Impact of CSR activities on Organizational Identification (OI) and Job Satisfaction (JS) in Lebanese Commercial Banks

This study examined the impact of CSR activities oriented to employee, customer, and society on the identification and satisfaction of frontline employees in the Lebanese banking sector while comparing the perceptions between Beirut and Beqaa branches. The study adopted a quantitative research approach based on positivist paradigm and subject to verification by hypothetico-deductive reasoning in order to investigate the relationships between employees' perceptions of CSR initiatives, organizational identification and job satisfaction, in Lebanese commercial bank located in Beirut and Beqaa area. A structured questionnaire was used to test the hypotheses and answer the research questions. The target population was the frontline employees of four major Lebanese commercial banks operating in Beirut and Beqaa area. Four-hundred from frontline employees of four major banks branches located in Beirut and Beqaa areas were invited to participate in the study. The final number of usable questionnaires was 214 for frontline employees, with a response rate of 53.5%. The causal relationships for the 3 models (“1”, “1a”, “1b”) were estimated using SEM with latent variables once the validity of the measurement scales were successfully being verified. The software SmartPLS was used for the application of structural equation models with latent variables “PLS-PM”. For model “1”, “1a”, “1b” the findings indicated that some hypotheses were not significantly supported and the impact of CSR on employees differs according to branch location. Nonetheless, no significant differences exist between the employee's perception of Beirut and Beqaa regarding the strong influence of CSR employee on JS and the strong influence of OI on JS. However in Beqaa branches, CSR customer is affecting OI, and CSR society is affecting JS. Thus, this study provided evidences to assess the visibility of CSR activities in the eyes of stakeholders and to identify which domains are to be enhanced in order to set more effective social strategies in organizations to reach the identification and satisfaction of employee. Moreover, implications for decision making and policy making as well as recommendations for future research constitute the end product of this thesis.