Effects of Corporate Social Responsibility on Customer Loyalty

This research aims to identify the effects of corporate social responsibility (CSR) on customer loyalty, with a focus on the UK retail industry. The study will analyze the importance of CSR in managing business operations, the relationship between CSR activities and customer loyalty, and ways in which Marks & Spencer can enhance customer loyalty through CSR. The research methodology will involve a quantitative approach, using questionnaires to collect data. The findings will provide insights into the impact of CSR on customer loyalty and guide organizations in managing their CSR activities.

Business research plan
(To identify the affects of corporate social responsibility on
customer loyalty)
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Contents
INDIVIDUAL BUSINESS RESEARCH PLAN............................................................................3
Introduction......................................................................................................................................3
Research aim and objectives............................................................................................................4
Literature review..............................................................................................................................5
What are the importances of corporate social responsibility in managing of business
operations?...................................................................................................................................5
How customer loyalty helps Marks & Spencer in improvement of its business performance?. .6
What are the relationship between CSR activities and customer loyalty in context of M&S?...6
What are the ways by which Marks & Spencer can easily manage its CSR activities and
enhance customer loyalty towards brand?...................................................................................7
Research Methodology....................................................................................................................8
Research Philosophy:...................................................................................................................8
Research Approach:.....................................................................................................................8
Research Instrument:...................................................................................................................9
Sources of data collection:...........................................................................................................9
Research Design..........................................................................................................................9
Sampling:.........................................................................................................................................9
Population profile......................................................................................................................10
Sampling Theories.....................................................................................................................10
Sampling Size............................................................................................................................10
Accessibility...................................................................................................................................10
Ethical issues..................................................................................................................................11
Significance....................................................................................................................................11
Deliverables...................................................................................................................................12
Required resources.........................................................................................................................12
Implementation time table.............................................................................................................13
BUSINESS RESEARCH PLAN EVALUATION........................................................................15
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REFERENCES..............................................................................................................................17
INDIVIDUAL BUSINESS RESEARCH PLAN
Introduction
Corporate social responsibility is a concept of management whereby business integrates
environmental and social concerns in their business operations. CSR is how companies handle
their business processes and activities to produce an overall positive effect on society. CSR has
become an essential phenomenon because it has direct effect over the brand image of an
organisation (Chang and Yeh, 2017). Therefore, main purpose and aim of this research is to find
out how corporate social responsibility activities impact on customer perception which in turn
impact over customer loyalty. The focus of this study will be the UK retail industry. Retail
industry includes any business involved with selling products or services directly to consumers.
It includes shops, supermarkets, departmental store, door-to-door sales, market stalls and internet
retailers. In this, Marks & Spencer is a chosen multinational retail organisation in United
Kingdom. It was founded by Michael Marks and Thomas Spencer in 1884. Company is
specialising in selling of home products, clothing, and food products to the customers. M&S has
always taken responsibilities to their number of stakeholders i.e. customers, partners, suppliers,
employees and local communities seriously. In order to perform business activities in responsible
way, company should underpin their values such as service, quality, innovation and trust.
Therefore, M&S fulfil their CSR activities that will be beneficial for them in improvement of
customer loyalty towards brand and products. Customer loyalty is the output of constantly
optimistic emotional experience, physical attributes and perceived importance of an experience,
which covers the services or products. Therefore, it is important for an organisation to increase
customer’s loyalty by fulfilling their needs and wants towards products or services in responsible
way.
Research Question
 How corporate social responsibility affects customer loyalty towards Marks & Spencer?
Sub-questions of research:
 What are the importances of corporate social responsibility in managing of business
operations?
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 How customer loyalty helps Marks & Spencer in improvement of its business
performance?
 What are the relationship between CSR activities and customer loyalty in context of
M&S?
 What are the ways by which Marks & Spencer can easily manage its CSR activities and
enhance customer loyalty towards brand?
Research aim and objectives
Research aim
Main aim of this research is “To identify the affects of corporate social responsibility on
customer loyalty”. A study on Marks & Spencer.
Research objectives
 To identify the importance of corporate social responsibility in managing of business
operations.
 To analysis the importance of customer loyalty in enhancing business performance of
Marks & Spencer.
