Published at : 31 Oct 2023
Volume : IJtech
Vol 14, No 6 (2023)
DOI : https://doi.org/10.14716/ijtech.v14i6.6641
Yang Ning | Multimedia University, Jalan Ayer Keroh Lama, 75450 Bukit Beruang, Melaka, Malaysia |
Hishamuddin Bin Ismail | Multimedia University, Jalan Ayer Keroh Lama, 75450 Bukit Beruang, Melaka, Malaysia |
Lai Kim Piew | Multimedia University, Jalan Ayer Keroh Lama, 75450 Bukit Beruang, Melaka, Malaysia |
The petroleum industry produces both toxic and
non-toxic wastes at almost all stages of production. While petroleum companies
satisfy market demand, they also want to meet consumers’ moral and ethical
demands. Hence, CSR has become vital for the development of the companies as a whole.
While CSR initiatives have the potential to bring many benefits to any
business, their impact on customer satisfaction has remained a mystery. This
study sets out to explore how petroleum companies can harness the full
potential of CSR to communicate, integrate, and organize their projects
effectively through CSR implementation to uncover how it can significantly
boost customer satisfaction in Malaysian petroleum companies. Drawing on the latest
insights from the Theory of CSR, Stakeholder Theory, and Social Influence
Theory, this study takes a quantitative approach to fill crucial gaps in the
CSR literature and provide valuable insights into the links between CSR
activities and consumer behavior. 6 hypotheses were established for the
activities and CSR Mechanisms on customer satisfaction. The research model was tested using Structural equation modeling of
partial least square with the SmartPLS 3.0 software. The findings of this research can directly
contribute to good management practices as the study can help managers
appreciate how consumers understand the company’s CSR initiatives and the
effect it has on customer satisfaction. Hence, this research can help build
responsible managers.
Customer satisfaction; Corporate social responsibility; Social media; Word of mouth
The rapid
growth of the global human population, coupled with consumerism, has elevated
the oil and gas industry to a pivotal role in the world economy (Chuah et al.,2022). This industry drills,
processes, and transports vast quantities of oil between facilities, but it
grapples with pollution issues (Wren, 2022).
The emission of greenhouse gases from these operations contributes to global
temperature rise, ocean pollution, and rising sea levels (Brisbois et al., 2021). Thus, petroleum companies are
subject to many environmental and economic regulations (Nagale et al., 2022). Meanwhile, the disposal of oil residues and sludge generated
from the storage, processing, and transportation of these products has become
increasingly difficult in some countries (Ahmad et al., 2023), thanks to national and regional
legislation.
In Malaysia, where the petroleum companies are very competitive, this problem could see some producers being side-lined for others who are perceived as being more responsible towards the environment and society (Atasoy, Altiner, and Ozkan-Altiner, 2022). One of the most important sectors in the world is the oil and gas business in Malaysia. The Malaysian government is gradually allowing international investors access to the market. This has prompted numerous foreign businesses to invest in this nation. These include, among others, BHPetrol, Caltex, Petron, and Shell. Malaysia has 3,530 petrol stations nationally, which is the majority. There are a few mini-gas stations distributed throughout rural areas; there are about 267 stations that meet the basic needs of the locals for petrol. Particularly with the recent surge in global oil prices, lower energy costs in the global market have increased competitiveness within the industry (Yahya and Safian, 2022). Consequently, Petronas, a company considered a cornerstone of Malaysia's oil sector, faces stiff competition from major global oil corporations. The World Petroleum Council estimates that Petronas has a market share of about 31%, followed by Shell and Petron, which have market shares of 29% and 17%, respectively. Caltex and BHP together account for 13% and 10% of the company's total revenue. To attract new customers, retain existing customers, and build customer loyalty (Cheng and Ding, 2021), companies launch various initiatives in order to remain connected with their consumers and all their expectations and maintain lasting relationships (Tsai et al., 2022). These measures themselves reflect the importance of implementing a corporate social responsibility (CSR) program. CSR has grown into a business strategy addressing marketing issues (Farmaki et al., 2022). In the long run, this produces a sustained consumption pattern (Hayat and Afshari, 2022), as a well-run CSR initiative generates a positive profile of the firm and its goods and services. With increasing expectations placed on businesses, scholars need to figure out whether CSR can reach these larger expectations (Alhouti et al., 2021). Hence, this study contributes to this body of knowledge by delving deep into the relationship between CSR, CSR Mechanisms, and customer satisfaction, giving back to society and generating new business opportunities that benefit Malaysia’s petroleum companies. The research model was tested using Structural equation modeling of partial least square with the SmartPLS 3.0 software.
