Corporate Social Responsibility Practices and Customer Retention at Airtel Uganda

Abstract

Purpose: This study investigated the relationship between social, economic, ethical, and legal corporate social responsibility practices and customer retention among Airtel Uganda Limited mobile subscribers. Methodology: A descriptive research design was used following a quantitative approach. Data was collected from 336 randomly selected Airtel mobile subscribers from Wakiso district using a self-administered questionnaire. The data was analysed with the help of SPSSv24. The Cronbach’s alpha statistic was tested to establish the reliability of the study instrument and a value above 0.70-threshold was obtained on all constructs. Ethical principles were observed during the process of data collection and reporting. Findings: The study findings revealed the existence of a moderate positive significant relationship between social, economic, ethical, and legal practices and customer retention (r = .513; r = .553; r = .558; r = .573; p<.01) respectively. Collectively, the predictor variables explain 42.9% of the variation in customer retention at Airtel Uganda. Conclusion: It is concluded that corporate social responsibility practices are instrumental to customer retention at Airtel Uganda. Recommendations: It is recommended that Airtel Uganda strengthen its corporate social responsibility activities and ethical practices. There is also a need to strengthen the customer relationship management desk and the business development section to ensure continuous provision of value for money. Contribution: This study contributes to the understanding of how corporate social responsibilities that are an expense to a profit-oriented enterprise can be translated to generate more profits for the enterprise in the form of customer retention, especially in the telecommunications sector.