Journal of Applied Sciences in Travel and Hospitality DOI: [Link]

1-16
Volume 7 Issue 1 Year 2024 Pages 1-16 URL: [Link]

Can restaurants achieve customer retention through CSR?

Mohammadsadegh Omidvar 1, Anisah Deen 2* *

1
Department of Business Administration, Faculty of Management, Kharazmi University, Iran
2
School of Tourism & Hospitality, University of Johannesburg, Bunting Road Campus Auckland Park,
Johannesburg, South Africa

*Corresponding Author: anisahd@[Link]

Abstract: The objective of this study is to establish a comprehensive framework that combines the four dimen-
sions of Corporate Social Responsibility (CSR) (Economic, Legal, Ethical, and Philanthropic Responsibility) with
Environmental Responsibility. Additionally, the study seeks to assess the role of Corporate Image (CI) in
mediating the impact of aspects of CSR on Customer Retention with the use of structural equation modeling
(SEM) to test the hypothesized conceptual framework. A total of 217 questionnaires were successfully gathered
through an online platform from customers who patronized restaurants in the city of Tehran. The findings indicate
that the legal, ethical, philanthropic, and environmental components have a favorable and considerable impact
on CI. Moreover, the impact of the five dimensions of CSR on customer retention is mediated by the perception
of the CI. This study provides a valuable contribution by expanding upon Carroll's dimensions that included
environmental responsibility, and demonstrating that the inclusion of this factor can also enhance company
image. Going forward managers may acquire the knowledge that enhances their environmental responsibilities
can concurrently contribute to the enhancement of CI and positively impact customer retention.

Keywords: corporate image, corporate social responsibility, customer retention, environmental responsibility,
restaurant industry, Iran

History Article: Submitted 16 January 2024 | Revised 01 February 2024 | Accepted 26 February 2024

How to Cite: Omidvar, M., & Deen, A. (2024). Can restaurants achieve customer retention through CSR? Journal
of Applied Sciences in Travel and Hospitality, 7(1), 1-16.

Introduction
In the highly competitive restaurant industry today, restaurants must increase customer
retention rates to secure their long-term viability (Hwang et al., 2020). However, as Chang (2017)
noted, social practices and ethical viewpoints are now seen as crucial elements that might elicit
a response from customers, replacing the previous competitive advantages of low prices and
high-quality services and goods. Compared to previous decades, today's customers have different
expectations; they are not content with receiving high-quality or reasonably priced goods and
services from businesses (Chernev & Blair, 2015). Customers of today prefer to support organi-
zations that fulfill their social obligations by purchasing their goods and
services, and results in motivating other businesses to get more involved in the community (Bar-
celos et al., 2015). For example, up to 62% of restaurant patrons anticipate these organizations
to be engaged in social issues and involved in CSR initiatives (Ozdemir et al., 2020). This means
that these customers refuse to patronize restaurants that disregard social issues and do not fulfill
their CSR obligations as a sort of punishment (Prendergast & Tsang, 2019). Thus, due to the shift
in consumer attitudes, businesses have been putting a lot of effort and financial
resources into CSR in recent years (Han et al., 2019).
Businesses in the hospitality sector influence a wide range of issues through their opera-
tions, for example, the economy, society, environment, culture, etc. Therefore, businesses in this
sector must adhere to CSR activities (Kim et al., 2017). Based on its importance, a
considerable number of businesses within the hospitality sector, especially eateries, are now ac-
tively engaged in CSR initiatives and activities (Han et al., 2020; Lee et al., 2020; Park, 2019).
This results in a company's brand and image being enhanced by its focus on social

