The Role of CSR and Ethical Leadership to Shape Employees’ Pro-Environmental Behavior in the Era of Industry 4.0. A Case of the Banking Sector

Qiang Wu,Ubaldo Comite,Muhammad Safdar Sial,Sarminah Samad,Judit Oláh,Huajie Hu,Jacob Cherian,Stefan B Gunnlaugsson

doi:10.3390/su13179773

Abstract

The phenomenon of corporate social responsibility (CSR) is an ever-evolving concept due to its multidimensionality. However, a plethora of studies have investigated CSR to achieve different organizational-related objectives, and its potential link to shape employee’s extra-role behavior, especially employee pro-environmental behavior (EB) in the era of Industry 4.0, is underexplored in the literature. To bridge this gap, the current study aims to explain the relationship between CSR and EB with the mediating role of ethical leadership (EL) in the banking sector of Pakistan. The data of the current survey were collected (n = 459) from different banking employees within the city of Lahore through a self-administered questionnaire (paper–pencil technique). The hypotheses were validated through the structural equation modeling (SEM) technique in AMOS. The empirical results of the current study confirmed that CSR positively relates to EB, and EL partially mediates this relationship. These findings are helpful for professionals to realize the significance of CSR and EL to shape EB in order to mitigate the environmental footprint of an organization.

Highlights

Corporate social responsibility (CSR) has emerged as a widely recognized business imperative in the service industry [1]
In the context of the financial services sector, CSR is of paramount importance, as studies have shown that socially responsible financial institutions can better position themselves as compared to their rivals
The outcomes of the present survey confirmed that the CSR perception of employees positively influences the pro-environmental behavior of employees serving in different banks of Pakistan in the era of industry 4.0

Summary

Introduction

Corporate social responsibility (CSR) has emerged as a widely recognized business imperative in the service industry [1]. In the context of the financial services sector, CSR is of paramount importance, as studies have shown that socially responsible financial institutions can better position themselves as compared to their rivals. CSR-specific initiatives are undertaken by an organization to earn a belief from all stakeholders that such moves will bring positive results for all stakeholders [2]. From the perspective of the banking sector, it has been reported that employees working for a socially responsible bank are more productive and engaged as compared to the employees of a bank that does not consider. CSR did not receive due attention, various environment-related problems such as global warming and Sustainability 2021, 13, 9773.

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