The Inter-Relationship between CSR, Inclusive Leadership and Employee Creativity: A Case of the Banking Sector

Abstract

The stiff situation of competitiveness in every industry has posed some serious challenges for businesses all over the world. Thus, every segment of the business is realizing the importance of creativity to remain alive in a cut-throat competitive environment. However, the banking sector has not received due attention in this regard. To bridge this gap, the current study was carried out to explore the relationship of employees’ perception of corporate social responsibility (CSR) of their bank and employee creativity with the mediating effect of inclusive leadership (IL). The data for the current study were collected from the banking sector of Pakistan through a self-administered questionnaire (n = 533) and were analyzed by using structural equation modeling (SEM) in AMOS. The statistical findings of the current survey validate the direct relationship between CSR and employee creativity. The results also confirm the mediating effect of IL in this relationship. The findings of the current survey will help policymakers from banking institutions to improve their understanding of CSR. Furthermore, these findings will help policymakers to embrace employee creativity as a “new normal” for this sector.