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Economy 
Vol. 12, No. 2, 18-25, 2025 

ISSN(E) 2313-8181: / ISSN(P) 2518-0118: 
DOI: 10.20448/economy.v12i2.6777 

© 2025 by the authors; licensee Asian Online Journal Publishing Group 

 

 
 
 
Internal corporate social responsibility and employees’ performance of selected 
deposit money banks in Ado-Ekiti, Nigeria 

 
 
ANTHONY Kolawole Israel1  

AKINOLA Emmanuel Taiwo2  

OBAMOYEGUN Oluwaponmile Joseph3  
OZIEGBE Tope Rufus4  
AKINTUNDE Samuel Akinrinola5  

 

 
( Corresponding Author) 

 
1Department of Special Needs Education, Adeyemi Federal University of Education, Ondo, Ondo State, Nigeria. 
Email: anthonyik@afuedondo.edu.ng  
2Division of Statistics and Records, Adeyemi Federal University of Education, Ondo, Ondo State, Nigeria. 
Email: marshallakinola@gmail.com  
3Department of Audit, Adeyemi Federal University of Education, Ondo, Ondo State, Nigeria 
Email: joseobas@gmail.com  
4Department of Economics, Adeyemi Federal University of Education, Ondo, Ondo State, Nigeria. 
Email: oziegbetr@afuedondo.edu.ng 
5Department of Social Studies, Adeyemi Federal University of Education, Ondo, Ondo State, Nigeria. 
Email: akintundesa@afuedondo.edu.ng 

 
Abstract 

This study examines the impact of Internal Corporate Social Responsibility (ICSR) on employee 
performance in selected deposit money banks in Ado-Ekiti, Nigeria. Four research objectives, 
research questions and five hypotheses were considered for the study respectively. Four key 
components of ICSR which are skill development, working conditions, empowerment, and 
employment stability were analyzed in relation to employee performance metrics such as job 
satisfaction, commitment, and engagement. A descriptive and explanatory research design was 
adopted, and data were collected from a sample of 303 bank employees using stratified and simple 
random sampling techniques. The Statistical Package for Social Sciences (SPSS) was used for data 
analysis, employing both descriptive statistics and multiple regression analysis to test five 
hypotheses. The study is anchored on Stakeholder Theory and Social Exchange Theory, which 
explains the relationship between organizational care and employee outcomes. Results showed 
that all ICSR variables significantly and positively influence employee performance, with 
empowerment having the strongest effect and employment stability the least. The study 
concludes that strategic investment in internal CSR initiatives leads to enhanced employee 
outcomes. It recommends that banks adopt consistent skill development programs, prioritize 
healthy work environments, involve employees in decision-making, and ensure job stability 
through transparent employment practices. 

 
Keywords: Deposit money banks, Employee performance, Employment stability, Employment stability, Empowerment, Internal corporate 
social responsibility, Skill development. 

 
Contents 
1. Introduction ...................................................................................................................................................................................... 19 
2. Literature Review ............................................................................................................................................................................ 20 
3. Methodology ..................................................................................................................................................................................... 21 
4. Findings and Discussion ................................................................................................................................................................. 24 
5. Conclusion ......................................................................................................................................................................................... 24 
6. Recommendations ............................................................................................................................................................................ 24 
References .............................................................................................................................................................................................. 24 
 

 
 
 
 
 
 

https://www.doi.org/10.20448/economy.v12i2.6777
https://orcid.org/0000-0002-1137-8645
https://orcid.org/0009-0003-8753-9980


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Citation | Israel, A. K., Taiwo, A. E., Joseph, O. O., Rufus, O. T., & 
Akinrinola, A. S. (2025). Internal corporate social responsibility and 
employees’ performance of selected deposit money banks in Ado-
Ekiti, Nigeria. Economy, 12(2), 18-25. 10.20448/economy.v12i2.6777 
History:  
Received: 15 April 2025 
Revised: 8 May 2025 
Accepted: 11 June 2025 
Published: 16 June 2025 
Licensed: This work is licensed under a Creative Commons 

