The Effect of Corporate Social Responsibility on Customer Trust and Loyalty

Abstract

The concept of Corporate Social Responsibility (CSR) has been the subject of various studies in recent decades. The purpose of this research was to study the Corporate Social Responsibility of companies, in combination with customers’ perspectives, in terms of their trends regarding their trust and loyalty. In this study, the business sector of the Greek mobile telecommunications’ companies was selected, where research on issues related to CSR is not considered extensive, to analyze customers’ attitudes towards a company that emphasizes its social responsibility. To complete the theoretical framework, questionnaires were collected to empirically investigate correlations and highlight, ultimately, the importance of having socially responsible companies in the mobile telecommunications sector in Greece. The present research proved that both at the bibliographic and practical level, successful companies are the ones that are concerned not only with increasing their sales and profitability, but also with enhancing and emphasizing their social impact and returning value to society.

1. Introduction

In the international bibliographic quiver, there are various definitions of Corporate Social Responsibility (CSR). The study of their evolution strengthens the understanding of the prevailing trends, which create changes and harmonize with the role of businesses.

The impact of the different dimensions of CSR performance on the financial performance is indisputable regardless of the nature of the organization [1,2]. The CSR is needed to understand the customers’ perceptions for future corporate profitability [3]. In addition, such activities are not only implemented to involve corporate social contributions, but they are also considered as strategic elements of the company’s sustainable growth. They are recognized as an essential element for corporate management activities [4] and an important component of the dialogue between companies and their stakeholders as well [5].

The concept of CSR is complex and dynamic, hence the determination of its multidimensional character by several definitions, each of which reflects its various characteristics. In a generalized context, CSR includes a set of social and environmental concerns that determine the measures and policies to be taken by a business or an organization in a voluntary pattern and with the contribution of all interested parties [6]. The concept of CSR has been defined by the International Business Council for Sustainable Development (IBSDA) in 1998 as “the ongoing commitment by a business to behave ethically and contribute to economic development, while at the same time improving the quality of life of employees and their families, as well as the local community, but also society in general” [6]. Having considered the existing trend of using Corporate Responsibility policies and practices, this paper aims to investigate the relationship and especially the influence that CSR has on the loyalty and trust of the consumer public.

A literature review on this topic currently does not exist to a sufficient extent to draw a clear, comprehensive, and final conclusion, while at the same time the research opinions differ regarding the correlation or not of the above concepts. The investigation becomes complex due to the multidimensional nature of CSR and its various approaches.

There is little research on CSR that has covered its relationship with consumers’ attitudes extensively; for this reason, our attention was focused on this direction. The mobile telecommunications services sector was chosen because the companies’ penetration rate in the market is high and the three telecommunications’ providers in the Greek area have strong socially responsible activity. The purpose of this research was, initially, bibliographic —to identify and describe the concept and approaches of CSR. Following this, we investigated whether the consumers’ perceptions about CSR affects the evaluation of the service and their tendency for trust and loyalty, while simultaneously examining the existence of relationships between consumer demographics and their perceptions of CSR. The main stimulus for the selection of this research are previous studies such as Pérez & Rodríguez del Bosque [7] and Salmones et al. [8], who analyze and examine the models of CSR proposed by Freeman and Carroll [9], respectively, and explore the multidimensional nature of this concept, as we will describe below in the bibliographic part of the paper. Through the adoption of Freeman’s [10] stakeholder model in the developed questionnaire, we aimed to explore, at the same time, the opinion of consumers regarding the Corporate Social Responsibility implemented by mobile companies.

According to Carroll [11], Eells and Walton formulated the opinion that the subject of CSR focuses on the problems that arise when a company overshadows society with its actions, as well as the ethical principles that are necessary to characterize relationships of a company within society. Carroll also argues that the legal, economic, ethical and philanthropic expectations of a society from a business at a particular time are included in its social responsibility [12]. For Kotler and Lee [13] CSR is a “commitment to improve the welfare of society through philanthropic corporate practices and the contribution of corporate resources”. At the same time, CSR is related to the discussion about the role of the company in the social environment, the related obligations and the political perceptions which should delimit these obligations. It is a way to identify common benefits for both the company and society and shapes the company’s relationships with its stakeholders.

