ROLE OF CSR AND CORPORATE IMAGE IN TIMES OF CRISIS MEDIATING ROLE OF CUSTOMER TRUST IN COLOMBO DISTRICT

Abstract

In today's volatile business environment, Corporate Social Responsibility (CSR) and corporate image play pivotal roles in shaping consumer perceptions, especiallyduring crises. This research investigates the role of CSR and corporate image in crisis situations, with a particular focus on the mediating role of customer trust in the Colombo District. The study aims to provide a comprehensive understanding of how CSR initiatives and a positive corporate image influence customer trust during times of crisis, and how this trust, in turn, impacts customer loyalty and business sustainability. The methodology adopted for this study includes a mixed-method approach, combining both qualitative and quantitative research techniques. A survey was administered to a sample of 300 customers in the Colombo District to gather quantitative data, while in-depth six Bank Leaders gotto gain qualitative insights. The results indicate that CSR activities significantly enhance corporate image, which positively influences customer trust. During crises, companies with strong CSR reputations and positive corporate images are better able to maintain customer trust. Furthermore, customer trust was found to be a crucial mediator in the relationship between CSR/corporate image and customer loyalty. The study concludes that strategic CSR initiatives and maintaining a strong corporate image are essential for fostering customer trust and loyalty, particularly during times of crisis. Based on these findings, several recommendations are made for businesses in the Colombo District. Companies should invest in robust CSR programs that align with their core values and communicate these initiatives effectively to the public. Additionally, businesses should focus on building and maintaining a positive corporate image through consistent and transparent communication. By doing so, they can enhance customer trust and ensure long-term loyalty, even in challenging times.