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British Food
Exploring the impact of Journal
environmental dimension in
corporate social responsibility on
restaurants’ customer retention 4375
Mohammadsadegh Omidvar Received 10 January 2024
Revised 8 July 2024
Department of Management, Kharazmi University, Tehran, Iran 13 September 2024
Vahid Ghasemi Accepted 16 September 2024

Faculty of Social Sciences and Technology, Universidade Europeia, Lisbon, Portugal;

CETRAD, Vila Real, Portugal and
Corvinus Institute for Advanced Studies, Corvinus University of Budapest,
Budapest, Hungary, and
Moreno Frau
Department of Marketing Management,
Institute of Marketing and Communication Sciences,
Corvinus University of Budapest, Budapest, Hungary

Abstract
Purpose – This study aims to integrate the four-dimensional corporate social responsibility (economic, legal,
ethical and philanthropic responsibility) with environmental responsibility. It also aims to measure how
service quality and corporate image mediate the effects of the five CSR dimensions on customer retention.
Design/methodology/approach – This research employs structural equation modelling to test the proposed
conceptual model. About 217 valid questionnaires were collected online from customers of restaurants in Tehran.
Findings – The results show that legal, ethical, philanthropic and environmental dimensions positively and
significantly impact corporate image and service quality. Moreover, corporate image and service quality
mediate the effects of the five CSR dimensions on customer retention.
Practical implications – Managers may learn that by enhancing their environmental responsibility, they
are also working on increasing service quality and corporate image and, in turn, customer retention.
Restaurants can differentiate themselves from competitors and attract and retain environmentally conscious
customers, ultimately contributing to their competitive advantage.
Originality/value – This research extends Carroll’s dimensions by incorporating environmental
responsibility, demonstrating its potential to boost service quality and corporate image for customer retention.
A noteworthy contribution is introducing environmental responsibility as a novel dimension of CSR within the
restaurant and food industry. Recognising the increasing importance of environmental sustainability in academic
and societal discourse, it was crucial to consider the environment as a distinct aspect of this research.
Keywords Corporate social responsibility (CSR), Environmental responsibility, Service quality,
Corporate image, Customer retention
Paper type Research paper

1. Introduction
Increasing restaurant customer retention rates ensures long-term success in today’s
competitive market (Irimi�as and Volo, 2022; Shim et al., 2021; Wu et al., 2022). Chang (2017)

Funding: This work is supported by national funds through the FCT – Portuguese Foundation for British Food Journal
Vol. 126 No. 12, 2024
Science and Technology under the project UIDB/04011/2020 ([Link] pp. 4375-4395
2020) and Corvinus Institute for Advanced Studies, Corvinus University of Budapest, Budapest, © Emerald Publishing Limited
0007-070X
Hungary. DOI 10.1108/BFJ-01-2024-0030
BFJ highlighted a significant shift in the competitive landscape, where price and quality of
126,12 service and products are no longer the sole drivers of competitive advantage. Instead, ethical
perspectives and social practices have emerged as critical factors influencing customer
behaviour. Supporting this view, Fleishman–Hillard Research and the National Consumers
League (NCL) surveyed US adult customers, revealing that environmental responsibility is a
pivotal factor in fostering customer loyalty (Boulstridge and Carrigan, 2000). This
underscores the increasing importance of integrating environmental responsibility into
4376 business practices, setting the stage for our research on the impact of environmental CSR on
customer retention in the restaurant industry (TM et al., 2021).
Therefore, the company’s attention to social issues and its CSR activities positively affect
its image, reputation, and performance (Omidvar and Deen, 2024). Corporate image is a
company’s intangible asset influencing consumer behaviour and repeating purchase
intentions. Therefore, it may impact customer retention (P�erez and Rodriguez del Bosque,
2015). On the contrary, neglecting social issues and not implementing CSR activities can
negatively impact the company’s image (Chen et al., 2021). Studies have shown that CSR
significantly affects the company’s image and customers’ attitudes towards the company,
confirming the existence of a relationship between CSR and corporate image (P�erez and
Rodriguez del Bosque, 2015; Plewa et al., 2015).
Service quality is a reflection of customers’ subjective judgement regarding the general
services and features they receive from a specific provider (Low and Lamb, 2000). High service
quality positively influences future consumer behaviour and is crucial to purchasing decisions
(Lee et al., 2020). Evaluating service quality extends beyond the services themselves; social
image and corporate responsibility significantly impact perceived service quality (Bello et al.,
2021; Maignan et al., 2005). Research has demonstrated a positive correlation between
corporate social responsibility (CSR) and customers’ perception of service quality (Arıkan and
G€uner, 2013; Bello et al., 2021; Huang et al., 2014; Servaes and Tamayo, 2013). Specifically,
environmental responsibility, a vital component of CSR, has gained increasing relevance. By
engaging in environmentally responsible activities, companies not only contribute to
sustainability but also enhance their service quality perception among customers. This
alignment with environmental values can signal the overall quality and integrity of the
company’s offerings, thus broadening the scope of our research to include the impact of
environmental CSR on service quality and customer behaviour.
Although there has been a widespread consensus among scholars on the crucial
economic, legal, ethical, and philanthropic dimensions of CSR (Baden, 2016; Lantos, 2001; Lee
et al., 2020; Lo, 2020; Lu et al., 2020), there is still a gap regarding corporate environmental
responsibility. This study aims to integrate environmental responsibility into the four-
dimensional CSR and obtain a more profound perception of the impact of five dimensions on
corporate image and service quality for customer retention. Therefore, the research question
is: Which dimension of CSR impacts corporate image and service quality and ultimately
frames the relationships that lead to customer retention in the restaurant industry?
This study contributes by extending Carroll’s dimensions with environmental responsibility
and showing that the latter can also increase service quality and corporate image for customer
retention. This study makes a valuable contribution to the existing literature by examining how
each aspect of corporate social responsibility (CSR) affects corporate image, service quality, and
customer retention within the restaurant and food industry. Notably, this study introduces
environmental responsibility as a distinct dimension of CSR, which is a novel addition.
Acknowledging the increasing importance of environmental sustainability in both academic
discourse and broader society, it was crucial to consider the environment as a distinct aspect of this
research. Thus, treating the environment as a separate dimension in this research was imperative.
In this article, we have organised the content as follows: First, we offer an in-depth
introduction to the conceptual framework and related research hypotheses, incorporating a
comprehensive analysis of the existing literature on Corporate Social Responsibility (CSR) British Food
and its impact on corporate image, service quality, and customer retention. Next, we detail Journal
the methodology employed in our study, providing clear insights into our research approach.
Following this, we systematically present the results of our study. Finally, the discussion
section elaborates on the paper’s key theoretical contributions, significant implications for
practitioners, and research limitations. We also offer suggestions for future research.
4377
2. Conceptual framework and research hypotheses
Over the past decades, the concept of corporate social responsibility (CSR) has evolved
dramatically (Anjum, 2016). Previous literature provides many definitions of CSR. A study
identified and analysed 37 definitions that aimed to summarise CSR literature (Dahlsrud, 2008).
CSR is a collection of activities performed by companies that ultimately benefit society (Han
et al., 2020c), enhance societal conditions, and positively impact stakeholders and employees.
Recently, many companies have embraced a CSR attitude, and CSR measures are quickly
becoming a leading issue in business (Marin et al., 2009). One of the reasons that this issue has
attracted so much attention is that today, customers want something more than high quality
and low price (Singh et al., 2022; Frau et al., 2022). Therefore, many companies today make
various efforts to improve their CSR. Such efforts can positively impact retaining current
customers and create a positive reputation for firms in the community and among the people
(Han et al., 2019). Table 1 provides an overview of the research background and existing
literature, offering valuable insights into the current state of knowledge in CSR and its
impact on corporate image, service quality, and customer retention.