Davis’s insights into the dynamics of a business in relation to CSR made him widely known. Carroll [11] points out that for Davis, CSR is a type of long-term investment in the part of the business with the ultimate goal of profitability, which confirms the relevance of corporate responsibility and power. To understand the degree of Davis’s contribution both in terms of the definition of CSR and the existence of a close relationship between CSR and Corporate Financial Performance (CFP), it is sufficient to mention that Carroll considers him equal to Bowen in terms of the fatherhood of CSR. Carroll [14] argues that the company’s objectives both at the economic and social levels are included in its overall responsibility. A more detailed explanation of his ideas will be given below.

Additionally, Carroll [11] points out that Wartick and Cochran contributed decisively to the evolution of his model, re-formulating three aspects of it regarding corporate social responsibilities, corporate social responsiveness and the management of social issues [15]. This reformulation is related to defining the network of procedures, principles and policies. On the other hand, an important point of reference should also be the study of Choi & Lee [16], which has established a significant and positive relationship between CSR and organizational performance [16]: a study which is aligned with Carroll [14] and Wartick and Cochran [15], to combine corporate social performance with organizational theories, such as organizational institutionalism, the management theory of interested parties (stakeholder management) and the management theories of social issues. This aforementioned study aimed to establish the model that would be useful both from a practical and managerial point of view. Thus, as Moir argues, the weakness of this model was that it could not be measured and tested empirically [17].

Two scholars applied this theory in the context of CSR and these were Clarkson [18] and Jones [19]. The former attempts a separation between the social issues concerning businesses and those related to their stakeholders. Going a step further, it divides stakeholders into primary and secondary. In the first category, he classifies those whose involvement is deemed necessary for the viability of the company, i.e., investors, staff, customers, suppliers, the government and the social groups in which they operate. On the other hand, the second category characterizes those who in some way influence or are influenced by the company, while they do not trade with them, and their participation is not necessary for their survival.

Edward Freeman advocated the “stakeholder theory” by reconstructing Friedman’s view [9]. Therefore, according to his opinion, a company’s stakeholder is considered “any group or individual that can affect or be affected (positively or negatively) by the achievement of the organization’s goals” [10]. According to Freeman, stakeholders can come from the direct or indirect environment of an organization. The immediate environment includes shareholders, labor, lenders and customers, etc. The indirect environment concerns the bodies of the state or local societies in which a company operates, pressure groups (e.g., activists, local associations) and the environment, etc.

In addition to Freeman, there were other supporters of this theory. Werther and Chalder attempted a different grouping of an organization’s stakeholders [20]. Thus, according to their point of view, the interested parties are divided into 3 categories:

• Organizational (owners, human resources, company executives, trade unions);
• Finances (shareholders, consumers, competing companies, suppliers);
• Social (governmental schemes, local communities, non-governmental organizations, environment).

De Chernatony and Harris provided their own view of stakeholder classification, supporting the existence of two categories [21]:

• Internals (individual cases of people who interact within the organization affecting its operation, e.g., workforce, leadership);
• Externals (individual cases of people not involved in the organization’s environment, e.g., consumers, suppliers, etc.).

Based on this categorization, the definition of CSR was formed, which describes internal and external CSR [22]. Internal CSR concerns the adoption of ethical behaviors by the company towards its internal stakeholders, while external CSR relates to the adherence to ethical principles in the external actions of companies, including philanthropy and contributions to the local community. Also, in some articles, such as Arora P. [23] and Heinze [24], there is a consensus on the effect of CSR on the performance of a company in terms of the financial aspects and the causes related to both production and consumption.

Other studies, such as Ullmann [25], Andayani, W. [26] and Roberts [27] support the view that companies adopt CSR practices, which is due to and caused by the CFP. This is because when a company undertakes costly CSR programs it is affected by the CFP. This means that companies that have a high performance in the financial sector and a low risk, can respond when they undertake social actions and initiatives.

Several researchers identify the important role played by corporate reputation around productivity. According to Greening & Turban [28], a higher educated workforce will prefer firms that have acquired a good reputation. McGuire et al. [26] and Khan, S.Z., Yang, Q. and Waheed, A. in their most recent research [29] argue that the corporate reputation can contribute to increasing employee loyalty to the company, thus improving its financial performance. Apart from the corporate reputation, which is built when a company follows a socially responsible policy, the company’s own investment in CSR is also a decisive factor for increasing productivity. According to one of the latest works of Haseeb, M., Hussain, H.I., Kot, S., Androniceanu, A. and Jermsittiparsert, K. [30], Russo & Fouts [31] and McWilliams & Siegel [32], the investment in CSR brings to a company new resources, abilities and possibilities regarding its organization, culture, technology and human potential. Consequently, it can gain a significant competitive advantage.

