Corporate social responsibility improves customer service

Published: 08:07, May 22, 2014

Does corporate social responsibility improve customer service, or should companies focus purely on raising workers’ salaries, giving them clear instructions on how to interact with customers, and making them adopt a positive attitude towards their employer?

According to Daniel Korschun, PhD, at Drexel University’s LeBow College of Business, Professor C.B. Bhattacharya, at the ESMT European School of Management and Technology, and Professor Scott D. Swain, at the College of Business and Behavioral Science, Clemson University, corporate social responsibility improves customer service too.

Customer service refers to the interactions the seller has with customers and other prospects.

The team examined how frontline employees responded to such activities as ethical practices, environmental programs and charitable giving.

The study, Corporate Social Responsibility, Customer Orientation, and the Job Performance of Frontline Employees, published in the Journal of Marketing, is the first to trace the effects of corporate social responsibility (CSR) right from the perceptions of the CSR activities to actual job performance.

Corporate social responsibility
Corporate social responsibility can lead to better job performance.

Korschun gathered and analyzed data from over 200 employees at a major financial services company.

CSR motivates workers differently

Korschun said:

“What we found is that CSR motivates employees in an entirely different way.”

“Because CSR communicates the values of the company, it can become a window into the values of the customer.”

Korschun explained that if workers believe that customers share their excitement about the CSR activities carried out by the company, it may be an a conversation ice-breaker and make it easier to talk with them.

Worker confidence improves

Korschun added:

“Employees become more confident that they know what customers want. And they become more motivated to serve those customers because they see that they care about the same sorts of things.”

The study found that while raising salaries, giving clear instructions, and other traditional means of improving performance can be effective, so is CSR; it represents a new way to motivate employees who are dealing directly with customers.

Korschun said:

“This is an exciting finding for executives because we not only show that CSR can lead to better job performance, but we also document the entire thought process of employees.”

“Now executives can create CSR initiatives that maximize these benefits in job performance.”

Veronica Salvador Avatar

Other News

ECB raises deposit rate to 2.50% as energy costs lift inflation

Sep 10, 2026

Adobe revenue rises 13% as its AI subscription business expands

Sep 10, 2026

EU cyber-reporting rules start September 11: what manufacturers must report

Sep 10, 2026

Malaysia’s palm oil stocks rise 7.5% as August exports fall

Sep 10, 2026

TSMC’s August revenue jumps 53.3% as chip sales accelerate

Sep 10, 2026

Bank of Japan’s Masu warns inflation could force faster rate hikes

Sep 10, 2026

UK considers wider audit exemptions in company reporting overhaul

Sep 9, 2026

How billing problems can leave businesses waiting for their money

Sep 9, 2026

China’s export surge widens its trade surplus despite faster import growth

Sep 9, 2026

FANUC and Palladyne target the cost of adapting factory robots

Sep 8, 2026

Study links conflicting AI advice to lower confidence in decisions

Sep 8, 2026

Greek pilot tests smarter energy controls in commercial buildings

Sep 8, 2026

OECD finds tax reforms favor investment while budget pressures grow

Sep 8, 2026

IQE revenue rises 43% as AI demand boosts semiconductor materials

Sep 7, 2026

German industrial production falls as car output drops sharply

Sep 7, 2026

Eurozone growth picks up, but employment barely rises

Sep 7, 2026

Why businesses replace equipment that still works

Sep 7, 2026

What happens to a product after a customer returns it?

Sep 7, 2026

Factories weigh the cost of recycled water against supply risks

Sep 7, 2026

Why invoice fraud remains a business risk as payments go digital

Sep 7, 2026