Corporate Social Responsibility as a Driver of Business Innovation: The Mediating Role of Corporate Reputation on Employee Performance in the Hospitality Sector

In response to escalating societal and environmental expectations, corporate social responsibility (CSR) has evolved into a strategic imperative rather than a voluntary or peripheral activity. This study investigates the effect of employees’ CSR perceptions on job performance, with corporate reputation (CR) examined as a mediating variable. Drawing on Social Identity and Social Exchange Theories, the research explores how CSR, as an element of business innovation and sustainable organizational practices, fosters internal stakeholder engagement and performance enhancement. Data were collected from five-star hotel employees in İstanbul/Türkiye, a service sector context where customer satisfaction is highly dependent on frontline employee behavior. Using PROCESS Macro for SPSS 27, the findings reveal that CSR perceptions significantly and positively influence employee performance both directly and indirectly through the enhancement of CR. This mediating effect underscores the role of CSR not only as an ethical framework but also as an internal mechanism that strengthens employee commitment and output. The study contributes to CSR and the organizational behavior literature by empirically validating that internal CSR perceptions shape strategic outcomes such as employee performance, especially within high-contact service environments. Theoretical implications emphasize CSR’s integrative function in reputation-building and performance systems, while practical insights recommend embedding socially responsible practices into HR and internal communication strategies to achieve sustainable outcomes and societal well-being. These findings offer meaningful contributions to the scope of business innovation by linking CSR with strategic performance indicators in labor-intensive industries.