As previously stated, the consumer public shows a preference for companies that follow practices harmonized with CSR. This preference is also confirmed in the field of mobile telecommunications. Not many studies have been identified in this specific field. Specifically, there are two related studies, by Salmones et al. [8] and Vlachos et al. [33], from which we can draw evidence. Following Carroll’s [11] four-dimensional model, Salmones et al. [8] investigated the views of mobile phone customers related to the attitude of companies along four axes, ethical, economic, legal and philanthropic. The research sample of 689 people targeted Spain and the criteria used were each company’s market share, as well as the gender and age of the respondents. Based on the research, it appears that customers do not connect the company’s policy in the financial sector with CSR, while this is true with the other dimensions. The second objective of the investigation was whether the social responsibility of the company had a direct and positive effect on the consumers’ devotion, with the findings that the service evaluation greatly influences consumer loyalty.

The effect of CSR on consumer loyalty is indirect, since the criterion for customers is the evaluation of the services provided. According to the scholars’ point of view, the best financial performance of a company can be achieved if it adopts clear ethical rules, if its policy is harmonized with social commitments, if it respects the environment and if it has built relationships of trust with the interested parties. In their own research Vlachos et al. [33] used a sample of 830 people from large Greek cities and the response rate was 15%. The object of their study was whether, in what way and in which cases the opinions of customers can influence the adoption of CSR practices by the companies studied.

Based on the findings of their study, consumers hold a positive attitude only when the value motivation for adopting CSR practices is valid. This specific motivation is related to the philanthropic behavior and the disposition for social contribution of each company and in fact, as they emphasize, motivates consumers to recommend the brand to other customers. It is also highlighted that the degree of customer loyalty to the company is of great importance to the way in which CSR policies influence consumers to support the company and recommend it to others.

2. Materials and Methods

2.1. Method

The present quantitative research was conducted during the months of November and December 2021 using a short electronic questionnaire as a tool which was distributed to mobile owners from various regions of Greece that were customers of at least one of the three main mobile communications’ providers in the country. This method ensures the objective collection of numerical data from many people and leads to a statistical analysis [34]. The questionnaire consisted of five main sections which were: (a) The information letter about the data collection purpose, ensuring the anonymity and confidentiality of participants’ answers; (b) the demographics questions; (c) the participants’ perceptions about Corporate Social Responsibility; (d) The participants’ perceptions about trust in the company,; and the participants’ perceptions about loyalty to the company.

The questions belonging to the three last sections had to be answered based on a 7-point Likert scale: (1) Strongly Disagree–(7) Strongly Agree. The sample was collected using the convenience sampling method, while the collection of data was followed by the appropriate processing through IBM SPSS Statistics 25.0, to extract the valuable findings of the research, which are presented in detail below.

2.2. Sample

Before, however, proceeding to the presentation and analysis of the findings, it is worth highlighting some qualitative characteristics of the population that took part in the research. First, the total number of people (N) who participated in the research amounted to 330, while 132 (40%) of them were men and 198 (60%) were women. It is also worth noting that a significant percentage of the sample (57.3%) were employees; almost the half of the participants (53.9%) were single; and finally, the average age of the participants was 34.4 years. The following Table (

Table 1. The sample demographics.

Variable		Options	f	%
Gender		Man	132	40.0
		Woman	198	60.0
Education Level		Junior High School	4	1.2
		High School	44	13.3
		Post-Secondary	4	13.1
		Higher Education	137	41.5
		Master’s Degree	93	28.2
		PhD	9	2.7
Profession		Student	46	13.9
		Employee	189	57.3
		Freelance	53	16.1
		Retired	5	1.5
		Household	4	1.2
		Unemployed	33	10
Family Status		Single	178	53.9
		Married without children	45	13.7
		Married with children	93	28.2
		Divorced	14	4.2
Age	Mean	S.D.	Min	Max
	34.4	9.8	11	67

) shows the demographic data of the sample.

