The Triple Pathway to Loyalty: Understanding How Banks’ Corporate Social Responsibility Influences Customers via Moral Identity, Service Quality, and Relationship Quality

Abstract

This study aims to explore the mechanisms through which corporate social responsibility (CSR) impacts customer loyalty in the banking sector, focusing on the mediating effects of consumer moral identity (CMI), perceived service quality (PSQ), and relationship quality (RQ). Based on Social Identity Theory and Stakeholder Theory, a theoretical model integrating CSR, CMI, PSQ, RQ, and customer loyalty was constructed and empirically tested using the PLS-SEM method. Data were collected through an online survey, yielding 338 valid samples. Analysis of the data revealed that CSR significantly positively affected CMI, PSQ, and RQ, indicating that the fulfillment of social responsibilities by banks enhances consumers’ moral identity, perceived service quality, and relationship quality. Additionally, CMI, PSQ, and RQ significantly positively influenced customer loyalty, with RQ showing the most prominent effect. Furthermore, CSR also had a significant indirect effect on customer loyalty through CMI, PSQ, and RQ. In terms of practical implications, this study suggests that the banking industry should regard CSR as a crucial strategy for winning customer loyalty, actively engage in CSR activities, and integrate CSR concepts into branding, service, and customer relationship management. Moreover, banks should also focus on enhancing CMI, PSQ, and RQ as critical pathways through which CSR influences customer loyalty. The theoretical significance of this research lies in: (1) expanding the theoretical perspectives on how CSR affects customer responses, addressing the limitations of previous studies that focused predominantly on direct effects or a single mediator; (2) examining the role of CMI in the banking context, enriching the research on CSR and consumer moral identity; and (3) revealing the mechanisms of CSR’s effect in the unique service context of the banking industry.

1. Introduction

The banking sector plays a crucial role in economic growth by facilitating financial transactions, extending credit, and managing financial risks. However, in recent years, banks have encountered increased scrutiny regarding their ethical conduct, customer relations, and broader social responsibilities [1]. To address these concerns, corporate social responsibility (CSR) has emerged as a strategic approach that reinforces banks’ commitment to ethical banking, community development, and sustainable business practices. Unlike industries where tangible product quality primarily drives consumer trust, the banking industry relies on transparency, ethical standards, and long-term relationship-building to establish credibility. CSR initiatives—such as responsible lending, financial literacy programs, community engagement, and customer-focused policies—are essential in fostering customer confidence [2]. Empirical research has demonstrated that CSR positively shapes customer perceptions of service and relationship quality, ultimately strengthening loyalty [3]. Furthermore, as financial institutions handle sensitive customer data and contribute to economic stability, their CSR efforts—such as ethical financial practices, equitable customer treatment, and philanthropic activities—significantly impact consumer trust and engagement [4]. Understanding the pathways through which CSR influences customer loyalty is vital for determining how banks can cultivate stronger, more sustainable customer relationships. This study explores the relationship between CSR, consumer moral identity (CMI), perceived service quality (PSQ), and relationship quality (RQ), examining how these factors collectively enhance customer loyalty within the banking sector. By investigating these dynamics, the research provides a comprehensive perspective on the role of CSR in customer relationship management, offering valuable insights for both academic scholarship and practical applications within the financial industry.

In recent years, the importance of corporate social responsibility (CSR) in marketing management research has become increasingly prominent, emerging as a key factor influencing consumer behavior and corporate strategies [5,6,7]. As society’s focus on sustainable development continues to grow, consumers are placing greater emphasis on the social responsibility and environmental performance of corporations. In terms of brand management, CSR has become a crucial tool for shaping brand image and enhancing corporate reputation. Effective CSR practices not only strengthen consumer trust but also create long-term competitive advantages for companies. Furthermore, CSR is playing an increasingly significant role in product development and market positioning, driving innovation in sustainable products and services.

CSR is not merely a way for corporations to fulfill their social obligations; it has become a critical factor influencing consumer behavior and corporate strategies. According to research by Sen et al. [6], CSR activities can significantly impact consumer attitudes towards brands and their purchase intentions. Fatma et al. [8] further pointed out that CSR has a positive effect on building company reputation and brand equity, which is achieved by enhancing consumer trust. Moreover, Alvarado-Herrera et al. [9] developed a scale for measuring consumer perceptions of CSR, providing a powerful tool for studying the impact of CSR on consumer behavior. These studies collectively demonstrate that CSR has become an indispensable component of modern marketing management.

However, the impact of CSR on marketing management is not unidirectional. Research by Gangi et al. [10] revealed the complex relationship between CSR and corporate performance, indicating that more research is needed to understand how CSR interacts with other organizational factors to influence corporate outcomes. Öberseder et al. [11] explored how consumers perceive and evaluate companies’ CSR practices, finding a significant association between consumers’ CSR perceptions and their purchasing behavior. These findings not only enrich our understanding of the role of CSR in marketing management but also provide important guidance on how companies can effectively implement and communicate CSR strategies. As consumer expectations of corporate social responsibility continue to rise, studying how CSR influences consumer decision-making processes and how companies integrate CSR into their overall marketing strategies will become a crucial direction for marketing management research. Therefore, CSR has become an essential part of modern marketing management, profoundly impacting consumer behavior research, brand management practices, and corporate performance evaluation, driving the marketing field towards a more sustainable and responsible direction.

Fatma et al.’s [8] research further supports this viewpoint, noting that corporate social responsibility can enhance brand loyalty by increasing customer satisfaction and trust. In the banking industry, this is particularly important, as the relationship between banks and their customers is typically long-term and involves a high degree of trust and commitment. Pérez et al.’s [12] research highlighted the positive impact of CSR activities on customer satisfaction and loyalty, further supporting the importance of CSR practices in improving relationship quality and customer loyalty.

In terms of perceived service quality, Loureiro et al.’s [13] research found that banks’ CSR activities can significantly enhance customers’ perceptions of service quality, thereby increasing customer satisfaction and loyalty. This indicates that CSR practices are not only a moral obligation but also an effective tool for improving perceived service quality.

Regarding consumer moral identification, He and Harris’s [14] study pointed out that consumers with stronger moral identification were more likely to respond positively to a company’s CSR practices, exhibiting higher loyalty and word-of-mouth recommendation intentions. This aligns with the findings of Wu & Yang [15], who emphasized the moderating role of moral identification in consumers’ responses to corporate CSR activities. For the banking industry, this suggests that understanding and cultivating customers’ moral identification may be an important pathway to enhance the effectiveness of CSR practices. Furthermore, García-Madariaga and Rodríguez-Rivera’s [16] research investigated the impact of banks’ CSR practices on customer satisfaction and loyalty, discovering that CSR activities could significantly improve customers’ evaluations of and loyalty to banks. This finding further confirms the importance of CSR practices in the banking industry and provides new evidence for understanding how CSR influences customer behavior by enhancing relationship quality.

This study is anchored in Social Identity Theory and Stakeholder Theory, incorporating key constructs such as CSR, CMI, PSQ, RQ, and Customer Loyalty (LOY) to establish a comprehensive research framework. In summary, existing research has demonstrated that in the banking industry, there are complex interactions among CSR, perceived service quality, relationship quality, and consumer moral identification, which collectively influence customer loyalty, revisit intentions, and word-of-mouth recommendation intentions. While the existing literature recognizes the impact of CSR on customer perceptions and behaviors, prior studies have largely focused on direct effects or singular mediating variables, overlooking the multifaceted pathways through which CSR influences customer loyalty in the banking sector. This study seeks to bridge this gap by empirically examining the mediating roles of CMI, PSQ, and RQ, offering a more intricate understanding of how CSR fosters customer loyalty beyond conventional linear models. Investigating these relationships is particularly significant in light of growing consumer expectations for ethical banking practices and the increasing importance of CSR in fostering customer trust and long-term engagement. Gaining insight into how CSR enhances perceived service quality and relationship quality, alongside its role in shaping consumer moral identity, offers valuable contributions to both academic discourse and industry practice. From a practical standpoint, this research will provide banks with strategic guidance on how to leverage CSR initiatives to strengthen customer relationships, improve service perceptions, and ultimately enhance loyalty. By demonstrating that CSR is not merely an ethical obligation but also a strategic driver of competitive advantage, this study contributes meaningfully to both marketing and CSR scholarship, while offering practical insights for the banking industry’s sustainable growth and customer retention strategies.

