How Does Stakeholders Pressure Affect Organization Performance and Employee Wellbeing? Study of Multiple Mediating Roles

Khawaja Khalid Mehmood , Rabia Rasheed and Javeria Jaan

Journal of Business and Social Review in Emerging Economies, 2020, vol. 6, issue 1, 55-68

Abstract: Employee satisfaction and high performance is every organization’s goal. When seen through the lens of stakeholder theory, these goals could be achieved by CSR practices through certain ways. Stakeholder theory affords an initial point to assimilate stakeholder pressure and corporate social responsibility practices. This research studies the effect of pressure from stakeholders over organization performance and wellbeing of employees by including the mediating effect of CSR oriented culture, CSR practices, organizational citizenship behavior, organizational commitment, and organizational trust in Pakistan’s banking sector. The study employs quantitative and cross sectional research design. A sample of 180 banks was studied through employing SmartPLS3.0 software using mediation analyses.The findings reveal that CSR oriented culture mediates between stakeholder pressure and CSR practices; CSR practices affect organization performance through organization citizenship behavior. Further, trust is a partial mediator among CSR practices and wellbeing of employees. Serial mediators play their role between stakeholder pressure and organization performance, and also play a role between stakeholder pressure and employee wellbeing. Implications/Originality/Value: The findings suggest Pakistani banks to acknowledge pressure from all stakeholders, and concentrate on CSR practices for their bank performance and staff wellbeing.

Keywords: Stakeholder Pressure; Corporate Social Responsibility; Employee wellbeing; Organization Performance (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:src:jbsree:v:6:y:2020:i:1:p:55-68

DOI: 10.26710/jbsee.v6i1.1026

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