Investigating the Effects of Corporate Social Responsibility on Its Performance with the Mediating Role of Customer Loyalty, Brand Reputation and Brand Image of Railway Transport Companies

Objective: The primary objective of this research is to examine the impact of Corporate Social Responsibility on company performance, because social responsibility is a critical issue with strategic consequences for all companies. Although intense competition exists in the current environment, maintaining and expanding customer loyalty is essential for survival in any industry; as a loyal customer is considered the primary asset of any company, and increasing customer loyalty enhances market share and, consequently, the profitability and long-term benefits of the business. Environmental changes and competitors' marketing efforts can influence the level of customer loyalty. On the other hand, companies with a strong brand are recognized as credible, vigilant, and accountable entities. A favorable brand reputation and customer perception of the brand reflect the company's value, predict brand loyalty, and are determining factors in customer choice among similar brands. Therefore, brand reputation and brand image are achievements companies acquire over time, indicating how different audiences evaluate the brand. Companies try to establish communication with customers and influence their perception of received services, striving to create a positive image in customers' minds. By exploring the relationship between Corporate Social Responsibility and customer loyalty, brand image, and brand reputation, companies can better identify their weaknesses and, consequently, better understand their customers' needs and take steps toward productivity and performance improvement. Thus, the research question is: Can the CSR of rail transportation companies affect their performance through customer loyalty, brand reputation, and brand image?
Methods: This research is applied in terms of purpose and descriptive and survey in terms of data collection method. The statistical population of this study includes customers of active companies in the railway transportation sector, including the Islamic Republic of Iran Railways (RAI), Raja Passenger Trains, Bonyad Eastern Railway (Ban Rail), and Raad Tabriz, which is very large; therefore, the statistical sample was determined as 384 people based on Cochran's formula. For data collection, questionnaires were used.
Results: Cronbach's alpha for all questions was above 0.7, indicating high questionnaire reliability. Within the inferential statistics framework of this research, first, the Kolmogorov Smirnov test was used to examine data normality; then, to test the research hypotheses, Partial Least Squares Structural Equation Modeling (PLS-SEM) was utilized using Smart-PLS software. The results indicated the adequacy of sampling and the suitability of correlations among the data for factor analysis at a 95% confidence level, and factor loadings for items were calculated above 0.4 and acceptable. The data showed that AVE values for all research constructs were above 0.5. The obtained GOF value was 0.557, indicating a strong model fit. Finally, the path coefficients and significance values (t-values) indicated the confirmation of all hypotheses.
Conclusion: Finally, the hypothesis testing showed that CSR positively affects company performance, customer loyalty, brand reputation, and brand image. Also, customer loyalty, brand reputation, and brand image positively affect company performance. Therefore, suggestions such as collaborating with sales agents and monitoring their performance to create synergy for the fair distribution of services, presenting ethical and charitable plans and programs, and taking actions to address environmental problems are proposed. and their communication efforts, increasing companies' responsible actions towards environmental preservation, ensuring the safety of passengers and goods, offering incentive schemes such as free or discounted services to disadvantaged individuals, as well as implementing programs for underprivileged and low-income segments of society in line with fulfilling philanthropic responsibilities were proposed.
Innovation: The main Innovation of this study lies in proposing an integrated conceptual framework to explain the mechanism through which corporate social responsibility (CSR) affects the performance of railway transportation companies. Unlike most prior studies that have examined the CSR firm performance relationship either directly or through a single mediating variable, the present research simultaneously investigates three key relationship-marketing constructs customer loyalty, brand reputation, and brand image as mediators within a unified causal model.