019; Shabbir et al., 2018). Studies have reported that
customers have an inclination to trust brands that they deemed to be trustworthy with
undisputable commitment. Lee, Kim and Roh, 2019 and Afridi et al. (2018) have reported
that customer trust for customer loyalty is used for maintaining stronger relationships
between the brand and its customers. Therefore, it was proposed that CSR has a positive
relationship with customer trust. The findings of this research demonstrated that CSR and
customer trust have a positive and significant relationship.
According to Le (2023), customer satisfaction is an essential construct of customer loyalty. it

is the complete experience of the customer with the brand in context to attitude or
emotions(Le, 2023). Akbari et al. (2020) has reported that customer satisfaction is used in the
prediction of customer loyalty through repeated purchase behaviour and word-of-mouth
referrals. Therefore, hypothesis 2 was formed which proposed that the relationship between
CSR and customer satisfaction was positive. The research’s findings verified that the
relationship between the two variables was positive and significant. This has been confirmed
by previous studies.
Previous studies have identified brand image as an important construct of customer loyalty as
it is used as a predictor of customer purchase behaviour. Al-Ghamdi and Badawi (2019)
reported that brand image is the intangible asset of a firm, which cannot be replicated and
42
reproduced. Brand image are the values of the firm that it represents. A strong corporate
image, therefore, helps firms to win the loyalty of its customers. Therefore, the third construct
was used to formulate the third hypothesis. Based on the findings, it was reported that the
relationship between CSR and brand image was determined to be positive and significant.
The fourth construct of customer loyalty that was used was service quality. Ghaffar Kadhim
(2022) asserts that the service quality is the intangible commitment between the service
provider and the customer to fulfil their needs and requirements. Raza et al., (2020) reported
that service quality in marketing as the actual performance versus predicted performance
through measuring customer satisfaction. According to Muflih (2021), higher the service
quality of a firm, the greater it would have the capability to attract and retain customers.
When the needs and requirements of customers are met through high quality service,
customers are most likely to spread a positive message regarding the firm. The relationship
between CSR and service quality was found to be significant and positive.
43
Chapter 5 Summary, Conclusions, and Recommendations
5.1 Introduction
The goal of the current chapter of this research is to present the summary, conclusions and
recommendations based on its results and research aim. The summary of the research has
been presented along with the concluding remarks related to the study, which are based on its
results. Furthermore, recommendations are made based on the previous chapter to give
directions for future studies.
5.2 Summary and Conclusions

The purpose of this research was to investigate the impact of CSR on customer loyalty in the
UK’s supermarket industry. The research objectives emphasized on investigating the effects
of CSR on customer loyalty through CSR constructs such as customer trust, customer
satisfaction, brand image, and service quality using the supermarket industry of UK as the
case study. For this purpose, the concept of CSR along with its definitions and theoretical
underpinnings were comprehensively and extensively discussed in literature. The concept of
CSR was also discussed from historical perspective till contemporary times.
Similarly, the concept of customer loyalty was also discussed using broad range of academic
resources. Customer loyalty construct identified in literature were also discussed fully in this
research paper. The constructs that were identified and used included customer trust,
customer satisfaction, service quality, and brand image. This was essential to understand the
concept of customer loyalty. Furthermore, the detailed and comprehensive literature review
on enabled the researcher to fully dissect the relevant concepts of CSR and customer loyalty
effectively.
To collect the primary data, an online questionnaire had been designed that was administered
using MS Forms. The key questions were related to CSR and customer loyalty constructs.
The questionnaire collected demographic data of the respondents and contained questions
related to CSR and customer loyalty. The questionnaire also comprised of different
statements for different variables such as CSR, customer trust, customer satisfaction, service
quality, and brand image. Respondents were able to rate these variables through a Likert type
scale.
The results of the study found out that consumers were aware of CSR as a concept. They
were also aware of CSR in the supermarket industry and deemed it to be important for the
44
sector. Additionally, the majority of the respondents were aware that CSR was important for
customer loyalty in the supermarket industry. The results of the study also indicated that CSR
had a positive and significant relationship with customer loyalty constructs. This
demonstrated that CSR is essentially significant for customer loyalty.
In conclusion, it can be concluded that CSR is essential for customer loyalty in the
supermarket industry. It is the primary strategy that can help supermarket retailers in United
Kingdom to retain their existing clientele, while attracting new clients through their CSR
activities. It is necessary for supermarket retailers to align their CSR initiatives with their
customer loyalty programs so that they can effectively sustain competitive advantage, while
fulfilling the needs and requirements of the stakeholders and the community. As consumers
are increasingly becoming conscious of the negative effects of businesses on the
environment, it is essential for firms to effectively adopt CSR as a part of their business
strategy. Furthermore, CSR is responsible
for enhancing customer trust, customer satisfaction, service quality, and brand image, which
can help supermarket retailers to remain competitive.
5.3 Recommendations
 The concept of CSR remains multidimensional and complex. Based on theoretical
perspective, this study contributes towards the existing literature pertaining to CSR in
relation to the customer loyalty using a variety of CL constructs such as brand image,
customer trust, customer satisfaction, and service quality. In the future, it is
recommended that concept of CL is explored with the dimensions of CSR.
 This research focused on exploring the impact of CSR on CL using the supermarket
industry of UK as a case study. It is recommended that in the future, studies focus on
studying these two variables in similar geographic locations and different industries.
 While this study focused on investigating the perspective of CSR and CL using the
supermarket industry as the case study, it did not focus on a specific company. Future
studies should focus more on adopting a case study approach to understand the role of
CSR initiatives in CL.
45
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55
Appendix A: Questionnaire
The aim of this research is to investigate the relationship between CSR and customer
loyalty. This questionnaire has been designed to gain your opinion and perception on
CSR and customer loyalty. Your participation is voluntary.
Please select the response that best describe you
1. Gender
□ Male □ Female
2. Age
□ 18-30 □ 31-40 □ 41-50 □ 51-60 □ above 60