The structure of this paper is as follows: Section 2 provides a comprehensive review of the relevant literature, examining the theoretical foundations and core constructs, including CSR, CMI, PSQ, RQ, and LOY. This section also highlights existing research gaps and formulates the study’s hypotheses. Section 3 outlines the research methodology, detailing the conceptual framework, measurement scales, data collection process, and statistical techniques employed for analysis. Section 4 presents the empirical findings obtained through Partial Least Squares Structural Equation Modeling (PLS-SEM), evaluating the validity, reliability, and statistical significance of the hypothesized relationships. Section 5 interprets the results in relation to prior studies, discusses theoretical contributions, and explores managerial implications for the banking industry. Finally, Section 5.4 concludes the study by summarizing key insights, acknowledging research limitations, and proposing directions for future investigation.

2. Literature Review and Hypotheses Development

2.1. Theoretical Foundations of the Study

This study is grounded in Social Identity Theory (SIT) and Stakeholder Theory (ST) to examine the mechanisms through which CSR influences consumer behavior in the banking sector. SIT posits that individuals derive their self-concept from the social groups they associate with, leading them to favor organizations that align with their values and beliefs [17]. In the context of CSR, SIT suggests that when banks engage in socially responsible initiatives, consumers who prioritize ethical conduct and sustainability are more likely to identify with these institutions, fostering loyalty and positive engagement [18]. The concept of CMI is closely linked to SIT, as individuals internalize moral values, and organizations that reinforce these values through CSR initiatives enhance customer identification, trust, and engagement [19]. ST asserts that organizations must account for the interests of all stakeholders, rather than solely prioritizing shareholders, in their decision-making processes [20]. In the banking industry, CSR initiatives reflect a stakeholder-oriented approach, where ethical business practices, transparency, and service excellence contribute to higher customer satisfaction and relationship quality [21]. Banks that actively fulfill their economic, social, and ethical responsibilities foster stronger consumer relationships, reinforcing RQ and PSQ [22]. By integrating these theories, this study develops a multi-pathway framework to assess how CSR enhances customer loyalty through CMI, PSQ, and RQ. While prior research has primarily examined these constructs in isolation, this study bridges a theoretical gap by demonstrating their interdependent effects, offering valuable insights into how CSR fosters long-term customer commitment in the banking sector.

2.2. CSR

CSR is an important framework for assessing the sustainable development performance of enterprises and has received increasing attention in the banking industry in recent years. As financial intermediaries, banks face sustainability challenges such as environmental change and social inequality while promoting economic growth [10,23,24]. From a theoretical perspective, Carroll [25] divided CSR into four dimensions: economic, legal, ethical, and philanthropic. The economic dimension of CSR underscores a firm’s obligation to maintain financial sustainability while generating long-term value for its stakeholders [26]. The legal dimension emphasizes adherence to regulatory frameworks, ensuring that business activities comply with both national and international legal standards [27]. Beyond legal compliance, the ethical dimension requires organizations to engage in morally responsible practices that promote fairness, transparency, and trust among stakeholders [28]. Additionally, the philanthropic dimension pertains to voluntary corporate contributions aimed at advancing social welfare, including environmental initiatives, educational programs, and community development efforts [27]. These interconnected dimensions collectively shape corporate strategies and significantly influence stakeholder perceptions, consumer behavior, and corporate reputation [26]. The integration of CSR into business operations has become particularly relevant in the era of artificial intelligence and big data analytics, where ethical, legal, and social considerations are increasingly scrutinized. By positioning CSR within this theoretical framework, this study adopts a structured approach to examining its impact on corporate performance, stakeholder engagement, and long-term business sustainability. These dimensions are particularly important in the banking industry because banks play a central role in driving sustainable economic growth and addressing social issues.

As global consumers’ expectations for social responsibility rise, CSR is no longer merely a voluntary action for enterprises but a strategic tool to enhance brand reputation and strengthen customer trust [29]. CSR practices in the banking industry typically focus on environmental sustainability, community development, and financial transparency. These measures help banks increase their perceived trustworthiness among consumers, which in turn influences customer satisfaction and loyalty [5]. Therefore, integrating CSR factors into banking operations not only helps reduce risks and improve operational efficiency but also enhances banks’ reputation and customer loyalty [30,31].

The impact of CSR on customer behavior and brand equity in the banking industry is significant. Numerous studies have shown that consumers prefer to choose companies that excel in social responsibility, which not only enhances the corporate brand image but also increases customer loyalty and positive evaluations [32,33]. For example, Klein and Dawar’s [34] research pointed out that CSR activities could act as a buffer during corporate crises, helping to maintain consumer trust in the brand. For financial institutions like banks, customers’ perceptions of and emotional connections to their CSR activities can effectively improve customer satisfaction and intentions to continue using banking services, particularly for CSR measures aimed at environmental protection and community development [35]. In the social sphere, banks focus on issues such as financial inclusion, employee diversity and inclusivity, and customer rights protection [36,37]. Banks promote social equity and equal economic opportunities by providing loans to small and micro-enterprises and developing inclusive financial products [31,38].

CSR performance has a significant impact on the financial performance and market value of the banking industry. Empirical studies have shown that banks with high CSR ratings tend to have lower capital costs, higher stock returns, and market valuations [30,31,38]. This is because good CSR performance can reduce banks’ reputational risks and regulatory pressures, attract socially responsible investors, and enhance customer satisfaction and loyalty [23,36]. Furthermore, CSR also affects the quality of relationships between banks and their stakeholders. Banks’ CSR practices can strengthen the trust and support of stakeholders such as customers, employees, and regulatory agencies, promoting banks’ social reputation and brand image [37,39]. Therefore, integrating CSR into banking business strategies is not only necessary for fulfilling social responsibilities but also an inevitable choice for enhancing competitiveness and sustainable development capabilities.

2.3. Consumer Moral Identity

Consumer moral identity refers to the degree to which individuals integrate moral traits into their self-concept, reflecting the importance of morality in personal identity [40]. Consumers with higher moral identity are more inclined to engage in behaviors that align with moral standards, such as purchasing ethical products and supporting socially responsible activities [41,42]. Therefore, consumer moral identity has a significant impact on customers’ attitudes, trust, and loyalty towards banks [43,44]. Understanding the antecedents and consequences of consumer moral identity is crucial for banks in formulating customer-centric strategies.

Consumer moral identity is influenced by both individual and situational factors. Individual factors include personal moral development levels, values, cultural background, etc. [40,42]. Situational factors encompass corporate social responsibility performance, corporate reputation, media coverage, and more [12,45]. When banks demonstrate a strong moral image and social responsibility, it is easier to stimulate consumers’ moral identity, which, in turn, affects their evaluations and behaviors towards the banks [43,44]. Moreover, engaging in corporate social responsibility practices, such as participating in charitable activities and community services, also helps enhance consumer moral identity [46,47].

Consumer moral identity has a significant impact on the business performance of banks. Customers with higher moral identity exhibit greater trust, satisfaction, and loyalty towards banks [43,44]. They are more willing to establish long-term relationships with banks, recommend banking services to others, and remain loyal even when faced with temptations from competitors [41,44]. Furthermore, consumer moral identity also influences their reactions to banks’ misconduct. When banks are involved in moral scandals, customers with higher moral identity are more likely to react negatively, such as switching banks and spreading negative word-of-mouth [45,47]. Therefore, banks should focus on enhancing customers’ moral identity through social responsibility practices and ethical marketing strategies, establishing emotional connections and shared values with customers.

In summary, consumer moral identity is an important influencing factor in customer relationship management within the banking industry. Banks should integrate moral elements into their brand positioning, product design, and customer service to stimulate customers’ moral identity and enhance customer loyalty and long-term value. At the same time, banks should also emphasize corporate social responsibility practices, demonstrating a positive moral image and gaining customers’ trust and support through activities such as supporting community development and environmental protection.

