1. Introduction
History shows that the world has faced important challenges that drive opinion leaders to provide more agile and effective responses to high-impact problems, where not only social and humanitarian issues are involved, but also business ones, which have repercussions for the government, politics, institutions and society as a whole [
1,
2].
That is why companies see the need to implement effective and competent forms of management, seen from a perspective that is more committed to their environment. One of the practices strategically implemented in recent years by the business community is corporate social responsibility (CSR), a factor that, from different academic reflections, reveals that it is a successful practice that consists of the voluntary commitment of companies to provide value to the society through its activities, generating a triple impact on its environment (economic–social–environmental) [
1,
3], lately seen as an important feature in contemporary business [
4].
As a consequence of globalization, high-performance companies engage in CSR activities as a strategic means by which they seek to establish solid relationships with their stakeholders. Initiatives such as global reporting initiatives [
5], which since 1997 has promoted transparency standards that companies adopt to show their social responsibility, as well as the interest of the member states of the United Nations, in establishing 17 sustainable development goals focused on the fight against poverty, care of the planet and reduction in inequalities; the same that show a sincere concern for the search for a more comprehensive management, being aware that each corporate decision has an individual impact on people.
As a sample of these high-performance companies, this study has covered 04 third-sector institutions, all of them focused on the development of socially responsible practices, being also institutions that contribute to the fulfillment of some of the 17 Sustainable Development Goals for the transformation of the world, established by the United Nations. In the case of ADRA, one of its activities is to grant loans to women entrepreneurs with a high poverty rate, under a strict advisory that ensures profitability in the project undertaken; with this act, ADRA contributes to the fulfillment of the first goal, referred to as the end of poverty. In relation to the bookstores, their focus is on the fulfillment of the third sustainable development objective referred to as health and wellbeing; in this case, it is the distributors of bibliographic material who fulfill the function of offering books and talks with information that help to preserve good health and integral wellbeing. Regarding regular basic education and university educational institutions, these support the fulfillment of the fourth sustainable development objective, focusing on providing quality education, having obtained certification from governmental entities that guarantee compliance with the minimum requirements of educational quality.
As described, high-performance organizations are responsible for designing and applying various policies and systems that favor the different interest groups, and this not only implies restructuring their production, logistics and commercial processes, but also the strategic objectives that allow them to achieve, among many economic benefits, others that are of an intangible nature [
6]. These actions allow them to achieve corporate reputation, has reach as a synonym for identity, image, good will, esteem and prestige [
7], being that this is a key factor for the development and progress of an institution, and being understood at the same time as a mental phenomenon that brings together all the experiences and perceptions of the subject in relation to a reality [
8,
9]. Corporate reputation management requires coordination between internal understanding and external expectations [
10]; this highlights the importance of corporate social responsibility, which various authors consider as a strategic tool to respond to the expectations of multiple interest groups [
11]. In this context, the perception of the interested parties is no longer focused only on what is related to the product or service that a company provides, but on its corporate reputation [
12], so these perceptions have an influence on the actions of each company that, based on social responsibility, transparency with ethical factors and clarity of information, seek to position their reputation and retain users [
13,
14].
The marketing literature suggests that social responsibility actions could improve the image and reputation of companies before consumers [
15,
16,
17]; however, little is known about the perceptions of stakeholders in relation to these factors, so new lines of research are proposed. In this sense, it is worth mentioning that the business community needs organizations that can identify strategies related to user retention through corporate social responsibility, ethics and reputation practices [
18].
Customer retention is related to the management of information that a company may retain; that is, the use of personal customer data has allowed over the years to generate business decision strategies, such as user retention, turning the corporate reputation into a key for customer attraction and retention [
19,
20].
On the other hand, for a long time, multiple institutions from different business sectors show that they are involved in acts contrary to corporate ethics [
21]; that is why the directors of companies, corporations and even governments have a growing interest in promoting socially responsible, ethical organizations with a good reputation, which in turn seek to apply strategies for the common good of all interested parties [
22], as top management is expected to encourage effective changes in business practice.
The term “third sector” originated mainly in the United States at the beginning of the 20th century, becoming relevant in the 1980s and consolidating in Western Europe in the 1990s [
23], where it is experiencing significant growth and institutional centrality [
24,
25]. It should be noted that there are more and more arguments that give support and prominence to the third sector [
26,
27], among which we can mention heterogeneity, the legal framework, historical traditions, the welfare state and level of development [
28].
