Impact of CSR activities on customer trust and loyalty in the banking sector of Bangladesh

https://doi.org/10.35912/gams.v2i2.3665
Published: Nov 21, 2025

Abstract:

Purpose: The purpose of this study is to examine how Corporate Social Responsibility (CSR) practices in Bangladeshi banks influence customer trust and loyalty. It aims to understand whether CSR helps banks gain a competitive advantage, build stronger customer relationships, and improve long-term sustainability and profitability.

Methods: This study uses a quantitative research approach. Data will be collected through a structured survey using stratified random sampling of 300 customers from at least five major banks in Bangladesh known for their CSR activities. The survey focuses on customer awareness, perception of CSR initiatives, trust, and loyalty, supported by secondary data such as CSR reports and academic literature. Data will be analyzed using descriptive statistics, correlation, and regression analysis, covering CSR dimensions such as community engagement, environmental sustainability, and financial inclusion in both urban and rural areas.

Results: The study is expected to show that strong CSR practices improve customer perceptions of a bank’s ethics, reliability, and honesty, which boosts customer trust. Higher trust is likely to lead to greater customer loyalty, including retention and positive word-of-mouth. Banks that communicate CSR activities clearly are also expected to gain more satisfaction and brand advocacy. Findings will identify which CSR activities matter most and how they strengthen long-term customer relationships and competitive advantage.

Conclusion: CSR is expected to significantly enhance customer trust and loyalty and reinforce sustainable competitive positioning for banks in Bangladesh.

Limitation: This study is limited to selected banks and relies on self-reported survey responses, which may not fully capture customer behavior across the entire banking sector.

Contribution: This study contributes to CSR, marketing, and banking strategy by providing empirical evidence on how CSR shapes trust and loyalty. It offers practical guidance for banks and policymakers and provides insights relevant to other developing countries.

Keywords:
1. Bangladeshi Banks
2. CSR Practices
3. Customer Trust
4. Customer Loyalty
5. Responsible Banking
Authors:
1 . Md. Hazrat Ali
University of Dhaka, Bangladesh
2 . Md. Monirul Islam
University of Dhaka, Bangladesh
3 . Nusrat Afrin Nadi
University of Dhaka, Bangladesh
4 . Al Amin
University of Dhaka, Bangladesh
5 . Md. Mohibul Alam Dolon
University of Dhaka, Bangladesh
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How to Cite
Ali, M. H. ., Islam, M. M. ., Nadi , N. A., Amin, A., & Dolon , M. M. A. . (2025). Impact of CSR activities on customer trust and loyalty in the banking sector of Bangladesh. Global Academy of Multidisciplinary Studies, 2(2), 107–120. https://doi.org/10.35912/gams.v2i2.3665
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Vol. 2 No. 2 (2025): November
Articles
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References

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    Afroj, F. (2022). Financial strength of banking sector in Bangladesh: a CAMEL framework analysis. Asian Journal of Economics and Banking, 6(3), 353-372. doi:https://doi.org/10.1108/ajeb-12-2021-0135

    Ahmed, S., Jannat, R., & Ahmed, S. U. (2017). Corporate governance practices in the banking sector of Bangladesh: do they really matter? Available at SSRN 2984104. doi:https://doi.org/10.21511/bbs.12(1).2017.03

    Al-nassar, B. A. Y. (2015). The customer trust and customer commitment of e-customer relationship management: Study at Jordan of mobile phone services. International Journal of Electronic Customer Relationship Management, 9(1), 33-55. doi:https://doi.org/10.1504/IJECRM.2015.070697

    Al Karim, R. (2019). Influence of service quality on customer satisfaction and customer loyalty in the private banking sector of Bangladesh: A PLS approach. Journal of Marketing and Information Systems, 1(3), 8-17. doi:https://doi.org/10.31580/jmis.v1i3.1049

    Anik, M. S. A. M., Bristy, R. R., Alam, S., Hrisha, L. K., & Hasan, N. (2020). Non-Performing Loans: A Catastrophic Phenomena in Banking Sector of Bangladesh. European Journal of Business and Management, 12(27), 124-133. doi:https://doi.org/10.7176/ejbm/12-27-14

    Bag, S., & Islam, S. (2017). Non-performing assets a biggest challenge in banking sector-A comparative study between India and Bangladesh banking sector. ICTACT Journal on management studies, 3(4), 620-624. doi:https://doi.org/10.21917/ijms.2017.0084

    Bugandwa, T. C., Kanyurhi, E. B., Bugandwa Mungu Akonkwa, D., & Haguma Mushigo, B. (2021). Linking corporate social responsibility to trust in the banking sector: Exploring disaggregated relations. International journal of bank marketing, 39(4), 592-617. doi:https://doi.org/10.1108/IJBM-04-2020-0209