2.1 CSR and its effect on corporate image, service quality, and customer retention
Huang et al. (2014) explore the relationship among CSR, service quality, corporate image, and
purchase intentions, concluding that CSR significantly positively affects corporate image, service
quality, and purchase intentions. Also, service quality positively affects corporate image and
purchase intentions. More specifically, ethical CSR has the strongest impact on corporate image,
followed by CSR’s economic and philanthropic dimensions (Kim et al., 2017). However, only
philanthropic dimensions significantly and directly affect consumers’ behavioural intentions.
Finally, corporate image mediates the relationship between three dimensions of CSR (ethical,
economic, and philanthropic) and behavioural intentions (Kim et al., 2017). Regarding customer
retention, Lee et al. (2020) consider the mediating impact of brand attitude, service quality, and
satisfaction and show that CSR’s economic, ethical, and philanthropic dimensions significantly
increase brand attitude and service quality, enhancing customer retention.
The relationship between CSR, service quality, corporate image, and purchase intentions
suggests that CSR positively affects corporate image, service quality, and purchase
intentions. Additionally, service quality positively affects corporate image and purchase
intentions. Specifically, ethical CSR has the strongest impact on corporate image, followed by
CSR’s economic and philanthropic dimensions (Kim et al., 2017). However, only philanthropic
dimensions significantly and directly affect consumers’ behavioural intentions. Finally,
corporate image mediates the relationship between the three dimensions of CSR (ethical,
economic, and philanthropic) and behavioural intentions (Kim et al., 2017).
Regarding customer retention, Lee et al. (2020) consider the mediating impact of brand
attitude, service quality, and satisfaction. They show that CSR’s economic, ethical, and
philanthropic dimensions significantly increase brand attitude and service quality, thereby
enhancing customer retention.
2.1.1 Economic responsibility. According to Carroll’s (1991) perspective, successful
companies are characterised by their ability to maximise profits per share, maintain
BFJ Reference Title Finding
126,12
Arıkan and The impact of corporate social There is a positive correlation between CSR
G€
uner (2013) responsibility, service quality and customer- and customers’ perception of service quality
company identification on customers
Huang et al. The relationship among corporate social The important conclusion of this study is
(2014) responsibility, service quality, corporate that corporate social responsibility has a
4378 image and purchase intention significantly positive effect on corporate
image, service quality, and purchase
intentions
Kim et al. The impact of four CSR dimensions on a Ethical CSR has the strongest impact on
(2017) gaming company’s image and customers’ corporate image, followed by CSR’s
revisit intentions economic and philanthropic dimensions,
and corporate image mediates the
relationship between three dimensions of
CSR (ethical, economic, and philanthropic)
and behavioral intentions
Lee et al. Corporate social responsibility (CSR) as a economic, ethical, and philanthropic CSR
(2020) customer satisfaction and retention strategy are important contributors towards
in the chain restaurant sector increased brand attitude and service quality
Kim et al. The effect of CSR on corporate image, The results indicate that CSR (economic,
(2020a, b) customer citizenship behaviors, and ethical, legal, and philanthropic) had a
customers’ long-term relationship positive effect on corporate image
orientation
Han et al. Impact of Environmental CSR, Service Findings demonstrated that environmental
(2020a, b, c) Quality, Emotional Attachment, and Price corporate social responsibility plays a
Perception on Word-of-Mouth for Full- crucial role in eliciting airline customers’
Service Airlines word-of-mouth, and that service quality and
emotional attached have a critical mediating
effect
Bello et al. Relationships and impacts of perceived CSR, CSR has direct and positive effects on
(2021) service quality, customer satisfaction and service quality, satisfaction and repurchase
Table 1.
consumer rights awareness intention
Summary of the key
studies related to CSR Omidvar and Can restaurants achieve customer retention The findings indicate that the legal, ethical,
and its impact on Deen (2024) through CSR? philanthropic, and environmental
corporate image, components have a favorable and
service quality, and considerable impact on Corporate Image
customer retention Source(s): Authors work

competitive advantage, and achieve consistent profitability. Consequently, economic

