Howard R. Bowen's Corporate Social Performance Theory

2.0 LITERATURE REVIEW
This chapter will review literature relevant to the study; specifically it will look at Theories and empirical studies. These theories include instrumental or descriptive theories and normative or prescriptive theories according to Donaldson and Preston (1995) while the empirical literature will be on corporate social responsibility, organization performance, organization reputation, corporate image, quality of services and customer retention.
2.1 Corporate Social Performance
Corporate Social Performance (CSP) theory has evolved from several previous notions and approaches.
Its root can be found in Howard R. Bowen (1953), who explained that social responsibility of businessmen was to pursue those policies, to make

Cheruiyot (2010) carried out a research to establish the relationship between corporate social responsibility and financial performance of firms. His conclusion was that there was a statistically significant relationship between CSR and organization performance. Li X., (2009) measured different corporations in China on an assessment index system and found that organization with higher scores have high financial performance.
Obusubiri (2006) in a study on CSR and portfolio performance also found a positive relationship between CSR and portfolio performance. He attributed this positive relationship to good corporate image that comes with CSR making investors prefer such companies. The good CSR behavior has a reputational benefit for the company.
2.7 Customer satisfaction and retention
Customer satisfaction is a communal outcome of the customer's perception, evaluation, and psychological reaction to consumption experience with product or service. According to a research carried out by Nevine, Sobhy, Abdel and Megeid (2013)Customer satisfaction is a post purchase attitude formed through mental comparison of the quality a customer expects to receive from an exchange, and the level of quality the customer perceives actually

Marketing studies focused on customer satisfaction with physical products and services delivered through channels according to Khalifa and Liu (2002).Customer satisfaction leads to faster market penetration and in turn, to accelerated cash flows and likely acts as underlying mechanism by which customers’ satisfaction affects shareholder value in any industry according to Eugene et al (2003). Communication is vital to any organization in that good communication leads to no deficit or gap between the company and the public there by creating a positive image, this leads customer retention. Many studies explained that customer satisfaction can lead to brand loyalty and repurchase intention. Wang et al., (2004) investigated that customer satisfaction that has a positive result on brand loyalty. Accordingly, Kim et al., (2008) related that customer satisfaction positively influences brand loyalty. Satisfaction occurs as a result of performance of a product or services meets purchaser expectation. Ganesan (1994) proposed that satisfaction is a positive affective reaction to an outcome of a prior