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issues and participation in CSR initiatives (Omidvar & Deen, 2023). A company's reputation may
suffer if it disregards social issues and doesn't engage in CSR initiatives and research demon-
strates that CSR has a substantial impact on customers' perceptions of a company and its
image, confirming the correlation between CSR and CI (Chen et al., 2021; Plewa et al., 2015).
Carroll's four-level model is one of the well-known CSR models (Hamid et al., 2020; Lu et
al., 2020; Yılmazdogan et al., 2015). The previous few decades focused on this approach (Hamid
et al., 2020; Lee et al., 2020; Lo, 2020; Lu et al., 2020; Silva Junior et al., 2020) and Carroll has
separated this paradigm into four categories (Baden, 2016; Hamid et al., 2020; Lee et al., 2020;
Lo, 2020; Lu et al., 2020; Silva Junior et al., 2020). On the other hand, environmental challenges
have also garnered the interest of numerous scholars and the majority have given thought to
environmental concerns for instance, consumers prefer to purchase from businesses that strive
to minimize environmental harm in their processes of providing products and services (Han et al.,
2019). Consequently, these businesses operate in a manner that minimizes their negative effects
on the environment and works to preserve it (Han, 2021). Thus, we decided to investigate how
the environmental dimension and the other dimensions in Carroll's CSR pyramid affected a com-
pany's reputation and its ability to retain customers.
In the available literature, CSR has been considered as a variable in several studies that
are similar to this one (Lee et al., 2020; Srivastava & Singh, 2021) however, opinions on how the
CSR factors affect a company's reputation and ability to retain customers are unclear.
Furthermore, most of the studies were carried out in industrialized nations, except for a small
number in developing nations, particularly in the Middle East (Al-Ghamdi & Badawi, 2019). In
Iran, CSR has been under-researched and no comprehensive scientific or theoretical perspective
exists on the subject. Therefore, carrying out this research can aid in enhancing the understand-
ing of this issue among academics, managers, and customers (Saeidi et al., 2015). To close this
gap, the objective of this paper is to investigate how Carroll's dimensions—in addition to the
environmental dimension—affect customer retention and CI. The paper will be organized with a
literature review which will involve an examination of the current body of literature to formulate
hypotheses. Subsequently, the methodology will be discussed, an analysis will be conducted on
the data gathered for this study, and an examination of the study's hypotheses will be undertaken.
Finally, we shall deliberate upon the outcomes derived from the aforementioned segment about
the methodology. The section on theoretical and managerial implications will elucidate the
theoretical and practical ramifications of this research. To move on with further research, it is
critical to accept the limitations of this study.

Conceptual Framework and Hypotheses Development

One of the first scholars to address the social obligation of businesspeople and firms was
Howard Bowen, who wrote the book "The Social Responsibilities of the Businessman" in 1953 (Li
et al., 2020; Farrington et al., 2017). Though social issues have long been a source of
concern, the subject of CSR has garnered significant interest from scholars and members of the
academic community following the release of Boen's book and idea of CSR, which has changed
significantly during the last few decades (Amin-Chaudhry, 2016).
Previous research has produced numerous definitions of CSR for example, a study that
aimed to summarize the literature on CSR identified and examined 37 definitions ultimately
indicated that there isn't a single accepted definition of CSR (Amin-Chaudhry, 2016; Asrar-ul-Haq
et al., 2017; Rutkowska & Pakulska, 2021). It can be established that CSR is a group of business
initiatives that are ultimately good for society, enhance society's conditions, and are
intended to benefit stakeholders, particularly customers (Han et al., 2020; Lee et al., 2019).
These days, CSR is a topic that is discussed everywhere and has significantly increased in
prominence among the academic communities (Bian et al., 2020). Moreover, CSR has gained
popularity recently as many businesses today engage in CSR initiatives because they found that
these initiatives can help them retain their current clientele and build a positive reputation among
the public and community (Han et al., 2019; Islam et al., 2021). The reason is that
consumers exhibit a keen interest in enterprises that demonstrate a commitment to fulfilling their
societal obligations and have the potential to generate value for customers and exert an impact
on consumer behavior (Alhouti et al., 2016; Barcelos et al., 2015; Van Doorn et al., 2017).

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CSR and its effect on Corporate Image (CI) and Customer Retention
Pérez and Rodriguez del Bosque (2015) state that an intangible asset that influences con-
sumer behavior, loyalty, and future purchase intentions is a company's CI and this may
influence customer retention. In an earlier study, Huang et al. (2014) investigated the correlation
between CSR, CI, and buying intentions. These findings indicate that CSR has a notable beneficial
impact on CI and purchase intentions. Later, Kim et al. (2017) showed that ethical CSR has the
greatest impact on the CI, over and above the economic and philanthropic aspects of CSR. How-
ever, it is noteworthy that only the philanthropic dimensions exhibit a substantial and direct im-
pact on customers' behavioral intentions.