Attribution 4.0 License  
Publisher:  Asian Online Journal Publishing Group 
 

Funding:   This research is supported by The Tertiary Education Trust Fund 
(TetFund), which provided support for the research through Institution-Based 
Research (IBR). 
Institutional Review Board Statement: Ethical approval for this study was 
obtained from the Ethical Committee of Adeyemi Federal University of 
Education, Ondo, Nigeria.. Sequel to the need to provide the Date and 
Reference Number. Kindly find below, the required information:  DATE: 25th 
June, 2024  (Ref. No. TETf/DR&D/UNIV/ONDO/IBR/2024/VOL.I). 
Kindly help update the portion. 
Transparency: The authors confirm that the manuscript is an honest, 
accurate, and transparent account of the study; that no vital features of the 
study have been omitted; and that any discrepancies from the study as planned 
have been explained. This study followed all ethical practices during writing. 
Data Availability Statement: The  corresponding  author  may  provide  
study data upon reasonable request 
Competing Interests: The authors declare no competing interests.  
Authors’ Contributions: All authors contributed equally to the conception 
and design of the study. All authors have read and agreed to the published 
version of the manuscript. 
Acknowledgement: The authors wish to express their sincere gratitude to 
the Directorate of Academic Planning; Division of Statistics and Records; 
Department of Special Needs Education; Department of Audit; and 
Department of Social Studies at Adeyemi Federal University of Education, 
Ondo, Nigeria, for their support and approval in conducting this study. We 
also appreciate the invaluable guidance from the University Management. 
Special thanks are extended to the respondents, facilitators, and leadership of 
the participating Deposit Money Banks for their cooperation and 
contributions to the success of this research. 

 

Contribution of this paper to the literature 
This study uniquely examines the nuanced impact of four specific ICSR components (skill development, 
working conditions, empowerment, and employment stability) on distinct employee performance metrics 
(job satisfaction, commitment, and engagement) within the Nigerian deposit money bank context in Ado-
Ekiti. Prior research in this region has not offered this specific, disaggregated analysis. 

 
1. Introduction 

Organizations, whether formal or informal structures, are established with the fundamental purpose of 
achieving specific, predetermined goals (Jiang, Lepak, Hu, & Baer, 2012) and therefore, the attainment of these 
goals is often measured in terms of performance or success (Akinola, Akinbode, & Fagbohungbe, 2018; Muduli, 
2015). Performance indicators vary from one organization to another; nevertheless, one important resource that is 
consequential to the attainment of performance outcomes is often identified as the most valuable organizational 
asset-people (Armstrong, 2009). The most valuable organizational asset-employees is one of the key determinants 
of the success or performance desired in an organizational setting, and this therefore supports the idea that the 

performance of an organization is contingent on the performance of its people (Bakotić, 2016; Owoeye, Oyeniyi, & 
Adesola, 2020). As remarked by Savaneviciene and Stankeviciute (2012) performance at the organizational level can 
be explained as distal outcomes, and its attainment is made possible via proximate outcomes - performance at the 
employee level. The attainment of the overall organizational performance that is contingent on outcomes attained 
at employee levels makes employees an important asset to the organization (Savaneviciene & Stankeviciute, 2012). 

Using employees as a unit of analysis, therefore, provides a platform for understanding proximate outcomes 
which are often conceptualized in literature as employee attitudinal and behavioural outcomes via which 
performance at the organizational level is attained (Savaneviciene & Stankeviciute, 2012). Employee attitudinal and 
behavioural outcomes may comprise variables relating to commitment, engagement, trust, job satisfaction, and 
others; these variables have been identified as the contents of the 'Black Box' through which the relationship 
between organizational systems and performance outcomes is explained (Azim, 2016; Savaneviciene & 
Stankeviciute, 2012). As noted in the literature, a theoretical lens of stakeholder theory provides a clear 
understanding that the support of non-financial stakeholders will be guaranteed and obtained when there is a 
perception of corporate social responsibilities (Aguilera, Rupp, Williams, & Ganapathi, 2007; Albasu & Nyameh, 
2017). Employees, therefore, are internal stakeholders in an organizational setting that need the firm's attention in 
terms of internal corporate social responsibilities, and a positive perception of internal corporate social 
responsibility (CSR) towards meeting their expectations and needs may generate positive attitudinal and 
behavioural outcomes (Chen, Zhang, & Vogel, 2018; Motilewa & Worlu, 2019; Obeidat, Al-Suradi, Masa’deh, & 
Tarhini, 2018). 