    Chiguvi, D., & Guruwo, P. T. (2017). Impact of customer satisfaction on customer loyalty in the banking sector. International Journal of Scientific Engineering and Research (IJSER), 5(2), 55-63. doi:https://doi.org/10.70729/ijser151173

    Chung, S., Park, J.-W., & Lee, S. (2022). The influence of CSR on airline loyalty through the mediations of passenger satisfaction, airline brand, and airline trust: Korean market focused. Sustainability, 14(8), 1-15. doi:https://doi.org/10.3390/su14084548

    Hong, G., & Kim, E. (2018). The Impact of Foreign MNEs’ Local CSR Activities on Local Applicants’ Apply Intention: The Moderating Role of Country Image. International Business Journal, 29(3), 61-84. doi:http://doi.org/10.14365/ibj.2018.29.3.3

    Hoque, M. A., Jahan, F., & Begum, F. (2024). Exploring the Nexus of ATM Service Quality, Customer Satisfaction, and Loyalty in the Private Banking Sector in Bangladesh. Pakistan Journal of Life & Social Sciences, 22(1). doi:https://doi.org/10.57239/pjlss-2024-22.1.0074

    Hossan, M. E., & Hasan, R. (2021). Job satisfaction of private banking sector employees in Bangladesh. International Journal of Engineering and Management Research, 11(3), 1-14. doi:https://doi.org/10.2139/ssrn.3867172

    Iglesias, O., Markovic, S., Bagherzadeh, M., & Singh, J. J. (2020). Co-creation: A key link between corporate social responsibility, customer trust, and customer loyalty. Journal of business ethics, 163(1), 151-166. doi:https://doi.org/10.1007/s10551-018-4015-y

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    Khan, I., & Fatma, M. (2019). Connecting the dots between CSR and brand loyalty: the mediating role of brand experience and brand trust. International Journal of Business Excellence, 17(4), 439-455. doi:https://doi.org/10.1504/IJBEX.2019.099123

    Kumar, A., Sinha, A., Arora, A., & Aggarwal, A. (2018). Impact of CSR activities on the financial performance of firms. MUDRA: Journal of Finance and Accounting, 5(1), 75-89. doi:https://doi.org/10.17492/mudra.v5i01.13037

    Kumar, P. N., Jacob, A., & Thota, S. (2014). Impact of healthcare marketing and branding on hospital services. International Journal of Research Foundation of Hospital and Healthcare Administration, 2(1), 19-24. doi:https://doi.org/10.5005/jp-journals-10035-1010

    Liu, M. T., Liu, Y., Mo, Z., Zhao, Z., & Zhu, Z. (2020). How CSR influences customer behavioural loyalty in the Chinese hotel industry. Asia Pacific Journal of Marketing and Logistics, 32(1), 1-22. doi:https://doi.org/10.1108/APJML-04-2018-0160

    Louis, D., Lombart, C., & Durif, F. (2019). Impact of a retailer’s CSR activities on consumers’ loyalty. International Journal of Retail & Distribution Management, 47(8), 793-816. doi:https://doi.org/10.1108/IJRDM-12-2018-0262

    Ma, J.-H., Ahn, Y.-H., & Choi, S.-B. (2018). The impact of the buyer participation in CSR activities on a supply chain. ??????, 16(3), 1-10. doi:https://doi.org/10.15722/jds.16.3.201803.23

    Mandira, D. A., Suliyanto, S., & Nawarini, A. (2018). The influence customer trust, service quality, and perceived price on customer satisfaction and customer loyalty. Journal of Research in Management, 1(1), 16-21. doi:https://doi.org/10.32424/jorim.v1i1.16

    Németh, P. (2013). A kereskedelmi láncok CSR-tevékenysége–a versenyképességük fokozása (CSR activities of commercial chains–increasing their competitiveness). Vezetéstudomány-Budapest Management Review, 44(3), 61-71. doi:https://doi.org/10.14267/veztud.2013.03.06

    Pratama, R. P. (2014). Pengaruh Systemic Fairness dari Layanan Internet Banking terhadap Customer Satisfaction dengan Customer Trust dan Customer Perceived Value sebagai Variabel Intervening. Jurnal Manajemen Dan Pemasaran Jasa, 7(1), 81-110. doi:https://doi.org/10.25105/jmpj.v7i1.522

    Sadekin, M. S., & Shaikh, M. A. H. (2016). Effect of e-banking on banking sector of Bangladesh. International Journal of Economics, Finance and Management Sciences, 4(3), 93-97. doi:https://doi.org/10.11648/j.ijefm.20160403.11

