The impact of corporate social responsibility on customer loyalty in MTN Ghana

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Date
September, 2015
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Abstract
The study set out to establish the impact of corporate social responsibility on the loyalty of MTN customers. Specifically, the study looked at how MTN Ghana is performing in the four major categories of corporate social responsibilities namely, economic responsibilities, legal responsibilities, ethical responsibilities and philanthropic responsibilities. The study further assessed the impact that the corporate social responsibilities undertaken by MTN Ghana in education, health and economic empowerment have on the loyalty of its customers in Ghana. In an effort to accomplish this, 250 questionnaires were administered to customers of MTN Ghana. The sample size was selected using simple random sampling. A response rate of 94% was achieved. The purpose of the study is explanatory. The data collected was analysed using multiple regression. It was discovered that corporate social responsibilities had significant impact on the loyalty of MTN customers. It was therefore followed that MTN was performing well in the four major areas of corporate social responsibilities which are economic responsibilities, legal responsibilities, ethical responsibilities and philanthropic responsibilities. In addition, the study found that, the corporate social responsibility projects undertaken by MTN have significant impact on the loyalty of its customers. Based on the findings, it was recommended that MTN must main a high level of operation efficiency to enjoy the loyalty of their customers and must not focus on maximizing profit at the expense of its customers so as to ensure that they always have the loyalty of their customers. In addition, MTN must perform in a manner consistent with the expectations of government laws. Again, it is recommended that MTN must pay fair wages and refuse to do business with oppressive countries to secure the loyalty of their customers. Finally, MTN must continue to undertake their corporate social responsibility projects because it is the reason for the loyalty of their customers.
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A dissertation presented to the Department of Marketing and Corporate Strategy, School of Business, Kwame Nkrumah University of Science and Technology Kumasi, in partial fulfillment of the requirement for the degree of Master of Business Administration (Strategic Management and Management Consulting)
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