responsibility forms a significant aspect of Corporate Social Responsibility (CSR) (Han
et al., 2020c, Palihawadana et al., 2016). Park (2019) demonstrated that economic
responsibilities, such as job creation and contributions to national economic development,
positively impact a company’s reputation and image. Arau �jo et al. (2023) further showed that
CSR initiatives are crucial in enhancing brand image and equity, leading to increased
consumer satisfaction and loyalty. Although the direct impact on consumer satisfaction may
not be immediately evident, the brand’s overall perception improves significantly due to
enhanced brand image and equity. Aguilera et al. (2007) highlighted that economic CSR
practices, such as ensuring fair wages, providing comprehensive employee welfare
programs, and offering career development opportunities, play a vital role in fostering
higher levels of employee engagement, job satisfaction, and motivation within an
organisation. Engaged employees are more committed to delivering high-quality service,
aligning their efforts with the company’s values and goals. Additionally, studies by Kim et al.
(2017, 2020a, b) indicate that economic CSR significantly impacts service quality. Based on British Food
these insights, we have formulated the following hypothesis: Journal
H1. CSR initiatives related to economic aspects positively impact corporate image and
service quality.
H2. CSR initiatives related to economic aspects positively impact service quality.
2.1.2 Legal responsibility. Concerning legal responsibility, firms exist within a society and 4379
must abide by society’s rules (Carroll, 2016; Kim et al., 2020a; Schwartz and Carroll, 2003;
Uhlig et al., 2020). In today’s business landscape, there is a growing trend among consumers
and investors to favour companies that exhibit ethical conduct and adhere to legal
regulations. This trend not only helps companies improve their market standing but also
contributes to their financial success (McWilliams and Siegel, 2001). In addition, by following
established legal requirements and integrating ethical business principles into their
operations, companies can minimise the chances of encountering legal conflicts and
regulatory sanctions. This approach also helps protect and uphold the organisation’s
reputation (Ghaderi et al., 2024). Accordingly, some studies have shown that different aspects
of legal CSR initiatives positively affect corporate image (Galbreath, 2010; Kim et al., 2020b;
De Los Salmones et al., 2005). Furthermore, Huang et al. (2014) demonstrated that CSR
positively affects service quality by ensuring compliance with legal standards, which in turn
fosters consumer trust and satisfaction. This alignment between CSR and legal
responsibility underscores the importance of adhering to legal frameworks to enhance
service quality. In accordance with prior studies, the following hypotheses are put forward:
H3. Legal CSR initiatives positively impact corporate image.
H4. Legal CSR practices positively influence service quality.
2.1.3 Ethical responsibility. Companies’ ethical responsibilities reflect the unwritten norms
and values implicitly derived from society and thus go beyond mere legal frameworks (Cox
Edmondson and Carroll, 1999). Therefore, ethical responsibilities reflect the expectations of
society, which still need to be codified as laws (Wagner-Tsukamoto, 2019). Ethical Corporate
Social Responsibility (CSR) practices serve as a tangible demonstration of a company’s
unwavering dedication to upholding the highest standards of integrity and transparency in
all its operations and interactions (Mohammed et al., 2022). By consistently adhering to
ethical behaviour, companies establish a deep sense of trust not only with their customers but
also with their investors and other pertinent stakeholders. This commitment to ethical
conduct renders the company more dependable and trustworthy in the eyes of the public,
bolstering its overall reputation (Kim et al., 2017). Weber (2008) pointed out that CSR
activities positively affect company image and customer evaluation. Some studies have
shown a significant influence between CSR and corporate image (Huang et al., 2014; Kim
et al., 2017, 2020a, b). Promoting ethical CSR involves upholding fair and consistent business
practices, which significantly enhance operational efficiency. Companies prioritising ethical
standards are more likely to establish clear guidelines and procedures, contributing to
ensuring consistent service delivery. This consistency is essential for upholding high service
quality as it guarantees that all customers receive the same superior level of service
excellence (Rajput and Gahfoor, 2020). Lee et al. (2020) demonstrated that CSR initiatives
affect perceived service quality in the restaurant and food sector. In light of the research, the
following hypotheses are posited:
H5. Ethical CSR initiatives positively impact corporate image.
H6. Ethical CSR practices positively influence service quality.
BFJ 2.1.4 Philanthropic responsibility. Philanthropic responsibility includes voluntary business
126,12 activities beyond ethical considerations (Carroll, 2016; Hossain, 2017). Engaging in
philanthropic Corporate Social Responsibility (CSR) activities can significantly enhance a
company’s reputation by showcasing its dedication to societal welfare beyond simply
making profits. This favourable reputation can help build customer trust, leading to
increased engagement and loyalty with a company perceived as socially responsible
(Brammer et al., 2007). In this regard, Longo et al. (2005) found that non-financial voluntary
4380 activities increased the company’s value, including corporate image and reputation.
Additionally, when companies participate in philanthropic CSR, employees often experience
a sense of pride and alignment with the company’s values. This heightened morale and
engagement result in improved performance and a stronger commitment to delivering high-
quality service (Brammer et al., 2007). Bello et al. (2021) showed that philanthropic initiatives
affect perceived service quality. The following hypotheses are formed:
H7. Philanthropic CSR initiatives positively impact corporate image.
H8. Philanthropic CSR practices positively influence service quality.
2.1.5 Environmental responsibility. Environmental sustainability has gained significant
importance, and many studies have addressed this issue (Han et al., 2019; Kim and Hall,
2020). Environmental CSR has also become crucial for restaurant business researchers
(Rashid et al., 2015). Today, a growing number of customers base their purchasing decisions
on the company’s environmental responsibility (Han et al., 2019; Khojastehpour and Johns,
2014). Adherence to environmental CSR can significantly affect customers’ evaluation of
services and increase their purchase intention (Han et al., 2020a, b, c). Omidvar and Deen
(2024) showed that the company’s adherence to environmental responsibility can directly
and significantly affect corporate image. Han et al. (2020a) concluded that environmental
CSR positively and significantly affects service quality. Based on the above, we develop the
following hypotheses:
H9. Environmental CSR positively impacts corporate image.
H10. Environmental CSR positively impacts service quality.
2.1.6 Corporate image. The corporate image reflects the general public’s evaluation of a
company (Huang et al., 2014). Corporate image encompasses the organisation’s beliefs and
perceptions that exist in people’s minds (Bos, 2007). A positive corporate image is crucial for
building trust and credibility among customers. When customers view a company as reliable
and reputable, they are more inclined to establish and maintain long-term relationships with
the business. This trust minimises the perceived risk and uncertainty in transactions,
improving customer retention rates (Arau �jo et al., 2023). Huang et al. (2014) showed that there
is a significant influence between corporate image and purchase intentions. Furthermore,
literature shows that corporate image significantly affects customer retention (Kim et al.,
2017, 2020a, b; Wu et al., 2018). From the above, the following hypothesis is formulated:
H11. Corporate image positively impacts customer retention.
2.1.7 Service quality. Service quality is the customers’ assessment of a company’s services’
inferiority or superiority compared to competitors. As a result, customers constantly seek
higher-value products and services offered by different providers (McColl-Kennedy and
White, 1997). The quality of service significantly influences customer retention through
various methods, such as increasing customer satisfaction, nurturing loyalty, creating
positive word-of-mouth, and decreasing complaints. Lai et al. (2020) demonstrated that
service quality significantly positively affects customer retention. High-quality service is
crucial in influencing the purchase decision process and, consequently, can impact customer British Food
retention. Based on these insights, the following hypothesis is formulated: Journal
H12. Service quality positively impacts customer retention.
2.1.8 Conceptual model. The objectives of this study drive the development of the proposed
conceptual model. The conceptual model includes four dimensions of Carroll’s CSR model
(economic, legal, ethical, and philanthropic), as well as the environmental CSR dimension,
corporate image, service quality, and customer retention. Figure 1 shows our proposed 4381
framework.

