Evaluating the link between Corporate Social Responsibility (CSR) and Employee Engagement: Evidence from Selected Commercial Banks of Bangladesh

Rifat Parveen Bokhari

doi:10.7176/ejbm/11-33-04

Abstract

Now a days, researchers and companies are paying increasing attention to corporate social responsibility (CSR) initiatives. So, theobjective of this article is to evaluate the link between Carroll,’s(1991)pyramid of CSR activities like economic responsibilities , legal responsibilities, ethical responsibilities and philanthropic responsibilities, companies CSR activities and employee engagement. Most of the research work has done on different group of stakeholdersand this article has given concentration on employees. For collecting the data, a survey was done among 350 employees from 10 public commercial banks of Bangladesh. For analyzing the data, the study has used Confirmatory Factor Analysis and Structural Equation Model to test the goodness of fit and path co-efficient to assess the hypothesis. The result of the analysis suggest that economic responsibilities, legal responsibilities, ethical responsibilities and philanthropic responsibilities are positively associated with company’stotal CSR activities and company’s CSR activities are positively related with employee engagement. This studyhas done on tenconventional banks of Bangladesh which are performing their CSR operations very strongly;therefore, future research can be done on extended number of banks or other companies. This article could help the business executives to engage their employees by giving emphasize ontheir CSRprograms. So, companies can increase their CSR activities to engage talent pool for achieving competitive advantage. Keywords: Company’s total Corporate Social Responsibility (CSR), EmployeeEngagement,Economic Responsibilities, Legal responsibilities, Philanthropic responsibilities, Ethical responsibilities, Social IdentityTheory, Commercial Banks. DOI : 10.7176/EJBM/11-33-04 Publication date: November 30 th 2019

Highlights

Introduction Corporate SocialResponsibility has gained increasing consideration by the different researcher (Lee, Kim, Lee, and Li, 2012) and it becomes a prevalent concept in the global research and market place (Carroll and Shabana, 2010). Rahman (2013) said that banking area is playing the most important part to make draw on corporate social responsibility (CSR) as a link between business and development and it is proved that banks’ CSR programmes are their significant involvement to development of the society
There are 62 banks in Bangladesh operating their business and these is one big challenge of management to engage their talent pool for betterment of the organization. From this empirical study on private commercial banks employees of Bangladesh,the findings showed that economic responsibilities, legal responsibilities, ethical responsibilities, and philanthropic responsibilities are positively associated with company’stotal CSR initiatives.Aguilera, et al, (2007) stated that organizations alliedwith in total social responsibilities are accepted as fair organization.From the first hypothesis,it has found that companies CSR activities is influenced by philanthropic activities of an organization
CSR is playing a significant role for creating organization reputation, brand values, employee shield, and that motivated employees to engage them in the organization

Summary

Introduction

Introduction Corporate SocialResponsibility has gained increasing consideration by the different researcher (Lee, Kim, Lee, and Li, 2012) and it becomes a prevalent concept in the global research and market place (Carroll and Shabana, 2010). Rahman (2013) said that banking area is playing the most important part to make draw on CSR as a link between business and development and it is proved that banks’ CSR programmes are their significant involvement to development of the society. Rahman (2013) said that banking area is playing the most important part to make draw on CSR as a link between business and development and it is proved that banks’ CSR programmes are their significant involvement to development of the society. He said programs and practices of CSR by the bank improve the standard and transfigure the socially actions. To enhance and attract human resource, companies are turning for conception different strategic programs to engage and to create committed workers (Ologbo and Sofian, 2013). Bakker and Schaufeli, (2004) defined that work engagement is a state of mind that is work related fulfilling and positive environment

Objectives

Discussion

Conclusion