Corporate Social Responsibility (CSR)
Social
responsibility is a crucial component of business strategy for large companies
worldwide, as highlighted by Rahman et al. (2023). In the field of marketing, it represents the commitment to
maintaining a balance between profits, social well-being, and consumer
satisfaction when evaluating a firm's performance (Marczak, 2023). In the past
few decades, CSR has become an important method to solve the social and
environmental impact of company activities (Islam, Nazir, and Rahman, 2023). Nowadays, more and more
companies expect to go beyond this point to meet people's expectations of
helping solve the world's more pressing problems (Jin, 2022), such as climate
change and poverty. With the increasing expectations of the business (Mnwana and Bowman, 2022), this research asks whether CSR
can solve and improve these major problems based on evidence from the Petroleum
Companies.
Customer
satisfaction is good feelings demonstrating a consumer’s expectations for a
product or service (Ramírez-Orellana, 2023). It literally spells success and
lasting growth for the business (Minh and
Quang,
2022). Customer
satisfaction is the key to a business's success (Uddin, Rashid, and Rahman, 2022) in today's information-developed
era. A happy customer will market the company's offerings to other potential
consumers (Liu, 2023). Now, if a CSR initiative makes a promising impact on
customers, this could mean customer satisfaction has been achieved (Javeed et al., 2022). Hence, based on the four
dimensions of CSR as proposed by Carroll (2016),
the following hypotheses will be investigated as shown below:
H1: Economic
Responsibility has a significant effect on Customer Satisfaction.
H2: Legal
Responsibility has a significant effect on Customer Satisfaction.
H3: Ethical
Responsibility has a significant effect on Customer Satisfaction.
H4:
Philanthropic Responsibility has a significant effect on Customer Satisfaction.
CSR Mechanisms
It is an
effective way for companies to use the influence of some mechanisms to spread
positive information (Khurshid and Snell, 2021) to obtain or maintain customer
satisfaction, such as social media and word of mouth – both widely used today
to disseminate information (Castro-González, Bande, and Fernández-Ferrín, 2021). Consumers, too, can tap into
the power of these digital mechanisms and share their satisfaction or lack of
satisfaction (Pang et al., 2022).
Media
instruments play an important role in conveying a firm’s CSR message and its
socially responsible profile (Suki et al., 2022). Compared to the company’s more corporate
information, such as product superiority and innovations, its CSR information
sheds light on its corporate culture or DNA, which is captured in its mission,
vision, and values (Ogbe, 2022). Companies
must consider engaging their stakeholders when crafting an effective CSR
communications plan. Stakeholder involvement in CSR programs allows firms to
establish a solid brand image (Sani et al., 2023). It also strengthens stakeholder-company
relationships and improves stakeholders’ advocacy behavior (Oliveira et al., 2023). Hence, it is imperative that
the CSR plans of a company are shared well with its stakeholders (Jagaba et al., 2022). This brings two-fold benefits –
it increases the company’s level of credibility and develops stakeholders who
are loyal to the business (Othman et al., 2022), especially on social media. Based on the
argument, the following hypothesis explains this:
H5: Social
media has a significant effect on Customer Satisfaction.
