EFFECT OF CSR AND ENTERPRISE RISK MANAGEMENT SYSTEM ON CORPORATE REPUTATION: AN EMPIRICAL STUDY

Purpose: This research looks into the connection between CSR and ERM to determine their relative value to businesses. The theoretical model was founded on a thorough literature analysis, and it was anticipated that an organization's CSR and ERM system's ability to inspire trust and commitment among its workforce would, in turn, help the business improve its public image. Methodology: Participants in the study were those working for private banks in Delhi. A total of 340 employees were selected at random for this empirical study. SPSS version 22 was used to perform statistical analyses on the gathered data. Regression analysis was used to validate the model. Findings: Both ERM and CSR initiatives have been found to positively impact a corporate reputation (CR). In addition, empirical findings indicate that employee commitment and trust in the company mediate the connection between CSR activities and CR. The findings indicated that Employee-focused ERM system and CSR actions improve corporate reputation among banks’ em ployees. Practical Implications : The research explores the intervention impacts of trust and commitment of employees on the connection between CSR behaviours and CR. Therefore, the conceptual framework based on a thorough literature analysis anticipated that trust and commitment among employees may be built through the CSR practices of a company, which may contribute to the growth of the CR of the firm. Originality/value : This empirical study will provide a more in-depth understanding, through practical implementation, for primarily private banking in India. All of these things set this study apart from similar empirical investigations done in the United States and Europe in the past. To sum up, this empirical study will provide more understanding through actual application, mostly for private banking in India.


INTRODUCTION
Being an intangible asset, corporate reputation (CR) has attracted a lot of attention in recent years.(Abbas, 2020b).What is meant by "stakeholder perception" is the general opinion that people outside of the company have about it.(Kucharska, 2020).The practice of corporate philanthropy, which is an integral part of CSR, can boost a company's image.(Ahsan, Nasir, and Abbas, 2020).CSR is an increasingly popular business concept that describes a company's voluntary participation in environmental and social efforts as part of its core business strategies and operations.(Abbas, 2020b).Kechiche and Soparnot (2012) studied the effects of CSR on the bottom lines of companies of various sizes, from multinational conglomerates to small and medium-sized enterprises.
Businesses in the West have found great success with CSR initiatives thanks to the strategic value it provides.According to a number of studies, CSR has a beneficial effect on a company's financial performance.Despite CSR's tremendous growth in significance and popularity over the years, most research into the topic has focused on the correlation between CSR and financial performance.(Aguinis&Glavas, 2012).There is still a need for more indepth study to determine the causal pathways linking CSR with its results.(Yadav et al., 2016).The purpose of this research is to analyze how CSR improves public perception of businesses.As a result, a model for mediating conflicts has been created in this study.Hansen et al. (2011) have sought to build and identify a direct correlation between the firm's CSR actions and the degree to which its employees trust and are committed to the company.
According to the results of this research, a high-quality ERM system improves CSR performance in addition to CR.The study also seeks to learn if private banking's CR improves as a result of CSR's insight, which attempts to build trust and loyalty among the industry's staff.While it was believed that trust and organizational loyalty would operate as mediators between CSR and CR, neither of these factors proved to be significant.Thus, the presented research explores the intervention impacts of trust and commitment of employees on the connection between CSR behaviors and CR.Therefore, the conceptual framework based on a thorough literature analysis anticipated that trust and commitment among employees may be built through the CSR practices of a company, which may contribute to the growth of the CR of the firm.
Previous studies have focused extensively on how CSR relates to the company's relationships with its external stakeholders.However, there is scant information that investigates how internal stakeholders, such as employees, feel about CSR measures to improve a company's market reputation.
Last but not least, the scant studies that have been undertaken on CSR as it relates to internal stakeholders have all been conducted from a Western perspective, where the needs of workers and their preferences are prioritized.While this research is being conducted in India .In this context, respect and awe are directed more toward individuals in authoritative roles.All of these things set this study apart from similar empirical investigations done in the United States and Europe in the past.Thus, it can be concluded that this empirical study will provide a more in-depth understanding, through practical implementation, for primarily private banking in India.All of these things set this study apart from similar empirical investigations done in the United States and Europe in the past.To sum up, this empirical study will provide more understanding through actual application, mostly for private banking in India.