2.4. Perceived Service Quality

Service quality is a key factor in retail banking competition, not only affecting customer satisfaction and loyalty but also closely related to banks’ financial performance [48,49,50]. The SERVQUAL model developed by Parasuraman et al. [51] is widely used to measure banking service quality. This model includes five dimensions: tangibility, reliability, responsiveness, assurance, and empathy. With the advancement of technology, the importance of online and mobile banking service quality has increased [48,52]. Banks need to provide consistent, high-quality services through various channels to meet customers’ ever-changing expectations [49].

Banking service quality has a significant impact on customer satisfaction and loyalty [48,53,54]. Kaura et al. [53] found that service quality indirectly affected customer loyalty through customer satisfaction and perceived value. Yilmaz et al.’s [54] research showed that among the five dimensions of SERVQUAL, assurance and empathy had the greatest impact on customer satisfaction. Moreover, banking service quality was closely related to relationship quality factors such as customer trust and commitment [48,55]. High-quality services could enhance customers’ trust in banks and promote the establishment of long-term relationships [55].

In recent years, as CSR issues have received increasing attention, banks’ ethical and social responsibility image has also become an important factor affecting customer loyalty [44,56,57]. Paulet et al. [57] pointed out that customers’ perceptions of banks’ ethical practices influenced their evaluations of service quality and trust. Mostafa and ElSahn’s [44] research found that banks’ social responsibility performance indirectly affected customer loyalty through perceived service quality and reputation. Nadlifatin et al. [56] further indicated that banks’ environmental sustainability practices helped improve customer satisfaction and loyalty. In summary, banks should attach importance to service quality and CSR practices, establishing customer trust and loyalty through providing high-quality services and fulfilling social responsibilities, thereby achieving long-term competitive advantages.

2.5. Relationship Quality

Relationship quality is an important indicator for measuring the depth and strength of the relationship between a company and its customers, and it is crucial for establishing and maintaining customer loyalty [48,58,59]. The concept of relationship quality originates from relationship marketing theory, which emphasizes that companies should strive to establish long-term, mutually beneficial relationships with customers rather than solely focusing on short-term transactions [55]. In the banking industry, relationship quality typically includes dimensions such as trust, commitment, satisfaction, and communication [48,60,61]. These dimensions collectively reflect the quality of the relationship between customers and banks, influencing customer loyalty and economic value [62].

The characteristics of banking services determine the importance of relationship quality in building customer loyalty. Banking services are highly intangible, inseparable, and heterogeneous, making it difficult for customers to evaluate service quality before purchase. Therefore, they need to rely on the trust relationship with the bank [55,63]. Trust is the core dimension of relationship quality, reflecting customers’ confidence in the bank’s integrity and reliability [64]. Commitment is the willingness of customers to maintain a long-term relationship with the bank, stemming from shared values and mutual benefits between the two parties [65,66]. Satisfaction is the customer’s evaluation of the overall performance of the bank’s services, influencing the customer’s repurchase intention and recommendation behavior [59,62]. Communication is the foundation for building and maintaining relationship quality. Transparent and timely communication helps enhance customers’ trust and commitment to the bank [60,61].

In recent years, with the development of digital transformation and financial technology, the relationship quality in the banking industry has faced new opportunities and challenges. On the one hand, online banking and mobile banking services have lowered the threshold for customer interaction with banks, providing a more convenient and efficient service experience [48,67]. On the other hand, digitalization has also weakened the interpersonal connection between customers and banks, increasing the difficulty of maintaining relationship quality [55,68]. To address these challenges, banks need to adopt customer-centric strategies and utilize technologies such as big data and artificial intelligence to provide personalized and intelligent services, enhancing customer experience and emotional connection [62,69]. At the same time, banks should also focus on integrating online and offline channels to provide seamless omni-channel services that meet customers’ diverse needs [67,70]. In summary, in the digital era, the banking industry should focus on relationship quality, continuously innovate service models, and explore the balance between technology and humanized services to establish long-term, trusting customer relationships.

2.6. Research Hypotheses and Conceptual Framework

Consumer moral identity (CMI) refers to the extent to which individuals integrate moral values and behaviors into their self-concept [40]. When an organization demonstrates good CSR performance, such as environmental protection, social responsibility, and ethical management, consumers perceive that the bank shares similar moral values with them, thereby enhancing their moral identification with the bank [44,71]. This moral identification can evoke consumers’ moral emotions and sense of obligation, prompting them to support and recommend the bank [42,72]. For example, when a bank actively participates in community development and helps disadvantaged groups, consumers believe that the bank is practicing their moral beliefs, resulting in a sense of identification and pride [71]. Moreover, CSR can enhance an organization’s moral image and reputation, attracting consumers who value ethics and social responsibility [23]. Previous research has also focused on how CSR affects consumer moral identity. When a company demonstrates behaviors that actively fulfill social responsibilities, it may awaken consumers’ moral awareness and prompt them to re-examine their moral self-identity. For instance, Lichtenstein et al. [73] found that CSR activities could enhance consumers’ moral self-concept, which, in turn, influenced their behavioral decisions. This indicates that CSR helps strengthen CMI. When consumers perceive that an organization excels in ethics and social responsibility, they are more likely to view the bank as a moral role model and internalize the bank’s moral image as part of their self-identity [44]. Therefore, this study proposes the following hypothesis:

H1: 

CSR positively influences consumer moral identity.

Previous research has indicated that a bank’s CSR performance affects not only its reputation and risk management but also has a significant impact on customer attitudes and behaviors [30,31]. Specifically, a bank’s CSR practices can enhance customer perceived service quality, which, in turn, influences customer satisfaction and loyalty. Aracil [30] found a positive correlation between a bank’s CSR performance and customers’ evaluations of service quality. This may be because CSR practices showcase the bank’s ethical and social responsibility image, which fosters customer trust and identification [12]. Additionally, CSR also reflects a bank’s innovation and adaptability, which customers may perceive as a signal of service quality [74]. For example, a bank’s adoption of green financial products and support for community development are CSR practices that can demonstrate its flexibility and customer orientation [75]. Moreover, CSR can help reduce a bank’s operational and reputational risks, enhancing service stability and reliability, thereby improving customer perceived service quality [10]. In summary, a bank’s CSR performance can positively influence customer perceived service quality through mechanisms such as shaping an ethical image, demonstrating innovation capabilities, and reducing service risks. Therefore, this study proposes the following hypothesis:

H2: 

CSR positively influences perceived service quality.

Relationship quality reflects the strength and depth of the relationship between customers and organizations, encompassing dimensions such as trust, commitment, and satisfaction [61,76]. Good CSR performance can enhance a bank’s reputation and customers’ trust in the bank [23,77]. When customers perceive that a bank excels in environmental, social, and financial aspects, they are more likely to trust that the bank will conduct its operations in a responsible and reliable manner, thereby strengthening their trust and emotional connection to the bank [57,71]. Additionally, CSR also affects customers’ identification with and sense of belonging to a bank. CSR practices of banks, such as supporting community development and promoting financial inclusion, can make customers feel that they share common values and social responsibilities with the bank, enhancing their identification with the bank and increasing their loyalty and commitment [31,78]. Therefore, based on the above discussion, this study proposes the hypothesis: the CSR performance of the banking industry positively influences customer relationship quality. Through the discussions outlined, this study derives the third research hypothesis:

H3: 

CSR positively influences relationship quality.

Consumer moral identity refers to the extent to which an individual places importance on moral values and their propensity to incorporate these values into their self-concept [40]. In consumer contexts, these traits may translate into positive responses to CSR activities. When consumers perceive that a company’s actions align with their moral values, they are more likely to experience a sense of identification and belonging, thereby fostering greater loyalty [79]. Additionally, moral identity may also prompt consumers to react negatively to unethical corporate behaviors, leading to brand switching or negative word-of-mouth [80]. Therefore, this study proposes the following hypothesis:

H4: 

Consumer moral identity positively influences loyalty.

