The Effect of Corporate Social Responsibility Initiatives on Customer Loyalty in Kazakhstan

Abstract

Today using CSR activities plays an important role as a marketing tool for companies’ successfully development. And CSR is increasing its power for companies’ competitive advantages, and its impact on societal well-being, apart from the overall governance of the supply chain processes of a single company. This research investigated the relationship among CSR activities, customer trust, customer satisfaction and customer loyalty in Kazakhstan. Three dimensions of CSR such as: Employee support, Environment protection and Community support on its effect on customer loyalty were examined. There might be the difference of customers’ perception about CSR in countries with post-soviet union history. Findings indicated that employee support, environment protection had a significant influence on customers’ preferences for the oil industry to implement in Kazakhstan. It means that companies should implement CSR activities that associate much with the particularly industry. Since each industry has a different idea about which issue is important, researchers need to define what social issue is much more important for a particular industry and then will be able to develop and create a precise program to meet the needs of CSR beneficiaries.