Economic Responsibility
Business enterprises are the fundamental economic entities within a given society, tasked
primarily with producing many of the commodities and services that cater to the needs of
consumers and the broader community. Business enterprises play a key role in meeting the needs
and demands of consumers by providing a wide range of goods and services. Firms
derive advantages from fulfilling consumer demands in a manner that ensures profitability (Car-
roll, 2016). According to Carroll (2016, 2021), successful organizations can be identified by their
ability to maximize earnings per share, maintain a competitive edge, and sustain continuous prof-
itability. Consequently, economic responsibility emerges as a crucial component of CSR (Paliha-
wadana et al., 2016). Park (2019) indicates that assuming economic responsibility,
encompassing initiatives such as employment creation within the societal framework and foster-
ing national economic progress, exerts a favorable influence on the reputation and image of the
organization. Consequently, the subsequent hypothesis is formulated:
H 1. Economic CSR positively affects the CI.

Legal Responsibility
Legal CSR entails the adherence of firms to all applicable laws and regulations within the
societies in which they conduct their operations (Mohammed & Rashid, 2018). The general pub-
lic, societal entities, and consumers expect firms to adhere to societal norms and regulations
without engaging in actions that contradict them (Carroll, 2016; Kim et al., 2020; Uhlig et al.,
2020). Several studies have shown that various dimensions of legal CSR
efforts have a favorable impact on the CI (Al-Mubarak, 2019; Hsu, 2018; Kim et al., 2020). Con-
sequently, the subsequent hypothesis is formulated:
H 2. Legal CSR positively affects the CI.

Ethical Responsibility
The concept of ethical responsibility pertains to the obligation of companies to adhere to
the moral standards prevailing throughout society. In other words, it can be posited that societies
expect for firms to adhere to their moral values, hence establishing the ethical obligation of com-
panies (Wagner-Tsukamoto, 2019). Several studies have demonstrated a noteworthy correlation
between CSR and CI (Huang et al., 2014; Kim et al., 2020; Kolour & Eskandari, 2019). Conse-
quently, the subsequent hypothesis is formulated:
H 3. Ethical CSR positively affects the CI.

Philanthropic Responsibility
Philanthropic activities encompass endeavors that transcend ethical considerations and so-
cietal conventions undertaken freely by corporations (Hossain et al., 2017). These initiatives aim
to enhance the overall well-being and standard of living within communities (Chen et al., 2019),
and provide opportunities for corporations to establish an ethical and moral mantra from within
their organization (Mandina et al., 2014). A corporate responsibility and corporate reputation
study conducted by Dutta and Imeri (2016), found that philanthropic responsibility showed a
significant relationship with company reputation, and even the employees within the Gulf Petro-
leum & Investment Company participate wholeheartedly towards voluntary and charitable

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activities toward their surrounding communities. Whilst Mandina et al., (2014) also found that
philanthropic activities do enhance a company’s image and the relations with the community
surrounding the organization. Consequently, the subsequent hypothesis is formulated:
H 4. Philanthropic CSR positively affects the CI.

Environmental Responsibility
Professionals have shown an increased level of interest over the past few years, particularly
those in the field of tourism, regarding environmental concerns (Han & Hwang, 2015; Han et al.
2019; Kim & Hall 2020; Rashid et al., 2015). A company's commitment to preserving and advanc-
ing the environment through a variety of programs and activities is referred to as environmental
CSR (Han et al., 2019). In contemporary times, an increasing proportion of
consumers are making their purchase choices contingent upon the environmental responsibility
exhibited by companies (Han et al., 2019; Khojastehpour & Johns, 2014). The extent to which a
the company demonstrates a commitment to environmental CSR can have a substantial impact
on customers' assessment of the quality of its services and subsequently enhance their desire to
make a purchase (Han et al., 2020). Consequently, the subsequent hypothesis is formulated:
H 5. Environmental CSR positively affects the CI.

Corporate Image (CI)

The CI is a manifestation of the overall assessment of a corporation by the general popu-
lace (Huang et al., 2014). CI also refers to the collection of thoughts and impressions held by
individuals regarding an organization (Dowling, 2016; Zhang, 2015). Huang et al. (2014) demon-
strated a substantial correlation between CI and customer intentions. Moreover, existing evidence
demonstrates that the CI has a substantial impact on customer retention (Wu, 2014; Wu et al.,
2015). Consequently, the subsequent hypothesis is formulated:
H 6. CI positively affects Customer Retention.

Conceptual Model
Based on the review of the literature discussed above on CSR and its dimensions and CI,
a conceptual model is proposed to demonstrate and test the relationships between the variables
of CSR, CI, and customer retention.

