THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON CUSTOMER LOYALTY:

Abstract

This research study provides a comprehensive understanding of whether customer trust mediates the relationship between Corporate Social Responsibility (CSR) and customer loyalty in the Telecommunication industry in Colornbo District. This consists of three objectives such as (1) to inr,'estigate the lel'el of CSR. customer loyalt-v and customer trust.. {2)To examine the relationship betrveen (a) CSR ancl cllstorner lo1'altv. (b) CSR and Customer Trust and (c) customer trust and customer loyalty'.. and (3) to evaluate the mediating role of customer trust in the relationship between CSR and customer loyalty in Telecommunication industry in colombo District. Based on the literature review, this research establishes its conceptual framework Primary data was collected from four hundred Telecommunication service users through structured questionnaire using the convenience sampling method. This study employed univariate (descliptive), bivariate (correlation), multivariate (regression), and mediation analysis to achieve its research ohl.edive+., ,. The study found that levels of corporate social resp*rsibility, customer trust, and customer loyalty were high, indicating strong positive ilerceptions among custor.ners for the first objective. The results for the second objeciiv&gevealed a significant positive relationship between CSR initiatives, customer trust, and customer loyalty. It was also shown that Customer Trust partially mediates the relationship between CSR and Customer Loyalty from the third objective. Hence, Customer Loyalty in the competitive Telecommunication industry should be focused on maintaining effective CSR conducts that promote Customer Trust. The study is very useful in informing us about the importance of Customer Trust with respect to improving the relationship between CSR and Custorner Loyalty and provides strategic information that can be useful to the telecom companies that are interestejd in establishing long-term relationship with the customers and brand loyalty. Overall, this research contributes to the existing body of knowledge by examining the impact of Corporate Social Responsibility on Customer Loyalty, with a particular focus on the mediating role of Customer Trust in the Telecomrnunication industrv in Colornbo District. Ikyworrls: Carporute Srtciol Responsibility, Customer Loyalty, Customer Trust, TeIecontntunicution Industry, Colontbo District.