Measuring effects of perceived CSR on customer satisfaction in banks: mediating role of corporate social performance

The present study is based on the perception that the relationship between CSR and customer satisfaction is not always straightforward and must be intervened with some influential variables. One such variable is corporate social performance (CSP). The present study aims to determine the direct and indirect impacts of perceived CSR on customer satisfaction through CSP. The study used cross-sectional data based on a survey of 253 respondents. Using PLS-SEM, hypothesised relationships were tested between the constructs. Findings of the present work confirm the significant mediating effect of CSP in the relationship between CSR and customer satisfaction. The study highlights the importance afforded by customers on the social performance of a bank when engaging in CSR. The study includes novel and distinctive customer foci dimensions namely, firm's reputation, product responsibility and ethical business practices, to measure CSP in a bank. The study has various policy-related implications for the banking industry.