 To determine the relationship between CSR activities and customer loyalty in context of
M&S.
 To explore ways by which Marks & Spencer may be manage its CSR activities and
enhance customer loyalty towards brand.
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Literature review
Literature review is a part of research that will be useful and important because it will helps
in gathering of secondary information from various sources such as magazines, articles, books,
publication research, journals and many other sources relevant to the topic. Literature review
facilitates in analysing of research gap. Main literature gap according to the current study is the
importance of CSR in improving customer loyalty towards specific brand. In previous study,
there is lack of information about the affects of CSR activities on customer loyalty. In order to
fulfil this gap, research questions will be used (Cuesta‐Valiño, Rodríguez and Núñez‐
Barriopedro, 2019). These questions will helps in accomplishment of research aim and objectives
in detailed and systematic manner. All research questions will be explained as below in detailed
and critical way:
What are the importances of corporate social responsibility in managing of business operations?
According to the Collier (2018), corporate social responsibility is when an enterprise
operates in a sustainable and ethical manner and deals with its social and environmental impacts.
It means a careful consideration of individual rights, environmental, society and community in
which business operates. There are different importances of CSR in managing business
operations of an organisation. Some significance will be explained as below:
Improved public image: This is important, as consumer assess public image of an
organisation when deciding whether to purchase from. Along with this, in order to manage
business operations in effective manner, responsibility is main because it supports an enterprise
in attracting of more customers. Well-managed corporate social responsibility program cams
support an organisation in improving its brand equality, and resonate with strong values.
An advantage over competitors: CSR activities also help an organisation to compete their
competitors by providing better quality products and services at reasonable price to the
customers. By embracing corporate social responsibility, company can easily stand out from
their competitors within an industry. For this, company must be considering social and
environmental factors in effective manner (Gürlek, Düzgün and Uygur, 2017).
Increased sales: This is another importance of CSR activities that helps an organisation in
improvement of its business operations easily. By providing quality products and considering
environmental and social factors, company can easily increase their sales.
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How customer loyalty helps Marks & Spencer in improvement of its business performance?
As per the view presented by Lee, Chang and Lee, (2017), customer loyalty suggests the
volume to which customers are committed to an organisation’s products or services and how
robust is their tendency to pick out one emblem over the opposition. There are different benefits
of loyal customers for Marks & Spencer such as repeat business, minimise service cost. Reduced
marketing cost, improve brand image and many more. All these are considering main benefits of
customer loyalty that will be beneficial for business performance and growth of Marks &
Spencer. There are some advantages which will be explained as below:
Reduced marketing cost: This is a main advantage of customer loyalty as customers have
more trust our friends, relatives and their feedback more than a digital advertisement. For this,
loyal clients play an essential role in word of mouth marketing. As they have previously won the
faith of loyal customers, company can influence more and new customers easily (The Importance
of customer loyalty, 2020).
Improved brand image: Brand image introduces an interpretation of customers regarding
the services and products of brand or company. A positive brand image supports M&S to obtain
new customers, attract investors, reduce marketing cost, cross sell and up sell etc. Brand image
and customer loyalty are interrelated. Customer loyalty supports an organisation to enhance
brand image. In contrast, strong brand image supports enterprise to glue customers.
What are the relationship between CSR activities and customer loyalty in context of M&S?
According to the David Servera-Francés & Lidia Piqueras-Tomás, (2019), CSR activities
have direct and indirect impact over customer loyalty. In direct manner, store loyalty has become
an essential challenge for Marks and Spencer in context of price war as a result of its positive
impacts to a chain for long time. Consumers are greater willing to end up dependable to the store
outlet if they decide them favourably on each economic and nonmonetary component. There are
number of CSR activities such as ethical product, environmental program and social actions. All
these are contributing to a better and effective evaluation of M&S.
On the other hand, Li, Liu and Huan, (2019), trust is essential component of relationship
marketing to see long term and string interactions with clients. Due to its essential effects on
trust, loyalty has been studied in marketing. . When M&S adopt a good behaviour, particularly in
regards with societal values and laws, they also post superior signals, which decrease doubt and
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gain trust or loyalty from customers. Consumers who create specific trust or loyalty in a clothing
retailer will be more loyal to this store and more trustworthy.