The third sector is an agent of social and economic development, which has reached an important place in the world due to the multiple social and humanitarian activities that it carries out, promotes and disseminates, generating a highly significant impact on society, making it a better place to live [
29]. Although the third sector is referred to as non-profit organizations, it should establish as a high priority the retention of its users, in order to be a sustainable organization that can continue to focus not only on the welfare of society, but also on business development [
25,
30]. Therefore, certain research questions arise to identify whether the proposed variables could contribute to the retention of users of third-sector companies, and the following research questions are posed: Does SR have a positive effect on corporate reputation? Does business ethics influence corporate reputation? Does SR influence retention, does corporate reputation have an effect on retention, and does business ethics influence user retention? Finally, does business ethics influence user retention?
One of the primary needs of an organization is to maintain its participation in the market and become a potentially useful institution, without losing focus on best practices of corporate social responsibility and business ethics that allow it to have a good corporate reputation; achieving this represents a joint effort involving all members of the organization. Despite this importance, within the scientific literature, no studies have been found that develop or explain corporate social responsibility, business ethics or corporate reputation and their connections with retention in the third sector, so this research proposal aims to fill this gap in knowledge, also proposing future research that addresses beyond the third sector and a complementary study to the fourth sector that frames all public, private, for-profit or nonprofit institutions oriented to corporate social responsibility.
Likewise, it is believed that the results of this study will benefit not only third-sector companies that have a social, comprehensive and inclusive approach aligned with their strategies for user retention, but also other entities from diverse sectors; entrepreneurs can validate the importance of these factors applied in their own institutions. In this sense, the purpose of the study is focused on understanding customer retention and its connections with corporate social responsibility, business ethics and corporate reputation.
In the following, the present study is divided into the following sections:
Section 2 contains the literature review.
Section 3 provides materials and methods.
Section 4 focuses on the results.
Section 5 refers to the discussion, and
Section 6 the conclusions.
3. Materials and Methods
The research presented aims to analyze user retention, making use of corporate social responsibility, business ethics and corporate reputation as predictive factors within third-sector companies; for this case, information was obtained from two countries: Peru and Uruguay. Likewise, the quantitative, cross-sectional and correlational research method was used [
74,
75]. On the other hand, the surveys were self-administered and under the informed consent of the participant; each of them was valued on a Likert scale of 1–5, where 1 represents the minimum value that translates as totally disagree, and 5, the maximum value that can be obtained, means totally agree.
Regarding the instrument, its original language was in English, and it went through the process of pretest techniques of the surveys were in English, so they were translated by three specialists who speak English and Spanish [
76]. After that, two focus group sessions were held [
77], made up of 2 representatives of 3 large institutions that belong to the third sector (06 from Peru and 06 from Uruguay).
The first focus group session allowed for semantic modifications of expressions according to each culture, and the second session resulted in the validation of the modifications of the first, leaving the questionnaire ready for application in both countries; in this way, the questionnaire had the option to choose the questionnaire and access to participate in the study, previously selecting the country.
3.1. Sample and Procedure
The study population was made up of users from third-sector organizations, which could be in the basic or higher educational field, in the field of microfinance and in the field of bookstores. For basic education, the study subjects were parents who met the following conditions: having child(ren) studying in educational institutions at the initial, primary and/or secondary levels in the countries of Peru and Uruguay; for higher education, students and/or graduates of a non-profit university in Peru; for the microfinance field, low-income women entrepreneurs who maintain a loan with the Adventist Development and Welfare Resources Agency in Peru; and for bookstores, exclusive sales personnel in Peru and Uruguay. It should be noted that prior to the application of the survey, the research proposal was approved and endorsed by the Ethics Committee of the Universidad Peruana Unión, and its application lasted 10 weeks, from 28 July to 15 October 2022. A non-probabilistic sampling was applied at the convenience of the researcher, applying the survey through Google Form, with prior informed consent, being self-administered and shared through social networks (WhatsApp, Telegram, Facebook, Twitter and the official channels of the study institutions). It should be emphasized that the survey was carried out using technology; although the pandemic era has apparently come to an end, the use of technology for the application of quantitative studies still remains in the culture of the different countries, thus achieving greater accessibility to the study population in less time and at no cost, and also opening the way for the same participants to share the questionnaire with others who meet the inclusion criteria, turning the application into a snowball method. The final sample consisted of 501 participants, as shown in
Table 1.