Figure 1. A proposed conceptual model

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A conceptual model has been developed to achieve the objective of this study. This frame-
work encompasses the four elements outlined in Carroll's CSR model aspects. Additionally, it
incorporates the environmental CSR dimension, CI, and customer retention as key components.
Figure 1 displays the framework that we have developed.

Methodology
The study employed the quantitative approach research design with the use of online ques-
tionnaires. Quantitative research assists with the collection of large samples thereby can be gen-
eralized to larger populations (Price & Lovell, 2018). Kline (2015) recommends employing multiple
elements to measure a structure, rather than relying on a single item. Thus, the questionnaire
was developed based on the extant literature using three items to measure the
research structures for each variable to test the conceptual model. More specifically, three items
for each CSR dimension (Han et al., 2020), three items for CI (Kim et al., 2017), and three items
for customer retention (Kim et al., 2017; Lee et al., 2020). When selecting the variable items for
each construct from the existing literature it followed three criteria for reliability
purposes. 1) The questions must have been previously used in studies published in reliable jour-
nals. 2) The questions must be up-to-date and taken from new and tested studies. 3) The ques-
tions should be appropriate to Iran's specific research environment. Thus, the survey and its items
were slightly modified to improve understanding for all respondents. The instrument items were
then evaluated using a five-point Likert scale, where 1 denoted “completely
disagree 3 — “neither disagree nor agree”, and 5 — “completely agree”. The reason for
selecting these tools, such as the quantitative design and the instrument, is that both are used
in studies with high and rigorous statistical analysis and results (Ali et al., 2020).
The study focused on the client base of restaurants in Tehran who had engaged in dining
experiences inside the city in recent months. Using the convenience sampling technique, the
questionnaires were made available on an online platform, and individuals residing in Tehran
were invited to participate. After approximately one month, a total of 312 questionnaires were
successfully attained. From this total, a subset of 217 questions met the criteria for inclusion in
the final analysis, satisfying the minimum sample requirement of 200 respondents for effective
use of structural equation modeling (Nunkoo & So, 2016).
According to available literature indicates that SEM is a more appropriate approach for
researching CSR compared to standard regression analysis (Kraus et al., 2020). Therefore, the
statistical analysis and testing of the proposed conceptual model, SEM was
employed. To achieve the objective of the study the data was analyzed in two stages. The initial
evaluation of the measurement model was conducted through the utilization of confirmatory fac-
tor analysis (CFA), before the assessment of the suggested conceptual framework. The
second stage included SEM analysis to test the hypotheses and the model fit. The data analysis
was conducted using SPSS version 21 and AMOS version 24 software.

Results and Discussions

The demographic data of survey respondents is shown in Table 1. From the 217
responses, 54.4% of the respondents (n=118) were men and 45.6% of the respondents (n=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.

Table 1. Demographic characteristics of respondents

Total (N = 217)
N Percentage (%)
Gender
Male 118 54.4
Female 99 45.6
Age
less than 20 years old 14 6.5

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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
Master's degree 100 46.1
Doctorate 11 5.1

Figure 2. Confirmatory factor analysis

Figure 2 demonstrates the confirmatory factor analysis and the result of the measurement
model test showed a good fit to the data: χ2 = 300.231, df = 168, p = 0.00, χ2/ df =1.787,
RMSEA =0.060, PNFI =0.707, GFI=0.889, AGFI=0.847, CFI =0.944, IFI = 0.945, TLI = 0.930).
The factor loadings, Cronbach's alpha, Composite reliability (CR), and Average variance
(AVE) are shown in Table 2 as well the standardized factor loadings of the measurement model
are presented in this Table. All of these loadings exceed the recommended threshold value of
0.5, as stated by Hair et al. (2019), and are found to be statistically significant. Cronbach's
alphas are also greater than 0.70, which is higher than the threshold suggested by (Taherdoost,
2016). Table 2 also shows the CR and AVE. Based on Hair et al. (2019) CR above 0.7 indicates a
high level of internal consistency, and as shown in the table, all the numbers related to CR are
higher than 0.7.