Therefore, corporate social responsibility has positive relationship with customer loyalty
which turns to impact on business performance. This will support M&S in improvement of its
brand image and attraction of more customers easily.
What are the ways by which Marks & Spencer can easily manage its CSR activities and enhance
customer loyalty towards brand?
According to the Morrissey (2018), in today’s aggressive business atmosphere, corporate
social responsibility activity requires to go beyond “doing much better.” The most successful
corporate social responsibility initiatives tell an organisation story, apply customer feedback,
place a company as a good leader on social problem, and conclude how community investment
dollars will be spent. Along with this, there are number of ways by which M&S can easily
manage their CSR activities such as build up strategy around their core competences, recognise
problems that matter to their customers, develop corporate social initiatives that make their
employee proud, expand business definition of CSR and many others. All these are considering
more effective ways that will be beneficial in management of CSR activities at workplace of
Marks & Spencer.
On the other hand, Moisescu, (2017), there are some effective ways by which M&S can
easily improve customer loyalty towards brand or M&S. These ways are craft a killer value
proposition, develop on engaged community to retain customers, customer service is the key
customer satisfaction, foster amazing customer experience etc. All these are considering more
useful and effective ways that will be beneficial for M&S to enhance customer loyalty and retain
them for long time.
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Research Methodology
Research methodology is a process that will be useful in collection of accurate information
about the topic (Amjad and et. al., 2018). Under this section of research, there are numbers of
methods included that will be used for collecting information about the affects of corporate
social responsibility on customer loyalty. Some important and useful methods will be explained
as below:
Research Philosophy:
It introduces to the set of philosophies relating to the worldwide or stance from which
investigation is conducted. It is mainly studied in ways of epistemology and ontology. At this
point ontology introduces to the validity of the data and how an individual know its experience.
On the other hand, epistemology introduces to the reliable data needed for the study and how an
individual can obtain it. In academic studies, philosophical position is used which is divided into
two parts such as interpretivisim and positivism (Aoyama, Hoshika and Honda, 2018).
Positivism philosophy assumes that knowledge is note dependent on the area of study is being
researcher, whereas interpretivisim philosophy claims that a person observes have their own
understanding and perception of reality. According to the current project or topic, positivism
type of philosophy is more useful because it help in providing quantitative data about the topic,
whereas interpretivisim research is require quality data and also take maximum time.
Research Approach:
This is another main section of research methodology that will be beneficial in collecting
and analysing of qualitative and quantitative information. In order to collect information, there
are two types of research approach which are qualitative and quantitative. For collection data
about the effects of CSR activities on customer loyalty, quantitative approach will be applied.
Main research for selecting quantitative approach of data collection as it will facilitate in
collecting of reliable and valid information in minimum time period. On the other side,
qualitative approach of data collection is not appropriate for performing current study because it
consume more time and not provide data in numerical manner (Gaur and Kumar, 2018).
In order to analysis data, there are two approaches which named are deductive and
inductive. Both approaches are effective but for performing this study, deductive approach will
be used because it helps in analisation of quantitative information within minimum time period.
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On the other hand, inductive is another approach that is not useful according to this study
because it takes additional time and requires qualitative data.
Research Instrument:
There are different instruments of data collection which are interview, survey, focus group,
case study, observation, modelling etc. All these are considering main instruments that will be
assist in gathering information about the particular area of study. In order to collect data or
information regarding the effects of corporate social responsibility on customer loyalty,
questionnaire as a part of survey will be applied. Main reason for using questionnaire as it
facilitate in gathering of valid as well as reliable data regarding the topic. This method is also
effective in collecting of primary information within lesser time period (Gjesfjeld and et. al.,
2020).
Sources of data collection:
Data collection refers to the process of collecting data or information about the specific
area of study. There are two sources of collecting data which are primary and secondary. For
collecting primary information about the CSR activities and its effect on customer loyalty,
questionnaire is more suitable method that will be used. On the other hand, in order to gather
secondary data, there are various sources available which are articles, magazines, publication
study, journals and many other relevant to the topic. Therefore, for doing current study over CSR
activities, both sources of data collection will be used (Güven, 2018).
