Welcome to Metropolitan International University Journals
editor@miu.ac.ug
Metropolitan Journal of Business and Economics

Role of Corporate Social Responsibility (CSR) on Brand Loyalty. A Case of CSR practices and consumer loyalty at Uganda Breweries Limited

Authors: Zikusooka Enock1 , Babirye Shamirah2

Journal: Metropolitan Journal of Business and Economics (MJBE)

Volume/Issue: Volume 5 - Issue 3

Published: 01 Jan 1970


Abstract

Corporate Social Responsibility (CSR) has emerged as a strategic tool for building competitive advantage and enhancing brand loyalty in contemporary business environments. Uganda Breweries Limited (UBL), a subsidiary of East African Breweries Limited and part of the global Diageo group, implemented diverse CSR initiatives spanning environmental sustainability, community development, responsible drinking campaigns, and economic empowerment programs. Understanding how these CSR practices influenced consumer loyalty remained critical for optimizing corporate strategy and social impact. This study employed a cross-sectional survey research design, collecting data from 250 UBL consumers in Kampala using structured questionnaires. Stratified random sampling ensured representation across age groups, gender, and consumption patterns. Data were analyzed using SPSS version 27, employing descriptive statistics, correlation analysis, and multiple regression to examine relationships between CSR dimensions and brand loyalty. Findings demonstrated a significant positive correlation (r = 0.76, p < 0.001) between CSR practices and brand loyalty. Regression analysis revealed that CSR explained 58% of variance in brand loyalty (R² = 0.58). Environmental sustainability initiatives showed the strongest effect (β = 0.42, p < 0.001), followed by community development programs (β = 0.31, p < 0.001) and responsible drinking campaigns (β = 0.24, p = 0.002). Consumers aware of UBL's CSR activities demonstrated 67% higher loyalty scores compared to unaware consumers. Brand trust emerged as a significant mediator (β = 0.48, p < 0.001) in the CSR-loyalty relationship. CSR practices significantly influenced brand loyalty at Uganda Breweries Limited through multiple mechanisms including enhanced brand image, increased trust, emotional connection, and perceived corporate authenticity. Environmental initiatives proved particularly impactful, reflecting growing consumer environmental consciousness. UBL should expand CSR communication strategies, integrate sustainability across operations, develop measurable impact assessment frameworks, strengthen community partnerships, and align CSR with core business values to maximize loyalty benefits.
Keywords

Corporate Social Responsibility, brand loyalty, Uganda Breweries Limited, consumer behavior, environmental sustainability, community development, responsible drinking

Download Full PDF Back