3. Methodology
3.1 Research design
A quantitative research approach was adopted in this study as we examine the relationships
between each of the dimensions of CSR and corporate image, service quality, and customer
retention in the restaurant sector. A quantitative methodology is more suitable for this
research endeavour for several reasons. Firstly, it enables the inclusion of a substantial
sample size, thereby enhancing the generalizability of the findings. Secondly, using
quantitative data facilitates a more efficient analysis process, allowing for a comprehensive
examination of the study variables. Lastly, the quantitative approach permits the rigorous
testing of hypotheses, contributing to the establishment of robust conclusions.

3.2 Data and sample

The study focused on a specific demographic, namely clients of conventional eateries located
in Tehran. According to the Restaurants and Self-Service Association (2022), the number of
officially registered restaurants exceeds 740, omitting street food catering services and
unregistered in-house kitchens. These dining establishments encompass a blend of
traditional and contemporary elements, situated in several districts within the urban
metropolis of Tehran. Thus, Tehran’s unique cultural and economic context presents a
valuable opportunity to explore CSR’s impact in a non-Western setting. Understanding how
CSR practices influence customer behaviour in Tehran can offer insights that are applicable
to other emerging markets and culturally diverse regions. Also, the economic conditions in

Figure 1.
Five-dimensional CSR
conceptual model
BFJ Tehran, characterised by a mix of modern urban development and traditional practices,
126,12 make it an ideal setting to examine the interplay between economic, legal, ethical,
philanthropic, and environmental dimensions of CSR.
Our customer base comprises individuals who have patronised one of these dining
establishments within the past few months. Initially, we inquired about the prospective
participants’ use of any of the aforementioned authorised dining establishments within the
past few months. In the event of an affirmative response, we invited them to partake in the
4382 survey. Given the challenges associated with data collection, we utilised a convenience
sampling method, where participants are selected based on their availability and willingness
to participate. In this case, Tehrani citizens who have had recent experiences having food in
one of the restaurants in Tehran were approached through online platforms or social media
to complete the questionnaires.
An online survey of restaurant customers obtained 217 valid questionnaires, which were
gathered over the summer of 2023.

3.3 Measures
A survey tool was developed based on the existing literature, which analyses CSR’s role in
restaurant customers’ behaviour. Therefore, three items were used to measure the research
structures for each variable (Kline, 2015): Economic, Legal, Ethical, Philanthropic, and
Environmental Responsibility (Han et al., 2020c); Corporate Image (Kim et al., 2017); Service
Quality (Pivato et al., 2007); Customer Retention (Kim et al., 2017; Lee et al., 2020). In this
research, all items were evaluated using a seven-point Likert scale (“Strongly disagree” [1] –
neither disagree nor agree [4] – “Strongly agree” [7]).
We assessed common method bias (CMB) due to the simultaneous collection of all
variables using the same instrument (Podsakoff et al., 2003). To mitigate potential CMB
concerns, we separated outcome and antecedent variables into different sections of the
questionnaire. Additionally, we employed two statistical approaches to test for CMB:
Harman’s single-factor test (Harman, 1976) and an examination of the correlation matrix
(Bagozzi et al., 1991). The findings revealed that factor analysis of all survey items did not
yield a single dominant factor, and no single construct accounted for the majority of
covariance across the constructs.

3.4 Data analysis

Data analysis was done using AMOS version 24 and developed in two stages. In the first
phase, confirmatory factor analysis (CFA) was run to estimate and evaluate the dimensions.
CFA is a statistical technique used to verify the factor structure of a set of observed variables.
It is also the analytic tool of choice for developing and refining measurement instruments,
evaluating the measurement model’s fit and verifying the construct fit indices, assessing
construct reliability and validity, and identifying method effects. In the second phase, an
SEM analysis was conducted to test the hypotheses and determine the model fit.