In the banking industry, perceived service quality is a key factor affecting customer loyalty. Past studies have shown that perceived service quality is significantly positively correlated with customer loyalty [48,54,59]. When customers perceive that the bank provides high-quality services, they are more likely to trust and be satisfied with the bank, which, in turn, results in higher loyalty, such as continuing to use the bank’s services and recommending the bank to others [81]. Additionally, perceived service quality can also indirectly affect customer loyalty by enhancing customers’ emotional commitment and the costs of switching [82,83]. For example, high-quality services can strengthen customers’ emotional attachment to the bank, making them reluctant to switch to other banks. In summary, perceived service quality positively influences customer loyalty through both direct and indirect mechanisms. Therefore, this study proposes the following fifth research hypothesis:

H5: 

Perceived service quality positively influences loyalty.

Relationship quality has a significant positive impact on customer loyalty. Relationship quality reflects the strength and depth of the relationship between customers and the bank, including dimensions such as trust, commitment, and satisfaction in the banking industry [61]. When customers are satisfied with the bank’s services and establish trust and emotional connections, they are more likely to continue using the bank’s services and recommend it to others [84]. Trust is a core element of relationship quality; it reduces customers’ perceived risk and uncertainty, enhancing their confidence in and reliance on the bank [55,85]. Commitment reflects the degree to which a customer values and is willing to maintain a relationship with the bank; customers with high commitment are more willing to invest time and effort in developing their relationship with the bank and show higher loyalty [66]. Additionally, good relationship quality can increase customers’ emotional attachment and identification with the bank, making it harder for competitors to attract them [86]. Based on the above discussion, this study proposes the following hypothesis:

H6: 

Relationship quality positively influences loyalty.

According to the research hypotheses discussed above, the model for this study is shown in Figure 1.

3. Methodology

3.1. Measurement and Scaling

Before developing the scales for this study, it is essential to establish operational definitions for the key concepts of the research variables and measurement items to ensure their accuracy, relevance, and reliability. This step is crucial for transforming abstract theoretical concepts into measurable variables, facilitating precise measurement and analysis by researchers (as shown in Table 1). The detailed measurement scale is provided in the appendix (

Table A1. Measurement scale.

Constructs	Research Items	References
Economic Responsibility (ECONR)	This bank creates reasonable investment returns for shareholders. (ECONR1) This bank generates employment opportunities for society. (ECONR2) This bank provides customers with high-value services. (ECONR3) This bank promotes local economic development. (ECONR4)	[134,135]
Legal Responsibility (LEGR)	This bank strictly complies with all applicable laws and regulations. (LEGR1) This bank has established a comprehensive corporate governance and internal control mechanism. (LEGR2) This bank pays taxes honestly and does not engage in tax evasion. (LEGR3) This bank signs legally compliant contracts with customers and business partners. (LEGR4)	[134,135]
Ethical Responsibility (ETHR)	This bank considers the interests of all stakeholders when conducting its business. (ETHR1) This bank implements a fair and transparent performance evaluation and promotion system. (ETHR2) This bank respects and protects customer privacy. (ETHR3) This bank has established a code of ethical conduct to guide employee behavior. (ETHR4)	[134,135]
Philanthropic Responsibility (PHIR)	This bank allocates resources to support public welfare initiatives such as education, culture, and sports. (PHIR1) Employees of this bank actively participate in community volunteer services. (PHIR2) This bank donates to disaster relief efforts and supports disadvantaged groups. (PHIR3) This bank enhances its corporate reputation through charitable activities. (PHIR4)	[134,135]
Internalized Moral Identity (IMI)	Being a moral person is very important to me. (IMI1) I consider myself a principled person. (IMI2) I frequently reflect on my moral conduct. (IMI3) Regardless of changes in the external environment, my moral beliefs remain consistent. (IMI4)	[40,89]
Symbolized Moral Identity (SMI)	I want others to see me as an honest and upright person. (SMI1) I openly express my moral stance. (SMI2) I enjoy participating in charitable or volunteer activities that reflect my personal morals. (SMI3) Purchasing or using products with ethical controversies makes me feel uneasy. (SMI4)	[40,89]
Perceived Service Quality (PSQ)	The bank services meet my needs well. (PSQ1) I am satisfied with the quality of the bank services I received. (PSQ2) I feel the services I received from this bank are better than those I received from others. (PSQ3) I feel the services I received from this firm are more reliable than those I received from others. (PSQ4)	[136]
Satisfaction (SAT)	I am satisfied with the services provided by this bank. (SAT1) The services offered by this bank meet my expectations. (SAT2) Interacting with this bank makes me feel pleasant. (SAT3) Overall, I am satisfied with the services of this bank. (SAT4)	[19,137]
Trust (TRU)	I believe this bank treats me honestly. (TRU1) I consider this bank to be trustworthy. (TRU2) This bank cares about my best interests. (TRU3) I trust that this bank has the capability to provide high-quality services. (TRU4)	[137]
Loyalty (LOY)	I will continue to use the services of this bank. (LOY1) Over the past year, I have increased the frequency of using this bank’s services. (LOY2) I intend to continue using this bank’s services in the future. (LOY3) When I need banking services, this bank is my first choice. (LOY4)	[19]

).

Table 1. Operational definitions.

Construct	Definition	Source
Corporate social responsibility (second-order construct)	Economic responsibility: Corporations create profits and shareholder value through the provision of products and services, while also generating employment opportunities and promoting economic development. Legal responsibility: Corporations comply with laws and regulations, operate with integrity, and prevent illegal activities. Ethical responsibility: Corporations practice business ethics and conduct their operations in ways that meet societal expectations, being responsible to stakeholders such as employees, customers, and the community. Philanthropic responsibility: Corporations voluntarily allocate resources to improve social welfare, give back to the community, and demonstrate a positive corporate citizenship image.	Bai & Chang [87]; García-Sánchez and García-Sánchez [88]
Consumer moral identity	Internalized moral identity: Individuals internalize moral traits as a core part of their self-concept, forming a stable moral self-perception. Symbolized moral identity: Individuals manifest their moral identity through specific actions, shaping an external moral image.	Aquino & Reed [40]; Reed & Aquino [89]
Service quality	The consumer’s overall assessment of a service’s excellence or superiority, based on the perceived performance across key service attributes that align with expectations, such as reliability, responsiveness, and assurance.	Parasuraman et al. [90]; Kang and James [91]; Karatepe [92];
Relationship quality	Satisfaction: The overall level of contentment consumers feel towards the bank’s services. Trust: The perception of a bank’s integrity and reliability by consumers.	Bhattacherjee et al. [93]; Chen [58]
Loyalty	Consumer behavior of repeatedly purchasing and using bank services.	Amin [48]; Raza et al. [67]

Table 1. Operational definitions.

Construct	Definition	Source
Corporate social responsibility (second-order construct)	Economic responsibility: Corporations create profits and shareholder value through the provision of products and services, while also generating employment opportunities and promoting economic development. Legal responsibility: Corporations comply with laws and regulations, operate with integrity, and prevent illegal activities. Ethical responsibility: Corporations practice business ethics and conduct their operations in ways that meet societal expectations, being responsible to stakeholders such as employees, customers, and the community. Philanthropic responsibility: Corporations voluntarily allocate resources to improve social welfare, give back to the community, and demonstrate a positive corporate citizenship image.	Bai & Chang [87]; García-Sánchez and García-Sánchez [88]
Consumer moral identity	Internalized moral identity: Individuals internalize moral traits as a core part of their self-concept, forming a stable moral self-perception. Symbolized moral identity: Individuals manifest their moral identity through specific actions, shaping an external moral image.	Aquino & Reed [40]; Reed & Aquino [89]
Service quality	The consumer’s overall assessment of a service’s excellence or superiority, based on the perceived performance across key service attributes that align with expectations, such as reliability, responsiveness, and assurance.	Parasuraman et al. [90]; Kang and James [91]; Karatepe [92];
Relationship quality	Satisfaction: The overall level of contentment consumers feel towards the bank’s services. Trust: The perception of a bank’s integrity and reliability by consumers.	Bhattacherjee et al. [93]; Chen [58]
Loyalty	Consumer behavior of repeatedly purchasing and using bank services.	Amin [48]; Raza et al. [67]

3.2. Data Collection and Sampling

To understand bank customers’ perceptions of Corporate social responsibility (CSR) and its impact on relationship quality, this study utilized an online survey for sample collection. Considering the research objectives and feasibility, we planned to collect at least 400 valid samples from the customers of the banking sector of Taiwan. Following the recommendation by Hair et al. [94], the sample size should be at least 10 times the number of measurement items. Assuming the questionnaire would include 40 items, 400 samples should suffice for statistical analysis needs. For sampling, we used a combination of purposive sampling and snowball sampling methods. Initially, researchers invited eligible bank customers through personal and professional networks to complete the online questionnaire. Invitees were individuals who were at least 18 years old and had used the selected bank’s services at least once in the past year. To enhance the diversity and representativeness of the sample, efforts were made to cover customers of different ages, genders, educational backgrounds, and geographic areas. Furthermore, we encouraged initial respondents to share the survey link with other eligible bank customers to expand the sample coverage. Before the formal deployment, the preliminary version of the questionnaire was reviewed and provided feedback by three experts in relevant fields. A pilot test was conducted on a small scale before the official release.

