Impact of Perceived Corporate Social Responsibility on Banks’ Financial Performance and the Mediating Role of Employees’ Satisfaction and Loyalty in Pakistan

Sohail Ahmad, Owais Shafique and Warda Najeeb Jamal

Journal of Accounting and Finance in Emerging Economies, 2020, vol. 6, issue 3, 765-774

Abstract: Inspired by the global increase in awareness of corporate social responsibility (CSR), this paper is an attempt to explore the influence of CSR on bank employees’ satisfaction and loyalty and banks’ financial performance. It was assumed there could be differences in the perception of CSR among employees toward the CSR initiatives being undertaken by the banks they work for. Employees’ level of awareness and extent of involvement with various CSR activities could affect their satisfaction and loyalty. This study used regression analysis for hypothesis testing. Its findings reveal that CSR positively affects employee satisfaction and loyalty as well as banks’ financial performance; employee satisfaction positively affects employee loyalty; and employee loyalty positively affects banks’ financial performance. Hence, bank management should focus on CSR from the perspective of employees to contribute to employee satisfaction and loyalty, and ultimately, to enhanced financial performance. Suggestions and inferences for future research and banking sector practices are suggested based on these results.

Keywords: Corporate Social Responsibility; Employee Satisfaction; Employee loyalty; Financial Performance; Serial and Partial Mediation (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/1361/960 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:6:y:2020:i:3:p:765-774

DOI: 10.26710/jafee.v6i3.1361

Access Statistics for this article

More articles in Journal of Accounting and Finance in Emerging Economies from CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan Contact information at EDIRC.
Bibliographic data for series maintained by Rabia Rasheed ().