The effects of corporate social responsibility on member loyalty: The mediating effect of psychological ownership and customer citizenship behaviour in Korean consumer cooperatives

Abstract

This paper aims to elucidate the relationship between members' perceptions of corporate social responsibility (CSR) within consumer cooperatives, their loyalty towards the cooperatives and the mediating roles of psychological ownership and consumer citizenship behaviour. A sample comprising 773 members of four Korean consumer cooperative federations was constructed and analysed using the structural equation model. In Korea, consumer cooperatives have developed a production and distribution network for eco-friendly organic agricultural products. In addition, they have grown by practicing social responsibility as a primary organizational goal with consumer members. The results show that CSR perceptions have a direct effect on member loyalty, and psychological ownership and customer citizenship behaviour serially mediate the relationship between perceived CSR and member loyalty. This paper provides empirical support for suggestions about the factors influencing member loyalty within consumer cooperatives and the relative importance of non-financial motivations. It also provides a foundation upon which practitioners of cooperatives can build more effective CSR communications strategies with members.