Based on the research objectives and sampling strategy, we originally collected 378 questionnaires. During the data cleaning and screening process, we examined the completeness and validity of each questionnaire. After careful evaluation, we excluded 40 invalid questionnaires, including those with many missing values, answers that appeared random or contradictory, and those filled out too quickly, suggesting the questions may not have been read carefully. Ultimately, we obtained 338 valid questionnaires, resulting in an effective response rate of 89.4%, which is considered a good standard.

In the valid sample, male respondents accounted for 53.8% and female respondents for 46.2%, essentially achieving gender balance. Regarding age distribution, the sample covered all age groups: 18–25 years old accounted for 15.6%, 26–35 years old for 28.3%, 36–45 years old for 31.8%, 46–60 years old for 19.1%, and over 60 years old for 5.2%. In terms of educational background, 14.9% had a high school education or less, 59.6% had some college education, and 25.5% held a master’s degree or higher. This distribution indicates a generally high level of education among the sample, which may be related to the method of conducting an online survey. Nonetheless, the sample still covers customers with various educational backgrounds, ensuring a degree of representativeness. In terms of experience using banking services, 45.7% of respondents had more than five years of experience, 38.2% had from two to five years, and 16.1% had from one to two years. This distribution suggests that most respondents had long-term service relationships with banks and could provide informed opinions about the banks’ CSR practices and service quality.

4. Data Analysis

Descriptive statistics were used to measure the mean and standard deviation of variables. Additionally, tests for skewness and kurtosis were aimed at assessing the normality of the distribution. According to Kline [95] and Hair et al. [96], failing to meet the assumption of normality can invalidate statistical tests. Skewness measures the symmetry of the distribution, while kurtosis assesses the “peakedness” of the distribution. Ideally, the skewness and kurtosis values for a normal distribution should be zero. However, positive or negative values indicate deviations from a normal distribution. The most commonly accepted threshold values for skewness and kurtosis are ±2.58 [96]. The study results show that the skewness and kurtosis values for all variables were within acceptable ranges (see

Table 2. Descriptive statistics and factor loadings.

Construct	Indicator	Mean	Standard Deviation	Skewness	Kurtosis	Factor Loading	t-Value
Corporate social responsibility	ECONR (4 items)	4.311	1.246	−0.466	−0.282	0.846	39.241
	LEGR (4 items)	3.977	1.453	−0.292	−0.759	0.862	46.523
	ETHR (4 items)	3.682	1.497	0.048	−0.995	0.902	86.799
	PHIR (4 items)	3.801	1.450	−0.122	−0.825	0.877	61.699
Consumer moral identity	IMI (4 items)	3.914	1.477	−0.302	−0.752	0.936	123.980
	SMI (4 items)	4.124	1.392	−0.512	−0.504	0.949	163.192
Perceived service quality	PSQ1	4.595	1.023	−0.508	0.486	0.873	45.425
	PSQ2	4.624	1.040	−0.628	0.686	0.878	50.027
	PSQ3	4.500	1.097	−0.480	0.133	0.876	53.330
	PSQ4	4.411	1.122	−0.433	−0.038	0.845	33.776
Relationship quality	SAT (4 items)	4.266	1.223	−0.501	−0.055	0.907	79.965
	TRU (4 items)	4.569	1.122	−0.713	0.453	0.919	91.804
Loyalty	LOY1	4.831	0.817	−0.662	2.608	0.890	48.485
	LOY2	4.820	0.897	−0.699	1.642	0.912	63.168
	LOY3	4.846	0.913	−0.650	1.284	0.919	68.780
	LOY4	4.737	0.972	−0.518	0.613	0.895	58.122

Note: CSR = corporate social responsibility; CMI = consumer moral identity; PSQ = perceived service quality; relationship quality; LOY = loyalty.

).

To assess the reliability and convergent validity of the constructs in this study, we utilized the Partial Least Squares method (SmartPLS version 4.0). Reliability reflects the consistency and stability of measurement indicators, while convergent validity represents the ability of these indicators to effectively measure their corresponding latent variables [97]. Analysis results from

Table 3. Convergent validity.

Construct	Cronbach’s Alpha	Composite Reliability (Rho_a)	Composite Reliability (Rho_c)	Average Variance Extracted
CSR	0.940	0.943	0.947	0.531
CMI	0.940	0.941	0.950	0.704
PSQ	0.891	0.891	0.924	0.754
RQ	0.903	0.905	0.922	0.599
LOY	0.926	0.926	0.947	0.817

Note: CSR = corporate social responsibility; CMI = consumer moral identity; PSQ = perceived service quality; RQ = relationship quality; LOY = loyalty.

show that the Cronbach’s Alpha values for each construct were above 0.7, indicating good internal consistency among the measurement indicators [97,98]. Additionally, Composite Reliability is assessed using Rho_a and Rho_c indicators. Rho_a is calculated based on factor loadings, while Rho_c considers the relative importance of each measurement indicator [99]. In this study, the Rho_a values for each construct ranged between 0.891 and 0.943, and the Rho_c values were between 0.922 and 0.950, both exceeding the threshold of 0.7, supporting the reliability of each construct. For convergent validity, we examined the Average Variance Extracted (AVE), which represents the extent to which a latent variable can explain the variance of its measurement indicators [100]. AVE is calculated as the average of the squared standardized factor loadings of the measurement indicators, and when AVE is greater than 0.5, it indicates that the latent variable can explain more than half of the variance of its indicators, thereby possessing convergent validity [101,102]. From Table 3, it is evident that the AVE for each construct ranged from 0.531 to 0.817, all above the standard of 0.5. Combining the results of reliability and convergent validity, it is clear that the five constructs of this study possess robust psychometric properties. The measurement indicators within each construct demonstrated high internal consistency and effectively reflect the latent concepts they were intended to measure.

As shown in

Table 4. Discriminant validity.

Construct	CSR	CMI	PSQ	RQ	LOY
CSR	0.729
CMI	0.388	0.839
PSQ	0.250	0.462	0.868
RQ	0.319	0.453	0.639	0.774
LOY	0.341	0.480	0.680	0.743	0.904

Note: CSR = corporate social responsibility; CMI = consumer moral identity; PSQ = perceived service quality; RQ = relationship quality; LOY = loyalty.

, the bold italic numbers on the diagonal represent the square roots of the Average Variance Extracted (AVE) for each construct, including corporate social responsibility (CSR), consumer moral identity (CMI), perceived service quality (PSQ), relationship quality (RQ), and loyalty (LOY), with respective values of 0.729, 0.839, 0.868, 0.774, and 0.904. Comparing these square roots of AVE with the correlation coefficients between constructs, it was observed that the square root of AVE for each construct was greater than its correlation coefficients with other constructs. For example, the AVE square root for CMI was 0.839, which was higher than its correlations with other constructs such as CSR (0.388) and LOY (0.480); similarly, the AVE square root for CSR was 0.729, which was also greater than its correlations with other constructs. This pattern held for the other constructs as well. This indicates that the empirical results of this study have good discriminant validity, effectively distinguishing the concepts represented by each construct, and meeting the assessment criteria set by Fornell and Larcker [100]. Additionally, from

Table 5. HTMT.

