“Effect Of Corporate Social Responsibility On Brand Loyalty”

Abstract

This research aimed to understand the effect of corporate social responsibility on brand loyalty in the case of Awash Bank in Addis Ababa. Explanatory research design and Quantitative research approach was applied in this study. Among total number of all selected branch 262,860 total of 400 sample respondents were selected by using Yamane’s formula. The stratified random sampling technique was adopted to choose the sample respondents form the sampling frame. Primary data were collected from study participants through self administered questionnaire, of which a total of 312 valid and usable responses were used for analysis. In this case, both inferential and descriptive statistics were adopted to analyze the data using SPSS application software. Correlation analysis indicates that there is strong, positive and significant relationship between ethical, legal, economic responsibilities with brand loyalty. On the other hand, there is moderate, positive and significant relationship between philanthropic responsibilities with brand loyalty. The regression analysis indicated that CSR dimensions namely ethical, legal, economic and philanthropic responsibilities had a positive and significant effect on brand loyalty. Specifically, among them, economic responsibility ( =  .275) had the highest effect followed by legal ( =  and lastly philanthropic ( =  .221), ethical ( =  .176), .101), responsibilities. CSR dimensions explain 61.8% variance in brand loyalty of Awash Bank. Based on the findings the researcher recommends that Awash Bank strengthen its CSR by ensuring legal and ethical compliance, promoting workforce diversity and enhancing community engagement through targeted sponsorship. Specific department – including compliance, HR, and CSR should lead these efforts.