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Table 2. Properties of the measurement model

Measurement items Factor α CR AVE
loading
Economic Responsibility (Han et al., 2020) 0.942 0.989 0.889
This restaurant needs to be committed to being as profitable as possible. 0.941
This restaurant needs to maintain a strong competitive position. 0.955
This restaurant needs to be defined as one that is consistently profitable 0.856
Legal Responsibility (Han et al., 2020) 0.843 0.956 0.706
This restaurant needs to perform in a manner consistent with the expec- 0.714
tations of government and law.
This restaurant needs to be defined as one that fulfills its legal obliga- 0.857
tions.
This restaurant needs to provide goods and services that at least meet 0.841
minimal legal requirements.
Ethical Responsibility (Han et al., 2020) 0.712 0.899 0.446
This restaurant needs to perform in a manner consistent with expecta- 0.795
tions of societal mores and ethical
This restaurant needs to prevent ethical norms from being compromised 0.579
to achieve corporate goals.
This restaurant needs to be defined as good corporate citizenship and 0.620
known as who does what is expected morally or ethically.
Philanthropic Responsibility (Han et al., 2020) 0.752 0.873 0.517
This restaurant needs to perform in a manner consistent with the philan- 0.764
thropic and charitable expectations of society.
This restaurant needs to allocate some of its resources to philanthropic 0.664
activities (e.g. fine/performing arts and sports).
This restaurant needs to assist voluntarily with those projects that en- 0.689
hance a community’s “quality of life.
Environmental Responsibility (Han et al., 2020) 0.873 0.957 0.755
This restaurant needs to perform in a manner consistent with protecting 0.794
the environment.
This restaurant needs to offer environmentally friendly products/services. 0.836
This restaurant needs to make every effort to protect and preserve the 0.878
environment.
Corporate Image (Kim et al., 2017) 0.858 0.945 0.640
I think this restaurant is a fair company. 0.852
I think this restaurant emphasizes the rights of customers. 0.893
In my opinion, this restaurant has a good image in the minds of consum- 0.723
ers.
Customer Retention (Kim et al., 2017; Lee et al., 2020) 0.738 0.920 0.591
This place will be my first choice when it comes to choosing a restaurant. 0.781
I am planning to eat at this restaurant in the future. 0.536
I am a loyal customer of this restaurant 0.777

According to an earlier study by Hair et al. (2017) to achieve an acceptable level of

convergent validity, the AVE of each latent construct should be greater than or equal to 0.50. As
shown in Table 2, the AVE of 5 variables is higher than 0.5, but the AVE of 1 variable is less than
0.5. Studies suggest that if the AVE is below 0.5, but the CR above 0.6, it can be

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concluded that the construct exhibits acceptable levels of convergent validity (Hair et al., 2019;
Taherdoost, 2016). The construct demonstrates adequate levels of convergent validity.

Table 3. Heterotrait-monotrait ratio

ECO LEG ETH PHIL ENV CI CR
ECO
LEG -0.036
ETH 0.005 0.453
PHIL -0.141 0.453 0.412
ENV 0.010 0.453 0.714 0.539
CI -0.182 0.453 0.125 0.620 0.427
CR -0.105 0.453 0.425 0.550 0.334 0.501
Note. ECO = economic CSR; LEG = legal CSR; ETH = ethical CSR; PHIL = philanthropic CSR; ENV
= Environmental CSR; CI = Corporate Image; CR = Customer Retention

In Table 3, the numbers related to the evaluation of (Henseler et al., 2015) are given.
Based on these researchers’ guidelines (Henseler et al., 2015) HTMT greater than 0.90 demon-
strates a lack of discriminative validity. As shown in Table 3, all the numbers related to this rate
are lower than this stipulated amount.

Hypotheses Testing and Structural Equation Model

The maximum likelihood estimation results provided a good fit with the data) χ2 = 316.689;
df= 173; p = 0.00, χ2/pdf =1.831, RMSEA = .062, PNFI=0.723, GFI = 0.884;
AGFI=0.844, IFI = 0.940, TLI=0.926, CFI = .939). As it is clear from this analysis, the fitting
values of these indices are all within an acceptable range. Table 4 and Figure 3 presents the
results of SEM.

Figure 3. Structural equation model result

According to the Standardized coefficients, t-value, and p-value in Table 4 and Figure 3,
economic CSR has an inverse and significant effect on CI (β =-0.137, p > 0.05). This result
rejects hypothesis 1. Legal CSR has a significant effect on CI (β = 0.243, p < 0.01). This result
supports hypothesis 2. While ethical CSR has a significant effect on CI (β = 0.258, p < 0.01).
This result supports hypothesis 3. Philanthropic CSR has a significant effect on CI (β = 0.267, p
< 0.01). This result supports hypothesis 4. Environmental CSR has a significant effect on CI (β =

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0.173, p < 0.01). This result supports hypothesis 5 and CI has a significant effect on
customer retention (β = 0.527, p < 0.01) therefore, result hypothesis 6 is supported.

