The Role of Corporate Social Responsibility (CSR) on Brand Loyalty, Specifically in Relation to the Telecommunication Industry in Sri Lanka

Abstract

Given the contemporary emphasis on Corporate Social Responsibility (CSR) across various business enterprises, this research aims to investigate the impact of CSR on brand loyalty, with a particular focus on the telecommunication industry in Sri Lanka. This explanatory research employs a quantitative approach to identify how CSR influences brand loyalty within this sector. In this study, CSR is considered as the independent variable, while brand loyalty is the dependent variable. The impact of CSR on brand loyalty is examined through four dimensions: Economic Responsibility, Legal Responsibility, Ethical Responsibility, and Philanthropic Responsibility. Each dimension is assessed using three different indicators, and brand loyalty is evaluated through seven indicators. The research sample comprised 350 undergraduate students selected using a simple random sampling method. The target population for this study included all telecommunication network users in Colombo. Data were collected via a questionnaire designed to assess the impact of CSR on brand loyalty, with the reliability of the questionnaire confirmed by Cronbach’s alpha value. Data analysis was performed using SPSS version 25, employing Mean, Correlation, and Regression Analysis. Correlation analysis revealed a significant and strong relationship between Economic Responsibility, Legal Responsibility, Ethical Responsibility, and Philanthropic Responsibility and brand loyalty. The results indicated a positive correlation between CSR and brand loyalty. Regression analysis was used to test the research hypotheses, and it was found that Economic Responsibility, Legal Responsibility, Ethical Responsibility, and Philanthropic Responsibility each have a significant impact on brand loyalty. All five hypotheses proposed in the research were accepted. The findings confirm that CSR has a substantial impact on brand loyalty.