An Analysis of Corporate Social Responsibility (CSR) on Stakeholders Loyalty: Perceptions of Malaysian Organizations

Authors

  • Salmi Mohd Isa, PhD (Hull, UK) Graduate School of Business Universiti Sains Malaysia

DOI:

https://doi.org/10.18533/ijbsr.v2i7.115

Keywords:

Corporate Social Responsibility (CSR), stakeholder satisfaction, stakeholder loyalty, Malaysia

Abstract

The purpose of this paper is to explore the relationship between Corporate Social Responsibility (CSR) and stakeholder loyalty to the Malaysian organisations. Stakeholder satisfaction was used to measure the mediating effects between CSR and stakeholder loyalty. A developed CSR items were used to measure the CSR of an organisation The research was conducted using online survey to reach 377 organisations that have CSR’s initiatives. Results showed that Malaysian stakeholders were loyal with organisations that have CSR. Stakeholder satisfaction also found to fully mediate the relationship between CSR and stakeholder loyalty. Furthermore, a constructive CSR dimension(s) would be better to measure the stakeholders’ relationship. Importantly, the study shows the importance of CSR towards stakeholder loyalty. Once the needs are more clearly identified and understood, organisation will be in a better position to also anticipate stakeholders’ satisfaction in order to gain loyalty from the stakeholders.

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Issue

Vol. 2 No. 7 (2012): December

Section

Article

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