Internal corporate social responsibility has been identified as tools and practices used by organizations to 
influence the well-being of employees, and it has been remarked in the literature that these practices are assumed to 
have an effect on performance-related outcomes (Motulewa & Worlu, 2015; Obeidat et al., 2018). This assumption 
has led to studies investigating the effect that corporate social responsibility has on performance-related outcomes. 
For instance, Usman and Amran (2015) investigated the effect of CSR on financial performance in Manufacturing 
Companies in Nigeria. In a similar vein, the studies carried out by Shabbir and Wisdom (2020); Albasu and 
Nyameh (2017); Mohammed, Ibrahim, and Dabo (2016) and Adeneye and Ahmed (2015) were investigated to 
examine the effect of CSR on performance at various organizational levels. While these studies were carried out to 
determine performance at profit-making organizations, evidence of ICSR on performance-related outcomes at the 
employee level in for-profit making entities has remained limited in the Nigerian context. This, therefore, creates a 
contextual gap that needs to be empirically investigated. 

CSR is a management tool that is examined based on its two major components: internal and external 
(Mgbame, Osazuwa, & Otuya, 2017). While studies have registered evidence of a positive association between 
external CSR on performance-related outcomes, studies on the effect of internal CSR on performance outcomes 
have generated inconsistent evidence. For example, the study of Obeidat et al. (2018) found that internal 

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dimensions of internal CSR such as employment stability and skill development did not have a meaningful 
contribution to performance-related outcomes such as job satisfaction, while work-life balance, work condition, and 
empowerment significantly contributed to performance-related outcomes. Similarly, Al-Samman and Al-Nashmi 
(2016) found an insignificant effect of CSR on non-financial organizational performance, and therefore, the 
inconsistency of findings of the CSR-performance relationship becomes a gap that demands the need for empirical 
investigation. 

In most of the studies carried out on the effect of CSR on performance-related outcomes, the organization has 
been examined as the unit of analysis where performance outcomes were investigated (Mgbame et al., 2017; 
Shabbir & Wisdom, 2020) however, few studies have examined performance outcomes using employees as a unit of 
analysis (Albasu & Nyameh, 2017; Obeidat et al., 2018). Meanwhile, it has been noted in the literature that using 
the employee as a unit of analysis will provide a means where performance outcomes at the organizational level can 
be understood via performance at the employee level (Savaneviciene & Stankeviciute, 2012). Therefore, using the 
employee level as a unit of analysis remains unexamined in the Nigerian context, especially in for-profit making 
organizations such as deposit money Banks. This, therefore, creates a gap that demands the need for empirical 
investigation. 

This study aims to address these gaps by investigating the effect of internal corporate social responsibility on 
employee performance in selected deposit money Banks in Ekiti State, Nigeria. 
 

1.1. Research Objectives 
The main objective is to investigate the effect of internal corporate social responsibility on employee 

performance in selected deposit money banks in Ekiti State, Nigeria. Specifically, this study:  
i. examined the effect of skill development,  
ii. investigated the effect of working conditions,  
iii. established the effect of empowerment, and  
iv. investigated the effect of employment stability on employee performance in these banks. 

 
1.2. Research Questions 
i. What is the effect of internal corporate social responsibility on employee performance?  
ii. How does skill development affect employee performance?  
iii. How do working conditions influence employee performance?  
iv. What is the impact of empowerment on employee performance? v. How does employment stability affect 

employee performance? 

 
1.3. Research Hypotheses 
H01: Internal corporate social responsibility has no significant effect on employee performance. 
H02: Skill development has no significant effect on employee performance. 
H03: Working conditions have no significant effect on employee performance. 
H04: Empowerment has no significant effect on employee performance. 
H05: Employment stability has no significant effect on employee performance. 

 

1.4. Definition of Operational Terms 
Internal CSR (ICSR): Encompasses organizational activities aimed at enhancing employee welfare, 

specifically: training, good work conditions, job security, and involvement in decision-making 
Employee Performance: Refers to the attitudinal and behavioral outcomes of employees, including job 

satisfaction, engagement, and commitment. 
Skill Development: Denotes organizational efforts focused on training and improving the technical and 

interpersonal skills of employees. 
Employment Stability: Represents the degree to which employees perceive job security within the 

organization. 
Empowerment: Involves employees' participation in decision-making processes and their autonomy in 

executing their job duties. 
Working Condition: Describes the physical and psychosocial environment in which employees perform their 

work. 

