CSR Initiatives Influence on Employees’ Commitment: Case of Bagrain’ Islamic Banks
CSR Initiatives Influence on Employees’ Commitment: Case of Bagrain’ Islamic Banks

Author(s): Sihem Bouguila
Subject(s): Social Sciences, Economy, Psychology, Business Economy / Management, Social psychology and group interaction, Organizational Psychology, Financial Markets, Human Resources in Economy, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: CSR initiatives; perception; commitment; Islamic banks; sustainable development
Summary/Abstract: Previous research on corporate social responsibility CSR has focused only on the macro-approach which delves into the effects of CSR on the organizational or institutional level. Considering this gap, in the present research, we emphasize the micro-approach which can be used to shed light on the repercussions that CSR can have on employees’ perceptions and behaviors. Particularly, we aim to examine how perceived internal and external CSR actions influence employees' perceptions and commitment in the context of Bahrain’ Islamic banks. This study thus specifically endeavors to identify the impact of CSR initiatives on employees’ commitment and perceptions. The theoretical framework of this paper is based on the stakeholder and social identity theories. Based on a nonprobability sampling method, the model draws on survey data collected from a sample of 50 employees working in Bahrain Islamic banks. Islamic banks were not randomly chosen, as Islamic finance is supposed to achieve the highest degree of worldwide sustainable development goals. Based on the regression analysis, the study found a positive relationship between CSR initiatives and employees’ commitment. The study proves a significant impact of perceived internal CSR (good and fair salary, fair training programs, appropriate workplace, effective incentives, and ethical treatment) on employees’ commitment. The perceived external CSR is also found as a determinant factor of employees’ commitment. Research outcomes will help practitioners and managers to setup more effective CSR strategies to enhance employee’s commitment as well as provide insight into how Islamic finance can reinforce the practice of CSR dimensions in order to ensure sustainable development. This research will contribute positively to the existing CSR literature by providing a clear examination of the importance of internal CSR dimensions while simultaneously extending the knowledge and understanding regarding the impact of internal CSR initiatives on employees’ engagement in the context of Islamic banks.

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