Positive
word-of-mouth marketing comes from a happy customer recommending and displaying
his or her satisfaction with the products and services via an informal network
and personal communications (Hu, Frank, and Lu, 2022). This is usually without bias,
as the customer has nothing to gain. Ghanbarpour and Gustafsson (2022) asserts that a CSR activity is a
success when customers talk well about companies and their socially responsible
activities. Hence, it is very important to test the succeeding hypotheses as
follows:
H6: WOM has
a significant effect on Customer Satisfaction.
The Theory of Corporate Social Responsibility
In 1953,
American economist Howard R. Bowen introduced the theory of Corporate Social
Responsibility (CSR) (Yiming, 2013). This theory states that
businesses are obliged to advance policies and make decisions that are good for
society (Lady and Umyati, 2023)?. By adopting CSR in their
business, corporations stand to benefit in many ways. These are contributing
factors that made the theory popular from day one, gathering interest from
academics, the media, and investors alike (Yang, Sun, and Taylor, 2022).
The most widely accepted understanding of CSR comes from Carroll’s
four-tiered pyramid model (Carroll, 2016) released
in 1979 called the Pyramid of Social Responsibility. It comprises four
responsibilities, namely Philanthropic, Ethical, Legal, and Economic (Cui et al., 2022). Businesses are also platforms
that engage in human interest activities and take part in social programs (Carroll, 2016). CSR can positively influence
consumers as stakeholders, and stakeholders can also impact the corporation’s
CSR (Muhirwa et al., 2023). For instance, consumers who buy
a company’s products can pressure the corporation to pay attention to social
issues (Lim et al., 2022). Thus, the Stakeholder Theory is
logically connected with CSR (Friedman, 1970).
The social influence theory makes use of insights from other fields, has an impact on how individuals use social media and what products they buy (Salim et al., 2023). Consumers gain information from a variety of social sources, such as recommendations, referrals, ratings, and reviews (Zaytsev et al., 2023). An Empirical Study of How Social Influence Impacts Customer Satisfaction with Social Commerce Sites was introduced by Hasan Beyari and Ahmad Abareshi, based on the social influence theory, offers a look at the relationship between word-of-mouth marketing and customer satisfaction. Based on Carroll’s four-pyramid model, the Stakeholder Theory, and the Social Influence Theory, the hypothesized relationships investigated are shown in Figure 1.
Figure 1 The
proposed model
This
research analyses consumers’ responses to CSR projects organized by petroleum
companies using a survey questionnaire collecting data. The questionnaire was
designed based on customer satisfaction within the petroleum companies in West
Malaysia and adopts the positivist paradigm in the quantitative research method
(Vespestad and Clancy, 2021). To ensure the accuracy of data analysis, this research collects
primary data through an online questionnaire survey, which is self-administered
(Gracia et al., 2021). For more reliable results, only respondents aged 18 years old and
above with purchasing power and familiarity with petroleum products and
services are invited to participate. In this examination, there were 472 usable
data collected. This study uses the SPSS software for running a descriptive
analysis (Lavaquiol et al., 2021). It uses the SmartPLS software to examine the 6 hypotheses (Hypotheses
1 to 6) in this research.
2.1. Descriptive
analysis
In this study, there were 243
male and 229 female respondents, with the majority falling within the 31 to
40-year age group. Of the total respondents, 182 identified as Malay, 137 as
Chinese, 115 as Indian, and 38 as belonging to other nationalities. The majority of Malaysians are Malay, which is
aligned with the sampled data. For the educational background, most of the respondents are from
Bachelor's Degrees, which holds 44.7%. 134 respondents' monthly wage is between
RM2001 to RM4000 with 39.2%, which is the highest percentage. 109 respondents
prefer Petronas, 120 respondents prefer Shell, 111 respondents prefer Petron,
and 111 respondents prefer BHPetrol, 21 respondents prefer other Petroleum
Companies. The most significant part of respondents is Employees in view of the
information. The years between 1 to less than 5, and there are 160 respondents,
were incorporated into this gathering with a most astounding rate of 33.9%.