Construct Relationships	HTMT	Lower Bound of HTMT at a 95% Confidence Level	Upper Bound of HTMT at a 95% Confidence Level
CSR <-> CMI	0.411	0.282	0.536
CSR <-> PSQ	0.276	0.144	0.418
CSR <-> RQ	0.350	0.215	0.484
CSR <-> LOY	0.372	0.236	0.495
CMI <-> PSQ	0.504	0.392	0.610
CMI <-> RQ	0.493	0.372	0.604
CMI <-> LOY	0.513	0.404	0.610
PSQ <-> RQ	0.718	0.616	0.804
PSQ <-> LOY	0.748	0.659	0.819
RQ <-> LOY	0.816	0.740	0.876

Note: CSR = corporate social responsibility; CMI = consumer moral identity; PSQ = perceived service quality; RQ = relationship quality; LOY = loyalty.

, the heterotrait–monotrait ratio (HTMT) values between each pair of constructs ranged from 0.276 to 0.816, all below the threshold of 0.85 [103]. Moreover, the upper limit of the 95% confidence interval for the HTMT values of each pair of constructs did not exceed 0.9, with the highest HTMT value between RQ and LOY being 0.816, and its confidence interval upper limit (0.876) remained below 0.9. In other words, the concepts measured by these constructs did not overly overlap, and respondents could distinguish the different constructs being measured by the questionnaire items.

Table 6. Cross-loadings.

Constructs	ECONR	ETHR	IMI	LEGR	LOY	PHIR	PSQ	SAT	SMI	Trust
ECONR1	0.718	0.355	0.228	0.455	0.474	0.365	0.282	0.302	0.263	0.354
ECONR2	0.833	0.542	0.253	0.623	0.264	0.480	0.214	0.212	0.301	0.200
ECONR3	0.884	0.559	0.205	0.716	0.263	0.555	0.176	0.153	0.219	0.199
ECONR4	0.853	0.553	0.267	0.633	0.314	0.591	0.218	0.247	0.299	0.281
ETHR1	0.602	0.722	0.260	0.748	0.228	0.564	0.153	0.148	0.233	0.207
ETHR2	0.489	0.883	0.331	0.507	0.228	0.711	0.178	0.272	0.286	0.218
ETHR3	0.488	0.917	0.405	0.511	0.235	0.785	0.214	0.285	0.329	0.199
ETHR4	0.543	0.907	0.390	0.560	0.226	0.760	0.194	0.231	0.307	0.157
IMI1	0.255	0.379	0.860	0.214	0.375	0.459	0.292	0.315	0.602	0.288
IMI2	0.179	0.345	0.909	0.129	0.332	0.327	0.374	0.306	0.659	0.252
IMI3	0.205	0.355	0.905	0.162	0.382	0.353	0.342	0.323	0.647	0.302
IMI4	0.355	0.326	0.788	0.208	0.472	0.339	0.436	0.384	0.780	0.390
LEGR1	0.741	0.565	0.186	0.837	0.187	0.517	0.089	0.149	0.176	0.136
LEGR2	0.630	0.554	0.149	0.844	0.134	0.496	0.082	0.116	0.134	0.134
LEGR3	0.535	0.520	0.075	0.794	0.218	0.455	0.157	0.123	0.108	0.098
LEGR4	0.568	0.610	0.264	0.856	0.252	0.546	0.195	0.211	0.239	0.174
LOY1	0.400	0.310	0.465	0.266	0.890	0.351	0.610	0.561	0.465	0.726
LOY2	0.335	0.224	0.398	0.217	0.912	0.288	0.620	0.543	0.416	0.638
LOY3	0.340	0.207	0.377	0.221	0.919	0.226	0.583	0.525	0.370	0.668
LOY4	0.308	0.220	0.388	0.153	0.895	0.219	0.642	0.581	0.385	0.655
PHIR1	0.511	0.651	0.322	0.453	0.281	0.798	0.174	0.258	0.280	0.212
PHIR2	0.526	0.793	0.356	0.544	0.184	0.868	0.193	0.273	0.298	0.203
PHIR3	0.516	0.712	0.353	0.541	0.179	0.877	0.148	0.221	0.271	0.171
PHIR4	0.475	0.553	0.383	0.461	0.379	0.765	0.268	0.302	0.302	0.357
PSQ1	0.236	0.193	0.340	0.176	0.590	0.199	0.873	0.496	0.384	0.488
PSQ2	0.252	0.200	0.381	0.147	0.599	0.208	0.878	0.516	0.407	0.500
PSQ3	0.209	0.199	0.397	0.136	0.591	0.203	0.876	0.514	0.414	0.456
PSQ4	0.212	0.156	0.336	0.081	0.580	0.199	0.845	0.583	0.359	0.467
SAT1	0.251	0.217	0.365	0.148	0.552	0.267	0.665	0.756	0.328	0.522
SAT2	0.217	0.221	0.325	0.185	0.532	0.237	0.540	0.911	0.352	0.576
SAT3	0.265	0.304	0.358	0.158	0.531	0.341	0.491	0.899	0.434	0.623
SAT4	0.208	0.209	0.302	0.142	0.530	0.259	0.449	0.917	0.343	0.607
SMI1	0.288	0.311	0.707	0.178	0.433	0.319	0.415	0.393	0.910	0.357
SMI2	0.323	0.332	0.734	0.213	0.382	0.332	0.396	0.401	0.899	0.330
SMI3	0.278	0.283	0.716	0.162	0.408	0.308	0.374	0.340	0.941	0.361
SMI4	0.299	0.308	0.689	0.177	0.435	0.307	0.466	0.394	0.905	0.378
TRU1	0.242	0.171	0.289	0.125	0.600	0.228	0.430	0.694	0.329	0.840
TRU2	0.246	0.187	0.221	0.148	0.535	0.195	0.403	0.594	0.270	0.831
TRU3	0.277	0.202	0.351	0.157	0.721	0.247	0.544	0.445	0.362	0.806
TRU4	0.236	0.190	0.323	0.111	0.608	0.252	0.448	0.430	0.329	0.815

confirms that the indices used to evaluate these constructs demonstrate sufficient discriminant validity. Each indicator associated with a specific construct presents a factor loading higher than its correlations with other latent constructs. The highest loading value for each indicator is highlighted in yellow in Table 6.

This research evaluated the goodness of fit (GOF) following the approach outlined by Tenenhaus et al. [104], with the objective of determining the overall validity and robustness of the proposed framework. The computation is presented as follows:

$$GOF=\sqrt{\overline{AVE}} \times \sqrt{\overline{R^2}}= \sqrt{0.681 \times 0.234}=0.39$$

The goodness of fit (GOF) value calculated in this study was 0.39, surpassing the 0.36 benchmark that signifies a large effect size [105].

To examine the six hypotheses proposed in this study, we conducted inner model analysis using PLS and evaluated the significance of each research hypothesis through a 10,000-time bootstrapping procedure (as shown in Figure 2 and

Table 7. Testing of research hypotheses.

Path	Standardized Path Coefficient	Standard Deviation (STDEV)	t-Value	p-Value
CSR -> CMI	0.388 ***	0.064	6.059	0.000
CSR -> PSQ	0.250 ***	0.071	3.536	0.000
CSR -> RQ	0.319 ***	0.068	4.657	0.000
CMI -> LOY	0.113 **	0.043	2.602	0.009
PSQ -> LOY	0.314 ***	0.059	5.300	0.000
RQ -> LOY	0.492 ***	0.058	8.486	0.000

Note 1: CSR = corporate social responsibility; CMI = consumer moral identity; PSQ = perceived service quality; RQ = relationship quality; LOY = loyalty. Note 2: ** p-value < 0.01; *** p-value < 0.001.

