Purpose: The study examines the effect of corporate social
responsibility (CSR) on corporate reputation and organizational performance in
Nigerian banks. Specifically, it investigated the direct impact of CSR on
organizational performance, the influence of CSR on corporate reputation, the
mediating role of corporate reputation, and the effect of CSR on non-financial
performance indicators such as customer loyalty and employee satisfaction. The
aim was to provide insights for enhancing bank performance while promoting
societal and stakeholder value.
Methodology/Design: A quantitative research
design was employed, using a structured questionnaire administered to 340
employees of selected Nigerian banks. Data were analyzed using Structural
Equation Modeling (SEM) with SmartPLS. Reliability and validity were confirmed
through Cronbach’s alpha, composite reliability, average variance extracted,
and expert review.
Findings: The results revealed that CSR positively and
significantly influences corporate reputation (β = 0.64, p < 0.001) and
organizational performance (β = 0.42, p < 0.001). Corporate reputation
partially mediates the CSR–organizational performance relationship (β = 0.27, p
< 0.001), while CSR also significantly improves non-financial performance (β
= 0.46, p < 0.001).
Implications: Nigerian banks
should integrate CSR into core business strategies, engage stakeholders
effectively, and focus on social, environmental, and ethical initiatives to
enhance both financial and non-financial outcomes.
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