4. Results
Table 2 shows the demographic information of survey respondents. From the 217 responses,
54.4% of the respondents (n 5 118) were men, and 45.6% of the respondents (n 5 99) were
women. Also, 6.5% of respondents were less than 21 years old, 38.7% were 21–29 years old,
32.3% were 30–39 years old, 17.1% were 40–49 years old, and 5.5% were over 50 years old.
Also, 11.5% of the respondents had a diploma, 37.3% had a bachelor’s degree, 46.1% had a
master’s degree, and 5.1% of the respondents had a doctorate.
 British Food
Total (N 5 217) Journal
N Percentage (%)

Gender
Male 118 54.4
Female 99 45.6
Age 4383
less than 20 years old 14 6.5
20–29 years 84 38.7
30–39 years 70 32.3
40–49 years 37 17.1
50 years or older 12 5.5
Education
Diploma 25 11.5
Bachelor’s degree 81 37.3 Table 2.
Master’s degree 100 46.1 Demographic
Doctorate 11 5.1 characteristics of
Source(s): Authors work respondents

For the purposes of this study, first and before evaluating the proposed conceptual
framework, the measurement model was evaluated using confirmatory factor analysis. The
result of the measurement model test showed a good fit to the data: χ 2 5 388.074, df 5 224,
p 5 0.00, χ 2/df 5 1.732, RMSEA 5 0.058, PNFI 5 0.706, GFI 5 0.875, AGFI 5 0.833,
CFI 5 0.939, IFI 5 0.941, TLI 5 0.925).
Table 3 illustrates all factor loadings, Cronbach’s α, Composite reliability (CR), and
Average variance. Also, the standardised factor loadings of the measurement model are all
statistically significant and higher than 0.5, the recommended threshold value by Hair et al.
(2019). Moreover, Fornell and Larcker (1981) suggested that Cronbach’s alphas are greater
than 0.70. Table 3 also shows the CR and Average variance extracted (AVE). All the numbers
related to CR are higher than 0.7, which indicates a high level of internal consistency (Hair
et al., 2019). Finally, the AVE of each latent construct should be greater than or equal to 0.50
to achieve an acceptable level of convergent validity (Hair et al., 2017). In our case, the AVE of
5 variables is higher than 0.5, but the AVE of 3 variables is less than 0.5. Based on Fornell and
Larcker (1981), if AVE is less than 0.5 but composite reliability is higher than 0.6, the
convergent validity of the construct is acceptable. Thus, the convergent validity of the
construct is acceptable.
We found that the root AVE of each hidden variable (bold diagonal values) is higher than
the correlation of hidden variables distinguished as non-bold diagonal values (see
discriminant validity in Table 4). As a result, the constructs’ discriminant validity is
acceptable (Fornell and Larcker, 1981).
Table 5 shows the evaluation of Henseler et al. (2015). An HTMT greater than 0.90
indicates a lack of discriminant validity (Henseler et al., 2015), which is not our case (see
Table 5).

4.1 Hypotheses testing and structural equation model

After identifying a suitable measurement model, the relationships between the variables in
the proposed model were tested using structural equation modelling. The maximum
likelihood estimation results provided a good fit with the data) χ 2 5 394.913; df 5 230; χ 2/
df 5 1.717, p 5 0.00, RMSEA 5 0.058, PNFI 5 0.723, GFI 5 0.873; AGFI 5 0.835, IFI 5 0.940,
BFJ Factor
126,12 Measurement items loading α CR AVE

Economic responsibility (Han et al., 2020c) 0.942 0.988 0.887

It is important for this restaurant to be committed to being as 0.942
profitable as possible
It is important for this restaurant to maintain a strong competitive 0.954
4384 position
It is important for this restaurant to be defined as one that is 0.865
consistently profitable
Legal responsibility (Han et al., 2020c) 0.843 0.894 0.473
It is important for this restaurant to perform in a manner consistent 0.718
with the expectations of government and law
It is important for this restaurant to be defined as one that fulfils its 0.857
legal obligations
It is important for this restaurant to provide goods and services that at 0.838
least meet minimal legal requirements
Ethical responsibility (Han et al., 2020c) 0.712 0.888 0.480
It is important for this restaurant to perform in a manner consistent 0.797
with expectations of societal mores and ethical
It is important for this restaurant to prevent ethical norms from being 0.574
compromised in order to achieve corporate goals
It is important for this restaurant to be defined as good corporate 0.622
citizenship and known as who does what is expected morally or
ethically
Philanthropic responsibility (Han et al., 2020c) 0.752 0.869 0.505
It is important for this restaurant to perform in a manner consistent 0.749
with the philanthropic and charitable expectations of society
It is important for this restaurant to allocate some of its resources to 0.686
philanthropic activities (e.g. fine/performing arts and sports)
It is important for this restaurant to assist voluntarily with those 0.686
projects that enhance a community’s “quality of life
Environmental responsibility (Han et al., 2020c) 0.873 0.953 0.743
It is important for this restaurant to perform in a manner consistent 0.793
with protecting the environment
It is important for this restaurant to offer environmentally friendly 0.839
products/services
It is important for this restaurant to make every effort to protect and 0.876
preserve the environment
Corporate image (Kim et al., 2017) 0.858 0.909 0.525
I think this restaurant is a fair company 0.852
I think this restaurant emphasises the rights of customers 0.893
In my opinion, this restaurant has a good image in the minds of 0.723
customers
Service quality (Lee et al., 2020) 0.800 0.876 0.451
Overall, this restaurant provides good and consistent quality service 0.819
Employees at this restaurant provide efficient and speedy service 0.681
Employees at this restaurant have the ability to deliver the promised 0.770
service in a consistent and accurate manner
Customer retention 0.738 0.911 0.567
This place will be my first choice when it comes to choosing a 0.791
Table 3. restaurant. (Hennig-Thurau, 2004; Lee et al., 2020)
Properties of the I am planning to eat at this restaurant in the future. (Kim et al., 2017) 0.535
measurement I am a loyal customer of this restaurant (Hennig-Thurau, 2004) 0.766
model (N 5 217) Source(s): Authors work
 British Food
ECO LEG ETH PHIL ENV CI SQ RE Journal
ECO 0.942
LEG 0.036 0.688
ETH �0.005 �0.36 0.693
PHIL 0.142 �0.578 �0.601 0.711
ENV �0.008 �0.1 �0.339 �0.314 0.862
CI 0.181 �0.504 �0.548 �0.619 �0.359 0.725 4385
SQ 0.026 �0.566 �0.551 �0.627 �0.365 �0.47 0.671
RE 0.093 �0.367 �0.468 �0.55 �0.329 �0.496 �0.535 0.753
Note(s): ECO 5 economic CSR; LEG 5 legal CSR; ETH 5 ethical CSR; PHIL 5 philanthropic CSR;
ENV 5 Environmental CSR; CI 5 Corporate Image; SQ 5 Service Quality; RE 5 Customer Retention Table 4.
Source(s): Authors work Discriminant validity

