Corporate Social Responsibility, Customer Satisfaction, and Market Value

2006/10/01 by Xueming Luo, C.B. Bhattacharya, CB Bhattacharya · 2,182 citations
Business, Management and Accounting · #Business #Corporate Social Responsibility Reporting #Corporate social responsibility #Customer Service Quality and Loyalty #Customer satisfaction #Customer value #Economics #Environmental Sustainability in Business #Marketing #Microeconomics #Public relations #Scale (ratio) #Stock (firearms) #Value (mathematics)

paper · doi:10.1509/jmkg.70.4.001

published in Journal of Marketing 70(4), 1-18 (SAGE Publishing)

openalex publication_date 2006/10/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/05

Abstract

Although prior research has addressed the influence of corporate social responsibility (CSR) on perceived customer responses, it is not clear whether CSR affects market value of the firm. This study develops and tests a conceptual framework, which predicts that (1) customer satisfaction partially mediates the relationship between CSR and firm market value (i.e., Tobin's q and stock return), (2) corporate abilities (innovativeness capability and product quality) moderate the financial returns to CSR, and (3) these moderated relationships are mediated by customer satisfaction. Based on a large-scale secondary data set, the results show support for this framework. Notably, the authors find that in firms with low innovativeness capability, CSR actually reduces customer satisfaction levels and, through the lowered satisfaction, harms market value. The uncovered mediated and asymmetrically moderated results offer important implications for marketing theory and practice.

Citations

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Cited by

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• Applicants' and Employees' Reactions to Corporate Social Responsibility: The Moderating Effects of First‐Party Justice Perceptions and Moral Identity
• Political Institutions and Corporate Citizenship: The Impact on Corporate Social Responsibility
• Corporate social responsibility: attributions, loyalty, and the mediating role of trust
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• Mandatory CSR and sustainability reporting: economic analysis and literature review
• Bad Greenwashing, Good Greenwashing: Corporate Social Responsibility and Information Transparency
• ESG controversies and insolvency risk: evidence from the insurance industry
• Consumers Prefer That Corporations Donate Periodically
• Corporate Sociopolitical Activism and Firm Value
• Corporate social performance through instrumental stakeholder theory: a sector-specific perspective
• Firm litigation risk and the insurance value of corporate social performance
• When investors meet consumers: The roles and interactions of different backers in the crowdfunding market
• ESG and Financial Distress: The Role of Bribery, Corruption, and Fraud in FTSE All-Share Companies
• Environmental, Social, and Governance (ESG) disclosure: A literature review
• ESG activities and banking performance: International evidence from emerging economies
• Corporate controversies and company's financial performance: Exploring the moderating role of ESG practices
• Can Consumers’ Altruistic Inferences Solve the CSR Initiative Puzzle? A Meta-analytic Investigation
• Are listed banks only pretending to be more social?
• Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty
• CSR and corporate branding effect on brand loyalty: a study on Indian banking industry
• Does it Pay to Be Good...And Does it Matter? A Meta-Analysis of the Relationship between Corporate Social and Financial Performance
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• The capacity of wastewater treatment plants drives bacterial community structure and its assembly. [europepmc]
• Key Factors Influencing Low-Carbon Behaviors of Staff in Star-Rated Hotels-An Empirical Study of Eastern China. [europepmc]
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• Mandatory CSR and sustainability reporting: economic analysis and literature review [europepmc]
• How does CSR of food company affect customer loyalty in the context of COVID-19: a moderated mediation model [europepmc]
• Ex ante assessment of sustainable marketing investments [europepmc]
• Do well, do good, and know your audience: the double-edged sword of values-based CSR communication [europepmc]
• Mediating Role of Perceived Health Risk on Customer Experience and Customer Satisfaction: Evidence from the Airline Industry in India During COVID-19 [europepmc]
• Managing sustainable practices and logistics value to improve customer loyalty: importers vs. freight forwarders [europepmc]

Related

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