Influence of Corporate Social Responsibility on Customer Loyalty and Sustainability in Pothys Textiles

Abstract

This study examines the influence of Corporate Social Responsibility (CSR) on customer loyalty and sustainability in Pothys Textiles. The research investigates how CSR initiatives, such as environmental sustainability, community development, and employee welfare, impact customer loyalty and perceived sustainability. The findings suggest that CSR plays a significant role in shaping customer loyalty and sustainability perceptions, highlighting the importance of integrating CSR into business strategies.

Introduction

Pothys Textiles, a leading Indian textile retailer, has actively implemented Corporate Social Responsibility (CSR) initiatives focusing on sustainable manufacturing, community development, and environmental conservation. In the textile industry—often criticized for its environmental and social impact—CSR is becoming essential for building customer loyalty and achieving sustainability.

Research Problem

Despite CSR's growing importance, there is limited research on:

• The impact of Pothys’ CSR efforts on customer loyalty and sustainability.

• How CSR influences customer perception and brand connection in Pothys’ context.

Scope of the Study

The study focuses on:

• The relationship between CSR, customer loyalty, and sustainability at Pothys.

• Identifying key CSR initiatives driving these outcomes.

• Providing insights relevant to the textile sector.

Objectives

1. Explore CSR’s link to sustainability at Pothys.

2. Assess the impact of CSR on customer loyalty.

3. Identify key CSR drivers of loyalty and sustainability.

4. Measure customer awareness and perception of CSR.

5. Analyze how CSR influences brand perception and loyalty.

Methodology

• Design: Descriptive research

• Data Sources: Primary and secondary

• Sampling: Snowball method, 150 respondents

• Location: Coimbatore (Pothys store)

• Tools: Percentage analysis, correlation, ranking, chi-square, ANOVA

Limitations

• Findings are limited to Coimbatore and may not be generalized.

• Dependent on primary data, which has inherent constraints.

Review of Literature Highlights

• Sharma & Jain (2019): CSR improves brand loyalty and trust in consumers.

• Rao (2021): CSR enhances sustainability through ethical sourcing and waste reduction.

• Deshmukh (2018): CSR builds emotional connections, strengthening customer loyalty.

Conclusion

The study explored the role of Corporate Social Responsibility (CSR) initiatives at Pothys Textiles and their impact on customer loyalty and sustainability. The findings indicate that while CSR is an essential aspect of modern business strategy, its influence on customer behavior varies.Although awareness of CSR initiatives does not strongly influence shopping decisions, customers who recognize and appreciate these efforts tend to exhibit higher levels of loyalty. Furthermore, CSR programs focusing on social welfare, education, and health received the highest customer preference, highlighting the importance of community-driven initiatives. However, the weak correlation between CSR and loyalty suggests that other factors, such as product quality and pricing, play a more significant role in customer retention.

References

[1] Khan et al. (2021), Published in the Journal of Sustainable Production and Consumption, Volume-25, January 2021. [2] Ahmed et al. (2024), Published in the GIRAS Journal of Environmental Management, Volume-4, Issue 2, 2024. [3] Thanigaimani S and Shankar Reddy P (2024), Published in the International Journal of Commerce, Management, Leadership and Law, Volume 1, Issue 1, November 2024. [4] Supriya Chouthoy, Roshan Kazi, Rahul Dass, and Mahima Mishra (2023). Published in the International Journal of Management and Enterprise Development Volume-22, Issue 1, 2023. [5] Ripti Sahu (2024), Published in the Journal of Information and Knowledge Management, Volume-24, Issue 1, March 2024. [6] Rajesh Sharma and Vranda Jain (2019), Published in Metamorphosis: A Journal of Management Research, Volume-18, Issue 1, June 2019. [7] R. Manimalar, S. Sudha, and Fabian Andrew James (2016). Published in the Indian Journal of Management, Volume-9, Issue 32. [8] https://www.camsinfotech.com/pothys-textiles/ [9] https://economictimes.indiatimes.com/company/pothys-cotton-textiles-private-limited/U18101TN1996PTC035928 [10] https://www.pothys.com/pages/about

Copyright

Copyright © 2025 Mr. K. Ponnumani, Ms. P.V. Elakkiya. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.