2.2. Structural
equation model
For
Structural Equation Modeling (SEM), there are two popular methods that are
widely used, which are Covariance-based Structural Equation Modeling (CB-SEM)
and Partial Least Squares-based Structural Equation Modeling (PLS-SEM). CB-SEM
is based on covariance, and PLS-SEM is based on variance (partial least
squares) ?(Dash and Paul, 2021). Compared with PLS-SEM, CB-SEM removed many
indicators to reach acceptable results. Furthermore, PLS-SEM has higher
composite reliability, convergent validity, and comparable discriminant
validity and beta coefficients (Hair et
al., 2021). The underlying theories are crucial for
choosing a method. Composite-based models should opt for PLS. Hence, this
research model was tested using the SmartPLS 3.0 software, a partial least
square (PLS) structural equation modeling tool (Harma, 2021).
In Table 1, Alpha is a variable
scale that went from least of the Legal Responsibility, running from 0.8630, to
the Ethical Responsibility 0.9212, utilized more than the favored scores of
0.70. So, the outcomes demonstrated these variables’ scores for the unwavering
quality in this examination, and their estimation scales indicate that the
variable is steady and predictable in the estimation of all factors.
Table 1
Structural model specification: Cronbach’s alpha,
Composite reliability and AVE and loadings of latent constructs for both
formative and reflective measurements
Measures |
Constructs |
Cronbach’s
alpha |
Composite reliability |
AVE |
Loadings |
Formative |
Economic Responsibility |
0.8831 |
0.8660 |
0.5655 |
0.7508 |
|
Legal Responsibility |
0.8630 |
0.8841 |
0.6545 |
0.8093 |
|
Ethical Responsibility |
0.9212 |
0.8100 |
0.5868 |
0.7653 |
|
Philanthropic Responsibility |
0.9091 |
0.8572 |
0.6659 |
0.8160 |
|
Social Media |
0.9101 |
0.8732 |
0.6341 |
0.7943 |
|
Word of mouth |
0.9042 |
0.8981 |
0.6381 |
0.7982 |
|
Customer Satisfaction |
0.9021 |
0.8731 |
0.6320 |
0.7930 |
Reflective |
Economic Responsibility |
0.8831 |
0.8596 |
0.5722 |
0.7502 |
|
Legal Responsibility |
0.8630 |
0.8832 |
0.6511 |
0.8085 |
|
Ethical Responsibility |
0.9212 |
0.8102 |
0.5868 |
0.7649 |
|
Philanthropic Responsibility |
0.9091 |
0.8522 |
0.6599 |
0.8153 |
|
Social Media |
0.9101 |
0.8728 |
0.6335 |
0.7940 |
|
Word of mouth |
0.9042 |
0.8976 |
0.6379 |
0.7978 |
|
Customer Satisfaction |
0.9021 |
0.8669 |
0.6328 |
0.7922 |
Table
2 data indicated that the measures are robust regarding their internal
consistency reliability as indexed by the composite reliability. The composite
reliabilities of the different measures range from 0.76 to 0.95, which exceeds
the recommended threshold value of 0.70.
On the other hand, this study uses PLS-SEM software to
do the convergent validity test ?(Fong, Ismail, and Kian, 2023). The
reliability results are given in Table 3. All factor loadings are significant
and greater than 0.70, consistent with the guidelines of Fornell and Larcker. The
average variance extracted (AVE) for each measure exceeded 0.50, so convergent
validity is confirmed.
