Original Research

The relationship between customer satisfaction, social responsibility, and long-run financial performance

Yi-Chen Wang, Ben-Piet Venter, Chia-Hsing Huang
The Journal for Transdisciplinary Research in Southern Africa | Vol 8, No 2 | a226 | DOI: https://doi.org/10.4102/td.v8i2.226 | © 2012 Yi-Chen Wang, Ben-Piet Venter, Chia-Hsing Huang | This work is licensed under CC Attribution 4.0
Submitted: 08 March 2016 | Published: 31 December 2012

About the author(s)

Yi-Chen Wang, National Kaohsiung First University of Science and Technology, Taiwan
Ben-Piet Venter, Beijing Foreign Studies University, Beijing, China
Chia-Hsing Huang, SolBridge International School of Business, South Korea, Korea, Democratic People's Republic of

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Abstract

This paper investigates the link between long-run corporate financial performance, corporate social responsibility, and customer satisfaction. Using annual financial data, customer satisfaction index, and the Dow Jones Sustainability Index, the paper seeks to establish whether it pays organizations to use ethical methods in striving to be sustainable. Data used for this research cover the period 2001 to 2008. We used dynamic panel data linear regression models to analyze the effect of customer satisfaction and social responsibility on short-run and long-run financial performance. It was found that it may benefit organizations to use ethical methods in pursuing sustainability. since organizations who invest time, money, and effort in corporate social responsibility activities, their good reputations and satisfied customers yield long-term cash flow growth.

Keywords: corporate customer satisfaction, Corporate Social Responsibility, corporate financial performance

DisciplinesL business studies, international studies, ethics, finance studies


Keywords

corporate customer satisfaction; Corporate Social Responsibility; corporate financial performance

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