Research Design
There are basically three types of research design which are descriptive, experimental and
exploratory. All these types of research design are essential but according to the current study,
descriptive design will be applied. At the same time as it support in identification of research
problem in more effective manner. This design helps in collecting of valid and accurate results
about the topic. On the other hand, experimental and exploratory designs are not useful
according to the quantitative research because it consume more time and resources (Kelly and et.
al., 2018).
Sampling:
Sampling introduces to the process which is used by researcher in statistical analysis in
which a set number of respondents are taken from a total population. In addition, it is process of
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choosing various numbers or a predetermined population to create statistical internees from them
as well as to estimate characteristics of the entire population. Under this part of research
methodology, there is requirement of some other aspects which will be described as below:
Population profile
This research is based on demographic profile of population that is based on different
characteristics such as age, gender, income and many others. It is mainly used to investigation a
service or product and how well it is trading, who likes it and in what areas it is most popular. In
order to conduct research over CSR activities and its effects on customer loyalty, 50 managers of
Marks & Spencer will be selected because they have proper knowledge about the business and
their CSR activities. They also have knowledge about the significance of CSR activities in
improvement of Customer loyalty (Page and et. al., 2019).
Sampling Theories
Sampling theory introduces to the field of statistics that is concerned with the gathering,
analysis and interpreting information collected from random samples of a population in study.
There are two techniques of sampling such as probability and non-probability. Both are effective
techniques of sampling but according to the study, probability sampling will be followed. At the
same time as it helps in selection of sample from total population in random basis. Main purpose
for using such type of sampling as it is a simplest form of data collection and offers a possibility
to do data analysis that has minimum risk or carrying on error. On the other hand, non-
probability is another technique of sampling that is not used in current project because there is
lack of representation of whole population (Schoonderbeek, 2018).
Sampling Size
Sample size is a process by which researcher can measures the number of respondents as a
samples size. According to the existing topic of study, 50 mangers of Marks & Spencer will be
recruited randomly under probability sampling.
Accessibility
This is another important and essential part of the research because it helps researcher to
take access or permission from the M&S to collect data for their managers. Along with this, Data
accessibility helps researcher to enable every managers to make data-informed decisions through
easy-to-use analytics. Iterate, enhance, and move quicker than the competition. This will be
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beneficial and useful for researcher to take permission for the M&S managers for collecting
primary information about the corporate social responsibility and its effects on customer loyalty
(Wu, Tsai and Tai, 2016).
Ethical issues
There are number of ethical issues within a study including legality, responsible
publications, confidentiality, and respect for intellectual property, Beneficence, informed
consent, carefulness, openness, objectivity, honesty and integrity. These are considering main
issues that have negative effect on researcher while doing research on CSR activities and its
effect on customer loyalty. There are some main ethics issues regarding the study which will be
described as below:
 Confidentiality is an addition of privacy but mainly relates purposely to the agreement
which is made between the investigator and respondents regarding what can and cannot be
completed with data gathered over research (Yuen, Thai and Wong, 2016)
 Informed consent is best known by seeing at what it meaning to be informed as well as to
provide consent. Individual informed means that respondents are told the whole thing that
might or will happen throughout a research in a manner in which they can recognize.
 Beneficence is sometimes complicated to forecast when developing a hypothesis research.
 The issue of confidentiality as well as anonymity is directly linked with the human rights of
beneficence, regard for the fidelity and dignity.
Significance
This research is based on the impact of CSR activities on customer loyalty. It is an effective
and significant at academic as well as practical level. At academic level, this topic helps students
by increasing their knowledge and understanding about the corporate social responsibility and its
direct impact on loyalty of customers. With the help of this study, they will also increase their
knowledge regarding the importance of CSR activities in managing business operations and
activities effectively. In practical level, this study helps researcher by improving their research
skills such as literature review, time management etc. All these skills will help them in
completion of full project or study in effective manner. If this research is published, it will be
more beneficial for societies, organisations and an individual by improving their understanding
about the role of CSR activities in overall management of business functions (Yuen, Thai and
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Wong, 2016). Along with this, companies get advantages via lower operating costs, enhanced
sales and customer loyalty, higher productivity, acquiring ability to attract as well as keep
knowledgeable workers, getting access to more resources via more willing investors
etc. Corporate social responsibility is the thoughtful and also practical way to provide back to
the society. Therefore, this research is more important at academic and practical level by
increasing understating about the benefits of CSR activities to an individual, organisations and
societies.
