Corporate Social Responsibility Practice and Customer Loyalty: A Study of Zenith Bank Plc, Yola Market Branch, Adamawa State

Abstract

Among the emerging trends in organizational effectiveness in the recent years is the philosophy of corporate social responsibilities practice. The increasing awareness of the interdependency between organization and societies has made clear for the need for firms to contribute to the overall wellbeing of the society where they operate and the economy at large when making decision. This practice is believed to have a multiplier effect on both the society and the organization. Although the customers are often identified as drivers of CSR practice of a firm, but little is known about the precise effect on customer loyalty. This study examines corporate social responsibility practices and customers loyalty among customer‟s perspectives to empirically test the CSR practice on customer loyalty among the customers of Zenith Bank Plc Plc, Main Market Branch Yola. The researcher choice for the study is the descriptive research design that is characterized by the collection of quantitative data in connection with two or more variables. Questionnaire is designed and administered to a sample size of 370 of the target population of 5000 customers‟ current account only who are not less than 18 years of age (Marketing department of the bank). Hypotheses were formulated to test the relationship between the four dimensions (Economic, Ethical, Legal and Philanthropic CSR) with customer loyalty among the customers of the bank. With the use of inferential statistics of regression analysis in testing the hypotheses. The findings suggested that there is a significant relationship between the economic, ethical and philanthropic dimensions of CSR practice and customer loyalty among the customers of the Bank. The study recommends that there is need to put in place an efficient medium through which customers can express their views on how best CSR activities be implemented. This will go a long way in ensuring greater customer satisfaction and customer pride.