What makes a customer stay loyal to a brand in today’s world? It’s no longer just about good service or fast delivery. Increasingly, it’s about what a company stands for.
Professor Dr. Asokan Vasudevan from INTI International University studies the link between CSR and customer loyalty, offering new ways for businesses to build trust and retention.
That’s the focus of a recent study by Professor Dr. Asokan Vasudevan, Senior Lecturer at INTI International University’s Faculty of Business and Communication. Exploring the Indian telecommunications industry, his research uncovers how Corporate Social Responsibility (CSR) plays a growing role in shaping customer loyalty—a trend that holds important takeaways for businesses in Malaysia.
Titled “Impact of Corporate Social Responsibility (CSR) on Customer Loyalty in the Indian Telecom Industry: The Moderating Role of Consumer Demographics,” the study shows that CSR isn’t just a nice-to-have—it’s becoming a business essential.
“Consumers today are more discerning and value companies that contribute positively to society,” said Professor Asokan. “CSR can be a powerful driver of loyalty if it is strategically aligned with consumer expectations and communicated effectively.”
While service quality still ranks high in customer retention, the study found that CSR initiatives indirectly strengthen loyalty by boosting trust and satisfaction. Telecom giants like CelcomDigi, Maxis, U Mobile, and Telekom Malaysia have all stepped up their CSR game—investing in digital access, community programmes, and environmental causes. But are these efforts translating into stronger customer relationships?
Professor Asokan believes they can do this if companies get the messaging and execution right. His research points to one key factor: alignment. CSR efforts that connect with what customers care about, especially when linked to local values, tend to have a greater impact.
The study outlines how companies can turn CSR efforts into long-term customer loyalty by meaningfully aligning with values and engaging communities.
In Malaysia, where values like community spirit and social welfare run deep, CSR efforts need to reflect this local context. Community-driven, transparent, and genuinely helpful campaigns can build deeper brand loyalty. It’s a point Professor Asokan stresses in his findings: companies that engage meaningfully with their communities are better positioned to foster long-term relationships with consumers.
The study also looks beyond telcos. It references McDonald’s Malaysia, which faced consumer backlash during a period of geopolitical tension. In response, the fast-food chain doubled on CSR—distributing food aid, supporting local suppliers, and investing in community welfare. These efforts, backed by open communication, helped rebuild trust.
It’s a lesson in how companies can respond to public sentiment, not just with PR statements but with action—and how that action can strengthen brand loyalty over time.
For Professor Asokan, CSR is not about ticking boxes or meeting regulatory demands. It’s a tool for building meaningful relationships. “Businesses need to look at CSR not as an obligation but as a strategy for long-term engagement,” he said.
His study outlines a framework companies can use to connect CSR with customer loyalty better. It calls for more transparent communication, stronger alignment with consumer values, and a shift from corporate messaging to customer-focused action.
That shift could make all the difference in a market where customers are watching closely—not just what you sell but what you stand for.