 
2. Literature Review 
2.1. Conceptual Review 

Corporate Social Responsibility (CSR) is broadly classified into external and internal dimensions. While 
external CSR addresses social, environmental, and community-related obligations, internal CSR focuses on 
initiatives that improve employees’ welfare within the organization (Mory, Wirtz, & Göttel, 2016). Internal CSR 
practices typically include skill development, work-life balance, health and safety, employment stability, and 
empowerment. These initiatives are essential for creating a conducive work environment, boosting morale, and 
fostering a culture of performance and accountability. 

Skill development entails systematic training and education opportunities that enhance employees’ capabilities 
to perform efficiently (Bayley, 2015). It includes both technical competencies and interpersonal or soft skills, all of 
which are critical in fast-paced environments such as banking. Empowerment refers to granting employees 
autonomy and including them in decision-making processes, which builds a sense of ownership and motivation 
(Akinwale & George, 2020). 

Working conditions encompass the physical and psychological environment of the workplace. As Saidi, Abdu, 
and Garba (2019) note, safe, ergonomic, and emotionally supportive workspaces enhance concentration, reduce 
stress, and ultimately increase productivity. Employment stability involves consistent contractual relationships and 



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the assurance of job security, both of which influence employees’ emotional well-being and willingness to invest 
effort in their roles (Abolade, 2018). 

Modern organizations, especially in emerging economies, increasingly rely on internal CSR strategies as part 
of their human capital management and corporate strategy. According to Fatima, Zaheer, and Ahmed (2023) 
internal CSR must be perceived as a strategic resource capable of shaping organizational identity and influencing 
employee behavior. The effective implementation of these practices improves employee engagement, reduces 
turnover, and enhances overall organizational performance. 
 

2.2. Empirical Review 
The empirical literature presents mixed but mostly positive evidence on the link between internal CSR and 

employee performance. Obeidat et al. (2018) found a significant correlation between internal CSR (particularly 
empowerment and work-life balance) and job satisfaction among employees in Jordanian Banks. In contrast, Al-
Samman and Al-Nashmi (2016) reported a weak correlation between CSR and non-financial performance in Yemeni 
institutions, suggesting cultural and economic variables may moderate the CSR-performance relationship. 

In the Nigerian context, Motilewa and Worlu (2019) revealed that internal CSR initiatives such as employee 
involvement and job security significantly improved engagement and performance in financial institutions. 
Similarly, Mohammed et al. (2016) identified skill development and employee health and safety as the most 
influential CSR drivers of productivity in commercial banks. 

Ibrahim and Lawal (2023) provided further support in their study of West African Banks, showing that CSR 
policies aligned with employees' expectations led to higher job satisfaction, lower turnover intentions, and 
enhanced discretionary effort. In SMEs, Babatunde and Adeyemi (2022) also confirmed that CSR initiatives 
targeting internal stakeholders positively influence workforce commitment and reduce absenteeism. 

Despite some contrasting findings, the general trend in empirical studies suggests that internal CSR is a 
valuable strategy for improving employee performance, particularly in industries like banking where service 
delivery is heavily reliant on workforce engagement and satisfaction. 
 

2.3. Theoretical Review  
This study is underpinned by two foundational theories Stakeholder Theory (ST) and Social Exchange Theory 

(SET) each offering a different but complementary perspective on the relationship between internal CSR and 
employee performance. 

Stakeholder Theory, proposed by Freeman (1984) posits that organizations must consider the interests of all 
stakeholders, not just shareholders to achieve sustainable success. Employees, as internal stakeholders, deserve 
strategic attention in the formulation and implementation of corporate policies. The relevance of this theory to the 
current study lies in its emphasis on inclusive value creation. By prioritizing employee well-being through ICSR, 
Banks in Nigeria can build a loyal and high-performing workforce, enhancing both internal and external 
stakeholder relationships. 

Social Exchange Theory (SET), developed by Homans (1958) and further expanded by Blau (1964) is based on 
the idea that social behaviour is the result of an exchange process aimed at maximizing benefits and minimizing 
costs. In the organizational context, when employers demonstrate care through ICSR initiatives, employees are 
likely to reciprocate with increased loyalty, commitment, and productivity. The application of SET to this study 
underscores the reciprocal nature of employer-employee relationships and supports the argument that internal 
CSR is a catalyst for positive employee outcomes. 

