Corporate Social Responsibility and Perceived Financial Performance: Mediating Roles of Employee Engagement and Green Creativity in Saudi Banking

Aida Osman Abdalla Bilal, Shadia Daoud Gamer (), Randa Elgaili Elsheikh HamadElniel, Rola Hussain Jawadi, Mohammad Zaid Alaskar and Azzah Saad Alzahrani
Additional contact information
Aida Osman Abdalla Bilal: Department of Accounting, College of Business Administration, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia
Shadia Daoud Gamer: Department of Finance, Collage of Business, Imam Mohammad Ibn Saud Islamic University, Riyadh 11623, Saudi Arabia
Randa Elgaili Elsheikh HamadElniel: Administrative Science Program, Applied College, Princess Nourah bint Abdulrahman University, Riyadh 11671, Saudi Arabia
Rola Hussain Jawadi: Department of Accounting, College of Business Administration, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia
Mohammad Zaid Alaskar: Department of Accounting, College of Business Administration in Hawtat bani Tamim, Prince Sattam bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia
Azzah Saad Alzahrani: Department of Accounting, College of Business Administration, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia

Sustainability, 2025, vol. 17, issue 21, 1-25

Abstract: This research examines the relationship between corporate social responsibility (CSR) and perceived financial performance (FP) in the Saudi Arabian banking industry using the mediating variables of employee engagement (EE) and green creativity (GC). This study is based on the Social Identity Theory and considers CSR as an engine to produce ethical and social results and promote environmental innovation and sustainable competitiveness. According to a survey of 650 banking employees and structural equation modeling (SEM), the results show that CSR significantly and positively affects EE, GC, and FP, with EE having the strongest mediating role. These conclusions highlight the strategic consequence of CSR in advancing sustainability by balancing financial performance, employee welfare, and environmental innovation. This study adds value to the existing body of research because it provides information on the CSR-FP relationship in a developing economy, where such information is scarcely available. Consistent with the definition of sustainability, this study indicates how CSR activities combine social, environmental, and economic aspects to foster long-term organizational sustainability and sustainable development.

Keywords: financial performance; corporate social responsibility; green creativity; employee engagement; social identity theory; Saudi banking sector (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:21:p:9753-:d:1785222

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