Table 1 shows the sociodemographic characteristics of the participants, where it is shown that 199 participants are from Uruguay, of which 87 were men and 112 women; in addition, the largest participation was in Peru with 302 participants, of whom 63 were men and 239 women.
Table 2 shows the type of organization with which the participants were related, with the greatest participation being users of ADRA microfinance and parents of schools in this type of organization. Likewise, the largest participation was made up of married people and those with higher education.
3.2. Measures
The data-collection instrument was constructed according to the criteria specified in the first paragraph of the materials and methods section, and questions were also added to identify the user’s institution, as well as the country and the user’s institution. The scales used are described in
Table 3. The questionnaire consisted of 21 items: the first 15 items, 7 items to corporate social responsibility and the next 8 from business ethics by Quezado et al. [
2]. To measure corporate reputation, 04 items were used by Jililvand et al. [
78] and for user retention, 02 items established by Saleh et al. [
79] were applied. Unlike the original instruments, these were translated and adapted to the Peruvian and Uruguayan context with the following statement: my appreciation regarding the institution where I am a user.
3.3. Statistic Analysis
Two statistical programs were used for data analysis, including IBM SPSS version 25 for the analysis of demographic data of the respondents, which are shown in
Table 1 and
Table 2, and AMOS version 24.
The reliability and validity of the model were tested in the first analytical procedure, followed by Cronbach’s alpha method, to measure the reliability of the latent variables and the internal consistency of the items used in the instrument. Confirmatory factor analysis was then applied to confirm the fit of the measurement model. This was followed by a convergent and discriminant validity check. Finally, this research employed a multigroup structure equation model (SEM) using AMOS software to test the proposed hypotheses. This method is highly recommended for analyzing cause–effect relationships and/or descriptive models [
80]. Therefore, a SEM is an ideal approach to test hypotheses of dependency relationships and correlations and is useful for estimating the effect of moderating variables [
81].
5. Discussions
Based on the research hypothesis that business ethics, corporate social responsibility and corporate reputation are connected to user retention, the results showed that corporate reputation is the factor that contributes the most to user retention, and this result highlights the importance of considering corporate reputation as a means of sustainability in the market. In this regard, researchers state that reputation is not a characteristic that can be obtained “overnight”; however, neglecting it could immediately damage the reputation of an institution, which is why they suggest controlling it assertively, considering that it is an intangible asset and a determinant for business stability [
85,
86].
Scientific research identifies corporate social responsibility as a factor that contributes to reputation, coinciding with the results of this research that demonstrates a positive and significant effect of CSR on CR; thus, it is highlighted that each organization should make use of its autonomy to establish actions that contribute to society [
87]. From this perspective, research adheres that CSR is an initiative and strategic tool in the business field that leads to achieving high reputation [
88,
89,
90]. However, there are studies that refer that CSR is mostly dealt with within large corporations; however, few antecedents have been identified that deal with CSR practices in educational institutions. In this regard, researchers argue that the world must immerse itself in CSR programs in order to gain the goodwill of stakeholders; based on this, universities have been evolving, focusing not only on education, acquisition of university degrees, but also on the important role of training that creates co-knowledge, solving social problems that contribute to the community [
91,
92,
93,
94,
95,
96], and by these actions, ensuring a good reputation.
Regarding the direct and significant influence of ethics on corporate reputation, there is theoretical support that points to the great challenge of adopting moral rules within any organization, so that good ethical practices are considered as a factor of organizational effectiveness and proactivity of continuous improvement [
95,
97,
98]; also, from the perspective of public relations professionals, public image is a reflection of ethical actions and therefore encourages discouraging wrongdoing [
99]. In this sense, every institution should be oriented to adopt ethical standards as a natural behavior, thus ensuring the permanence of its institution in the business world.