Together, these theories provide a strong conceptual foundation for understanding how internal CSR 
initiatives can foster a more engaged, satisfied, and high-performing workforce in Nigeria’s banking sector. 
Stakeholder Theory and SET provide a robust explanatory framework. While Stakeholder Theory justifies why 
organizations should invest in internal CSR from a governance perspective, SET explains how such investments 
translate into tangible employee performance outcomes. These theoretical underpinnings are especially relevant in 
a dynamic service sector like banking, where competitive advantage hinges on workforce motivation, service 
quality, and customer satisfaction. 
 

3. Methodology 
3.1. Research Design 

This study adopted a mixed-method approach, combining both descriptive and explanatory research designs to 
effectively investigate the relationship between Internal Corporate Social Responsibility (ICSR) and employee 
performance. The descriptive design was employed to summarize the demographic characteristics of the 
respondents and identify patterns in employee perceptions and organizational practices. On the other hand, the 
explanatory design (also known as causal research) was used to establish cause-and-effect relationships between the 
various ICSR variables (internal corporate social responsibility, skill development, working conditions, 
empowerment, and employment stability) and employee performance outcomes such as engagement, commitment, 
and job satisfaction. This dual approach ensured a comprehensive understanding of both the current state of ICSR 
in the Banks and the statistical significance of its influence on performance. 
 

3.2. Population and Sample Size 
The population of the study comprised all employees across five selected deposit money Banks located in Ado-

Ekiti, Ekiti State, Nigeria. The Banks included First Bank Plc, Zenith Bank Plc, Guaranty Trust Bank, United 
Bank for Africa (UBA), and Access Bank. The total number of employees across these Banks was 1,258, made up of 
343 senior staff and 915 junior staff. 

To determine an appropriate and manageable sample size, Taro Yamane’s formula was used with a 95% 
confidence level and a 5% margin of error. 

n = N 
1+N(e)2 



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Where: n = Sample size. 
             N = Population size = 1,258. 
             e = Margin of error = 0.05. 
            n =   1258 
            1+1258(0.05)2 = 303  
Therefore, the calculated sample size was 303 respondents. This sample was considered adequate for 

generalizing the results to the entire employee population of the selected Banks. 
Table 1 details the demographic information of the participating banks. Specifically, it lists the name of each 

bank, all of which are located in Ado-Ekiti. The table further shows the total number of staff in each bank and the 
corresponding sample size selected for this study. Finally, it provides the overall total for the number of staff across 
all banks and the total sample size. 
 
Table 1. Demographic table of participating banks. 

Bank name Location No. of staff Sample size 

First Bank Plc Ado-Ekiti 270 65 
Zenith Bank Plc Ado-Ekiti 240 58 
Guaranty Trust Bank Ado-Ekiti 210 50 
United Bank for Africa Ado-Ekiti 278 70 
Access Bank Ado-Ekiti 260 60 

Total  1,258 303 

 

3.3. Sampling Technique 
To ensure a representative and unbiased selection of participants, this study employed a combination of 

stratified sampling and simple random sampling techniques. The stratified sampling method was used to categorize 
the population into distinct subgroups, specifically junior staff and senior staff based on their job levels within the 
Banks. This stratification ensured that the perspectives of both management-level employees and operational-level 
employees were adequately captured. 

Once the population was stratified, simple random sampling was applied within each stratum to select 
respondents. This technique guaranteed that every employee within each category had an equal chance of being 
included in the study, thereby minimizing selection bias and enhancing the validity of the findings. Proportional 
allocation was also maintained across the five banks to reflect the actual staff distribution in each institution, 
ensuring that the sample size from each bank was proportionate to its total workforce. 

 

3.4. Data Collection Procedure 
Data were collected using a structured questionnaire, which was designed to capture information on all key 

variables in the study: skill development, working conditions, empowerment, employment stability, and employee 
performance. The questionnaire consisted primarily of close-ended questions measured on a 5-point Likert scale 
ranging from "Strongly Disagree" (1) to "Strongly Agree" (5), allowing for quantitative analysis. 

Before the main data collection commenced, a pilot study was conducted with a small group of 20 respondents 
selected from similar financial institutions not included in the final sample. The purpose of the pilot study was to 
assess the clarity, reliability, and validity of the instrument. Based on feedback from the pilot, minor modifications 
were made to the wording of some items to enhance comprehension. 

After validation, the questionnaires were administered physically and electronically to ensure wider reach and 
higher response rates. Respondents were assured of confidentiality and anonymity, and participation was strictly 
voluntary. To reduce response bias, data collection was carried out over a period of two weeks, allowing 
respondents enough time to provide thoughtful and accurate responses. 
 
