Moreover, CSR activities may not directly, but rather indirectly
impact firm performance, meaning that possible factors may
mediate impacts of CSR activities on firm performance. According
to the stakeholder theory (Freeman, 1984), CSR activities may
enhance brand image, not only for customers, but also for
employees and other stakeholders. Therefore, such activities can
subsequently enhance customers’ satisfaction, employees’ morale
and retention rates, and relationships with governments. The
purpose of this study is, therefore, two-fold: (1) to examine the
mediating effect of customer satisfaction between CSR activities
and firm performance, and (2) to examine separate impacts of
positive and negative CSR activities on customer satisfaction and
firm performance.