THE NEXUS BETWEEN CSR (SOCIAL, ECONOMIC AND ENVIRONMENTAL) AND CORPORATE REPORTING: MEDIATING ROLE OF ORGANIZATIONAL CULTURE

Abstract

The purpose of this research is to look at the multiple interaction between CSR social economic and environmental factors and corporate Reporting with Organizational culture as a moderator. Based on the data collected from 276 employees working in different banks of the southern region of Khyber Pakhtunkhwa, Pakistan, the research employs a quantitative approach to examine the proposed relationships by employing Structural Equation Modeling (SEM) with Smart PLS. These relate to how every CSR dimension supports Corporate Reporting by displaying transparency and accountability of CSR related activities. Further, mediating role of Organizational Culture is also examined as the variable that can either boost or dampen these relationships. The main recommendations are that Economic CSR has a strong positive impact on Corporate Reporting; and Environmental CSR provides inconclusive results due to practicality issues associated with organizations implementing sustainable programs. Community involvement that is a component of Social CSR also has a significant relationship with Corporate Reporting; this shows that firms engaged in social responsibility cases are more likely to report their CSR responsibilities. The moderating role of Organizational Culture shows that an effective and ethical culture reinforce the effect of CSR on corporate reporting, resulting to accountability and higher stakeholder trust. Hence, the study has important implications for the Pakistan’s banking organizations, encouraging the firms to incorporate the effective CSR practices to increase the transparency and sustainability reporting.

Keyword: CSR social economic and environmental factors, Corporate Reporting, Organizational culture, Mediation, Banking