Ethical leadership and firms’ sustainability: mediating role of corporate social responsibility in Pakistan’s banking sector
DOI:
https://doi.org/10.15649/2346030X.3801Palabras clave:
firms’ sustainability, ethical leadership, corporate social responsibility, banking sectorResumen
The sustainability of businesses has emerged as a pressing concern in the competitive landscape. To tackle this issue, the present study aims to explore the role of ethical leadership in determining the sustainability of private banking institutions in Pakistan, with corporate social responsibility (CSR) serving as the mediator. The research utilized data from 232 middle and upper-level private bank employees in Pakistan. The statistical tools SPSS and SmartPLS were employed for data analysis, and a structural equation model was used to test the study hypotheses. The findings indicate a positive and significant impact of ethical leadership on firms' sustainability. Furthermore, CSR significantly and positively mediates the relationship between ethical leadership and firms' sustainability. This study provides valuable insights into the fields of organizational behavior, leadership, and sustainable business practices. The results shed light on the mechanisms through which ethical leadership influences CSR practices and the sustainability of private banking institutions in Pakistan. The study has implications for policymakers, practitioners, and academic researchers to promote sustainable and socially responsible business practices in the private banking sector of Pakistan.
Referencias
T. T. Le and M. Ikram, "Do sustainability innovation and firm competitiveness help improve firm performance? Evidence from the SME sector in vietnam," Sustainable Production and Consumption, vol. 29, pp. 588-599, 2022.
F. Khitous, A. Urbinati, and K. Verleye, "Product-Service Systems: A customer engagement perspective in the fashion industry," Journal of Cleaner Production, vol. 336, p. 130394, 2022.
U. A. Agarwal, M. Gupta, and F. L. Cooke, "Knowledge hide and seek: Role of ethical leadership, self-enhancement and job-involvement," Journal of Business Research, vol. 141, pp. 770-781, 2022.
K. Arar and A. Saiti, "Ethical leadership, ethical dilemmas and decision making among school administrators," Equity in Education & Society, vol. 1, no. 1, pp. 126-141, 2022.
W. A. Alkhadra, S. Khawaldeh, and J. Aldehayyat, "Relationship of ethical leadership, organizational culture, corporate social responsibility and organizational performance: a test of two mediation models," International Journal of Ethics and Systems, vol. 39, no. 4, pp. 737-760, 2022.
A. Issa, M. A. Zaid, J. R. Hanaysha, and A. A. Gull, "An examination of board diversity and corporate social responsibility disclosure: evidence from banking sector in the Arabian Gulf countries," International Journal of Accounting & Information Management, vol. 30, no. 1, pp. 22-46, 2022.
L. K. Rojas Molina, J. Á. Pérez López, and M. S. Campos Lucena, "Meta-analysis: associated factors for the adoption and disclosure of CSR practices in the banking sector," Management Review Quarterly, vol. 73, no. 3, pp. 1017-1044, 2023.
L. Torkkeli and S. Durst, "Corporate social responsibility of SMEs: Learning orientation and performance outcomes," Sustainability, vol. 14, no. 11, p. 6387, 2022.
R. Ang, Z. Shao, C. Liu, C. Yang, and Q. Zheng, "The relationship between CSR and financial performance and the moderating effect of ownership structure: Evidence from Chinese heavily polluting listed enterprises," Sustainable Production and Consumption, vol. 30, pp. 117-129, 2022.
D. C. Amisano, "The relationship between ethical leadership and sustainability in small businesses," Walden University, 2017.
H.-E. Al Issa and M. M. S. Omar, "Digital innovation drivers in retail banking: the role of leadership, culture, and technostress inhibitors," International Journal of Organizational Analysis, vol. 32, no. 11, pp. 19-43, 2024.
I. Ullah, B. Mirza, and R. M. Hameed, "Understanding the dynamic nexus between ethical leadership and employees’ innovative performance: The intermediating mechanism of social capital," Asian Journal of Business Ethics, vol. 11, no. 1, pp. 45-65, 2022.
S. M. Isa and C. K. Loke, "Effect of Ethical Leadership of Company’s CSR on Employee CSR Engagement in the Era of Digital Industry Revolution," KnE Social Sciences, pp. 666–686-666–686, 2019.
S. Castro-González, B. Bande, and P. Fernández-Ferrín, "Responsible leadership and salespeople’s creativity: the mediating effects of CSR perceptions," Sustainability, vol. 11, no. 7, p. 2053, 2019.
