The Intervening Effect of Customer Satisfaction in the Relationship between Corporate Social Responsibility and Reputation and Credibility: Case of Credit Departments of Taiwan's Farmer Association

Abstract

There has been a remarkable transformation in the business world over the last few decades with the concept of corporate social responsibility (CSR) having been universally embraced. CSR is prolific and paradoxical business applications, whereby businesses are made responsible for more than the products and services they produce but are also challenged to alleviate social problems in order to remain valued and competitive. As recent years have witnessed an increasing number of business frauds, the financial industry is being pressured to introduce innovative CSR programmes. Although studies have revealed clear associations between overall CSR and customer perception, satisfaction and buying behaviour, as well as between overall CSR and corporate reputation and corporate credibility, there is a dearth of studies on the relationships between these dimensions as antecedents and behaviour consequences. This study therefore examined the influence of CSR activities on the credibility and reputation of the Farmers' Association credit departments (FACDs) in Taiwan. The aim of this study was to determine the mediating role of customer satisfaction in the relationship between CSR activities and corporate credibility and reputation of FACDs in Taiwan. Interestingly, the hypothesis developed for the mediating variable, 'customer satisfaction on the relationship between CSR and credibility', was not supported although it was shown to play a fully mediating role in relation to CSR and corporate reputation.