    Siddiqi, K. O. (2011). Interrelations between service quality attributes, customer satisfaction and customer loyalty in the retail banking sector in Bangladesh. International Journal of Business and Management, 6(3), 12. doi:https://doi.org/10.5539/ijbm.v6n3p12

    Singh, N., & Bajpai, A. (2021). CSR activities in Sugar Mills during the Covid 19: A case study of Uttar Pradesh. American Research Journal of Business and Management, 7(1), 1-6. doi:https://doi.org/10.21694/2379-1047.21003

    Singh, R. P. (2024). The impact of e-banking service quality on e-banking satisfaction and e-banking loyalty. Ultima Management: Jurnal Ilmu Manajemen, 16(1), 150-167. doi:https://doi.org/10.31937/manajemen.v16i1.3665

    Wijaya, P. S. M., & Istriani, E. (2015). Pengaruh Faktor-Faktor Anteseden E-Customer Satisfaction, E-Customer Trust Dan Compulsive Buying Pada Pembentukkan E-Customer Loyalty. Jurnal Manajemen, 19(1), 1-13. doi:https://doi.org/10.24912/jm.v19i1.101

  1. Afreen, M. (2020). Building vulnerability predictive indicator for the banking sector: Perspective of Bangladesh. International Journal of Finance & Banking Studies, 9(3), 1-14. doi:https://doi.org/10.20525/ijfbs.v9i3.704
  2. Afroj, F. (2022). Financial strength of banking sector in Bangladesh: a CAMEL framework analysis. Asian Journal of Economics and Banking, 6(3), 353-372. doi:https://doi.org/10.1108/ajeb-12-2021-0135
  3. Ahmed, S., Jannat, R., & Ahmed, S. U. (2017). Corporate governance practices in the banking sector of Bangladesh: do they really matter? Available at SSRN 2984104. doi:https://doi.org/10.21511/bbs.12(1).2017.03
  4. Al-nassar, B. A. Y. (2015). The customer trust and customer commitment of e-customer relationship management: Study at Jordan of mobile phone services. International Journal of Electronic Customer Relationship Management, 9(1), 33-55. doi:https://doi.org/10.1504/IJECRM.2015.070697
  5. Al Karim, R. (2019). Influence of service quality on customer satisfaction and customer loyalty in the private banking sector of Bangladesh: A PLS approach. Journal of Marketing and Information Systems, 1(3), 8-17. doi:https://doi.org/10.31580/jmis.v1i3.1049
  6. Anik, M. S. A. M., Bristy, R. R., Alam, S., Hrisha, L. K., & Hasan, N. (2020). Non-Performing Loans: A Catastrophic Phenomena in Banking Sector of Bangladesh. European Journal of Business and Management, 12(27), 124-133. doi:https://doi.org/10.7176/ejbm/12-27-14
  7. Bag, S., & Islam, S. (2017). Non-performing assets a biggest challenge in banking sector-A comparative study between India and Bangladesh banking sector. ICTACT Journal on management studies, 3(4), 620-624. doi:https://doi.org/10.21917/ijms.2017.0084
  8. Bugandwa, T. C., Kanyurhi, E. B., Bugandwa Mungu Akonkwa, D., & Haguma Mushigo, B. (2021). Linking corporate social responsibility to trust in the banking sector: Exploring disaggregated relations. International journal of bank marketing, 39(4), 592-617. doi:https://doi.org/10.1108/IJBM-04-2020-0209
  9. Chiguvi, D., & Guruwo, P. T. (2017). Impact of customer satisfaction on customer loyalty in the banking sector. International Journal of Scientific Engineering and Research (IJSER), 5(2), 55-63. doi:https://doi.org/10.70729/ijser151173
  10. Chung, S., Park, J.-W., & Lee, S. (2022). The influence of CSR on airline loyalty through the mediations of passenger satisfaction, airline brand, and airline trust: Korean market focused. Sustainability, 14(8), 1-15. doi:https://doi.org/10.3390/su14084548
  11. Hong, G., & Kim, E. (2018). The Impact of Foreign MNEs’ Local CSR Activities on Local Applicants’ Apply Intention: The Moderating Role of Country Image. International Business Journal, 29(3), 61-84. doi:http://doi.org/10.14365/ibj.2018.29.3.3
  12. Hoque, M. A., Jahan, F., & Begum, F. (2024). Exploring the Nexus of ATM Service Quality, Customer Satisfaction, and Loyalty in the Private Banking Sector in Bangladesh. Pakistan Journal of Life & Social Sciences, 22(1). doi:https://doi.org/10.57239/pjlss-2024-22.1.0074