Table 2
Item-to-construct correlation vs. correlations with other
constructs
Construct |
Item |
Economic Responsibility |
Legal Responsibility |
Ethical Responsibility |
Philanthropic Responsibility |
Social Media |
WOM |
Customer Satisfaction |
Composite reliability |
Economic
Responsibility |
Economic1 |
0.7070 |
0.3158 |
0.3689 |
0.4787 |
0.1854 |
0.4765 |
0.4862 |
0.8660 |
Economic2 |
0.7510 |
0.3485 |
0.3457 |
0.3459 |
0.3654 |
0.4785 |
0.4520 | ||
Economic3 |
0.7810 |
0.3584 |
0.4785 |
0.4620 |
0.24758 |
0.6984 |
0.4124 | ||
Economic4 |
0.8130 |
0.3986 |
0.4490 |
0.4236 |
0.4652 |
0.9514 |
0.3698 | ||
Economic5 |
0.7020 |
0.3458 |
0.3849 |
0.4532 |
0.9841 |
0.4562 |
0.3248 | ||
Legal
Responsibility |
Legal1 |
0.5154 |
0.7820 |
0.3687 |
0.3289 |
0.4562 |
0.6956 |
0.3490 |
0.8841 |
Legal2 |
0.4545 |
0.8100 |
0.3290 |
0.4820 |
0.9565 |
0.4526 |
0.3699 | ||
Legal3 |
0.4515 |
0.8290 |
0.4895 |
0.4126 |
0.9841 |
0.1256 |
0.3985 | ||
Legal4 |
0.4581 |
0.8160 |
0.3845 |
0.3259 |
0.4261 |
0.7856 |
0.4856 | ||
Ethical
Responsibility |
Ethical1 |
0.4125 |
0.3585 |
0.8100 |
0.3685 |
0.3256 |
0.9541 |
0.4614 |
0.8100 |
Ethical2 |
0.4892 |
0.3647 |
0.7640 |
0.3145 |
0.9841 |
0.4536 |
0.3968 | ||
Ethical6 |
0.4655 |
0.3578 |
0.7220 |
0.3479 |
0.4563 |
0.7531 |
0.4562 | ||
Philanthropic
Responsibility |
Philanthropic4 |
0.4951 |
0.3815 |
0.4692 |
0.8210 |
0.1254 |
0.4565 |
0.3485 |
0.8572 |
Philanthropic5 |
0.4168 |
0.3978 |
0.3840 |
0.8090 |
0.6524 |
0.6523 |
0.4562 | ||
Philanthropic6 |
0.4559 |
0.3685 |
0.3890 |
0.8180 |
0.6543 |
0.6952 |
0.3985 | ||
Social Media |
SocialMedia2 |
0.2241 |
0.4702 |
0.1932 |
0.3892 |
0.724 |
0.9584 |
0.9584 |
0.8732 |
|
SocialMedia3 |
0.0663 |
0.0897 |
0.111 |
0.4425 |
0.783 |
0.9651 |
0.9855 |
|
|
SocialMedia4 |
0.2832 |
0.3382 |
0.2435 |
0.5174 |
0.853 |
0.4758 |
0.9854 |
|
|
SocialMedia5 |
0.1321 |
0.1283 |
0.0676 |
0.1598 |
0.817 |
0.9586 |
0.9845 |
|
WOM |
WOM2 |
0.1761 |
0.1412 |
0.0528 |
0.1568 |
0.4752 |
0.769 |
0.9856 |
0.8981 |
|
WOM3 |
0.3169 |
0.2963 |
0.2116 |
0.4758 |
0.9654 |
0.786 |
0.4586 |
|
|
WOM4 |
0.1152 |
0.1715 |
0.1179 |
0.0469 |
0.1452 |
0.823 |
0.4562 |
|
|
WOM5 |
0.1867 |
0.1286 |
0.2874 |
0.1886 |
0.6985 |
0.771 |
0.1256 |
|
|
WOM6 |
0.1366 |
0.0499 |
0.1893 |
0.0652 |
0.1456 |
0.842 |
0.9811 |
|
Customer
Satisfaction |
CustomerSatisfaction1 |
0.4696 |
0.3259 |
0.3985 |
0.4786 |
0.9874 |
0.9842 |
0.8410 |
0.8731 |
CustomerSatisfaction2 |
0.4646 |
0.3987 |
0.4786 |
0.4126 |
0.4585 |
0.1452 |
0.8480 | ||
CustomerSatisfaction3 |
0.4929 |
0.3259 |
0.3850 |
0.4562 |
0.4856 |
0.5966 |
0.7800 | ||
CustomerSatisfaction4 |
0.4813 |
0.3657 |
0.3248 |
0.4230 |
0.4562 |
0.9542 |
0.7030 |
Table 3
Discriminant Validity Using Fornell-Larcker Criterion
(1981)
Construct |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
1. CustomerSatisfaction |
0.795 |
| |||||
2. Economic |
0.294 |
0.752 |
| ||||
3. Ethical |
0.289 |
0.167 |
0.766 |
| |||
4. Legal |
0.224 |
0.47 |
0.193 |
0.809 |
| ||
5. Philanthropic |
0.283 |
0.338 |
0.243 |
0.285 |
0.816 |
| |
6. SocialMedia |
0.316 |
0.296 |
0.211 |
0.186 |
0.287 |
0.796 |
|
7. WOM |
0.198 |
0.149 |
0.055 |
0.13 |
0.189 |
0.273 |
0.799 |