2.3. Data Analysis

As previously mentioned, the data collected have been analyzed with IBM SPSS Statistics 25.0. To reveal the main purpose of the paper, which is to investigate the level of correlation between Corporate Social Responsibility and the customers’ trust and customers’ loyalty, our analysis has been based on two research questions, as follows:

• What’s the impact of a company’s CSR on customers’ trust in the company?;
• What’s the impact of a company’s CSR on customers’ loyalty to the company?

3. Results

Before diving deeper into participants’ answers to the questionnaire, it’s important to highlight that the coefficient of internal reliability Cronbach’s alpha was calculated for each dimension/subdimension of the questionnaire. The intervals, based on which the results were evaluated, were (a) [0.7–0.79], which is associated with satisfactory internal reliability, (b) [0.8–0.89] which corresponds to good internal reliability, and (c) [0.9–1], which results in excellent internal reliability for the questionnaire.

Regarding the dimension of Corporate Social Responsibility, the Cronbach’s alpha index was 0.976, while the dimension of customers’ trust index was 0.968, and customers’ loyalty was 0.862.

In the following

Table 2. Reliability indices for the dimensions and subdimensions of the questionnaire.

Dimension/Subdimension		Cronbach’s Alpha
Corporate Social Responsibility		0.976
Customers		0.976
Shareholders and Supervisory Board’		0.954
Employees		0.951
Society		0.969
Customers’ Trust Customers’ Loyalty		0.968 0.862

the reliability for all the dimensions as well as the sub-dimensions of the Corporate Social Responsibility dimension are presented.

Regarding the participants’ perceptions about the Corporate Social Responsibility of the companies, and more specifically regarding the “Customers” factor, most of the customers believed that the mobile telephone provider they use establishes procedures to respond to customer complaints (Mean = 4.40, S.D. = 1.74), it is however not clear for them if the company is treating its customers honestly (Mean = 4.16, S.D. = 1.77). One more finding to highlight is the participants’ perceptions about the level that companies use for their customers’ satisfaction as a guide to improve the marketing of their products/services (Mean = 4.51, S.D. = 1.83).

On the other hand, with regards to the “Shareholders and Supervisory Board”, it is clear that the majority of the customers think that companies try to maximize their profits (Mean = 5.98, S.D. = 1.54) and that they aim to ensure survival and long-lasting success (Mean = 5.62, S.D. = 1.64). The questions based on the “Employees” factor have also revealed important findings such as the fact that customers disagree that companies are paying fair wages to their employees (Mean = 3.85, S.D. = 1.74), while it seems difficult for them to agree that the companies offer security to employees during their work performance (Mean = 4.30, S.D. = 1.75), as well as that companies are treating employees fairly without discrimination or verbal and other abuse (Mean = 4.28, S.D. = 1.72). Finally, and more specifically, concerning the “Society” related questions, participants were not sure if the mobile telephone provider they use contributes to solutions for social problems (Mean = 4.12, S.D. = 1.89), as well as whether the company is interested in the improvement of social welfare (Mean = 4.16, S.D. = 1.89). However, customers agreed at some level that the companies contribute through sponsorships to cultural and social events (e.g., music and sports).

In the following

Table 3. The mean and S.D. of participants’ perceptions about “Corporate Social Responsibility”.

I Think That the Mobile Telephone Company I Use:	Mean ± S.D.
“Customers” Factor
1. Establishes procedures to respond to customer complaints	4.40 ± 1.74
2.Treats its customers with honesty	4.16 ± 1.77
3. Provides through its employees detailed and accurateinformation to its customers about the products/services it offers	4.65 ± 1.78
4. Uses the satisfaction of its customers as a guide to improve the marketing of its products/services	4.51 ± 1.83
5. Tries to understand its customers’ needs	4.44 ± 1.76
“Shareholders and Supervisory Board” Factor
6. Tries to maximize its profits	5.98 ± 1.54
7. Carries out strict cost controls of its operation	4.67 ± 1.81
8. Tries to ensure survival and a long-lasting success	5.62 ± 1.64
9. Honestly informs the shareholders/partners aboutits financial situation	4.40 ± 1.65
“Employees” Factor
10. Pays fair wages to its employees	3.85 ± 1.74
11. Offers its employees security during their work performance	4.30 ± 1.75
12. Treats its employees fairly without discrimination or verbal and other abuse	4.28 ± 1.72
13. Offers its employees training and career opportunities	4.36 ± 1.66
14. Offers a pleasant working environment (e.g., flexible work schedule)	4.20 ± 1.63
“Society” Factor
15. Contributes to social problems’ solution	4.12 ± 1.89
16. Uses part of its budget for donations and social projects, to improve the lives of underprivileged social groups	4.25 ± 1.86
17. Contributes through sponsorships to cultural and social events(e.g., music, sports)	4.69 ± 1.74
18. Aims not only at financial profit but at social benefit too	4.18 ± 1.88
19. Is interested in social welfare improvement	4.16 ± 1.89
20. Respects the natural environment and is interested in its protection	4.20 ± 1.86

