The role of corporate social responsibility in explicating customer loyalty of halal marts in Malaysia

PurposeThis study aims to examine a proposed model concerning customer loyalty towards halal mart, specifically by identifying the influence of the components of corporate social responsibility on perceived service attitude and quality; secondly, to analyse the effect of perceived service quality and satisfaction on the reputation of halal mart, and further satisfaction on trust and reputation and finally, to investigate the impacts of perceived service quality, trust, service attitude and halal mart's reputation on customer loyalty.Design/methodology/approachAn online survey was conducted through an adopted questionnaire from 299 individuals from Malaysia using purposive sampling. Besides, structural equation modelling was used to test the proposed model on the direct path of the related constructs.FindingsThe results from the Malaysian context revealed that only the legal and philanthropic components of corporate social responsibility influence the attitude and perceived service quality of halal mart. Subsequently, satisfaction affects trust, whereas perceived service quality influences satisfaction. Ultimately, satisfaction and trust have an impact on customer loyalty.Research limitations/implicationsThis study has presented and tested the elements of corporate social responsibility (legal, economics, philanthropic, environment, employee, best practice and ethics) in the context of halal mart and its impact on perceived service attitude and quality. This study, nevertheless, only focused on the consumption of halal mart products and services. Hence, these findings could also be examined for their validity to different services in other potential studies because of the diversity within other industries.Practical implicationsIndeed, the community will give a positive reaction and perception to the company that hires heavy on social interests and community welfare. In addition, the moral value of employees can be increased through the activities carried out. Employees will be more concerned about the surrounding community and thus, can create good values in the individual. Values such as being considerate, working together, helping each other and so on can be improved. Apparently, a company will be filled with moral and caring individuals who help each other and cooperate in carrying out tasks that have been given, thus being able to further advance the company. In conclusion, the implementation of this CSR can improve the reputation of a company; wherever it is from one side (supply-side), able to attract, retain and motivate the quality of employees. While from another perspective (demand-side), a good reputation can increase the value of the halal mart that indirectly improves the company's reputation, and further produce more ethical workers in the business organizations, including the halal retailers.Social implicationsAccordingly, business entities including halal marts need to consider certain decision-making as to whether the project benefits the community, whether it pollutes the environment, or whether the product can be harmful to health or otherwise. In addition, the implementation of CSR by corporate companies can reduce to some extent poverty rate in the country. Various assistance provided by corporate companies in the form of financial aid can indirectly help the poor improve their living standards. For example, educational assistance given to poor children can change the family's life. Through education, the rate of poverty will be reduced since financial assistance can be offered to them to start a business and improve their standard of living. Besides, motivational programs could be carried out to improve the morals and ethics of the community to create a better society through knowledge transfer.Originality/valueThe findings of this study highlighted the specific components of corporate social responsibility within the halal retail industry. Further, perceived service attitude and quality are incorporated in examining their impact on customer satisfaction. Moreover, customer satisfaction is reviewed regarding its influence on halal mart's trust and reputation. Subsequently, this study will increase the understanding of customer satisfaction, trust and reputation towards customer loyalty, specifically from Malaysian perspectives.