The effect of corporate social responsibility on organizational commitment of employees of rural and community banks in Ghana

Abstract

Researchers have mostly focused on the effect of corporate social responsibility engagement on customer behaviour. In this paper, an attempt is made at assessing the effect of corporate social responsibility engagement on employee commitment to their organizations. A self-reported questionnaire was used to collect the data from 145 employees of 50 Rural and Community Banks (RCBs) across Ghana. The study found a strong positive relationship between engagement in corporate social responsibility and employee commitment. Engagement in corporate social responsibility explained 54.1% of the total variation on employee commitment. However, this relationship is insignificant when educational level and years of working with the bank is controlled for. Gender however does not confound this relationship. This must inform decision-making regarding the planning and implementation of CSR strategies in organizations. It is acknowledged that having particular concern for the welfare of employees will boost the employee’s commitment and by extension, their performance and ultimately the growth of the Organization.