the data that are related to the Corporate Social Responsibility aspect of the companies are presented in detail.

Regarding the participants’ perceptions about the trust they show in the company, the following Table (

Table 4. The mean and S.D. of the participants’ perceptions about “Trust in the Company”.

Statement		Mean ± S.D.
1. I feel secure while making use of the companies’ services		4.53 ± 1.88
2. I trust the quality of the services that the company is providing		4.60 ± 1.87
3. Buying this company’s services is quality guarantee		4.51 ± 1.88
4. The company cares for its customers		4.31 ± 1.85
5. The company is honest with its customers		4.21 ± 1.90

) shows in detail the Mean and S.D. of the answers in this section of questions. A first point to highlight is that the participants agree at some level, that they feel secure while making use of the companies’ services (Mean = 4.53, S.D. = 1.88), while it is not clear to them if the company either cares for its customers (Mean = 4.31, S.D. = 1.85) or if it is honest with them (Mean = 4.21, S.D. = 1.90).

The results relating to the participants’ perceptions about the loyalty they show to the company are presented in

Table 5. The mean and S.D. of the participants’ perceptions about “Loyalty to the Company”.

Statement		Mean ± S.D.
1. I usually use this mobile telephone company as the first option in comparison with the rest of companies		5.17 ± 1.95
2. It would be costly to me in terms of money, time and effort to break off my collaboration with the company		4.70 ± 2.00
3. I will keep on considering the company, I’m collaborating with, my first option for the next few years		5.05 ± 1.87
4. I would suggest this company to another customers		4.79 ± 1.97

. More specifically, most of the customers agree that they usually use one mobile telephone company as the first option in comparison with the rest of companies (Mean = 5.17, S.D. = 1.95), while they consider that it is marginally costly in terms of money, time and effort to break off the existing collaboration they have with the company (Mean = 4.70, S.D. = 2.00).

Table 6. The Normal Distribution Test for the dimensions and subdimensions of the questionnaire.

Dimension/Subdimension		Statistic	Df	Sig.
Corporate Social Responsibility		0.011	329	0.200
Customers		0.016	329	0.192
Shareholders and Supervisory Board		0.043	329	0.136
Employees		0.057	329	0.128
Society		0.010	329	0.200
Customers’ Trust		0.013	329	0.196
Customers’ Loyalty		0.049	329	0.141

shows that all the variables follow the normal distribution, i.e., Corporate Social Responsibility (p = 0.200), Trust (p = 0.196), Loyalty (p = 0.141), Customers (p = 0.192), Shareholders and supervisory boards (p = 0.136), Employees (p = 0.128) and Society (p = 0.200).

In

Table 7. The correlations of the sub-dimensions of Corporate Social Responsibility and Trust and Loyalty.

Dimension/Subdimension		Trust	Loyalty
Customers	R	0.872	0.764
	P	0	0
Shareholders and Supervisory Boards	R	0.647	0.682
	P	0	0
Employees	R	0.758	0.708
	P	0	0
Society	R	0.791	0.716
	P	0	0

, the correlations between the resulting scores (the means of the responses) based on the sub-dimensions of Corporate Social Responsibility in relation to the subcomponents of Trust and Loyalty as described in the questionnaire have been presented.

Using the Pearson-test, positive relationships are obtained by correlating the variable “Customers” with that of Trust (R = 0.872) and with Loyalty (R = 0.764). In more detail, the relationships between the variable ‘Customers’ and the variables of “Trust” and “Loyalty” were statistically significant, while the increases in the values of the first variable have triggered the increase in the second. Positive relationships are also obtained by correlating the rest of the variables (“Shareholders and Supervisory Boards”, “Employees”, “Society”) with both “Trust” and “Loyalty”.

