Corporate Social Responsibility, Customer Satisfaction, and Market Value
Abstract
Although prior research has addressed the influence of corporate social responsibility (CSR) on perceived customer responses, it is not clear whether CSR affects market value of the firm. This study develops and tests a conceptual framework, which predicts that (1) customer satisfaction partially mediates the relationship between CSR and firm market value (i.e., Tobin's q and stock return), (2) corporate abilities (innovativeness capability and product quality) moderate the financial returns to CSR, and (3) these moderated relationships are mediated by customer satisfaction. Based on a large-scale secondary data set, the results show support for this framework. Notably, the authors find that in firms with low innovativeness capability, CSR actually reduces customer satisfaction levels and, through the lowered satisfaction, harms market value. The uncovered mediated and asymmetrically moderated results offer important implications for marketing theory and practice.
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The literature suggests a number of mediating factors that can alter the sign and strength of the relation between CSR and firm value.
“In addition, the literature suggests a number of mediating factors that can alter the sign and the strength of the relation between CSR and firm value.”
From Mandatory CSR and sustainability reporting: economic analysis and literature review (2021) · cites this paper as Luo and Bhattacharya 2006
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- Authors
- Luo, X., & Bhattacharya, C. B.
- Affiliations
- The University of Texas at Arlington (US)
- Boston University (US)
- Corresponding author
- Luo, Xueming
- Bhattacharya, C.B.
- Venue
- Journal of Marketing
- Publisher
- SAGE Publications
- Published
- 2006-10
- Volume
- 70
- Issue
- 4
- Pages
- 1-18
- ISSN
- 0022-2429 (ISSN-L)
- 1547-7185
- OpenAlex
- W2120907018
- Cited by
- 3,439
- References
- 13
- Citations by year
- 2026: 156 · 2025: 210 · 2024: 218 · 2023: 242 · 2022: 256 · 2021: 227 · 2020: 239 · 2019: 204 · 2018: 232 · 2017: 200 · 2016: 198 · 2015: 229 · 2014: 177 · 2013: 163 · 2012: 137
- FWCI
- 130.34
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Marketing (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Corporate Social Responsibility and Sustainability
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Customer Service Quality and Loyalty
- Keywords
- corporate social responsibility, customer satisfaction, firm market value, Tobin's Q, stock returns, product quality, moderating effect, mediation
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