Cooperative Social Responsibility: The Gap Model Approach and Empirical Derivation to Members' Satisfaction

Purpose - This research is to identify the Koop Guru's members' satisfaction magnitude over its CSR schemes. If this research comes out with a positive result, this may signify the most influential impact of Koop Guru's CSR activities or scheme in Kota Bharu Kelantan Malaysia towards its member's welfare. Design/methodology/ approach - This study is quantitative in nature using the responses of 30 cooperative customers/ members who answered a survey questionnaire on a face to face basis. Findings - The results of the study demonstrate how corporate social responsibility (CSR) schemes influence customer satisfaction and also examine CSR's impact on membership growth and brand loyalty. The study's hypothesized relationships were principally supported, i.e. company's offerings and customers/ members expectations are positively associated with members' satisfaction mediated by membership growth and loyalty. CSR schemes play an important role in customer/ members satisfaction, which in turn, influences trust and brand effect. Research limitations/ implications - While the results are clear and have strong salience to the cooperative industry in Malaysia, applications of the findings beyond Malaysia should take into account other factors such as the nature of co-operative industry, the perception, behavior and demographics of co-operative customers as well as the strategic focus of co-operative toward CSR. Practical implications - This study provides a set of findings relating to CSR schemes initiatives and perception of customers/ members satisfaction towards building loyalty and satisfaction. Originality value - This paper exhibits an empirical derivation of CSR schemes initiatives measured from customers/ members' point of view, and is expected to be a benchmark for other cooperatives in Malaysia to learn about cooperative strategy development and customers/ members' retention.