Table 4. Results of SEM

Standardized
Paths t-value p-value Hypotheses
coefficients
Hypothesis 1. Economic CSR positively affects the Not
-0.137 -2.293 0.022
corporate image. supported
Hypothesis 2. Legal CSR positively affects the cor-
0.243 2.860 0.004 Supported
porate image.
Hypothesis 3. Ethical CSR positively affects the
0.258 2.618 0.009 Supported
corporate image.
Hypothesis 4. Philanthropic CSR positively affects
0.267 2.278 0.000 Supported
the corporate image.
Hypothesis 5. Environmental CSR positively affects
0.175 2.597 0.000 Supported
the corporate image.
Hypothesis 6. Corporate image positively affects
0.527 6.284 0.000 Supported
Customer Retention.
Note. R-square (R2): Corporate Image (0.529); Customer Retention (0.278)

Table 4 shows the R-square (R2) value for CI is 0.529 which means that the CSR dimension
could affect the CI variable by 52.9% while the remaining 47.1% was the influence of
other variables which were not included in this study. Finally, the R-square (R2) value for
customer retention is 0.278 which means that CI could affect the customer retention variable by
27.8% while the remaining 72.2% was the influence of other variables which was not included
in this study.
This study not only incorporated environmental responsibility into the CSR paradigm, but
also demonstrated the impact of all five aspects of CSR on the CI, and customer retention
within the restaurant industry. The findings of this study demonstrate a significant negative
relationship between the economic dimension of CSR and company image. This issue may arise
due to customers harboring a negative disposition towards prioritizing profitability exclusively,
and instead expressing a strong inclination for restaurants to also prioritize their social duties and
diligently adhere to them. This study additionally demonstrates that the legal dimension of CSR
has a noteworthy and favorable impact on CI. The significance of adhering to laws and meeting
minimal legal criteria may stem from its importance to consumers. The results of this study align
with the previous arguments made by Kim et al. (2020) that legal obligations have a substantial
and beneficial impact on the perception of a company's reputation. Ethical CSR also had a sub-
stantial impact on the overall CI. Hence, it is imperative for restaurants to proactively meet the
ethical demands of consumers and society while promoting their corporate social
responsibility initiatives and engaging in business operations. This finding aligns with previous
research indicating that the ethical dimension exerts a favorable and statistically significant
in fluence on the CI (Kim et al., 2017; Kim et al. 2020).
The factor of Philanthropic CSR has a substantial influence on the CI. According to Lee et
al. (2019), the inclusion of a charitable factor has been found to have a favorable and statistically
significant impact on a CI, which aligns with the results of this study. The environmental factor
of CSR also had a considerable impact on the CI. This phenomenon can be attributed to the
growing consumer awareness and concern for environmental conservation. Regarding
Hypothesis 6, the results indicate a statistically significant relationship between CI and client
retention. This present discovery opposes the outcomes reported by Lee and Lee (2018).

Conclusions
This work provides a substantial contribution to the body of literature currently available
by investigating the impacts of individual dimensions of CSR on company image and customer

