Effects of Corporate Social Responsibility on Customers Loyalty of Hai and Mawenzi National Microfinance Bank Branches in Kilimanjaro, Tanzania

Mitabalulo E Semuguruka and Ra


The study assessed the effects of corporate social responsibility and customer loyalty in NMB Kilimanjaro. The study aimed to examine whether Corporate Social Responsibility (CSR) efforts do impact customer loyalty; whether CSR initiatives have significant value in helping to attract indirect marketing value for the bank; and to determine whether CSR help to enhance customer loyalty towards a National Microfinance Bank. A case study approach was used to empirically test research model derived from the literature. Sample size of 100 respondents was used to address the research objectives by the use of Purposive sampling. Data was analyzed using descriptive statistics, Pearson correlation and regression model. The findings revealed that the higher the practice of CSR the stronger is the consumer loyalty towards a particular firm. The study revealed that by investing in CSR, a firm could achieve a positive outcome in terms of its financial performance. CSR can provide the additional competitive edge to a particular firm. The study concluded that out that all the CSR programmes are aligned with the Strategic Intent of NMB branches. It also established that programmes do contribute to attainment of the Strategic Intent at NMB through several contributions to the expectations of the various stakeholders of the organization. The key recommendation is that the current CSR programmes should be expanded to engage more employees and serve more needy cases in wider geographical areas. Secondly, NMB need to partner with more co-sponsors in order to benefit from the economies of scale.

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