Strategic Communication of Corporate Social Responsibility Activities in Strengthening Customer Based-Organizational Reputation:Evidence from Jordanian Banks

Abstract: Financial institutions have seen significant growth in the demand for corporate social responsibility activities, and banks are seeking to leverage customers‟ perceptions to build a sustainable competitive advantage. Consequently, the concepts of corporate social responsibility and organizational reputation are ofvital concern for academics and managers in terms of their potential impact on customers. This study contributesto the literature by examining the mediating role of customer trust on the relationship between corporate socialresponsibility activities and customer-based organizational reputation. The study also considers the role playedby customer trust in a mediation effect. To achieve this aim, the study adopted signalling theory to provide atheoretical foundation. A cross-sectional survey was conducted on 374 bank customers in Amman, the majorcommercial city in Jordan. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test theresearch hypotheses and validate the proposed conceptual model. The findings indicated that both CSR and CTinfluenceCBOR, while CT was found to mediate the effect of CSR on CBOR. Therefore, all direct and indirecthypotheses in this study were supported. The study‟s results suggest that Jordan’s banking sectorshouldaggressively engage in CSR activities to strengthen the CBOR.

Keywords: Customer-Based Organizational Reputation, Corporate Social Responsibility, Customer Trust,Signalling Theory