Another perspective that enhances the analysis of our results is the predictive ability of the CSR subdimensions for the two variables (Trust and Loyalty). For the “Trust” variable, the predictive ability of the CSR subdimensions for this is presented through revealing the possible linear relationships between them in

Table 8. (a) Regression Overview—Dependent Variable: Trust. (b) Predictive Ability Analysis—Dependent Variable: Trust.

(a)
R	R Square	Adjusted R Square	St. Error of the Estimate
0.800	0.641	0.636	0.98895
(b)
Subdimension	Coefficent b	95%	Sig.
Constant	0.023	−0.327–0.373	0.898
Customers	0.720	0.614–0.826	0
Shareholders and Supervisory Boards	0.056	−0.041–0.154	0.255
Employees	−0.014	−0.146–0.117	0.830
Society	0.232	0.117–0.347	0

a,b.

The estimates for b0, b1 and b4 are 0.023, 0.720 and 0.232, respectively, while the hypothesis Ho: b1 = 0 and b4 = 0 is rejected given that the corresponding p-value is equal to 0. Also, the rate for the variability of Yi, which is explained by the model, is R2 = 0.780. It is, therefore, to conclude that significant predictors are those in the subdimensions “Customers” and “Society”, for the “Trust” variable.

For the “Loyalty” variable, the predictive ability of the CSR subdimensions is presented through revealing the possible linear relationships between them in the following

Table 9. (a) Regression Overview—Dependent Variable: Loyalty. (b) Predictive Ability Analysis—Dependent Variable: Loyalty.

(a)
R	R Square	Adjusted R Square	St. Error of the Estimate
0.800	0.780	0.777	0.83413
(b)
Dimension/Subdimension	Coefficent b	95%	Sig.
Constant	0.675	0.259–1.090	0.002
Customers	0.419	0.293–0.545	0
Shareholders and Supervisory Boards	0.295	0.179–0.410	0
Employees	0.039	−0.117–0.195	0.621
Society	0.166	0.030–0.303	0.017

a,b.

The estimates for b0, b1, b2 and b4 are 0.675, 0.419, 0.295 and 0.166, respectively, while the hypothesis Ho: b1 = 0, b2 = 0 and b4 = 0 is rejected given that the corresponding p-value is equal to 0. Also, the percentage for the variability of Yi, which is explained by the model, is R2 = 0.641. As a result, it is noteworthy that significant predictors are those of the subdimensions “Customers”, “Shareholders and supervisory boards” and “Society” for the “Loyalty” variable, which in fact describes it at 64.1%.

4. Discussion

The evaluation of Corporate Social Responsibility (CSR) had a great impact on the research. This is a well-covered topic in the literature; however, the relationship of CSR to the Trust and Loyalty of the customers of mobile telecommunications companies in Greece has not been adequately developed. The analysis of the results showed that companies’ Corporate Social Responsibility is placed at medium to higher levels on average.

Regarding the variable ‘’Customers’’, the average score of the participants was 4.43, on a 1–7 scale, with the standard deviation being 1.64. A bivariate analysis extracted statistically significant results correlated to the variables ‘’Trust’’ and ‘’Loyalty”. In more detail, the variable “Customers’’ was positively related to the variable ‘’Trust’’ (R = 0.872, p = 0.000), which means that an increase in one variable is linked to the increase in others. Similarly, the correlation of the variable in question with the variable ‘’Loyalty’’ is at (R = 0.764, p = 0.000).

In addition, the statistically significant relationship of the variable ‘’Customers’’ with both ‘’Trust’’ and ‘’Loyalty’’ was depicted on a linear regression. The correlation was presented with ‘’Trust’’ at (p = 0.000, b = 0.720) and with ‘’Loyalty’’ at (p = 0.000, b = 0.419). It is evident that the increase to the value of the first variable can cause an increase in the value of the following two variables [35].