ECO LEG ETH PHIL ENV CI SQ RE

ECO
LEG �0.036
ETH 0.005 0.363
PHIL �0.142 0.580 0.604
ENV 0.008 0.100 0.340 0.386
CI �0.182 0.505 0.552 0.620 0.360
SQ �0.027 0.568 0.555 0.628 0.365 0.472
RE �0.093 0.371 0.474 0.469 0.338 0.500 0.501
Note(s): ECO 5 economic CSR; LEG 5 legal CSR; ETH 5 ethical CSR; PHIL 5 philanthropic CSR; Table 5.
ENV 5 Environmental CSR; CI 5 Corporate Image; SQ 5 Service Quality; RE 5 Customer Retention Heterotrait-monotrait
Source(s): Authors work ratio (HTMT)

TLI 5 0.927, CFI 5 0.939). The fitting values indices are all within an acceptable range (Hair
et al., 2019). These results show that the proposed model fits well with the experimental data.
It should also be considered that in SEM, there are several fit indices that indicate how well
the model fits the available data. In the current study, absolute model fit is considered by Chi-
Square, RMSEA, and GFI (Rigdon, 1996). Table 6 shows the result of the structural equation
modelling (SEM).
According to the standardised coefficients t-value and p-value, economic CSR has an
inverse and significant effect on the corporate image (β 5 �0.14, p < 0.05) and has an inverse
effect on service quality. However, this effect is not significant (β 5 0.019, p > 0.05) (see
Table 6). These results reject Hypotheses 1 and 2. Legal CSR has a significant effect on the
corporate image (β 5 0.243, p < 0.01) and service quality (β 5 0.316, p < 0.01). These results
support Hypotheses 3 and 4. Ethical CSR has a significant effect on the corporate image
(β 5 0.250, p < 0.05) and service quality (β 5 0.218, p < 0.05). These results support
Hypotheses 5 and 6. Philanthropic CSR does not have a significant effect on the corporate
image (β 5 0.255, p < 0.05) and service quality (β 5 0.267, p < 0.05). These results support
Hypotheses 7 and 8. Environmental CSR has a significant effect on corporate image
(β 5 0.173, p < 0.05) and service quality (β 5 0.180, p < 0.05). These results support
Hypotheses 9 and 10. Corporate image has a significant effect on customer retention
(β 5 0.343, p < 0.01), and as a result, Hypothesis 11 is supported. Finally, service quality
significantly affects customer retention (β 5 0.344, p < 0.01), and as a result, Hypothesis 12 is
supported.
BFJ Standardised
126,12 Paths coefficients t-value p-value Hypotheses

Hypothesis 1. Economic CSR positively and �0.140 �2.31 0.021 Not

significantly affects the corporate image Supported
Hypothesis 2. Economic CSR positively and 0.019 0.308 0.758 Not
significantly affects service quality Supported
4386 Hypothesis 3. Legal CSR positively and 0.243 2.85 0.004 Supported
significantly affects corporate image
Hypothesis 4. Legal CSR positively and 0.316 3.516 0.000 Supported
significantly affects service quality
Hypothesis 5. Ethical CSR positively and 0.250 2.495 0.013 Supported
significantly affects corporate image
Hypothesis 6. Ethical CSR positively and 0.218 2.105 0.035 Supported
significantly affects service quality
Hypothesis 7. Philanthropic CSR positively and 0.255 2.144 0.032 Supported
significantly affects corporate image
Hypothesis 8. Philanthropic CSR positively and 0.267 2.146 0.032 Supported
significantly affects service quality
Hypothesis 9. Environmental CSR positively and 0.173 2.528 0.011 Supported
significantly affects corporate image
Hypothesis 10. Environmental Responsibility CSR 0.180 2.521 0.012 Supported
positively and significantly affects service quality
Hypothesis 11. Corporate Image positively and 0.343 3.748 0.000 Supported
significantly affects customer retention
Table 6. Hypothesis 12. Service quality positively and 0.344 3.669 0.000 Supported
Results of the significantly affects Customer retention
structural equation Note(s): R-square (R2): Corporate Image (0.505); Service Quality (0.535); Customer Retention (0.356)
modelling (n 5 217) Source(s): Authors work

Table 6 shows that the R-square (R2) for the corporate image is 0.505, which means that CSR
dimensions could affect the corporate image variable by 55.5% while the remaining 44.5%
was the influence of other variables, which was not included in this study. The R-square (R2)
value for service quality is 0.535, which means that the CSR dimension could affect the
service quality variable by 53.5% while the remaining 46.5% was the influence of other
variables, which were not considered in this research. Finally, R2 for customer retention is
0.356, which means that the CSR dimension could affect the customer retention variable by
35.6% while the remaining 64.4% was the influence of other variables, which was not
included in this study.

