Corporate social responsibility activities, consumers’ trust and gender: an analysis of Islamic banks in Somalia

Mohamud Said Yusuf · Khadar Ahmed Dirie · Md. Mahmudul Alam · Isyaku Salisu

10 citations0/0 files storedSocial Responsibility Journal

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Islamic Finance and Banking Studies Customer Service Quality and Loyalty Corporate Social Responsibility Reporting

Abstract

Purpose The purpose of this study is to investigate the link between corporate social responsibility (CSR) and the amount of trust customers have in Somali Islamic banks. Furthermore, the role of gender in CSR activities and Islamic bank clientele is evaluated. Design/methodology/approach Throughout February and March 2022, 410 clients of Islamic banks in Somalia were surveyed using a questionnaire. The partial least squares approach and the structural equation model are applied to examine the data. Findings Findings indicate that all variables of CSR activities, such as social product, social legal, social needs, social environment and social employees’ responsibility, are influential and significant predictors of trust in Islamic banks in Somalia. Gender inequalities moderate the relationship between social product, social needs, social environment, social employee and trust. Conversely, only social legal responsibility was unaffected by gender differences in Somalia regarding people’s trust in Islamic banks. Practical implications A sample from a developing country such as Somalia is useful for shedding light on the outcomes of consumers’ perceptions of and trust in businesses’ CSR in the developing world. Furthermore, this study contributes to knowledge regarding CSR and how it can help the Islamic banking industry. Its findings will be useful to policymakers and regulatory bodies in the banking industry in their efforts to improve CSR. Originality/value To the best of the authors’ knowledge, this study is the first empirical investigation of its kind about the understudied relationship among customer trust, CSR efforts and gender in Somalia context. Furthermore, it investigates how gender specifically moderates CSR in the Islamic banking sector in a developing country.

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