The Effect of Corporate Social Responsibility on Loyalty According to the Role of Mediators (Satisfaction, Trust and Corporate Image)– From Clients Perspective Case Study: Bank of Palestine – Gaza Strip

Abstract

The main purpose of this study is to examine the effect of Corporate Social Responsibility (CSR) on Bank of Palestine's clients loyalty in Gaza Strip, and to explore the role of mediators ( satisfaction, trust and corporate image ) in the relationship between CSR and loyalty. The main dimensions of CSR are: economic, legal, ethical, philanthropic/voluntary and environmental responsibility towards clients and the community. The study targets all branches of Bank of Palestine in Gaza Strip which are eight.The descriptive analytical method was used and utilized both primary and secondary sources of data. A structured questionnaire including 61 closed ended questions were specially designed for this study. Questionnaires were distributed to bank's clients at all branches. A number of 353 questionnaires were valid for analysis. The results show that Bank of Palestine is concerned of ( economic, legal ,ethical ,voluntary and environmental ) responsibilities toward its clients and community as a whole. Philanthropic\voluntary responsibility has the most significant effect on clients loyalty followed by environmental , legal and economic , while the ethical responsibility has insignificant effect on clients loyalty. Corporate image and customer satisfaction mediate the relationship between CSR and loyalty. On the other hand, trust has insignificant effect on clients loyalty and it dose not mediate the relationship between CSR and loyalty. The main recommendations of this study are asserted to pay special attention by banking sector to CSR through paying more efforts to develop banks economic, legal, ethical , philanthropic and environmental responsibilities to gain clients loyalty. Moreover, providing a training programs for bank's staff to increase their ability and skills to solve the various issues and problems that customer faced, improve their methods in handling clients complaints and problems in order to be solved more quickly, and train their staff how to deal with different clients (be more kind and professional) in order to leave a good impression in the mind of their clients.