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retention within the restaurant industry. The distinct incorporation of environmental engagement
as an independent facet of CSR is particularly notable, considering the growing significance of
environmental sustainability in contemporary society.
The analysis of the mediating effects of CI between the five aspects of CSR and customer
retention gives rise to many theoretical implications. This study aimed to examine the influence
of individual dimensions of CSR on the overall business image. The existing body of literature
about the restaurant business has examined the influence of CSR on several aspects, including
CI. While prior studies have explored the collective impact of CSR dimensions, limited research
has specifically addressed the individual effects of each CSR component. Hence, the findings of
this research provide a clear understanding of the specific dimension of CSR that can influence
both the business image and customer retention.
Furthermore, previous studies examining the correlation between various facets of CSR
and customer behavior factors have incorporated CSR dimensions such as economic, legal,
ethical, and philanthropic considerations, In this study, the researchers incorporated environmen-
tal participation into Carroll's notions of CSR and examined the inclusion of a fifth dimension in
the CSR framework. The heightened significance of environmental challenges has
garnered substantial academic and managerial focus in contemporary times. This study further
validates the significance of explicitly considering environmental sustainability.
The results obtained from this investigation indicate that the environmental aspect of CSR
exerts a favorable and statistically significant influence on the business image. Moreover,
contemporary studies provide evidence for the correlation between duties, including legal,
ethical, and environmental obligations, and business image. Furthermore, the results of this study
substantiate the presence of a correlation between aspects of CSR and customer retention, with
CI serving as a mediator.
This research further contributes to the understanding of the existing body of literature
regarding the influence of CSR on customer behavior. Moreover, the current investigation was
conducted in a country distinguished by distinctive economic circumstances, hence providing
fresh insights and possible advancements to the established corpus of knowledge. This study
demonstrates that the prioritization of profitability by restaurants is not a significant concern for
customers, and in fact, an excessive emphasis on profitability by restaurants may potentially have
adverse consequences for customers. Conversely, this study demonstrates that the degree to
which restaurants adhere to various aspects of CSR is positively and significantly associated with
the perception of their CI by customers. This, in turn, can potentially enhance the likelihood of
customer retention. Moreover, this study enhances the existing body of knowledge by showcasing
that not all CSR initiatives yield the same level of effectiveness. The findings indicate that philan-
thropic CSR had the most significant influence on the perception of Iranian
customers towards the CI of restaurants, compared to the other four dimensions of CSR that
were examined. In addition, the results validate the idea that Iranian consumers are starting to
utilize CSR data for assessing eateries.
Additionally, the results of this study offer valuable insights for restaurant management.
For example, it has been observed that economic CSR exhibits a detrimental impact on the overall
perception of the business image. It is imperative to acknowledge that while profitability plays a
crucial role in the sustenance of restaurants, the perception of customers perceiving restaurant
managers as solely prioritizing profitability can have detrimental effects on the overall CI. There-
fore, restaurant management needs to affirm with their clientele that their concerns extend be-
yond mere financial considerations and encompass a broader range of
topics. Restaurant managers should demonstrate their commitment to issues such as sustaina-
bility, ethical sourcing of ingredients, and fair treatment of employees. Managers can do this by
creating advertising campaigns that highlight their efforts in these areas. By demonstrating their
commitment to these values, they build their customers' trust and create a sense of loyalty that
keeps them coming back. In today's competitive market, restaurants cannot afford to ignore
these issues. Customers are increasingly looking for businesses that align with their values, and
businesses that don't risk being left behind. For example, by showing that their restaurant is more
than just a place for customers to dine and make money, managers can create a reputation that
will attract new customers and keep existing customers loyal for years to come.