Table 2. Distribution of respondents by bank and staff category. 

Bank name Senior staff Junior staff Total respondents 

First Bank Plc 20 45 65 
Zenith Bank Plc 18 40 58 
Guaranty Trust Bank 15 35 50 
United Bank for Africa 23 47 70 
Access Bank 22 38 60 
Total 98 205 303 

 
Table 2 illustrates the distribution of respondents across the participating banks and their respective staff 

categories. For each listed bank, the table shows the number of senior staff and junior staff who participated in the 
study. Additionally, it displays the total number of respondents from each bank. The final row summarizes the 
total number of senior staff, junior staff, and the overall total respondents across all the banks included in the 
research. 
 

3.5. Data Analysis 
The data collected from the administered questionnaires were analyzed using the Statistical Package for the 

Social Sciences (SPSS) version 25, a widely recognized tool for social science and management research. The 
analysis was carried out in two phases: descriptive analysis and inferential analysis. Descriptive statistics were used 
to summarize and describe the characteristics of the dataset. Key statistical measures such as means, standard 
deviations, frequencies, and percentages were computed to present the demographic profile of the respondents (e.g., 
age, gender, education level, job category) and to assess the general trends in responses to items measuring 
internal corporate social responsibility (ICSR) dimensions and employee performance. These descriptive summaries 
provided a foundational understanding of how respondents perceived skill development, working conditions, 
empowerment, and employment stability within their organizations. 



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To test the formulated hypotheses, multiple regression analysis was employed to examine the individual and 
combined effects of the independent variables (internal corporate social responsibility, skill development, working 
conditions, empowerment, and employment stability) on the dependent variable (employee performance). Each 

hypothesis was tested at a 95% confidence level (α = 0.05), with significance determined by p-values and t-
statistics. The strength and direction of relationships were assessed using unstandardized regression coefficients (B 
values) and R-squared values (variance explained in employee performance by internal CSR). The overall 
significance of the regression models was evaluated using the F-statistic, where a significant value indicated 
reliable prediction of the outcome variable by the predictor set. Findings from descriptive and inferential analyses 
were presented in tables and interpreted in line with prior research, theories, and the study’s conceptual 
framework. 
 

3.6. Hypotheses Testing 
Hypothesis 1: Internal corporate social responsibility has no significant effect on employee performance. 

 
Table 3. Regression results for hypothesis 1. 

Model R R² Adjusted R² Std. Error F-Statistic Sig. (p-value) Decision 

Regression 0.713 0.509 0.504 0.449 76.32 0.000** Significant 
 

Note: The double asterisks (**) next to the p-value (0.000) indicate a statistically significant result at a very high level of significance (typically p < 0.01 or 
even p < 0.001), suggesting strong evidence against the null hypothesis. 

 
 

The regression results in Table 3 show that the model is statistically significant (F (4, 298) = 76.32, p < 0.01), 
indicating that internal CSR components collectively influence employee performance. The R² value of 0.509 
reveals that approximately 50.9% of the variation in employee performance can be explained by the combined 
internal CSR variables: skill development, working condition, empowerment, and employment stability. The 
hypothesis that “internal corporate social responsibility significantly affects employee performance is therefore 
accepted. 

Hypothesis 2: Skill development has no significant effect on employee performance. 
 
Table 4. Regression results for hypothesis 2. 

Variable Unstandardized coefficient (B) Standard error t-value p-value Decision 

Skill development 0.321 0.056 5.742 0.000** Significant 
 

Note: The double asterisks (**) in Table 4, specifically in the "p-value" column next to "0.000", indicate a high level of statistical significance for the effect 
of "Skill development" on employee performance. 

 

The regression coefficient (β = 0.321, t = 5.742, p < 0.01) in Table 4 reveals that skill development 
significantly and positively affects employee performance. This finding implies that when employees receive 
consistent training and development opportunities, their competencies and job satisfaction increase. It supports 
existing literature that recognizes skill development as essential to organizational productivity (Dong, Bartol, 
Zhang, & Li, 2016; Obeidat et al., 2018). Therefore, the hypothesis is accepted. 

Hypothesis 3: Working conditions have no significant effect on employee performance. 
 

Table 5. Regression results for hypothesis 3. 

