Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior

Abstract

Corporate social responsibility (CSR) is one of the important factors to increase the customer satisfaction. It is part of the economic, legal and moral exercises of a business element guided towards enhancing the business and societal desires. However, companies are facing various issues while adopting CSR practices, particularly Indonesian logistics companies. Challenges in the way of CSR practices affect adversely on customer satisfaction. Therefore, the objective of the present study is to highlight the role of CSR in customer satisfaction among Indonesian logistics firms. In this study, opinions of logistics customers were gathered through survey questionnaires. All the responses were analyzed through structural equation modeling technique. The findings of the study suggest that logistics companies should focus on two CSR practices, 1) environmental contribution and, 2) human resources. Environmental contribution and human resource promote community development which lead towards higher customer satisfaction.