The Association between Corporate Social Responsibility, Employee Performance, and Turnover Intention Moderated by Organizational Identification and Commitment

Abstract

Corporate social responsibility (CSR) holds increasing significance within Saudi Arabia’s banking sector. By adopting responsible and sustainable practices, banks can not only enhance their financial performance but also bolster the trust and loyalty of their customers. The sector recognizes that high turnover rates and subpar performance can lead to elevated costs and reduced trust in the bank’s services. Consequently, this study aims to investigate how organizational identification and commitment mediate the relationship between CSR, employee performance (EP), and turnover intention (TI). Following a survey with 550 employees, the structural equation modelling technique was applied to test the study’s model and complex relationships. The study assessed 12 hypotheses, 8 of which represented direct relationships, while the remaining 4 explained the mechanisms of the mediating relationships. All of these hypotheses show significant relationships. All variables explained the variance of EP by 42% while explaining the variance of TI by 28%, which had a moderate effect on the dependent variables. The model indicates that values are well constructed and that the model has predictive relevance due to Q2 being above 0. The study’s findings demonstrate that organizational identification and commitment channel the link between corporate social responsibility and employee performance and turnover intention. The study underscores the significance of CSR, organizational identification, and commitment in the Saudi Arabian banking sector. It provides valuable insights for banks to enhance employee performance, reduce turnover intention, and strengthen corporate social responsibility initiatives.