Variable Unstandardized coefficient (B) Standard error t-value p-value Decision 

Working condition 0.278 0.056 4.939 0.000** Significant 
 

Note: The double asterisks (**) in Table 5, specifically in the "p-value" column next to "0.000", indicate a high level of statistical significance for the effect 
of "Working condition" on employee performance. 

 

With a regression coefficient of β = 0.278 (t = 4.939, p < 0.01), the result as shown in Table 5 affirms that 
working conditions significantly affect employee performance. A supportive and safe working environment 
improves focus, reduces absenteeism, and enhances morale. This confirms previous research by Saidi et al. (2019) 
which emphasized the role of workplace environment in shaping employee productivity. Thus, the hypothesis is 
accepted. 

Hypothesis 4: Empowerment has no significant effect on employee performance. 
 

Table 6. Regression results for hypothesis 4. 

Variable Unstandardized coefficient (B) Standard error t-value p-value Decision 

Empowerment 0.341 0.056 6.103 0.000** Significant 
 

Note: The double asterisks (**) in Table 6, specifically in the "p-value" column next to "0.000", indicate a high level of statistical significance for the effect 
of "Empowerment" on employee performance. 

 

The analysis in Table 6 indicates that empowerment has the most substantial impact on employee performance 

(β = 0.341, t = 6.103, p < 0.01). When employees are empowered through participation in decision-making and 
given autonomy, they feel valued and are more engaged and committed. This result aligns with the findings of 
Motilewa and Worlu (2019) and affirms the importance of inclusive HR policies. Therefore, the hypothesis is 
accepted. 

Hypothesis 5: Employment stability has no significant effect on employee performance. 
 
Table 7. Regression results for hypothesis 5. 

Variable Unstandardized coefficient (B) Standard error t-value p-value Decision 

Employment stability 0.149 0.074 2.001 0.046* Significant 
 

Note: The single asterisk (*) in Table 7, specifically in the "p-value" column next to "0.046", indicates statistical significance at a lower level than the 
double asterisks used in previous tables. 

 



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Employment stability had a regression coefficient of β = 0.149 (t = 2.001, p = 0.046), indicating a moderate but 
significant effect. Employees who perceive job security are less stressed and more focused, leading to improved 
performance as indicated in Table 7. Although the effect is weaker than other ICSR variables, it remains 
statistically significant, echoing the findings of Abolade (2018). Hence, the hypothesis is accepted. 

 

4. Findings and Discussion 
The findings demonstrate a robust and statistically significant relationship between internal CSR practices and 

employee performance. Empowerment was identified as the strongest predictor, underscoring the need for 
participatory management approaches in modern HR strategies. Skill development and conducive working 
conditions also played vital roles in boosting employee morale and output. Employment stability, though less 
impactful, still contributed positively, affirming the psychological importance of job security in performance 
outcomes. 

These findings lend strong support to both Stakeholder Theory and Social Exchange Theory. By addressing 
employees’ welfare through CSR, organizations foster reciprocal behaviours such as loyalty, commitment, and 
discretionary effort. This is consistent with Obeidat et al. (2018) who emphasized the strategic importance of ICSR 
in building high-performance work environments. The study bridges an empirical gap in the Nigerian banking 
sector, reinforcing that employee-centered CSR practices are not just ethical imperatives but strategic tools for 
competitive advantage. 

 

5. Conclusion 
This study concludes that internal corporate social responsibility has a significant and positive effect on 

employee performance in the banking sector in Ado-Ekiti, Nigeria. Empowerment, skill development, good 
working conditions, and employment stability all contribute meaningfully to enhanced employee attitudes and 
behaviours. The results imply that employee-focused CSR initiatives should be prioritized as strategic HR tools 
rather than mere compliance measures. Such initiatives lead not only to employee satisfaction but also to improved 
organizational performance and long-term sustainability. 

 

6. Recommendations 
The study therefore recommends that Banks should institutionalize regular skill development initiatives, such 

as training programmes, workshops, and mentorship opportunities, to continuously upgrade employees' knowledge 
and competencies. Management of the Banks should invest in maintaining healthy and supportive working 
conditions by ensuring proper office ergonomics, safety standards, and stress-reducing workplace practices. 
Organizations should empower employees by involving them in decision-making processes and giving them 
autonomy in task execution, thereby boosting engagement and job satisfaction. To enhance job security and reduce 
turnover intentions, Banks should offer stable employment contracts and promote transparent and merit-based 
promotion systems. 

 

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