The Mediation Effect of Customer Satisfaction in the Relationship between CSR and Financial Performance: An Empirical Study in Large Companies in Serbia

Marko Aleksić, Branimir Kalaš (), Nenad Đokić, Nikola Milićević and Nemanja Berber
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Marko Aleksić: Faculty of Economics in Subotica, University of Novi Sad, Segedinski put 9-11, 24000 Subotica, Serbia
Branimir Kalaš: Faculty of Economics in Subotica, University of Novi Sad, Segedinski put 9-11, 24000 Subotica, Serbia
Nenad Đokić: Faculty of Economics in Subotica, University of Novi Sad, Segedinski put 9-11, 24000 Subotica, Serbia
Nikola Milićević: Faculty of Economics in Subotica, University of Novi Sad, Segedinski put 9-11, 24000 Subotica, Serbia
Nemanja Berber: Faculty of Economics in Subotica, University of Novi Sad, Segedinski put 9-11, 24000 Subotica, Serbia

Sustainability, 2024, vol. 16, issue 18, 1-15

Abstract: Although corporate social responsibility (CSR) can be examined from the point of view of the fundamental philosophy of business and society, many companies focus solely on profit. The main goal of this research is the investigation of the relationship between CSR and organizational financial performance, and the role of customer satisfaction in the proposed relationship. To investigate the proposed relationships, PLS–SEM analysis was performed using the statistical software Smart PLS. The sample used for this study consists of 165 large companies that operate in the Republic of Serbia, each with more than 250 employees (large organizations). The obtained results showed that in companies in Serbia, there is a positive and statistically significant relationship between CSR and customer satisfaction and a positive but statistically insignificant relationship between CSR and financial performance. Regarding the mediating role of customer satisfaction in explaining the relationship between CSR and financial performance, a positive full mediation relationship was found. Theoretical and managerial implications are also provided.

Keywords: corporate social responsibility; financial performance; customer satisfaction; Republic of Serbia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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