Based on Figure 2, the R² of 0.279 from regression analysis indicated that Economic Responsibility, Legal Responsibility, Ethical Responsibility, Philanthropic Responsibility, Social Media and WOM collectively account for 27.9 percent of the overall variance in Customer Satisfaction. Falk and Miller suggest that R² values should be at least 0.10 to be considered sufficient for explaining the variance in a specific endogenous construct (Falk and Miller, 1992). In this case, the R² value for Customer Satisfaction (27.9%) is comfortably above this threshold, indicating a moderate level of explanatory power.
Figure 2 Results of PLS structural model analysis
Only the Tolerance and VIF values shown in the “Collinearity Statistics” column are needed for this collinearity analysis. As shown in Table 4, all of the indicators’ VIF values are lower than 5, and their Tolerance values are higher than 0.2, so there is no collinearity problem.
Table 4 Structural Model
Hypothesis |
Relationship |
Standardised Beta |
Standard Error |
T-value |
P Values |
Decision |
R2 |
Q2 |
f2 |
VIF |
H1 |
Economic Responsibility ->
Customer Satisfaction |
0.13 |
0.054 |
2.432 |
0.008* |
Supported |
0.279 |
0.166 |
0.017 |
1.421 |
H2 |
Legal Responsibility ->
Customer Satisfaction |
0.057 |
0.049 |
1.159 |
0.123*** |
Not Supported |
0.003 |
1.337 | ||
H3 |
Ethical Responsibility ->
Customer Satisfaction |
0.199 |
0.048 |
4.14 |
0* |
Supported |
0.049 |
1.113 | ||
H4 |
Philanthropic Responsibility
-> Customer Satisfaction |
0.147 |
0.051 |
2.893 |
0.002* |
Supported |
0.024 |
1.272 | ||
H5 |
Social Media -> Customer
Satisfaction |
0.075 |
0.055 |
1.375 |
0.085**** |
Not Supported |
0.006 |
1.367 | ||
H6 |
WOM -> Customer
Satisfaction |
0.106 |
0.051 |
2.073 |
0.019** |
Supported |
0.014 |
1.114 | ||
Note: |
*Significant at P-value < 0.01 | |||||||||
Since the all t-value are greater than
critical value of 2.3263 at significance level of 1%, all the hypothesis are
supported. | ||||||||||
**Significant at 0.01 < P-value <
0.05 | ||||||||||
Since the all t-value are greater than critical
value of 1.6449 at significance level of 5%, all the hypothesis are
supported. | ||||||||||
***Significant at P-value > 0.1 | ||||||||||
Since the all t-value are less than
critical value of 1.2816 at significance level of 10%, all fail to reject the
null hypothesis. | ||||||||||
****Significant at P-value > 0.5 | ||||||||||
A
p-value is not a negotiation: if p > 0.05, the results are not
significant. |
This paper looks at CSR in petroleum companies in Malaysia and
aims to learn about consumers’ sense of fulfillment with CSR activities and
what could be the reaction based on the customer’s expectations, incorporates a
particular investigation on individual independent variables, demonstrates the
connection between the independent variables and the dependent variable. The
testing of theory was actualized in this research. After the hypotheses are
examined statistically by utilizing SPSS software and PLS-SEM software, H1, H3,
H4, and H6 are found to be significant as path coefficients. These hypotheses
are supported. H2 and H5 are found not to be significant as path coefficients,
and hence, these hypotheses are not supported. The exploration established that
three CSR dimensions, i.e., Economic Responsibility, Ethical Responsibility,
and Philanthropic Responsibility, significantly affect Customer Satisfaction.
