Over the last two decades, the concept of corporate social responsibility (CSR) has attracted considerable attention academic circles as well as in practice. CSR has been the subject of much researched and one of most intensely debated issue among scholars and practitioners (Mcdonald and Thiele, 2007; Yeh and Li, 2009; Mandhachitar and Poolthong, 2009; Maignan and Ferrell, 2005; Dincer and Dincer, 2012; Barone, Mizaki and Taylor, 2000). The benefits of companies engaging in CSR activities are increasing and they include positive business profits, customer’s trust, loyalty and positive brand attitude (Sankar and Bhattacharya, 2000). Because of the known positive impacts, many well established firms are increasingly engaging themselves in CSR activities (Barone, Miyazaki and Taylor, 2000). CSR has also been linked to enhanced reputation which lead to brand awareness and brand differentiation which ultimately helps companies to gain competitive advantage over their competitors (Bronn and Vrionni, 2001).
CSR are activities that involve in protecting the environment, communities, employees, shareholders and other indirect stakeholders such as the media and NGOs (Dusuki and Dar, 2005). It is becoming an economic practice for today’s organizations to have established guidelines on ethical and social responsibility issues such as environment, charitable giving, support for the community and so on.
2.1 Perceived Service Quality
Moreover, CSR initiatives role is to contribute to perceived service quality (PSQ) which in turn would influence trust and brand effect (Poolthong and Mandachitara, 2009). This statement is also supported by Yeh& Li (2009) that pointed out that PSQ does have a significant impact on customer satisfaction which in turn would have a significant effect on trust. However, there are reported cases where even when the companies have increased their CSR fund, their customer’s are experiencing dissatisfaction with the organization...