CORPORATE SOCIAL RESPONSIBILITY FOR EMPLOYEE'S COMMITMENT: DOES CORPORATE REPUTATION COUNT?

Corporate social responsibility (CSR) has attracted the attention of scholars and companies. To keep employees committed and to sustain in a competitive business environment, companies need to ensure the retention of its talent and corporate responsible behaviour. Aiming at examining the effect of CSR on corporate reputation and employee's commitment, and the mediating role of corporate reputation in influencing the impact of CSR on employee's commitment in Malaysian banking sector, the study gathered data from randomly selected samples among selected banks' employees through self-administered survey. Using SmartPLS to analyse the formative higher order structural model, this study revealed that for employees to be committed, companies need to focus on behaving more responsibly to the society and environment, rather than other dimensions of CSR. Organization's responsible behaviour also contributed significantly to its reputation development. Surprisingly, being perceived as a reputable organization did not show a significant role in mediating the impact of CSR practices on employee's commitment. Thus, this study confirmed that to gain commitment from its employees, looking good is insufficient. The banks, however, need to be worthy by doing good to its stakeholders (C) 2020 Published by European Publisher.