The Impact of CSR on Customer Loyalty in the FMCG Industry

The perspective of Nigerian customers of Dangote Group

Abstract

In recent years, corporate social responsibility (CSR) has gained significant attention for its role in promoting stakeholder and societal wellbeing through voluntary corporate practices and financial contributions, potentially influencing consumer attitudes. In Nigeria, multinational corporations have implemented various CSR programs aimed at addressing social, economic, and environmental issues. However, the effectiveness and alignment of these initiatives with societal needs remain unclear. The aim of the study is to examine the impact of CSR on customer loyalty within Nigeria's fast-moving consumer goods (FMCG) sector, focusing on Dangote Group customers. An online survey was completed by 104 respondents, and the data analysed using SPSS. The study, through separate regression analysis and analysis of covariance, found positive and significant correlations between CSR initiatives (Philanthropic, Green Environment, Ethical, and product standardization) and customer loyalty. Notably, product standardization CSR emerged as most significant, indicating a positive impact and strong association between quality standards and customer loyalty. Specifically, for every 100% increase in product standardization CSR by Dangote, customer loyalty is projected to rise by 88.6%, highlighting the paramount importance of quality and standards in fostering customer loyalty.