). The analysis results in Table 6 indicate that corporate social responsibility (CSR) had significant positive effects on consumer moral identity (CMI), perceived service quality (PSQ), and relationship quality (RQ) (β = 0.388, p < 0.001; β = 0.250, p < 0.001; β = 0.319, p < 0.001), supporting research hypotheses H1, H2, and H3. These findings suggest that when consumers perceive active corporate social responsibility engagement, it helps enhance their moral identity, perceived service quality, and relationship quality.

Additionally, consumer moral identity (CMI), perceived service quality (PSQ), and relationship quality (RQ) also significantly affected loyalty (LOY), with standardized path coefficients of 0.113 (p < 0.01), 0.314 (p < 0.001), and 0.492 (p < 0.001), respectively, thus supporting research hypotheses H4, H5, and H6. This implies that higher levels of consumer moral identity, perceived service quality, and relationship quality tend to lead to more loyal behaviors.

It is noteworthy that among the three antecedent variables affecting loyalty, the effect of relationship quality (RQ) was the most significant (β = 0.492), followed by perceived service quality (PSQ, β = 0.314), with consumer moral identity (CMI) having a relatively smaller impact (β = 0.113). This indicates that in shaping consumer loyalty, establishing good relationship quality and providing high service quality play crucial roles, whereas enhancing consumer moral identity, although still beneficial, may not be as impactful as the former two factors.

In addition to examining the direct effect of corporate social responsibility (CSR) on loyalty (LOY), this study also explored the indirect impacts of CSR on LOY through mediating variables such as consumer moral identity (CMI), perceived service quality (PSQ), and relationship quality (RQ). According to the results in

Table 8. Indirect effect.

Indirect Influence	Indirect Path Coefficient	Standard Deviation (STDEV)	t-Value	p-Value
CSR -> CMI -> LOY	0.044 *	0.019	2.282	0.023
CSR -> PSQ -> LOY	0.078 **	0.029	2.685	0.007
CSR -> RQ -> LOY	0.157 ***	0.042	3.750	0.000

Note 1: CSR = corporate social responsibility; CMI = consumer moral identity; PSQ = perceived service quality; RQ = relationship quality; LOY = loyalty. Note 2: * p-value < 0.05; ** p-value< 0.01; *** p-value < 0.001.

, CSR exerted significant indirect effects on LOY through CMI, PSQ, and RQ (β = 0.044, p < 0.05; β = 0.078, p < 0.01; β = 0.157, p < 0.001). Among these mediating processes, the indirect effect of CSR through RQ on LOY was the most significant (β = 0.157), followed by the indirect impact through PSQ (β = 0.078), while the effect through CMI was relatively smaller (β = 0.044). This suggests that CSR most effectively promotes loyalty by enhancing the perceived relationship quality among consumers; next, CSR indirectly drives an increase in loyalty by improving consumers’ perception of service quality. Compared to these, while CSR can also influence loyalty by strengthening consumers’ moral identity, this effect tended to be weaker. In summary, this study elucidates the multifaceted mediating mechanisms through which CSR impacts loyalty, highlighting the importance of fulfilling social responsibilities in shaping positive customer relationships, providing quality service, and ultimately fostering customer loyalty.

5. Discussion and Conclusion

5.1. Research Finding and Practical Implications

This study employed a PLS-SEM model to explore the mechanisms through which corporate social responsibility (CSR) impacts customer loyalty (LOY) in the banking sector. The analysis results for hypotheses H1 and H4 show that CSR significantly positively affected consumer moral identity (CMI), indicating that when banks fulfill their social responsibilities effectively, it enhances consumers’ moral identity (β = 0.388, p < 0.001). Simultaneously, CMI had a significant positive impact on LOY (β = 0.113, p < 0.01), suggesting that higher levels of consumer moral identity are associated with greater customer loyalty. These findings align with the existing literature, such as Pérez and Rodríguez del Bosque [35], who noted that CSR activities can strengthen consumers’ moral evaluations of firms, and Choi and La [106], who argued that consumer moral identity is an important precursor to brand loyalty.

Furthermore, this study found that CSR had a significant indirect effect on LOY through CMI (β = 0.044, p < 0.05), meaning that CSR could indirectly promote customer loyalty by enhancing consumer moral identity. This result supports the view of Haski-Leventhal et al. [18], who posited that CSR activities can trigger moral responses in consumers and enhance loyalty through moral connections. Overall, this research reveals the relationships between CSR, CMI, and LOY, confirming that CSR can significantly enhance customer loyalty in the banking sector through the mediating role of consumer moral identity. This discovery not only enriches the theoretical research on the relationship between CSR and customer loyalty but also provides important insights for how the banking sector can strategically use CSR to build long-term customer relationships. We recommend that the banking industry should actively engage in CSR activities and use them as a key strategy to establish moral connections with consumers and win their loyalty. Specifically, banks should consider identifying and focusing on CSR issues most important to consumers, such as environmental protection and community development, to trigger moral responses [107]; integrate CSR concepts and practices into the bank’s brand image and market communications, emphasizing efforts in fulfilling social responsibilities to enhance consumer moral identity [108]; encourage and support consumer participation in CSR-related activities, creating opportunities for co-creating moral value with consumers, deepening the moral connection between the two [109]; and regularly evaluate the effectiveness of CSR activities and adjust CSR strategies accordingly to ensure they continue to trigger consumer moral identity and translate into long-term customer loyalty [110].

Secondly, CSR had a significant positive impact on perceived service quality (PSQ) (β = 0.250, p < 0.001), indicating that when banks fulfill their social responsibilities, they can effectively enhance customers’ perceptions of service quality. This finding aligns with the research by Poolthong and Mandhachitara [111], who noted that CSR activities positively affected customers’ evaluations of service quality. Furthermore, PSQ also had a significant positive effect on loyalty (LOY) (β = 0.314, p < 0.001), suggesting that the higher the service quality perceived by customers, the more likely they are to become loyal customers. This is consistent with the findings of Kaura et al. [53], who identified perceived service quality as a key factor in building customer loyalty. Through the analysis of indirect effects, this study found that CSR had a significant indirect effect on LOY through PSQ (β = 0.078, p < 0.01). This implies that CSR could indirectly promote customer loyalty by enhancing perceived service quality, confirming the view of Mandhachitara and Poolthong [111] that CSR activities can enhance customer loyalty by improving perceived service quality.

Based on the above discussion, this study suggests that the banking industry should combine CSR with improvements in service quality to more effectively win customer loyalty. Specifically, banks should consider integrating CSR concepts and practices into service processes and standards to ensure that CSR activities can truly translate into perceived service value for customers [112]; additionally, strengthen service personnel’s CSR awareness and skills training so that they can effectively deliver CSR concepts during service provision, enhancing perceived service quality [113]; moreover, integrate CSR communication with service quality communication, allowing customers to better perceive that the bank is fulfilling its social responsibilities while also providing quality services [114]; and finally, continuously monitor the impact of CSR activities on perceived service quality and dynamically adjust CSR and service quality strategies accordingly to continuously enhance customer loyalty [115].

Thirdly, the results from H3 demonstrate that CSR had a significant positive impact on relationship quality (RQ) (β = 0.319, p < 0.001), indicating that when banks fulfill their social responsibilities, they can effectively enhance the quality of relationships with their customers. This finding is consistent with the research by Chung et al. [116], who noted that CSR activities could foster the development of relationships between banks and customers, thus enhancing relationship quality. Furthermore, the results from H4 support that RQ had a significant positive impact on loyalty (LOY) (β = 0.492, p < 0.001), suggesting that the higher the relationship quality between the bank and its customers is, the more likely the customers are to become loyal. This aligns with the findings of Levy and Hino [55], who argued that relationship quality is a key factor in establishing customer loyalty. This study found that CSR indirectly affected LOY through RQ significantly (β = 0.157, p < 0.001). This implies that CSR could indirectly promote customer loyalty by enhancing the relationship quality between banks and customers. This result corroborates the viewpoint of Abbas et al. [117], who suggested that CSR activities could enhance customer loyalty by improving the relationship between banks and customers.

