Relationship between Corporate Social Responsibility and Brand Loyalty of Dahabshiil remittance Company in Mogadishu, Somalia

Abstract

The purpose of the study was to examine the relationship between corporate social responsibility and brand loyalty of Dahabshiil Remittance Company in Mogadishu, Somalia. The study focused in determining the relationship between philanthropic responsibilities and brand loyalty, ethical responsibilities and brand loyalty, legal responsibilities and brand loyalty as well as the relationship between economic responsibilities and brand loyalty. Across-sectional research, which is a type of descriptive research design, was adopted using a sample of 377 out of a population of 20 thousand of Dahabshiil consumers in Mogadishu. Self-administered questionnaires were used to collect data from respondents while descriptive statistics such as frequencies and percentages were used. It was also used inferential statistics such as correlation and regressions to determine the relationship between corporate social responsibility and brand loyalty. The findings of the study revealed that the company engages in CSR actions as most of the respondents appreciated that fact. The CSR initiatives used include but not limited; funding and supporting educational institutions, initiatives aiming environmental protection, improving the needs of the society, and donating money for various charitable causes. The findings also revealed that philanthropic responsibilties have statistically siginifacnt positive relationship with brand loyalty (r=.755, N= 377, p-value< .01), ethical responsibilities have statistically significant positive relationship with brand loyalty effect (r=.694, N= 377, p-value< .01), legal responsibilities have statistically significant relationship with brand loyalty (r=.627, N= 377, p-value< .01), and also legal responsibilities have significant effect on brand loyalty (r=.531, N= 377, p-value< .01). From the regression analysis, it was found that CSR initiatives adopted by the company would contribute up to (44.1%, p-vale< 0.05). The key recommendations of the study were that the organization should devote whatever resources that are available philanthropic social responsible initiatives for achieving higher levels of brand loyalty. Secondly, to retain the customers and maintain their loyalty, the 2 researcher recommends that the company to behave ethically and honestly with its customers and that CSR initiatives is communicated with community ethically and sincerely. Third, the study recommends that the company needs to respect always the laws when carrying out its business activities and protect the natural environment in order to retain the customers and maintain their loyalty. The company must also meet the legal requirements related to goods and services as the consumers expressed that they will rely on the business of the company if its meets the minimal requirements related to goods and services. Finally, the study recommends that the company should strive to maximize its financial performance and engage marketing activities that are beneficial to its stockholders and also to general community. The maximization of the financial performance will help the company to be competitive and profitable so they can give percentage of its profits back to society.