Corporate Social Responsibility and Customer Loyalty: A Model of Islamic Banking Sector

Clients need to show more support for Islamic financial services in order to provide the Islamic banking sector the fortitude and competitiveness it needs to thrive. This study evaluates the influence that Islamic banks play in corporate social responsibility (CSR) in affecting customer loyalty, both individually and via the integrated roles of image, trust, satisfaction, and reputation. The study does so by focusing on a number of social activities. These avenues investigate how Corporate Social Responsibility (CSR) might make consumers of Islamic banks pleased, persuaded, happy, astounded, and eventually loyal. The empirical investigation using partial least square structural equation modeling with a sample size of 283 individuals revealed that CSR had direct and beneficial effects on loyalty. Indirectly, the connection between these two elements is meaningless because of the serial roles of image-reputation and satisfaction-reputation; nevertheless, the relationship is meaningful because of the single role of reputation and the serial role of trust-reputation. An improved version of a prediction model for the level of client loyalty in Islamic banking has been produced as a consequence of this research. The practical application comes in the significance of establishing CSR in order to build trust and reputation, which will eventually result in an increase in client loyalty toward Islamic banks.