THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON EMPLOYEE ENGAGEMENT IN THE JOINT-STOCK COMMERCIAL BANKING SECTOR IN VIETNAM: THE MEDIATING ROLE OF ORGANIZATIONAL SATISFACTION

This research investigates how internal and external corporate social responsibility (CSR) influence organizational satisfaction (OS) and employee engagement (EE) in the banking sector. Grounded in Social Identity Theory, Social Exchange Theory, and Stakeholder Theory, it develops and tests a mediation model to explain the psychological mechanisms linking CSR to EE. Data from 559 employees in Vietnamese joint-stock commercial banks were analyzed using structural equation modeling. The results show that internal CSR (ICSR), external CSR (ECSR) positively and significantly affect OS and EE. In addition, OS is positively associated with EE and partially mediates the relationships between both CSR dimensions and engagement. This indicates that employees’ satisfaction functions as a key psychological pathway through which CSR initiatives enhance engagement. The effect of ECSR on employee outcomes is stronger when supported by effective internal CSR practices, highlighting a complementary interaction between the two dimensions. The research contributes to the CSR and organizational behavior literature by showing that employees clearly differentiate between ICSR and ECSR and by identifying the conditions under which these dimensions act as complementary rather than substitutive drivers. Finally, it offers important theoretical and practical implications for banks seeking to align CSR with sustainable human capital development and long-term performance.