For the analysis based on the variable ‘’Shareholders and Supervisory Board’’ the average score of the participants was 5.17, on a 1–7 scale, with the standard deviation being at 1.39. The variable ‘’Shareholders and Supervisory Board’’ was positively related to the variable ‘’Trust’’ (R = 0.647, p = 0.000), which means that an increase in one variable was linked with the increase in the others. Equally, the correlation of the variable in question with the variable ‘’Loyalty’’ was at (R = 0.682, p = 0.000). Furthermore, the statistically significant relationship of the variable ‘’Shareholders and Supervisory Board’’ with ‘’Trust’’ and ‘’Loyalty’’ were presented on a linear regression. The correlation was presented with the variable ‘’Loyalty’’ at (p = 0.000, b = 0.895). This denotes that the increase in the value of the first variable can cause an increase in the value of the other variable [36].

The analysis of the variable ‘Employees’’ shows that the average score of the participants was 4.20 on the scale, with the standard deviation at 1.55. A bivariate analysis resulted in the significant correlation of this variable with ‘’Trust’’ and ‘’Loyalty’’. The variable ‘’Shareholders and Supervisory Board’’ was positively related to the variable ‘’Trust’’ (R = 0.758, p = 0.000), while the correlation of the variable in question with the variable ‘’Loyalty’’ was at (R = 0.708, p = 0.000). On that occasion, the statistically significant relationship of the variable ‘Employees’’ with ‘’Trust’’ and ‘’Loyalty’’ could not be shown on a linear regression. The correlation with the variable ‘’Trust’’ was (p = 0.830, b= −0.014) and with ‘’Loyalty’’ (p = 0.621, b = 0.039). This means that the ‘’Employees’’ variable had no effect on the other two, confirming an older study by Tsouvrakas and Yfantidou [37].

Regarding the analysis of the variable ‘’Society’’, the average score of the participants was 4.27, on a 1–7 scale, with the standard deviation being at 1.72. The variable ‘’Society’’ was positively related to the variable ‘’Trust’’ (R = 0.791, p = 0.000), which means that an increase in one variable was linked with the increase in the other. Similarly, the correlation of the variable in question with the variable ‘’Loyalty’’ was at (R = 0.716, p = 0.000).

Moreover, the statistically significant relationship of the variable ‘’Society’’ with ‘’Trust’’ and ‘’Loyalty’’ was displayed on a linear regression. The correlation was presented with the variable ‘’Trust’’ at (p = 0.000, b = 0.232) and ‘’Loyalty’’ at (p = 0.017, b = 0.166). This shows that the increase in the value of the first variable could cause an increase in the value of the other variable [12]. The outcome of this research has shown that Corporate Social Responsibility has significantly affected the trust and loyalty of the participants. Former studies [38] have investigated customers’ responses to the adoption of Corporate Social Responsibility from businesses with positive results. Similar research has indicated that customers’ reactions to Corporate Social Responsibility has an impact on the image of the firm and to its attractiveness [39].

According to Highhouse et al. [40], the sample selected for each study might be responsible for the correlation between loyalty and responsibility with CSR. The value of adopting Corporate Social Responsibility is reflected in customers’ views about the organization. Using CSR is a step towards ‘’Philanthropia’’ Charity, that allows companies to operate transparently [41]. Therefore, by incorporating CSR as a policy, companies can assure themselves of clients’ trust and loyalty along with that of the various social stakeholders [10].

There has been an effort to create new policies and redefine existing ones for Corporate Social Responsibility from the EU since 2010 [42]. These policies are aiming to promote correct CSR practices, increase consumers’ trust levels, and create rewarding programs for companies implementing such policies. Furthermore, another goal of the new policies is to oblige companies to publish non-financial reports and to include CSR in the training and research of businesses, and for businesses to present a more positive image publicly away from any customers’ suspicions [43].

Given that the CSR can embrace corporate social activities for the benefit of the whole society, it can at the same time be a key marketing tool in the hands of businesses, which can boost a firm’s performance and reputation. Building a company’s reputation is a fundamental element for every organization that can assist with the establishment of the business, the recognition and the loyalty of customers and its ability to attract valuable human resources and funds. Consequently, the future corporate profitability [3] is always a great incentive for companies to implement CSR projects and give their customers the chance to get to know them through a more social perspective. By increasing customers’ trust and loyalty, companies will achieve a long-lasting relationship and conduct a more effective dialogue with them to receive feedback on their services and products [5].

