Corporate Social Responsibility (CSR) Initiatives and Customer Satisfaction in Banking Sector: Insights from Indian Banks

Abstract: The study explores the relationship between Corporate Social responsibility (CSR) initiatives and customer satisfaction in the banking sector in India. As banking continues to expand, understanding the factors that inspire customer satisfaction is crucial for financial institutions. An online survey was developed and distributed through social media platforms, banking apps, and email to reach a diverse audience. A random sample of 200 respondents was selected to ensure representation across diverse demographics. The quantitative data was analysed using statistical methods to establish correlations, while qualitative insights provided deeper context to customer perceptions. The results show a significant positive correlation between awareness of CSR initiatives and customer satisfaction. Respondents who participated in their bank’s CSR initiatives reported higher satisfaction and loyalty levels. Notably, the most impactful CSR initiatives were found to be environment sustainability initiatives and community development programs. This research contributes to the literature on CSR in banking sector by highlighting the significance of incorporating social responsibility into banking strategies. The ramifications for bank management emphasize the need for impactful communication for CSR efforts to boost customer trust and satisfaction. Ultimately, the study offers practical insights for banks aiming to strengthen their digital offerings while promoting positive societal effects.

Keywords: Corporate social responsibility (CSR), Banking services, Customer satisfaction, CSR dimensions