Impact of Corporate Social Responsibility on Customer Trust and Customer Loyalty in Commercial Banks of Butwal Sub-Metropolitan City
Yasodha Upadhaya*
MBS-F Scholar, Lumbini Banijya Campus, Butwal, Nepal
Dr. Bhagwati Pd Chaudhary
Assistant Professor, Lumbini Banijya Campus, Butwal, Nepal
*Corresponding author
Abstract
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Abstract
The primary objective of this study is to examine the relationship between the key dimensions of
Corporate Social Responsibility (CSR) namely, Customer Factor, Shareholders and Supervisory
Board Factor, Employees Factor, and Society Factor and their influence on Customer Trust and
Customer Loyalty in commercial banks. This study further aims to identify which CSR dimension
has the most significant impact on building and sustaining trust and loyalty among bank
customers. The study utilized an explanatory research design. Respondents were selected using
the Cochran formula for an unknown population size, and data was collected via a structured
questionnaire using convenience sampling. The responses were gathered from customers of
various commercial banks. Analytical techniques such as descriptive statistics, correlation
analysis, and multiple regression analysis were applied to identify relationships between CSR
dimensions and customer trust and loyalty. The results revealed that Customer Factor and Society
Factor are the most influential CSR dimensions affecting Customer Trust and Customer Loyalty
in commercial banks. These findings suggest that socially responsive actions and customer focused practices play a key role in shaping positive customer perceptions. Banks that prioritize
their societal responsibilities and customer welfare are more likely to gain trust and loyalty.
Strategic investment in these CSR areas is crucial for sustainable customer relationships.
Keywords: Corporate Social Responsibility, Customer Trust, Customer Loyalty, Commercial
Banks, Society Factor.