Only Legal Responsibility did not show a significant effect on Customer
Satisfaction. Two social media as one of the mechanisms of CSR did not show a
significant effect on customer satisfaction, while the WOM has established a
significant effect towards customer satisfaction.
These
discoveries uncovered an unwavering quality trial of the connection between
Corporate Social Responsibility, CSR Mechanisms, and Customer Satisfaction.
Although the results are not completely consistent with the assumptions they
reflect the results obtained through data collection and analysis. These
findings indicate that enterprises that take Economic Responsibility, Ethical
Responsibility, and Philanthropic Responsibility well and promote them
effectively will have a positive impact on customer satisfaction. With the
prevalence of CSR and companies’ willingness to increase their investments in
this initiative, enterprises need to know how consumers will respond to their
CSR initiatives (Gyane et al., 2021). Companies will be able to
defer to these findings when deciding on their business strategies (Choi and Yoo, 2022). The lack of CSR initiatives
has had harmful effects on communities (Dau and Moore, 2020). Corporate culture has
emphasized economic development and production competency at the expense of
justice and fair treatment within society (Cao, Yao, and Zhang, 2023). This study demonstrates the role of CSR in
influencing consumer behavior and offers valuable strategies for business
executives and regulators in implementing CSR, particularly within Malaysian
petroleum companies, which have been observed to align closely with
environmental issues. It will also contribute to managing the affiliation
between corporations and society (Capasso, Gianfrate, and Spinelli, 2020).
This paper
looks at CSR in petroleum companies and its effect on customer satisfaction and
customer satisfaction in Malaysia. This research examines CSR endeavors within
the oil and gas sector and their link to consumer satisfaction. It also looks
at the established hypotheses between the activities of CS, CSR Mechanisms, and
customer satisfaction. This paper aims to learn about consumers’ sense of
fulfilment with CSR activities and what could be the reaction base on the
customer’s expectations.
With the
popularity of CSR and companies’ willingness to increase their investments in
this initiative, enterprises need to know how consumers will respond to these
initiatives. With this research at hand, enterprises will be able to make
informed decisions when developing their company goals.
Besides, the
findings of this research can directly contribute to good management practices
as the study can help managers appreciate how consumers understand the
company’s CSR initiatives and the effect it has on customer satisfaction.
Hence, this research can help build responsible managers.
Going
forward, this could likely be a fundamental segment of business education and
even a crucial way to achieve the social angle of business studies. Exposed to
these materials – which are tied to important theoretical and practical values
– today’s college and university students can become game-changers in
tomorrow’s business world. A better understanding of the topic can help
companies take appropriate steps to better their position where CSR initiatives
are concerned.
Due to the
limited information, as well as the limited personal ability subjectively, this
paper still has many shortcomings. Although some social media marketing
strategies are put forward, these strategies are roughly simple and without
more instances to demonstrate. Future research can further develop such
insights in the petroleum companies and assess the possibility and relevance to
other industries.
I would like to express my special thanks of
gratitude to Multimedia
University, which gave me the opportunity to pursue my Ph.D. project. Along the
process, I have learned how to conduct better research, and I was exposed to
many new things. I am really thankful to my university. Besides, I would like
to thank all the lecturers who helped me by giving me advice and providing all
the necessary support which I needed.
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