Examining the Mechanism of Corporate Social Responsibility Types-Customer Loyalty relationship in Pakistan the Mediating Role of Corporate Reputation

Abstract

Purpose: Drawing on Stakeholder Theory, this study investigates the indirect effects of types of corporate social responsibility (CSR), namely economic, legal, ethical, and philanthropic CSR, on customer loyalty in the context of multinational Fast Moving Consumer Goods (FMCG) companies, in Pakistan. For this purpose, the mediating role of corporate reputation in CSR types-customer loyalty relationships is examined. Design/Methodology/Approach: A structured questionnaire was used to gather data from 680 urban consumers in some major cities of Pakistan and data were analyzed by using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings: The empirical findings demonstrate that corporate reputation plays a statistically significant mediating role in the relationships between all four types of CSR and customer loyalty. Philanthropic CSR exhibits the strongest indirect effect on customer loyalty, followed by ethical CSR, legal CSR, and economic CSR. These findings highlight the strategic importance of building a favorable corporate reputation through socially responsible practices, particularly philanthropic and ethical initiatives, to strengthen customer loyalty. Implications/Originality/Value: For managers and marketers operating in relatively uncertain, high-inflation emerging markets such as Pakistan, the results suggest that CSR can contribute to market advantages by enhancing corporate reputation and fostering enduring customer relationships.