5. Discussion and conclusion

Building on previous literature about CSR, this study not only added environmental
responsibility to the CSR model but also demonstrated how all five CSR dimensions affect the
company’s image, service quality, and customer retention at restaurants.
The results of this study indicate that the CSR economic dimension does not significantly
affect corporate image and service quality. This could be explained by customers having a
negative attitude towards companies focusing solely on profitability, emphasising the
importance of social-related responsibilities and financial performance. This finding aligns
with Lee et al. (2019), who argue that the economic dimension does not significantly impact
corporate image. These results are also consistent with those of Omidvar and Deen (2024),
who conducted their study in Iran, specifically in the city of Tehran. This alignment
increases the confidence in our findings and demonstrates that customers desire restaurants
to focus on more than just profitability. Furthermore, the results suggest that the economic British Food
dimension does not significantly impact service quality (Lee et al., 2020). Journal
Additionally, this research reveals that the legal CSR dimension positively and
significantly affects corporate image and service quality. This may be attributed to
customers valuing compliance with regulations and minimum legal requirements. Adopting
ethical business principles can enhance a restaurant’s market position and financial success
while reducing the risk of legal conflicts and regulatory sanctions, thus safeguarding the
company’s reputation. This result is consistent with Kim et al. (2020a, b), who argue that legal 4387
responsibilities significantly and positively influence corporate image.
The ethical CSR dimension significantly impacts corporate image and service quality.
Ethical CSR practices demonstrate a company’s commitment to upholding integrity and
transparency, which builds trust with customers, investors, and other stakeholders, thereby
enhancing its overall reputation. This finding aligns with Weber (2008), who highlighted that
CSR activities positively impact a company’s image and customer evaluations. Several
studies have shown a significant influence of CSR on corporate image. Lee et al. (2020)
emphasised that the ethical dimension strongly represents restaurants’ CSR practices,
making it the most robust service quality dimension. Therefore, restaurants should actively
satisfy the ethical expectations of customers and society when promoting their CSR activities
and conducting business. This finding aligns with previous literature that indicates the
ethical dimension positively and significantly impacts service quality (Lee et al., 2020).
Similarly, the philanthropic CSR dimension significantly impacts corporate image and
service quality. Brammer et al. (2007) emphasised that engaging in CSR activities enhances a
company’s reputation by demonstrating a dedication to societal welfare beyond profit-
making, significantly improving public image. This aligns with Lee et al. (2019), who found
that the philanthropic dimension positively and significantly affects corporate image.
Additionally, Longo et al. (2005) found that non-financial voluntary activities increased
company value, including corporate image and reputation. Brammer et al. (2007) also
highlighted that when companies engage in philanthropic CSR, employees feel proud and
more connected to the company’s values, leading to better performance and a greater
dedication to providing top-notch service. Omidvar and Deen (2024) showed that
philanthropic responsibility has the greatest impact on corporate image among the
different CSR aspects. These findings are consistent with Ramlugun and Raboute (2015) and
Lee et al. (2020), suggesting that philanthropic CSR positively and significantly affects
service quality. Bello et al. (2021) also showed that philanthropic initiatives positively impact
perceived service quality.
The environmental CSR dimension significantly impacts both corporate image and
service quality. This may be explained by customers’ increasing attention to protecting the
environment. Businesses that prioritise environmental sustainability often benefit from a
favourable reputation, greater consumer trust, and increased customer loyalty, resulting in
heightened satisfaction and retention rates (Laroche et al., 2001; Omidvar and Deen, 2024).
Additionally, emphasising environmental sustainability positively impacts employee
morale and engagement, leading to increased motivation and higher levels of customer
service (Stahl et al., 2020). Increasing attention to environmental issues extends beyond the
restaurant industry. Research by Han et al. (2020c) showed that environmental CSR
significantly influences word-of-mouth among airline customers. Similarly, Park (2019)
found that environmental responsibility positively affects customer attitudes and
satisfaction in the airline industry. Additionally, Lee et al. (2019) demonstrated that
environmental responsibility positively impacts corporate image when consumers select an
airline.
Finally, concerning Hypothesis 11, the result showed a significant effect of corporate
image on customer retention. This finding contradicts the results of Lee and Lee (2018). As
BFJ for Hypothesis 12, the result showed that service quality has no significant effect on customer
126,12 retention. Al-Tit (2015) states that service quality directly and indirectly (mediated by
customer satisfaction) significantly affects repurchase intention. This result is consistent
with the findings of this research.

5.1 Theoretical contribution

4388 The inclusion of environmental responsibility as a distinct dimension of CSR represents the
primary contribution of this study. It was deemed necessary to treat the environment as a
separate dimension, reflecting the growing significance of environmental sustainability in
academic discourse and society as a whole. Previous research mostly collectively considered
CSR (legal, economic, ethical, and philanthropic) dimensions when exploring the relationship
between CSR and customer behaviour variables. This study extends our understanding of
CSR by examining each dimension’s separate impacts on corporate image, service quality, and
customer retention. More importantly, this study incorporates environmental responsibility
into Carroll’s CSR model, introducing it as the fifth dimension of CSR. Environmental
sustainability has gained significant importance, and many studies have addressed this issue
(e.g. Han et al., 2019; Kim and Hall, 2020). Environmental CSR has also become crucial for
restaurant business researchers (Rashid et al., 2015). Today, a growing number of customers
base their purchasing decisions on a company’s environmental responsibility (Han et al., 2019;
Khojastehpour and Johns, 2014; Frau et al., 2022). Adherence to environmental CSR can
significantly affect customers’ evaluations of services and increase their purchase intentions
(Han et al., 2020a, b, c). With our study, we learned that the environmental CSR dimension
significantly impacts both corporate image and service quality. This effect can be explained
by customers’ increasing attention to protecting the environment. Laroche et al. (2001) stated
that businesses prioritising environmental sustainability benefit from a favourable reputation
and greater consumer trust. Customers tend to show more support and loyalty towards
companies that demonstrate a genuine dedication to environmental responsibility. This trust
can result in heightened customer satisfaction and improved customer retention rates. This
finding aligns with Omidvar and Deen (2024), who showed that a company’s adherence to
environmental responsibility can directly and significantly affect corporate image. Stahl et al.
(2020) demonstrated that when companies strongly emphasise environmental sustainability,
it can positively impact employee morale and engagement. Employees tend to feel a sense of
pride when working for environmentally responsible companies, often resulting in increased
motivation and a higher level of customer service. As a result, employees are motivated by the
company’s commitment to environmental sustainability and are more engaged in their work.
This finding is also consistent with Han et al. (2020a, b, c), who indicated that the
environmental dimension significantly influences service quality. Therefore, this research not
only reinforces existing knowledge but also significantly contributes to the theoretical
expansion of Carroll’s dimensions by incorporating environmental responsibility. This
theoretical expansion is prompted by the increasing importance of environmental issues,
which have garnered substantial academic and managerial attention in contemporary times.
The study’s results demonstrate that the environmental dimension of CSR positively and
significantly impacts both corporate image and service quality. This integration provides
deeper insights and connections to the established frameworks and findings presented in the
literature, emphasising the growing significance of environmental CSR in contemporary
business practices. Adding the environmental dimension highlights how CSR must evolve to
address current global challenges, expanding Carroll’s model to remain relevant in today’s
business environment.
Secondly, this study delves into the impact of each dimension of CSR on corporate image
and service quality. While previous literature on the restaurant and food industry has
discussed the impact of CSR on issues such as corporate image and service quality British Food
considering CSR dimensions as a whole, the investigation of the effect of each CSR dimension Journal
individually has been limited. Therefore, the outcomes of this study provide a clear
understanding with more nuanced of which dimension of CSR can affect the corporate image,
service quality, and customer retention.
Furthermore, the current research reinforces the association of responsibilities (legal,
ethical, and environmental) with corporate image and service quality. The findings also
affirm the presence of a relationship between CSR dimensions and customer retention, 4389
mediated by corporate image and service quality. Overall, these results contribute additional
insights to the literature on the impact of CSR on customer behaviour.
Fourth, this study contributes to the literature by demonstrating that CSR activities are
not all equally effective. Results reveal that philanthropic CSR had the strongest impact on
the corporate image of restaurants among the five CSR dimensions investigated. In addition,
findings demonstrate that legal CSR had the strongest impact on the service quality of
restaurants among the five CSR dimensions. The findings also support the notion that
consumers are beginning to use CSR information to evaluate restaurants.
Lastly, this study was conducted in a non-Western country with a peculiar context, and
the research results can provide new insights. The research reveals that restaurant
profitability is not a paramount concern for customers; in fact, an excessive focus on
profitability may have a negative effect on customers. On the other hand, this research shows
that restaurants’ adherence to other dimensions of CSR has a positive and significant impact
on the corporate image and the perceived quality of services by customers, ultimately
increasing the probability of their retention.

