Enhancing Corporate Reputation and Brand Equity through CSR: The Mediating Influence of Consumer Trust

Abstract

The empirical foundation of this study is the perception of Pakistani retail banking industry customers as it relates to CSR initiatives and their effects on two crucial intangible assets and marketing outcomes: referred to as corporate reputation (CR) and brand equity (BE). Through the survey of banking consumers, it was possible to carry out the study with the help of 162 valid responses. To investigate the hypothesis, we applied structural equation modeling—statistical method. Moreover, CSR has a positive influence on the CR in the short and long run. Another finding made is the fact that CSR has no impact on Brand Equity (BE). Furthermore, it is also seen that mediating player trust has significant moderating effect on the relationship between CSR and brand equity and between CSR and corporate reputation. The argued evidence shows that a firm’s reputation and brand equity increases with improved consumers’ trust to the CSR programs. The implications of the results are significant for Pakistani retail banks and indicate that CSR activities can enhance institutions’ reputation.