  13. Hossan, M. E., & Hasan, R. (2021). Job satisfaction of private banking sector employees in Bangladesh. International Journal of Engineering and Management Research, 11(3), 1-14. doi:https://doi.org/10.2139/ssrn.3867172
  14. Iglesias, O., Markovic, S., Bagherzadeh, M., & Singh, J. J. (2020). Co-creation: A key link between corporate social responsibility, customer trust, and customer loyalty. Journal of business ethics, 163(1), 151-166. doi:https://doi.org/10.1007/s10551-018-4015-y
  15. Kang, J., & Hustvedt, G. (2014). The contribution of perceived labor transparency and perceived corporate giving to brand equity in the footwear industry. Clothing and Textiles Research Journal, 32(4), 296-311. doi:https://doi.org/10.1177/0887302X14546186
  16. Khan, I., & Fatma, M. (2019). Connecting the dots between CSR and brand loyalty: the mediating role of brand experience and brand trust. International Journal of Business Excellence, 17(4), 439-455. doi:https://doi.org/10.1504/IJBEX.2019.099123
  17. Kumar, A., Sinha, A., Arora, A., & Aggarwal, A. (2018). Impact of CSR activities on the financial performance of firms. MUDRA: Journal of Finance and Accounting, 5(1), 75-89. doi:https://doi.org/10.17492/mudra.v5i01.13037
  18. Kumar, P. N., Jacob, A., & Thota, S. (2014). Impact of healthcare marketing and branding on hospital services. International Journal of Research Foundation of Hospital and Healthcare Administration, 2(1), 19-24. doi:https://doi.org/10.5005/jp-journals-10035-1010
  19. Liu, M. T., Liu, Y., Mo, Z., Zhao, Z., & Zhu, Z. (2020). How CSR influences customer behavioural loyalty in the Chinese hotel industry. Asia Pacific Journal of Marketing and Logistics, 32(1), 1-22. doi:https://doi.org/10.1108/APJML-04-2018-0160
  20. Louis, D., Lombart, C., & Durif, F. (2019). Impact of a retailer’s CSR activities on consumers’ loyalty. International Journal of Retail & Distribution Management, 47(8), 793-816. doi:https://doi.org/10.1108/IJRDM-12-2018-0262
  21. Ma, J.-H., Ahn, Y.-H., & Choi, S.-B. (2018). The impact of the buyer participation in CSR activities on a supply chain. ??????, 16(3), 1-10. doi:https://doi.org/10.15722/jds.16.3.201803.23
  22. Mandira, D. A., Suliyanto, S., & Nawarini, A. (2018). The influence customer trust, service quality, and perceived price on customer satisfaction and customer loyalty. Journal of Research in Management, 1(1), 16-21. doi:https://doi.org/10.32424/jorim.v1i1.16
  23. Németh, P. (2013). A kereskedelmi láncok CSR-tevékenysége–a versenyképességük fokozása (CSR activities of commercial chains–increasing their competitiveness). Vezetéstudomány-Budapest Management Review, 44(3), 61-71. doi:https://doi.org/10.14267/veztud.2013.03.06
  24. Pratama, R. P. (2014). Pengaruh Systemic Fairness dari Layanan Internet Banking terhadap Customer Satisfaction dengan Customer Trust dan Customer Perceived Value sebagai Variabel Intervening. Jurnal Manajemen Dan Pemasaran Jasa, 7(1), 81-110. doi:https://doi.org/10.25105/jmpj.v7i1.522
  25. Sadekin, M. S., & Shaikh, M. A. H. (2016). Effect of e-banking on banking sector of Bangladesh. International Journal of Economics, Finance and Management Sciences, 4(3), 93-97. doi:https://doi.org/10.11648/j.ijefm.20160403.11
  26. Siddiqi, K. O. (2011). Interrelations between service quality attributes, customer satisfaction and customer loyalty in the retail banking sector in Bangladesh. International Journal of Business and Management, 6(3), 12. doi:https://doi.org/10.5539/ijbm.v6n3p12
  27. Singh, N., & Bajpai, A. (2021). CSR activities in Sugar Mills during the Covid 19: A case study of Uttar Pradesh. American Research Journal of Business and Management, 7(1), 1-6. doi:https://doi.org/10.21694/2379-1047.21003
  28. Singh, R. P. (2024). The impact of e-banking service quality on e-banking satisfaction and e-banking loyalty. Ultima Management: Jurnal Ilmu Manajemen, 16(1), 150-167. doi:https://doi.org/10.31937/manajemen.v16i1.3665
  29. Wijaya, P. S. M., & Istriani, E. (2015). Pengaruh Faktor-Faktor Anteseden E-Customer Satisfaction, E-Customer Trust Dan Compulsive Buying Pada Pembentukkan E-Customer Loyalty. Jurnal Manajemen, 19(1), 1-13. doi:https://doi.org/10.24912/jm.v19i1.101