5.2 Managerial implications

The study indicates that economic CSR negatively affects corporate image and service
quality. While profitability is essential for the survival of restaurants and the food industry,
if customers perceive that restaurant managers only care about profitability, it can harm the
corporate image and service quality. Consequently, restaurant managers should
demonstrate to their customers that they are not solely focused on financial matters but
also on other concerns, which can be effectively communicated through advertisements and
social media (Galati et al., 2019).
Secondly, this study reveals that customers pay special attention to compliance with the
law and expect restaurants to adhere to the laws set by the government. Therefore,
restaurant managers should be aware that a failure to follow established rules can damage
the restaurant’s image.
Thirdly, this study highlights that adherence to ethical principles is crucial for customers
and can directly and indirectly impact the restaurant’s image and service quality.
Additionally, the research suggests that if customers perceive that restaurants adhere to
ethical fundamentals, their intention to revisit those restaurants may increase.
Also, this research demonstrates that participation in philanthropic activities can
improve the restaurant’s image in customers’ minds, and customers expect restaurant
managers to engage in public benefit and philanthropic activities.
Finally, this research shows that customers pay special attention to environmental issues,
and the adherence of restaurants to environmental practices, such as the use of organic food
(Dang et al., 2022), can affect both the image of the restaurant and the quality of their services,
ultimately increasing customer return to the restaurants. One of the reasons for this attention
is the recent focus on environmental issues on social media. Thus, restaurant managers must
seriously consider the importance of this issue and take measures such as including local
ingredients in their dishes.
BFJ 5.3 Limitations and future research
126,12 This research is not without limitations. First, our findings should be interpreted cautiously,
and generalising the results to other industries requires careful attention. Secondly, the
research was conducted specifically in the capital of Iran. It would be advantageous to carry
out the research in multiple countries to obtain more comprehensive findings. Additionally,
since Iran is a developing economy, future research could be conducted in developed
economies to compare results (Bresciani et al., 2021). We emphasise the need for cross-
4390 regional studies to understand how environmental CSR influences customer behaviour in
diverse cultural and economic contexts. Future research should develop a foundational
model for examining CSR across different geographical settings, thereby contributing to a
global understanding of its impact. Such studies could also highlight the potential for
businesses to adopt sustainable and customer-centric practices by strategically
implementing environmental CSR worldwide.
It would be advisable for future research to consider longitudinal designs or experimental
designs to establish causal relationships between the variables. Additionally, including
control variables or covariates in the model can increase the study’s internal validity and
reduce the potential for alternative explanations. In the case of restaurant consumer
behaviour, experimenting may be challenging due to the difficulty of controlling all factors
that may influence behaviour in a naturalistic setting. Additionally, future research could
focus on specific types of restaurants or contexts to increase the generalizability of the
findings. For example, researchers could study the effects of environmental responsibility on
consumer behaviour in fast food restaurants, fine dining restaurants, or restaurants with
specific cultural or regional characteristics.

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About the authors

Mohammadsadegh Omidvar Department of Business Administration, Faculty of Management,
Kharazmi University, 1599964511, Tehran, Iran. Sadegh is a passionate researcher specifically in the
field of CSR and consumer behaviour who has 9 years of work experience in sales management,
marketing, and advertising. He also cooperation with Iran’s top newspapers as an economic analyst,
and also has a teaching experience as a teaching assistant at Kharazmi University. He received his
master’s in strategic management from Kharazmi University in 2020. several papers and business
projects, two book translations, and more works under progression are among his resume.
Vahid Ghasemi, Ph.D., is Assistant Professor at Universidade Europeia in Lisbon, Portugal. He is
also a Research Fellow at the Corvinus Institute for Advanced Studies, part of Corvinus University in
Budapest, Hungary. Furthermore, he is an integrated research member at CETRAD and the Centre for
Advanced Studies in Management and Economics (CEFAGE) in Portugal. His research focuses on the
domains of marketing and tourism, with his work being published in numerous scientific journals. His
contributions have garnered recognition in the form of several scholarly awards, acknowledging the
exceptional quality of his research. Vahid Ghasemi is the corresponding author and can be contacted at:
[Link]@[Link]
Moreno Frau is Associate Professor at the Marketing Management Department, Corvinus
University of Budapest (Hungary). He holds a PhD in Business and Economics took at the University of
Cagliari (Italy) with honours and the additional label of Doctor Europaeus, thanks to a period of research
spent at the BI Norwegian Business School. His research interests focus on marketing, digital
transformation, sustainability, and interactive value formation. He has held a Marie Curie research
project called FooDization about the impact of digital transformation on sustainable food production.
His research has appeared in peer-reviewed journals such as Journal of Service Research, Journal of
Cleaner Production, Journal of Research in Interactive Marketing TQM Journal, as well as other
academic and applied journals.

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