Based on the above, this study recommends that the banking industry should focus on the role of CSR in enhancing relationship quality and consider it a crucial strategy for maintaining customer loyalty. Specifically, banks should consider integrating CSR concepts and practices into customer relationship management and use it as a foundation for establishing long-term relationships with customers [118]; in CSR activities, banks should focus on communication and interaction with customers to enhance mutual understanding and trust, thereby improving relationship quality [119]; also, banks should include CSR performance in the evaluation system of customer relationship management and use it as an important indicator to improve relationship quality; and finally, banks should continuously monitor the impact of CSR activities on relationship quality and dynamically adjust CSR and customer relationship management strategies to maintain customer loyalty [78].

Taiwan’s Financial Supervisory Commission (FSC) has established corporate governance guidelines that emphasize sustainability reporting and social responsibility [120]. Recent policies mandate that listed companies, including banks, integrate and disclose their CSR initiatives, reinforcing the critical role of CSR in corporate strategy [121]. Compliance with these regulations has been linked to enhanced consumer trust and loyalty among financial institutions [122].

CSR communication plays a pivotal role in shaping customer perception and engagement in Taiwan [123]. Taiwanese banks that proactively disclose their CSR initiatives—through sustainability reports and digital platforms—gain a competitive edge in the financial sector [124]. This is especially relevant in the era of digital banking, where millennial and Generation Z consumers demand greater transparency and ethical banking practices [125]. Our findings indicate that strategic CSR communication strengthens customers’ perception of service quality, thereby cultivating deeper and more meaningful customer relationships.

Taiwanese banks that actively participate in CSR initiatives, including green finance, employee welfare, and community development, consistently report higher levels of customer satisfaction and loyalty [126]. A study examining the Taiwanese insurance and banking sectors found that CSR had a direct and positive impact on customer retention and brand reputation, aligning with our research, which underscores the mediating role of relationship quality and service quality in the CSR-loyalty nexus [127].

Empirical evidence further suggests that Taiwanese banks with greater CSR engagement achieve superior financial performance [128]. A broader analysis of Taiwanese firms confirmed that various CSR dimensions—including corporate governance, environmental responsibility, and social engagement—significantly contributed to financial success [129]. These findings support our assertion that CSR investments not only enhance brand trust but also drive long-term profitability.

5.2. Theoretical Implications

The theoretical implications of this study are manifested in three main areas. First, based on Social Identity Theory and Stakeholder Theory, this study constructed an integrated theoretical model linking corporate social responsibility (CSR), consumer moral identity (CMI), perceived service quality (PSQ), relationship quality (RQ), and customer loyalty. This research explored the mechanisms through which CSR influences customer loyalty through multiple mediating pathways of CMI, PSQ, and RQ. The findings support the hypotheses that CSR positively impacts CMI, PSQ, and RQ, which, in turn, significantly affect customer loyalty, corroborating the theoretical linkage of CSR, identity, service evaluation, and relationship quality in explaining customer behavior. This perspective expands the existing research on the mechanisms of CSR’s influence. For instance, the study by Pérez and Rodríguez del Bosque [130] examined the direct effects of CSR on customer loyalty, while Chomvilailuk and Butcher [108] focused on the impact of CSR on brand preference. In comparison, this study incorporated mediators such as CMI, PSQ, and RQ to provide a more comprehensive explanation of the pathways and mechanisms through which CSR affects customer responses, enriching the theoretical perspectives of CSR research.

Secondly, this study empirically tested the role and function of consumer moral identity (CMI) within the banking industry context. Although previous research has indicated that CSR contributes to enhancing consumers’ organizational identification [131], few studies have focused on how CSR influences consumer moral identity and the role of moral identity in the relationship between CSR and customer relationships. This research found that CSR significantly promotes CMI, indicating that CSR triggers consumers’ moral perceptions and evaluative processes, and internalizes them as part of their self-concept. Moreover, the study also revealed that CMI positively affects customer loyalty, implying that CSR not only directly influences utilitarian customer responses but also evokes customers’ moral awareness and sense of responsibility, deepening their emotional connection to the company. Therefore, this research enriches the theoretical perspectives on the mechanisms of CSR’s impact and customer responses.

Finally, this study focuses on CSR issues in the banking industry, supplementing previous research that predominantly focused on the manufacturing and general service industries. For example, Saeidi et al. [114] explored the impact of CSR on business competitive advantage and performance, while Jalilvand et al. [132] examined the role of CSR in customer loyalty in the hospitality industry. In contrast, as a high-contact service industry, the banking sector presents unique mechanisms by which CSR shapes customer attitudes and behaviors that warrant further exploration. This study found that in the banking industry, CSR significantly affects perceived service quality (PSQ) and relationship quality (RQ), thereby promoting customer loyalty. This result echoes the views of Poolthong and Mandhachitara [111] and Yuen et al. [133] that bank CSR helps to enhance perceived service quality and customer relationship quality. Therefore, this research confirms the importance of CSR in the unique service context of the banking industry and deepens the understanding of CSR’s operational mechanisms in this sector.

In addition to these contributions, this study advances the theoretical discourse on CSR by highlighting its multi-dimensional impact within a high-contact service industry. While previous research has primarily explored CSR’s effects through direct relationships, this study emphasizes the significance of psychological and relational mediators—namely CMI, PSQ, and RQ—in shaping consumer behavior. By integrating SIT [17] and ST [20], the study positions CSR not only as a means of fulfilling stakeholder expectations but also as a driver of consumer identity alignment with socially responsible organizations. Furthermore, the findings reveal the contextual intricacies of CSR’s influence, indicating that its effectiveness varies depending on industry-specific service interactions. These insights contribute to the evolution of CSR theory by advocating for a more dynamic and industry-specific perspective on its mechanisms [28]. Future research may build upon these findings by examining moderating factors, such as digital banking interactions and regulatory environments, which could further shape CSR’s role in fostering customer loyalty within the financial sector.

5.3. Research Limitations and Future Research Directions

While this study has provided significant theoretical and practical insights, it also has some limitations that should be addressed in future research. Firstly, the use of a cross-sectional design in this study does not establish causality between variables. Future studies could consider employing longitudinal designs or experimental methods to further validate the causal mechanisms between CSR and customer responses. Secondly, this study collected samples only within the banking industry of a single country, which may limit the external validity of the results. Future research should expand the research context to include cross-cultural and cross-industry validations of the study model, thereby enhancing the generalizability of the findings. Thirdly, this study primarily relied on customers’ subjective perceptions to measure the research variables, which could lead to issues of common method bias. Future studies might consider integrating objective data, such as financial performance indicators of banks and customer transaction records, to provide a more comprehensive and objective perspective. Lastly, although this study included important mediating variables such as moral identity, perceived service quality, and relationship quality, the mechanisms through which CSR affects customer loyalty might be more complex and could involve other factors such as values, risk perceptions, and emotions. Future research should explore other potential mediating mechanisms to deepen the understanding of CSR’s pathways. Additionally, contextual factors such as customer characteristics and corporate attributes may moderate the relationship between CSR and customer responses. These moderating mechanisms are also worthy of examination in future studies to better understand the conditions under which CSR influences can be most effectively leveraged.

5.4. Conclusions

This study presents an integrated theoretical model and empirically tests it within the banking industry context, enhancing academic understanding of the mechanisms by which CSR influences customer loyalty and addressing gaps in previous research, thereby offering significant theoretical value. Additionally, this research provides practical insights into how the banking sector can translate CSR into market performance, offering guidance for enhancing the sustainable competitiveness of the banking industry. As stakeholders’ expectations for banks to fulfill their social responsibilities increase, CSR has become an indispensable strategic measure for the banking industry. This study offers new perspectives on the operational logic of CSR within the unique service and relational context of the banking sector, inspiring ways to achieve a win–win situation for social value and commercial benefits in banking. Future research should consider building on this study’s foundations to further explore specific CSR practices in the banking industry and strive to develop a more systematic and dynamic integrated management framework for CSR that includes stakeholder participation and social performance assessment. This approach could provide a more comprehensive understanding of how CSR can be effectively implemented to meet both societal expectations and business objectives, ultimately fostering a sustainable model of operation that benefits all stakeholders in the banking industry.