M. Changar and T. Atan, "The role of transformational and transactional leadership approaches on environmental and ethical aspects of CSR," Sustainability, vol. 13, no. 3, p. 1411, 2021.
L. Shanyu, "Corporate social responsibilities (CSR) and sustainable business performance: evidence from BRICS countries," Economic research-Ekonomska istraživanja, vol. 35, no. 1, pp. 6105-6120, 2022.
S. Franzoni, H. Sarwar, and M. I. Ishaq, "The Mediating Role of HRM in the Relationship between CSR and Performance in the Hospitality Industry," Sustainability, vol. 13, no. 24, p. 13699, 2021.
P. K. Dey, C. Malesios, D. De, P. Budhwar, S. Chowdhury, and W. Cheffi, "Circular economy to enhance sustainability of small and medium sized enterprises," in Supply chain sustainability in small and medium sized enterprises: Routledge, 2022, pp. 10-45.
O. Fatoki, "Ethical leadership and sustainable performance of small and medium enterprises in South Africa," Journal of Global Business and Technology, vol. 16, no. 1, pp. 62-79, 2020.
S.-W. Kang, "Sustainable influence of ethical leadership on work performance: Empirical study of multinational enterprise in South Korea," Sustainability, vol. 11, no. 11, p. 3101, 2019.
S. Castro-González, B. Bande, P. Fernández-Ferrín, and T. Kimura, "Corporate social responsibility and consumer advocacy behaviors: The importance of emotions and moral virtues," Journal of cleaner production, vol. 231, pp. 846-855, 2019.
G. C. Banks, T. Fischer, J. Gooty, and G. Stock, "Ethical leadership: Mapping the terrain for concept cleanup and a future research agenda," The Leadership Quarterly, vol. 32, no. 2, p. 101471, 2021.
J. Barney, "Firm Resources and Sustained Competitive Advantage," (in English), Journal of Management, vol. 17, no. 1, pp. 99-120, Mar 1991, doi: 10.1177/014920639101700108.
J. Choi, "Regional Influences on Responsible Behaviours of Business Organizations," 2021.
L. Brandao-Marques, R. Correa, and H. Sapriza, "Government support, regulation, and risk taking in the banking sector," (in English), Journal of Banking & Finance, vol. 112, p. 105284, Mar 2020, doi: 10.1016/j.jbankfin.2018.01.008.
M. A. Moliner, D. M. Tirado, and M. Estrada-Guillén, "CSR marketing outcomes and branch managers' perceptions of CSR," (in English), International Journal of Bank Marketing, vol. 38, no. 1, pp. 63-85, 2020, doi: 10.1108/Ijbm-11-2018-0307.
M. A. Suleiman, "The impact of tourism supply chain on sustainable performance in sub-Saharan Africa: evidence from Tanzania," Management of Environmental Quality: An International Journal, vol. 34, no. 2, pp. 492-510, 2023.
M. E. Brown, L. K. Treviño, and D. A. Harrison, "Ethical leadership:: A social learning perspective for construct development and testing," (in English), Organizational Behavior and Human Decision Processes, vol. 97, no. 2, pp. 117-134, Jul 2005, doi: 10.1016/j.obhdp.2005.03.002.
R. Currás‐Pérez, C. Dolz‐Dolz, M. J. Miquel‐Romero, and I. Sánchez‐García, "How social, environmental, and economic CSR affects consumer‐perceived value: Does perceived consumer effectiveness make a difference?," Corporate Social Responsibility and Environmental Management, vol. 25, no. 5, pp. 733-747, 2018.
J. Hulland, "Use of partial least squares (PLS) in strategic management research: A review of four recent studies," Strategic management journal, vol. 20, no. 2, pp. 195-204, 1999.
C. Fornell and D. F. Larcker, "Structural equation models with unobservable variables and measurement error: Algebra and statistics," ed: Sage Publications Sage CA: Los Angeles, CA, 1981.
J. Henseler, C. M. Ringle, and M. Sarstedt, "A new criterion for assessing discriminant validity in variance-based structural equation modeling," Journal of the academy of marketing science, vol. 43, pp. 115-135, 2015.
Descargas
Publicado
Cómo citar
Número
Sección
Altmetrics
Descargas
Licencia
Derechos de autor 2024 AiBi Revista de Investigación, Administración e Ingeniería
Esta obra está bajo una licencia internacional Creative Commons Atribución 4.0.
La revista ofrece acceso abierto bajo una Licencia Creative Commons Attibution License
Esta obra está bajo una licencia Creative Commons Attribution (CC BY 4.0).