Ethics and Customer Satisfaction

This essay argues that a for-profit organization is more profitable with higher client satisfaction if it has a social purpose. The paper centers its argument on corporate social responsibility and its impact on customer satisfaction.

Running Head: ETHICS AND CUSTOMER SATISFACTION
Ethics and Customer Satisfaction
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1ETHICS AND CUSTOMER SATISFACTION
Introduction
Most corporate organizations of the contemporary age wants to be viewed as entities that
has a social purpose; the reasons are not too far to seek. Not only is it good for the business’
reputation, but also has fruitful outcomes for the scope of the organization (Anderson and Bees.,
2017). An organization with a social purpose attracts productive employees and retains their
motivation, has more chances of attracting impact investors and most importantly, maximizes
client satisfaction. The purpose of this essay is to argue for the development of reflective
statement that a for-profit organization is more profitable with higher client satisfaction if it has a
social purpose. The paper will center its argument on corporate social responsibility and its
impact on customer satisfaction. Finally, the essay will conclude with the suitable suggestions
that would help for-profit organizations to engage in activities that benefits the society.
Discussion
For a thorough discussion on the topic, it becomes important to provide a clear definition
of the term ‘social purpose’. In this context, I feel that social purpose refers to the purposes (one
or more) of the for-profit organizations that are mentioned in the corporate’s certificate of
foundation. It usually consists of promoting positive impacts on the society or the environment
or of the attempts to abate the negative impacts of the organization’s activities on the
environment or the so society. According to me, the activities that might lead to these impacts
include providing underprivileged individuals or people from low-income background with
beneficial services and products at low costs, preservation of the environment and improvement
of human health, promoting sciences, the arts and the progression of knowledge.

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Customer satisfaction refers to the feelings of a consumer (in terms of pleasure) after
having used the product or the services of a company. A business bases its success on customer
satisfaction and it is the best way to assess the growth of the business. There is a direct and
proportional relationship between customer repurchase and consumer satisfaction. A company
that carries out CSRs increases the chances of establishing a good reputation in the market, and
consumers are automatically drawn towards products and services that has a higher purpose than
making profit (Saedi et al., 2015). I think that satisfied customer are most likely to recommend
the products of a socially responsible firm, patronizing their cause that goes beyond the usual
profit-making motive. Additionally, firms that engage in CSRs are better positioned to create
loyal customers and retain them as well. Loyal customers are those who demonstrate deep
commitment towards the service and products of a particular company despite the situational
influences in the marketplace that has the potential to change buyer behavior. One the central
objectives of business firms is customer loyalty for surviving in the market since it ensures
growth and aids competitive advantages. In general agreement, customer satisfaction is a viable
strategy for retaining consumers and spreading the word of mouth through them.
The memory of the consumer contains a definite perception of the organization he/she is
buys products or avails services from. I also feel that Loyalty and satisfaction among consumers
is deeply influenced by corporate image and reputation. As Attitude Theory suggests, evaluation
of the products and the services is the primary factor influencing corporate image. The
assessment increase the value of the company and helps forming a favorable opinion in the
memory of the consumer. Researchers have also found out that when consumers develop a
positive outlook on a company, the chances of them moving towards satisfaction and loyalty are
higher. The reputation of the corporate not only motivates the already existing customers to

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assume a favorable attitude towards the services/products offered by a company, but also appeals
to potential customers who are capable of making wise, responsible buyer decisions (Perez.,
2014). I can relate advertisement in this aspect, which serve as sources for potential customers to
learn about a company and it is a viable channel for building a strong corporate image.
The importance of corporate social responsibility and its indispensability in a company’s
attempt to build a strong brand reputation has become more crucial than before. In the wake of
the economic and environmental awareness, customers are developing a natural inclination
towards companies that involve in activities for the greater good. The conceptual framework of
CSR categorizes the responsibilities into four different dimensions of operation. The dimensions
are economic, legal, ethical and philanthropic. I think that the economic responsibilities are
associated with profit generation, competition, continuous profitability. A responsible
organization looks after the interests of stakeholders and maintains price fairness with respect to
product quality. The legal dimension of CSR is associated with the company’s consistencies in
maintaining regulations and laws (Elbeltagi & Agag, 2016). Firms that fulfil legal obligations
and produce goods that meet the minimum legal requirement have higher chances at securing a
favorable opinion in the minds of socially aware and conscious consumers. I can assume that the
ethical CSR is perhaps the most valuable and impressionable of all when it comes to maximizing
customer satisfaction. The ethical responsibilities are defined in terms of societal norms and the
extent to which a company is willing to adjust itself for adhering to general ethics. A company
that displays integrity to principles and goes beyond the legal obligations, profit-making motives,
has better claims at appealing to consumers and increasing consumer satisfaction. Bowen and
Cain, (2015) believes philanthropic responsibilities to be the highest CSR level and the chief
determiner of customer satisfaction. A company that caters to the charitable expectations of the

