The effect of servant leadership on CSR implementation: A PLS-SEM analysis

Abstract

Drawing upon stakeholder theory, this paper aims to examine the link between servant leadership and corporate social responsibility (CSR) through organizational ethical culture as a mediation mechanism. The study deployed a quantitative method. Data were collected through a survey of 261 hotel managers, employees, and top managers at 12 hotels in major cities within the provinces of Balochistan, Khyber Pakhtunkhwa, Punjab, and Sindh, Pakistan, from January to May 2025. Hotels were chosen due to their active engagement in CSR and commitment toward sustainability. This study used SmartPLS 4.0 for data analysis with the PLS-SEM technique. The data revealed that servant leadership (t-statistic value 30.746, p-value 0.000) has a significant relationship with CSR implementation. Additionally, servant leadership (t-statistic value = 37.26, p-value = 0.000) is significantly related to organizational ethical culture. The findings indicate that organizational ethical culture (t-statistic value = 9.057, p-value = 0.000) is positively associated with CSR implementation. Finally, organizational ethical culture (t-statistic value 8.718, p-value 0.000) mediates the linkages between servant leadership and CSR implementation. This study contributes to the body of knowledge by integrating leadership-CSR domains as well as offering a unique and under-explored context, such as the hotel industry in South Asia, with a particular focus on Pakistan. These findings provide valuable insights to practitioners and leaders in the hotel sector by devising their CSR initiatives as a mindset of implementation rather than merely policy or practice.