Effect of Corporate Social Economic Responsibility on Customer Loyalty: A Survey of Telecommunication Firms in Uasin Gishu County, Kenya

Corporate Social Responsibility (CSR) has been used by many companies to gain public confidence through providing essential commodities of some high value to a customer, particular in telecommunication industry where only one mobile operator has dominated the market share for the last one decade. The study objective was to determine the effect of economic responsibility on customer loyalty. Carroll model and Stakeholder theory were used to explaining the study. The study employed an explanatory research design. The study targeted all customers of telecommunication companies in Uasin Gishu County. Stratified sampling was used to group the population while the systematic sampling technique was used to obtain 400 customers. A structured questionnaire was used for data collection. The reliability of the questionnaire was checked using Cronbach Alpha test. Data was purely quantitative. Data collected were coded and analyzed using both descriptive and inferential statistics. The study found that economic responsibilities positively affect customer loyalty. It was therefore affirmed that mobile firms providing telecommunication services with higher levels of the economic initiative are likely to enhance customer loyalty towards their products. It’s therefore important for telecommunication firms to provide quality services to the society, Produce ecologically sound services and employ recruitment policies that favor the local communities in which it operates. Telecommunication firms should engage in economic responsibilities in order to create a positive attitude on their customers to enhance loyalty