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Financial performance and corporate social responsibility in the banking sector of Bahrain: Can engagement moderate?

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Article history: Received: April 17, 2019 Received in revised format: April 28 2019 Accepted: May 24, 2019 Available online: May 27, 2019 The present study attempted to understand how financial… Click to show full abstract

Article history: Received: April 17, 2019 Received in revised format: April 28 2019 Accepted: May 24, 2019 Available online: May 27, 2019 The present study attempted to understand how financial performance can be enhanced in the financial sector. Therein, the study worked to find out how Corporate Social Responsibility (CSR) and organizational engagement can be used to predict financial performance. In addition, the study also tested the moderating role of organizational engagement on the relationship between CSR and financial performance. Managerial level employees from seven retail banks in Bahrain were sampled for the present study. The results of the structural equation modelling reported significant impact of CSR on financial performance. Accordingly, the study also reported significant relationship between organizational engagement and financial performance. Notably, the study also reported significant moderation of organizational engagement on the CSR and financial performance relationship. The study forwards notable implications for theory and practice followed by scope for future studies.

Keywords: organizational engagement; performance; social responsibility; study; financial performance; corporate social

Journal Title: Management Science Letters
Year Published: 2019

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