Investigating the Effect of Green Brand Image on the Ethical Reputation of a Bank: The Mediating Roles of Green Trust and Green Satisfaction (Case of Bank Melli Iran)

Document Type : Original Article

Authors

1 Ms Student, Department of Management, Faculty of Literature and Humanities, Malayer University, Malayer, Iran

2 Associate Professor, Department of Management, Faculty of Literature and Humanities, Malayer University, Malayer, Iran

Abstract

Introduction
Increasing customer awareness of environmental issues has led to a growing demand for green products and services. Environmental concerns are increasingly reflected in individuals’ consumption and purchasing behaviors, motivating consumers to adjust their choices in favor of environmentally sustainable options. As a result, it has become essential for brands to adopt strategies that emphasize environmental preservation as a pathway to green marketing and long-term profitability. The adoption of green approaches is widely perceived as a socially responsible strategy that demonstrates an organization’s commitment to corporate social responsibility while also serving as a benchmark for improving organizational performance. However, implementing effective green strategies remains a challenge for many industries worldwide. In the banking sector, green banking is viewed as a key mechanism for enhancing sustainability and creating a favorable public image. There is a clear conceptual link between green image and corporate image, as organizational activities that affect the natural environment have become a critical determinant of how organizations are perceived. Demonstrating genuine environmental commitment through green initiatives can significantly enhance an organization’s overall corporate image. Accordingly, if Bank Melli Iran strengthens its green brand image, it is likely to positively influence its ethical reputation among environmentally conscious customers. Such a perception can increase customer loyalty and attract new customers who share similar values. Moreover, a strong ethical reputation can enhance the bank’s overall performance and competitive position. Therefore, this study seeks to examine the effect of green brand image on the ethical reputation of the bank, with green trust and green satisfaction serving as mediating variables, in order to provide insights into how green branding can enhance banks’ ethical standing.
 
Methodology
This study is applied in terms of purpose and survey-based in terms of methodology. Based on the nature of the data, it follows a quantitative research design. The statistical population consists of all customers of Bank Melli Iran in Hamadan Province. Given the large population size, it was considered unlimited, and Cochran’s formula for unlimited populations was used to determine a sample size of 384 respondents at a 95% confidence level. Data were collected using an online convenience sampling method, and 384 completed questionnaires were deemed valid for analysis. Data were collected using a structured questionnaire developed based on established scales from prior studies. Green brand image was measured using five items adapted from Chen (2010), ethical reputation using three items from Valenzuela et al. (2010), green trust using five items from Chen (2010), and green satisfaction using six items from Chen (2010). The validity of the questionnaire was assessed through face validity, content validity, and construct validity. Expert evaluations confirmed face and content validity. A pilot study was conducted with 30 bank customers selected through convenience sampling, and reliability was assessed using Cronbach’s alpha coefficient in SPSS software. The alpha values for all constructs exceeded the acceptable threshold of 0.70, indicating satisfactory reliability. Data analysis was performed using Structural Equation Modeling (SEM) with SPSS 24 and SmartPLS 3 software.
 
Findings
The results indicate that green brand image has a significant positive effect on both green customer satisfaction and green customer trust. In turn, green satisfaction and green trust significantly influence the bank’s ethical reputation. Although green brand image does not have a significant direct effect on ethical reputation (p> 0.05), it exerts a significant indirect effect through the mediating roles of green satisfaction and green trust. The findings suggest that banks can enhance their ethical reputation by implementing credible and effective green initiatives aligned with their strategic goals and core values. Such initiatives increase customer satisfaction, attract environmentally conscious customers, and foster trust. In particular, higher levels of green trust lead to a stronger ethical reputation, as customers who trust a bank’s environmental and social responsibility are more likely to perceive it as ethical and value-driven.
 
Discussion and Conclusion
Based on the findings, it can be concluded that green brand image significantly influences the ethical reputation of the bank through the mediating role of green customer satisfaction. Accordingly, a strong green brand image, when translated into customer satisfaction, positively enhances the bank’s ethical reputation. Banks can achieve this by implementing effective green marketing strategies and offering green banking products that meet the expectations of environmentally conscious customers. Furthermore, the results confirm that green brand image also affects ethical reputation through the mediating role of green customer trust. A strong green brand image communicates environmental responsibility and commitment to sustainability, which strengthens customer trust and respect for the bank’s ethical practices. Customers who perceive a bank as genuinely environmentally responsible are more likely to trust it, thereby enhancing its ethical reputation. Banks should therefore prioritize the development of a strong green brand image through integrated marketing and communication channels, including social media, advertising, and public relations. Delivering high-quality green products and services is equally critical, as satisfied customers are more likely to view the bank as ethically responsible. However, banks should avoid superficial green branding without substantive action, as this may undermine ethical credibility and erode customer trust. Overall, the findings demonstrate that green brand image can positively shape a bank’s ethical reputation by fostering green trust and green satisfaction among customers.

Keywords

Main Subjects

References

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Green Development Management Studies
Volume 4, Issue 4 - Serial Number 10
December 2025
Pages 175-198

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  • Receive Date: 22 December 2024
  • Revise Date: 03 February 2025
  • Accept Date: 09 March 2025

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