Linking internal corporate social responsibility to organizational commitment: evidence from the banking sector

Purpose Drawing from social exchange theory and organizational support theory, this study aims to shed light on the concerns regarding the contribution of internal corporate social responsibility practices on organizational commitment in the banking sector. Design/methodology/approach The study collected data from 383 employees of Nepalese commercial banks using structured questionnaires. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) to examine the relationships between internal CSR practices and different dimensions of organizational commitment. Findings The structural model assessment confirms that internal CSR practices have a strong positive relationship with affective, continuance and normative organizational commitment. Nonetheless, internal CSR practices provide a stronger explanation for normative and affective commitment than for continuance commitment. Practical implications Banking sector managers can strengthen organizational commitment by implementing internal CSR practices that promote employee well-being while providing strategic benefits to the organization through better employee engagement and retention. Policymakers may consider integrating internal CSR into regulations to improve labor relations and overall business performance, especially in countries like Nepal and India, where CSR regulations are still evolving. Originality/value This research contributes to the literature by using social exchange and organizational support theories to illustrate that, within collectivist cultures, internal CSR practices fostering collective well-being enhance organizational commitment. Additionally, it underscores the crucial role of internal CSR in fostering normative commitment in the banking sector – a topic that remains underexplored in current literature.