Corporate social responsibility impact on corporate commitment to climate change actions and sustainable performance perception of employees in Bangladeshi banking sector
This study aims to investigate the impact of Corporate Social Responsibility and stakeholders’ orientation (CSR) on sustainable performance based on the perception of employees in the Bangladeshi banking sector. This study also fills the research gap on the relationship between CSR and organizational performance by revealing specific and novel evidence that may account for the variability in earlier study outcomes incorporating seven dimensions of climate change actions. A self-administered closed-ended questionnaire was used to survey 270 respondents from Islamic Shariah banks, conventional private commercial banks, and state-owned commercial banks in Dhaka city. The data was collected through non-probability sampling, specifically convenience sampling. Descriptive statistics were analyzed through SPSS, while inferential statistics were conducted through Smart-PLS.
The study found that Corporate Social Responsibility (CSR) influences sustainable performance perception among Islamic bank employees but not in private and state-owned banks in Bangladesh. CSR orientation positively influences climate change actions in banks, with varying dimensions. Stakeholder orientation affects climate change actions, but only in Islamic banks. The study also revealed that there is no mediating effect of climate change actions between CSR and the sustainable performance perception of employees for sustainable practices in Islamic banks and state-owned banks. The mediating effects of four dimensions of climate change actions found in private commercial banks. There is no mediating effect of the seven dimensions of climate change actions between stakeholders and the performance perception of employees relating to sustainable practices in all banks.
The study emphasizes the importance of CSR as a driver of corporate commitment to climate change strategies, offering insight into the subtle dynamics that underpin employees’ view of sustainable performance from the strategic and stakeholder’s theoretical perspectives. In practice, the findings give significant direction for Bangladeshi financial institutions and beyond, providing a novel framework for fostering a culture of sustainability
- School of Management