Improving customer and brand loyalty through CSR: A case of UK's retail sector - Dissertation Example

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Corporate social responsibility is a method by which many organizations take responsibility for the impact of their activities on customers, communities, shareholders, employers etc. …
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Improving customer and brand loyalty through CSR: A case of UKs retail sector
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Extract of sample "Improving customer and brand loyalty through CSR: A case of UK's retail sector"

Download file to see previous pages Many companies target customer loyalty as a way of keeping the retail sector successful and this could be achieved by greater social responsibility. In the last few years, the importance of CSR has gathered momentum and has gradually attracted many consumers in UK and is continuously doing so. At this current moment in time there is very high competition and demand in the UK retail sector, especially between Tesco, Sainsbury’s and Asda. Along with price, quality and other factors, corporate social responsibility can play a very important role for these companies in increasing the customer loyalty. In this highly competitive world, consumers want to know what companies are doing to be socially responsible, by companies such as Tesco, Sainsbury’s, Asda etc. complying with customer wants and showing them what they have done for the environment they could potentially increase their brand loyalty. However, CSR is not without its share of criticism and scepticism. CSR sells, but with a negative connotation attached to it if going by the observation that although it is supposed to be a win-win for both the corporate and the society in general, corporates engage in this activity to ‘greenwash’ its ulterior motives of gaining more acceptance among its customers and the society in general in spite of all the negative impact its decision-making mechanism has on the environment. CSR is seen as an attempt to avoid regulations, gain legitimacy and access to decision makers and the markets, exploit a cheap vehicle for advertising (not surprising that many involved with this activity also sit in the PR and advertising departments), counter claims of pressure groups who point at the inefficient and disastrous impacts of the firms’ ineffective and harmful decision making and to shift the ground or blame on public functions to bear the brunt of all wrong decisions of the business (What’s wrong with corporate social responsibility?, 2012). Against this background of CSR, it becomes imperative that the real motivation behind a firm indulging in CSR and the need to study the same becomes important, which this study aims to do. 1.2 Significance of the study Malai (2011) researched on the ways CSR helps in increasing loyalty of consumers in Thailand and found that it really works. He worked on the importance of CSR and undertook primary research consisting of males and female consumers who gave their views. This is evidence which shows that CSR can help in increasing customer loyalty by being socially responsible? Matute-Vallejo, Bravo and Pina (2011) CSR affects on customer loyalty. CSR influences customer ...Download file to see next pagesRead More
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