Does CSR encourage customer loyalty: A case study – Libyan telecom sector?

Abstract

The study aims to the determination of the degree of customer awareness in relation to activities for customer social responsibility that should be undertaken by a company that is socially responsible, as well as to establish the influence that CSR has upon the loyalty of customers in the Libyan telecom sector. Given that, there is a great variety of developed countries that have well-developed telecom sectors which are closely monitored; however, the literature in developing countries that address the impact of CSR on customer loyalty is very limited. Therefore, the examination of the sector customers is of worth so that the meeting of needs for Libyan telecom sector customers can be assured. The survey was completed by 154 participants in total, and there was a recording of the web survey and analysis of the findings. Variables utilised for measurement of the influence of CSR upon the loyalty of customers were taken from the framework of theory with the inclusion of an economic CSR component, the legal CSR component, the philanthropic and ethical components of CSR and the loyalty of customers. The web-survey findings showed that customers had a great awareness of the activities of CSR that ought to be engaged in by responsible companies. In addition, the results showed that CSR did have an impact upon loyalty within the Libyan telecom sector and that customers had a willingness to buy from the firm because of the engagement of them in CSR activities.