This research demonstrates that companies with high levels of social activities are more popular with consumers in contrast to firms that do not adopt such activities [35]. The creation and adherence of an intrinsic policy plan on CSR is necessary for companies not only to attract new customers, but to keep existing ones [44]. Clearly, most customers prefer to buy products and services from companies that reflect their personal values and respect their own cultures, therefore, showing their loyalty. The implementation of CSR gives companies the chance to enhance their reputation, maintain consumers’ loyalties and build strong relationships with suppliers, customers and the State. It is widely admitted that a company’s social activities are rewarded by customers in positive ways, even in cases where products or services are at higher prices or suffering from negative information [45].

Consequently, the image that companies are trying to promote to the public is quite important. They are oriented not only toward customer service or transparency, but also to different fields such as social and environmental protection. Under these circumstances, companies offer a different image showing an ethical and responsible entity, that increases the customers’ satisfaction and the company’s ‘’word of mouth’’ connections, resulting in greater sales and profitability [46]. Recent marketing research revealed that consumers’ expectations are high in terms of businesses’ legitimation, ethics and charity [47]. In addition, it has been noted that CSR holds a prominent role in each company’s strategy, that in turn can affect customers’ behaviors [48]. In that sense, companies do not only build a good reputation, but lay the foundation for the customers’ trust realized in ‘’brand loyalty’’. Modern managers clearly understand that building a good image can take a long time, but destroying that can take moments [49]. Finally, good social relationships can create a safety net for the business, especially in unforeseen events that can have a vital impact on the company [50].

This research can improve the implementation of CSR as well as raise customers’ trust and loyalty. CSR is a great opportunity for businesses to redefine their relationship with the public, employees and customers, especially during this turbulent period of the COVID-19 crisis. The current insecure business environment requires actions for economic growth and for society’s and companies’ prosperity. Businesses must take the measures necessary to support social cohesion and communication among employees, customers, and the community as a whole [12]. In that way, companies can be more effective in tracing their strategies and achieve sustainable development.

5. Limitations of Present Study and Suggestions for Future Research

In addition to the useful implications that our research highlights, there were some limitations, which should be addressed. The main limitations of the research are related to the period during which this was conducted. Due to the COVID-19 circumstances the questionnaires had been sent through Google Forms and there was no chance to meet the participants in-person; therefore, the quantitative method was preferred. Due to the convenience methodology that was followed, the sample can be considered as sufficient; however, if answers from a wider range of people could have been collected, the sample would be even more representative. The aspect of the timeframe can also be considered as a limitation, since the research was conducted over a short period, which means that over a longer period the findings could be different [51]. Finally, situating the research in the Greek context limits the generalizability of the findings to a larger number of countries.

Regarding any suggestions for future research, a more qualitative approach to the topic would also be useful, by conducting in-person interviews with participants and evaluating their perceptions about CSR in a more holistic way. Such an investigation would potentially need to be longer than a quantitative one, and during the post COVID-19 period this option could be considered. Additionally, quantitative research could also be conducted, but with a larger number of participants and a wider representation of the respondents. A random sample would provide us with further impartial findings in comparison to a convenience sample such as the one used in the current study. Furthermore, future research could focus on studying similar industries, which consist of smaller numbers of larger firms, such as the energy and/or heavy industry sector. Under these conditions, it would be possible to compare the application of corporate social responsibility between different industries, such as the environmental actions implemented by energy and heavy industry companies, comparing them with the telecommunications companies.

6. Conclusions

In conclusion, Corporate Social Responsibility is a critical factor to a company’s connection to society. Utilized correctly CSR can help a company to succeed and develop their activity, by retaining social cohesion. It is remarkable that both in Greece and globally, CSR remains intrinsically linked to the trust and loyalty of the customers, even with the changes resulting from COVID-19 and the lockdowns. Nevertheless, the outcome of this investigation in connection with previous ones can be considered important, there is still room for additional research in the realization of CSR in a way that can support the current findings.

This research contributes to the existing literature by offering a better understanding of customers’ reactions to the Corporate Social Responsibility of mobile telecommunications companies in relation to their trust and loyalty, proving that there is a positive relationship between them as explained by the findings of the present study. The implementation of CSR activities gives companies the chance to share their vision with a wider number of people and for them to build a long-lasting relationship that would not only have a future profitable impact, but motivate companies to keep on improving their products and services based on both their social circumstances and customer needs.