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society is always well-received by people. Here, I am reminded of the aim, which is to engage in
activities that directly or indirectly contribute to the welfare of society; and it may be carries out
by multiple activities, starting from providing assistance to charitable organizations or aiding the
underprivileged, any act of philanthropy adds another feather to the company’s hat.
Researchers conducted by Söderlund and Colliander, (2015) indicate that the economic
duties of the CSR initiatives have a positive influence on the purchasing decision of the buyer.
The positive association between economic CSR and trust level leads to retention and higher
levels of customer satisfaction. Similarly, ethical practices of companies improves customer
satisfaction by forming high opinions about the organization among the consumers. Fairness,
integrity and honesty are intrinsically related to the CSR dimensions of ethical responsibilities.
According to my opinions, commitment, level of trust and reliability mediate the relationship
between customer loyalty/satisfaction and ethical behavior. Things like child-labor avoidance,
environmentally conscious modes of manufacturing are directly linked with customer
satisfaction. Green labelling and fair-trade practices also influences customer positively and
encourages them to retain purchasing habits. Consumers have traditionally been drawn towards
products and services that serve for a greater good in the society instead of meeting the profit
requirements alone. The importance of ethics, principles and responsibilities towards the society
and the environment is a predominant criterion for firms to emerge as entities that are regarded
highly by the public.
Conclusion
The discussion clearly suggest that a for-profit organization is more profitable with
higher client-satisfaction if it is associated with a social purpose. The central finding of the
argument is that profit is mandatory, but CSR is indispensable for ensuring that the company

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keeps earning profits. Organizations are as much run for customers as they are run by them and
hence it is important that their concerns and values are properly looked into. The argument
strategically refers to academic theories and research findings for validating the points made in
the discussion. In a rapidly developing world where organizations are primarily driven by the
instinct to maximize profit, the association with a social purpose increases their value in the
market by increasing the level of customer satisfaction and retaining them successfully through
constant adherence to ethics.

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References and bibliography:
Anderson, B. B., & Dees, J. G. (2017). Sector-bending: Blurring the lines between nonprofit and
for-profit. In In search of the nonprofit sector (pp. 65-86). Routledge.
Bowen, J. T., & Chen McCain, S. L. (2015). Transitioning loyalty programs: a commentary on
“the relationship between customer loyalty and customer satisfaction”. International
Journal of Contemporary Hospitality Management, 27(3), 415-430.
Elbeltagi, I., & Agag, G. (2016). E-retailing ethics and its impact on customer satisfaction and
repurchase intention: a cultural and commitment-trust theory perspective. Internet
Research, 26(1), 288-310.
Martínez, P., & del Bosque, I. R. (2013). CSR and customer loyalty: The roles of trust, customer
identification with the company and satisfaction. International Journal of Hospitality
Management, 35, 89-99.
Pérez, A., & Rodriguez del Bosque, I. (2015). Corporate social responsibility and customer
loyalty: exploring the role of identification, satisfaction and type of company. Journal of
Services Marketing, 29(1), 15-25.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate
social responsibility contribute to firm financial performance? The mediating role of
competitive advantage, reputation, and customer satisfaction. Journal of business
research, 68(2), 341-350.
Söderlund, M., & Colliander, J. (2015). Loyalty program rewards and their impact on perceived
justice, customer satisfaction, and repatronize intentions. Journal of Retailing and
Consumer Services, 25, 47-57.