Corporate social responsibility initiatives and organisational performance: a mediation study through employee motivation and employee loyalty

Purpose This study aims to investigate the relationship between corporate social responsibility (CSR) initiatives and their impact on organisational performance. This study also aims to test the mediation effect of employee motivation and loyalty. Design/methodology/approach This study collected data from 384 banking employees from the Pakistan (AJK) region through structured questionnaires. The sampling technique used in this study is convenience sampling, and the sample size was calculated using Cochran’s method. Furthermore, data analysis was conducted using smart-PLS v.4. Findings This study showed that CSR initiatives have a significantly positive relationship with organizational performance. Findings also confirmed the mediation effect of employee motivation and employee loyalty. Originality/value This study contributed to the literature on CSR initiatives and their impact on organisational performance in the banking industry. Likewise, this study tested employee motivation and loyalty as mediators between CSR initiatives and organisational performance in the banking sector. Furthermore, this study makes a valuable addition to the banking literature along with the expansion of resource-based view and social identity theory.