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Therefore, restaurant management needs to affirm with their clientele that their
concerns extend beyond mere financial considerations and encompass a broader range of
topics. This aspect can be effectively demonstrated in their advertising campaigns.
This study also establishes that customers place significant emphasis on legal compliance
and hold the expectation that restaurants will adhere to governmental regulations. Consequently,
it is of utmost importance that restaurant managers understand the significance of following
established rules to maintain the reputation of their establishment. Any deviation from the
prescribed laws can lead to severe consequences that may tarnish the image of the restaurant.
Managers must ensure that all staff members are well-trained and informed about the standard
operating procedures, as even a minor mistake may have detrimental effects on the establish-
ment's credibility. Therefore, restaurant managers must emphasize the importance of adhering
to the rules and take all necessary steps to ensure compliance.
Furthermore, this research posits the significance of restaurants' commitment to ethical values
about customer satisfaction, which in turn can have both direct and indirect implications for the
establishment's reputation.
In addition, this study suggests that there exists a potential correlation between consumers'
perception of a restaurant's adherence to ethical principles and their likelihood to revisit that
establishment. In today's society, customers expect ethical principles to be upheld by all busi-
nesses, including restaurants. The failure to do so can have detrimental effects on a
company's reputation and image. This issue becomes more significant in Muslim countries like
Iran, as religious principles are just as important as moral principles to many customers. As a
result, customers in Iran expect restaurants to respect their religious beliefs, especially when it
comes to the food they offer. This means that restaurants must ensure that the meat used in
their dishes is halal, as it is of great importance to Iranian customers. Adhering to these ethical
and religious principles not only shows respect to the customers but also
strengthens the restaurant's reputation in the community.
Likewise, the results obtained from this investigation indicate that engagement in philan-
thropic endeavors has the potential to enhance the perception of a restaurant in the minds of its
customers. Customers expect that restaurant managers should actively partake in activities that
contribute to public welfare and philanthropy. It is commonly expected that restaurant managers
should go beyond just running their businesses and actively participate in activities that contribute
to public welfare and philanthropy. This could include organizing events that raise awareness
about social issues, volunteering time and resources for charitable causes, or even donating a
portion of their profits to support community projects. Such initiatives not only help restaurants
build a positive reputation in the eyes of their customers but also contribute to creating a healthier
and more compassionate society. By demonstrating a commitment to social responsibility, res-
taurant managers can inspire their employees, customers, and peers to do their part in making
the world a better place.
Thus, this study postulates that buyers exhibit a heightened level of attentiveness
towards environmental concerns. In the modern world, restaurants are judged not only by the
quality of their food but also by their adherence to certain standards. A crucial factor that has
recently become a significant concern is environmental sustainability. With the rise of social me-
dia, people have become more aware of the environmental impact of the food industry, and this
has resulted in a shift in consumer behavior. As a result, restaurant managers have been forced
to take steps to ensure that their businesses are eco-friendly. In the past, traditional
Iranian cuisine heavily relies on meat-based dishes, but recent studies suggest that animal
husbandry has a significant impact on the environment. Water consumption and greenhouse gas
emissions linked to the production of meat have surpassed those of the agricultural sector. Res-
taurant owners have been quick to adapt to this new reality and incorporate vegetarian
options into their menus. This trend is growing, and more and more eateries are offering plant-
based dishes to their customers.
Additionally, as a restaurant manager, it is crucial to establish a set of business rules and
tactics that align with core ethical principles. This means considering factors such as fair treatment
of employees, responsible sourcing of ingredients, and sustainable business practices. In addition,
it is important to foster an environment that motivates other restaurant employees to contribute

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towards cultivating a positive perception among consumers regarding the restaurant's ethical
standards. This can be achieved by promoting open communication, providing opportunities for
training and development, and recognizing and rewarding ethical behavior. Ultimately, by con-
forming to the ethical principles of society, restaurant managers can not only establish a positive
reputation for their business but also contribute towards building a better, more sustainable future
for all.

Limitations and Future Research

This study is not exempt from constraints. The scope of this study is confined to the
restaurant industry, hence limiting its generalizability to other sectors. Hence, it is imperative to
use caution when interpreting our findings, and any attempt to extrapolate these findings to other
businesses, including those closely associated with tourism and hospitality, necessitates meticu-
lous consideration. Furthermore, the study was carried out exclusively in Tehran, the capital city
of Iran. To enhance the comprehensiveness of the findings, conducting the research in many
nations would be useful. Moreover, it is worth noting that Iran is classified as a
developing economy. Consequently, future studies could be undertaken in developed economies
to facilitate a comparative analysis of their findings. In this study, we have examined the influence
of various characteristics of corporate social responsibility on both corporate image and customer
retention. Hence, it is recommended that forthcoming studies investigate these dimensions of
phenomena such as recurring visits or matters about the restaurant brands, such as brand image
and attitude. Additionally, the mediating role of the corporate image among different dimensions
of CSR and customer retention has not been investigated. Future studies can examine the
mediating role of corporate image or other variables between different dimensions of CSR and
customer retention.
Moreover, it is recommended that future studies incorporate longitudinal designs or
experimental designs to establish causal links between the variables. Moreover, the incorporation
of control variables or covariates in the model might enhance the internal validity of the study
and mitigate the likelihood of alternative explanations. It is imperative to acknowledge that ex-
periments possess certain merits, such as the capacity to change variables and account for ex-
traneous circumstances. However, it is crucial to recognize that their feasibility and practicality
may not always be guaranteed. When examining restaurant consumer behavior,
conducting experiments can provide challenges due to the inherent difficulties of effectively con-
trolling all the variables that may impact behavior within a naturalistic environment.
Furthermore, it is recommended that future studies direct their attention toward examining
particular categories of restaurants or specific contextual factors to enhance the applicability of
the results. For instance, scholars may investigate the impact of environmental accountability on
consumer behavior inside various types of dining establishments, such as fast food restaurants,
upscale dining establishments, or restaurants that possess distinct cultural or regional attributes.

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