The impact of corporate social responsibility on organizational performance with the mediating role of employee engagement and green innovation: evidence from the Malaysian banking sector

Abstract

This study aims to examine the direct and indirect effects of corporate social responsibility (CSR) on organizational performance (OP) through the mediating role of employee engagement (EE) and green innovation (GI) in the Malaysian banking sector. Moreover, this study was conducted to empirically investigate a sample of 550 employees affiliated with eight banks in Kuala Lumpur, Malaysia. The research employed the Partial Least Squares Path Modelling (PLS-SEM) technique to obtain the intended results. The findings of this research demonstrate that CSR has a positive and significant impact on OP, EE, and GI. Furthermore, EE is also significantly correlated with OP, while GI is not significantly correlated with OP. On the other hand, EE mediates the relationship between CSR and OP, while the mediating role of GI was not found. This study highlights the importance of CSR programs in promoting EE and encouraging GI. Ultimately, these initiatives affect organizational performance within the banking sector. This study makes a theoretical contribution by investigating the mediating impacts of EE and GI on the relationship between CSR and OP within the banking sector. Moreover, these findings benefit future researchers interested in exploring the banking sector’s performance.