3. Education Level
□ High School Student □ Diploma □ Bachelor’s Degree □ Master’s Degree □ Doctorate

Degree
4. Marital Status
□ Single □ Married □ Divorced □ Widowed □ Others
5. Occupation
□ Self-Employed □ Student □ Unemployed □ Retired □ House Wife □ Others
6. Are you familiar with CSR?
□ Yes □ No
7. Do you think CSR is important for the supermarket industry of UK?
□ Yes □ No
8. Do you think Customer Loyalty is important for CSR in the supermarket industry of
UK ?
□ Yes □ No
Please rate the following items from 1 to 5, which best describes you. 1 represents
Strongly Agree, 3 represents Neutral, and 5 represents Strongly Disagree.
Variables Statements Rating

1 2 3 4 5
CSR The supermarket retailer I use is concerned
with the society
The supermarket retailer I use is concerned
with the environment
56
The supermarket retailer I use is concerned
with philanthropy and makes charitable
donations
The supermarket retailer I use produces
sustainable products
The supermarket retailer I use cares about
the customers
The supermarket retailer I use cares about
the employees
The supermarket retailer I use discloses its
CSR activities to the public
Customer The supermarket retailer I use is credible
Trust
The supermarket retailer I use honest and
reliable
The supermarket retailer I use is predictable
The supermarket retailer I use has staff that
is honest with me
The supermarket retailer I use always keeps
its promises
Service The supermarket retailer I use fulfill all of
Quality my needs
The supermarket retailer I use is swift and
fast
The supermarket retailer I use offers high
quality products
The supermarket retailer I use has
knowledgeable and experienced employees
The supermarket retailer I use has
employees that work with dedication and
professionalism
Brand Image The supermarket retailer I use has a strong
brand image in front of its customers
The supermarket retailer I use has a better
brand image than its competitors
I always had a good impression of the
supermarket retailer I use
The supermarket retailer I use is compatible
with my personality
The supermarket retailer I use matches my
status quo and style
Customer I am satisfied with the supermarket retailer
Satisfaction I use has
My choice of using the supermarket retailer
was a wise one
I would return to the supermarket retailer I
use again
I am happy with my decision of using the
supermarket retailer.
57
58

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Impact of Corporate Social Responsibility on Customer Loyalty and Satisfaction in the

Chapter One- Introduction.........................................................................................................6

1.1 Background of Research..................................................................................................6

1.2 Statement of Problem.......................................................................................................7

1.3 Research Question............................................................................................................7

1.4 Research Aim and Objectives..........................................................................................8

1.5 Scope of Study.................................................................................................................8

1.6 Relevance of Study..........................................................................................................8

1.7 Outline of the Study.........................................................................................................8

Chapter 2 Literature Review....................................................................................................10

2.2 Historical and Conceptual Background of CSR.............................................................10

2.2.1 The 1950s................................................................................................................10

2.2.2 The 1960s................................................................................................................10

2.2.3 The 1970s................................................................................................................11

2.2.4 The 1980s................................................................................................................12

2.2.5 The 1990s................................................................................................................13

2.2.6 2000s till Present.....................................................................................................15

2.3 CSR Definitions.............................................................................................................16

2.3 CSR Benefits..................................................................................................................18

2.4 Customer Loyalty (CL)..................................................................................................19

2.5 Customer Loyalty Constructs.........................................................................................21

2.6 The Link between CSR and Customer Loyalty.............................................................22

Chapter 3 Research Methodology............................................................................................25

3.2 Research Approach.........................................................................................................25

3.3 Research Design.............................................................................................................26

3.4 Research Method............................................................................................................27

3.5 Area of Research............................................................................................................28

3.6 Target Population...........................................................................................................28

3.8 Questionnaire Administration........................................................................................29

3.9 Data Analysis.................................................................................................................29

3.10 Ethical Considerations.................................................................................................29

Chapter 4 Results and Discussion............................................................................................31

4.1 Demographic Profile......................................................................................................31

4.2 CSR and Customer Loyalty...........................................................................................32

4.4 Customer Trust...............................................................................................................36

4.5 Service Quality...............................................................................................................37

4.6 Brand Image...................................................................................................................38

4.7 Customer Satisfaction....................................................................................................38

4.8 Pearson’s Correlations....................................................................................................39

4.9 Hypotheses Validation....................................................................................................41

Chapter 5 Summary, Conclusions, and Recommendations......................................................44

5.2 Summary and Conclusions.............................................................................................44

CL- Customer Loyalty

SQ- Service Quality

CS- Customer Satisfaction

BI- Brand Image

CT- Customer Trust

CE- Customer Engagement

UK- United Kingdom

1.1 Background of Research

1.2 Statement of Problem

1.3 Research Question

1. To identify different CSR initiatives by companies within the UK supermarket

1.5 Scope of Study

1.6 Relevance of Study

1.7 Outline of the Study

2.2 Historical and Conceptual Background of CSR

2.2.1 The 1950s

2.2.2 The 1960s