Corporate social responsibility and organisational performance in a banking institutions

The concept of Corporate Social Responsibility (CSR) has not only risen in significance in its impact and benefits, but have been awarded profound recognition by organisations and literature. Resulting from this, the influence of CSR initiatives have been the topic of constant discussion in relation to the many stakeholder groups that have a vested interest in an organisation. However, most literature have prioritised focus on the influence of CSR on external stakeholders such as customer, shareholders, non-governmental organisations, general public and society at large thus neglecting the importance of engagement of internal group of stakeholders namely, the employees. To date, there is still a lack of attention provisioned towards impact of CSR initiatives on employee engagement leading to organisational performance. This study therefore aimed at enhanced the understanding on the nature and extent of connection between CSR, employee engagement and organisational performance. This study was undertaken in the banking industry with specific focus towards Bank A, which is a member of one of the largest banking groups in Malaysia. In this qualitative study, five respondents have been interviewed and the results provide a greater understanding of the connection between CSR initiatives, employee engagement and organisational performance. The narrative data obtained through the interviews have been analysed using a thematic analysis. The findings obtained, uncover the consequences of an organisation’s CSR initiatives that can influence employee engagement thus resulting in organisational performance, if implemented with transparency and honesty. Additionally, it can also boost an employee’s intrinsic motivation and commitment to contribute in his or her job role towards organisational performance exceedingly. This research includes theoretical and practical contributions for organisational management to recognise the influence and power of CSR initiatives in promoting employee engagement leading to organisational growth and performance