Deliverables
Research deliverables is essential and important because it support researcher to divide each
activities of study in smaller group. For this part of the study, Work-break down structure is
more suitable and appropriate tool for deliverables. WBS is a deliverable-oriented hierarchical
decomposition of the research activity that is executed by project team or researcher with
purpose to attain research aim and objectives as well as develop a required deliverables. Work
break down structure is cornerstone of effective research planning, execution, monitoring,
controlling and reporting (Gürlek Düzgün and Uygur, 2017). There are some deliverables
according to the current study such as research title and research description, statement of
research questions and project introduction, collection of secondary data for literature review,
description of research methodology, project review and time lines. These are main deliverable
that will be beneficial for researcher in completion of full study systematically and efficiently.
Required resources
This is important for conducting research in systematic and easier manner. In order to
conduct current investigation, there is requirement of some sources which are magazines, books,
publications etc. These sources will be required by researcher in collection secondary data for
literature review (Wu and et. al., 2018). In order to conduct primary researcher, there is also need
of some useful sources which are time, communication, capital and many other relevant to the
project. These sources are helps researcher in gathering of primary information for questionnaire.
Therefore, primary and secondary sources are useful and needed by investigator for conducting
primary and secondary study in systematic and effective manner.
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Implementation time table
This is an important and essential part of the project because it facilitates in identification of
time apart from their starting as well as ending data (Lee, Chang and Lee, 2017). For this section,
Gantt chart will be use because it is more valuable for researcher to analysis starting and ending
data of entire project. Gantt chart refers as an effective tool of project management that is used
by researcher for planning and scheduling of project. This chart includes number of activities
that will be useful for researcher in completion of full project of study in systematic and effective
manner. There are some activities according to the project which will be shown as below:
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BUSINESS RESEARCH PLAN EVALUATION
This is an effective plan that is mainly related with the effectiveness of research
methodology that has been used within an investigation. There are number of methodologies
used by researcher for addressing each questions of research. In order to gathered secondary data
about the affects of corporate social responsibility, books, magazines and many other methods
were used by researcher in literature review (Cuesta‐Valiño, Rodríguez and Núñez‐Barriopedro,
2019). Along with this, for primary data, numbers of methodologies have been applied including
qualitative approach, deductive approach, positivism philosophy, questionnaire, descriptive
research design, Gantt chart, WBS, primary and secondary sources of data collection and many
others. All these are effective in gathering of data about the effect of corporate social
responsibility in enhancing customer loyalty towards brand. All these methods apart from their
effectiveness according to the project will be shown under this table:
Research
methodology
Effectiveness of research methodology
Positivism
philosophy
Positivism philosophy relies on quantitative information that positivists
consider is more reliable and useful than qualitative research. According
to the study it helped researcher in collecting of quantitative information
in minimum time.
Quantitative
approach
Qualitative approach is more effective in collecting of information
regarding the CSR activities because it not consume more time and
provide valid results. This approach is effective because it provide
numerical information regarding the project and also need minim time
and resources.
Primary and
secondary methods
of data collection
Both, primary and secondary sources are important within a study
because these supported researcher in collecting of in-depth and reliable
data about the CSR activities and its role in increment of customer
loyalty.
Questionnaire Questionnaire is also important and effective instrument of primary data
collection that will support researcher in gathering of valid and reliable
information easily. Under this method, researcher will require to make
some close-ended questions and ask to the respective population. At the
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same time as it support researcher in gaining of valid outputs within a
given time period.
Gantt chart Gantt chart is main part of methodology that helped researcher in
completion of full project in allotted time period. Gantt chart is effective
tool of time management that used within a study for identifying starting
and ending time period of full project. Therefore, it is useful for
researcher in completing of project timely and systematically.
Deliverables (WBS) Work-break down structure is valuable and deliverable structure that was
used within a project. This structure supported researcher in dividing of
whole project activities in small number of group.
Descriptive research
design
This is a part of research design that has been used by researcher for
identifying and analysing the research problem in effective manner.
Descriptive design will be beneficial for researcher in completion of
research in effective manner.
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