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

Author

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  • Sohail Ahmad
  • Owais Shafique
  • Warda Najeeb Jamal

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.

Suggested Citation

  • Sohail Ahmad & Owais Shafique & Warda Najeeb Jamal, 2020. "Impact of Perceived Corporate Social Responsibility on Banks’ Financial Performance and the Mediating Role of Employees’ Satisfaction and Loyalty in Pakistan," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 6(3), pages 765-774, September.
  • Handle: RePEc:src:jafeec:v:6:y:2020:i:3:p:765-774
    DOI: http://doi.org/10.26710/jafee.v6i3.1361
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    Cited by:

    1. Ali Junaid Khan & Asifa Jahangir & Waseem Ul Hameed & Jawad Iqbal, 2022. "Effective Management: A Catalyst for Organizational Performance," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 4(2), pages 154-163, june.

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