Investigating the effect of Banks' Corporate Social Responsibility on Brand Trust: Considering the Mediating Role of Brand Personality and Brand Image

Due to high competition in banking industry, banks increasingly show interest in corporate social responsibility (CSR) measures since it leads to increased profitability, increased customer loyalty, higher rate of trust, and positive attitudes towards the brand of banks. The present study investigated the effects of various aspects of CSR, namely economic, legal, ethical, and philanthropic variables on brand personality, symbolic and performance images, and finally brand trust in banking industry.

A sample of 385 Melli Bank customers were surveyed through a questionnaire. Structural equation modeling (SEM) was also employed to test the hypotheses.

The results showed a positive relationship between three out of four aspects of CSR (except for philanthropic aspect) and brand trust. Furthermore, the results lent support to the mediating role of brand personality and brand image,  including symbolic and performance images. In particular, the bank’s brand personality had a significant impact on its symbolic and performance brand images which in turn had a positive effect on Bank Melli’s brand trust.

CSR positively influences banks’ brand personality that can lead to brand trust and improved brand image.