Impact Of Responsible Leadership on Employee Sustainable Performance in Bank Sector in India

Abstract

This study aims to investigate the relationship between Employee Sustainable Performance (ESP) and Responsible Leadership (RL) within the framework of Corporate Social Responsibility (CSR) theory. Additionally, it explores how the Ethical Atmosphere (EA) functions as a mediator in this relationship. Conducted in India's banking sector, the research utilized a questionnaire-based survey administered to 128 employees, employing convenience sampling. Data analysis was performed using Smart PLS 4, employing Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal a robust positive correlation between ESP (comprising Employee Performance (EP) and Employee Well-being (EWB)) and RL. Moreover, the study demonstrates that the association between RL and ESP (both EWB and EP) is partially mediated by the Ethical Context. Generalizability is constrained by the study's reliance on responses from personnel in the Indian banking sector through online and offline surveys. Based on these results, the authors recommend the banking sector implement a comprehensive leadership development program. Such a program would educate HR managers on the significance of RL and foster behaviours that promote ethical standards and positive employee attitudes. This study contributes novelty by integrating CSR theory to examine the interaction between ESP, Ethical Atmosphere, and RL specifically within the Indian banking industry. It is one of the first to propose an integrated model that explores these dynamics, highlighting the role of ethical frameworks as mediators. The research underscores the importance of ethical leadership in enhancing employee sustainable performance and well-being, offering valuable insights for organizational practices in the banking sector and potentially beyond.