Exploring the impact of environmental dimension in corporate social responsibility on restaurants' customer retention

Purpose - This study aims to integrate the four-dimensional corporate social responsibility (economic, legal, ethical and philanthropic responsibility) with environmental responsibility. It also aims to measure how service quality and corporate image mediate the effects of the five CSR dimensions on customer retention. Design/methodology/approach - This research employs structural equation modelling to test the proposed conceptual model. About 217 valid questionnaires were collected online from customers of restaurants in Tehran. Findings - The results show that legal, ethical, philanthropic and environmental dimensions positively and significantly impact corporate image and service quality. Moreover, corporate image and service quality mediate the effects of the five CSR dimensions on customer retention. Practical implications - Managers may learn that by enhancing their environmental responsibility, they are also working on increasing service quality and corporate image and, in turn, customer retention. Restaurants can differentiate themselves from competitors and attract and retain environmentally conscious customers, ultimately contributing to their competitive advantage. Originality/value - This research extends Carroll's dimensions by incorporating environmental responsibility, demonstrating its potential to boost service quality and corporate image for customer retention. A noteworthy contribution is introducing environmental responsibility as a novel dimension of CSR within the restaurant and food industry. Recognising the increasing importance of environmental sustainability in academic and societal discourse, it was crucial to consider the environment as a distinct aspect of this research.