However, this study addressed the behavior of corporate social responsibility, corporate reputation and business ethics and their effect on retention, showing that the first three contribute to retention; supporting these results, there is evidence that users demand that companies can integrate ethical values, moral code and principles as an added value when evaluating a brand/company [
100]. Consequently, ethical practices positively benefit and influence the user’s behavioral intentions, generating trust and exerting a significant power in user retention by strengthening the user–brand bond [
101,
102,
103,
104,
105,
106,
107]. On the other hand, studies of the last decade emphasize that corporate reputation and ethical practices generate loyalty in users, thus promoting their retention, thus demonstrating that ethical behavior in organizations favors a relationship between customer–companies; in this sense, when a user perceives the existence of CSR, CR and BE, he values the company more, increases his intention to purchase and not only becomes loyal, but also remains with the company, having a positive and sustainable impact [
108,
109,
110,
111,
112].
6. Conclusions
Considering that the new market trends go beyond offering a good service, a quality product, and maintaining a competitive price, these are characterized by developing socially responsible practices, generating a triple impact on their environment (economic–social–environmental). This study provides a specific vision from the perspective of third-sector users and retention factors; according to the results, it is corporate reputation that contributes the most to retention. This is an important factor in contributing to corporate soundness.
Taking a look at the management of corporate reputation discussed in this document, we live in a period where it has been suffering a crisis in the business world that could be addressed more diligently. Taking these factors into account, institutions should propose actions that strengthen the retention of third-sector users, offering a significant and sustainable contribution to society. By doing so, they ensure the RT of their users, promoting a positive and sustainable impact on the market. The findings of this study indicate that business ethics, corporate social responsibility and corporate reputation are intimately connected to user retention; therefore, third-sector companies should redouble their efforts to improve these essential factors in order to generate a more effective impact on the business community.
On the other hand, after considering the theoretical bases of the reflective topics for this study, which show BE and CR as factors that optimize, strengthen and consolidate user loyalty, this is still a rare action in third-sector institutions, which mobilizes academics, entrepreneurs and opinion leaders to reflect on the importance that users deserve to attend to this type of behavior, which promises to lead to more solid growth and financial sustainability.
According to the literary review, several authors suggest paying special attention and specialized emphasis on user retention; the importance of predictors in user retention can be evidenced, as well as the emphasis in all sectors on social responsibility, business ethics and reputation. The results obtained support the importance of the strategic decisions that third-sector companies must take due to the influence of the predictors under study against user retention, contributing to the fact that the results can be verified with subsequent studies.
6.1. Strategic Implications
One of the strategic decisions that management or administrative teams should recognize is related to the retention of users or clients, depending on the sector in which they are located. This study has shown through statistical results that the dimensions under study are predictors of user retention in the third sector. Third-sector companies should consider to a greater extent their corporate reputation as a factor in user retention, as well as business ethics and social responsibility. These should be given special consideration in the lines of action and strategies to be implemented in the search for stronger user retention.
The findings support the hypotheses put forward, highlighting that regardless of the nature of the company, user retention will be essential for its sustainability over time. However, when we address the issue of CSR, reputation and BE, and how they impact on retention, it was found that of all of them, it is CR that has the greatest contribution to user retention. In this way, the importance of establishing actions and strategies that allow a positive opinion of people over time is highlighted. One of the contributions noted in the results is the identification of the key element to maximize retention, i.e., corporate reputation. From this, it is suggested that companies should contribute to the creation of solid relationships with users, with the purpose of achieving long-term sustainable competitive advantages by providing better results in the same scenario and in a persistent manner.
Finally, this study provides the perspective of the few investigations carried out to date, as described in the Introduction section. For the case of the sector studied, commercial activities are focused on social welfare, which in one way or another contributes to the objectives of sustainable development, also presenting the possibility that the institutions under study may be part of the fourth sector, which refers to any company that retains social responsibility practices, whether public or private entities. In this sense, it is considered that the contribution of this study is to provide the scientific community with some tools that will allow overcoming the challenge of the growth of the sustainability of non-profit companies, also known as third-sector companies, through the retention of their users.
6.2. Theoretical Implications
According to the literature review, the importance of predictors in user retention and the emphasis in all sectors on social responsibility, business ethics and reputation can be evidenced. The results obtained suggest the importance in the strategic decisions that third-sector companies should make due to the influence of the predictors under study on user retention, contributing to the fact that the results can be verified with further research.
6.3. Limitations and Future Research
The research approach had the limitation of being focused on the countries of Peru and Uruguay, as well as on third-sector companies in the field of public education and NGOs. Therefore, future research may consider other South American countries and companies with a purpose other than that of the third sector. Finally, the types of companies selected may be different from the one in this research, including new study variables and an expansion of the sample.