The Mediating Role of Customer Satisfaction Between Dimensions of CSR and Customer Loyalty

Customer satisfaction and customer loyalty are essential attributes of corporate social responsibility (CSR) which build up competitive advantage. While existing research emphasizes the importance of these attributes, few studies explore how customer loyalty is affected by various dimensions of CSR. This study examines the mediating role of customer satisfaction between the CSR dimensions identified by Carroll as well as environmental responsibility and customer loyalty in the restaurant industry. The conceptual model representing these relationships was tested using a structural equation model and data collected from 247 customers visiting restaurants in the city of Tehran. Four dimensions of CSR — economic, legal, ethical and environmental — were found to significantly affect customer satisfaction. Results also show that customer satisfaction plays a mediating role in the relationship between economic responsibility, environmental responsibility and customer loyalty. This study adds the dimension of environmental responsibility to Carroll’s pyramid of CSR and gives a clearer guidance to restaurant managers as to which environmental responsibilities can increase the customer satisfaction.