Corporate Social Responsibility (CSR)
CSR has emerged as a pressing issue in the business world as the relationship between companies and their constituents has become deeper and more explicit.Companies place a premium on CSR because of the significant role it plays in shaping their overall strategies.There are two types of CSR policies: explicit and implicit.Explicit policies reflect the laws and norms of a business's duty, while implicit policies reflect the organization's basic obligations.(Matten & Moon, 2020).For some time now, it has been believed that a company's long-term success may be measured by its ability to increase shareholder value.(Porter & Kramer, 2019).
In order to fully achieve their CSR, businesses should coordinate closely with all of their stakeholders to incorporate considerations for the environment, ethics, society, consumers, and human rights into their overall business plans.CSR has been characterized as an organization's long-term commitment to morally contribute to economic progress through the improvement of individual well-being, the quality of working conditions, and the overall welfare.(Blumberg, 2019).Ethical CSR, Philanthropic CSR, and Strategic CSR are the three basic categories used to categorize CSR by academics and researchers.Integrating moral principles and values into business procedures is at the heart of what is meant by "ethical CSR." (Gul&Kaytaz, 2019).CSR from a philanthropic perspective is typically characterized by selfless acts of service to others.(Mellahi & Rettab, 2019).Strategic CSR is based on any kind of service or social activity that a company provides to the community that also benefits the company financially.(Nicoara, et al., 2019).Previous studies have examined CSR's aftereffects in terms of how it is perceived by both employees and customers.There are many different hypotheses that try to explain how employees would respond to a company's CSR initiatives.(Imran and Abbas, 2020).In particular, the social exchange theory, the theory of signals, and the idea of organizational identification stand out.(Gond et al., 2017).Furthermore, Gond et al. (2017) noted that employees' perceptions of their firm's CSR initiatives have a direct impact on their sense of belonging with the company.(Abbas, 2020c).

ERM Systems and CSR Performance
Corporate social responsibility (CSR) involves a company's commitment to responsibilities other than shareholder earnings.(Alpaslan et al., 2009).Corporate social responsibility (CSR) performance can be defined as a company's strategy for distributing value through targeted policies and actions that meet the needs of its stakeholders.Crisis situations can modify the value delivered to stakeholders (Alsaifi et al., 2021;Pérez-Cornejo et al., 2019), but businesses encounter a wide variety of risks in their daily operations.The value received by some parties may change, while others may suffer unintended consequences.Risks that encourage corporations to act in an irresponsible manner pose a persistent danger to value distribution.Organizations that prioritize CSR will take steps to reduce the risk of crises and employ tools to mitigate their effect on value distribution.In order to avoid disappointing stakeholders in the future, socially responsible businesses must plan forward.(Gangi et al., 2021).Consequently, showing responsibility requires robust ERM systems.Companies that actively work to make their workplaces safer, such as those that implement rules to increase job security, tend to have fewer workplace accidents overall.
Following this line of thinking, we contend that ERM systems' ability to manage and reduce risk guarantees sustained CSR by protecting against crises.As a result, ERM systems ought to gradually induce a sense of responsibility among businesses.Risk-based reputational crises that prohibit fair value allocation among stakeholders can be mitigated with the use of an enterprise risk management system.With a solid ERM system in place, crises that are caused by financial, operational, ethical, or environmental risks are less likely to have a negative impact on CSR results.The following hypothesis is supported by these theoretical considerations and managerial underpinnings: H.1: The ERM system enhances the company's CSR results.

Corporate Social Responsibility and Organizational Trust
Organizational trust, as defined by Cui and Jiao (2019), is an employee's worldwide assessment of the organization's trustworthiness.A belief that the company will operate in a way that protects its employees and considers how its actions will affect them is essential to retaining good personnel.(Kazmi and Abbas, 2021).Organizational trust has been linked to high levels of creativity and productivity, according to Vanhala and Ritala (2016).Organizations' trustworthiness can give them a leg up in the marketplace and bring about a plethora of benefits.(Abbas et al., 2021).Earlier studies have confirmed that trust inside a company is the medium through which corporate social responsibility (CSR) mechanisms have a beneficial effect on CSR outcomes (Manimegalai&Baral, 2018).
Organizational trust is recognized as a mediator between employees' perceptions of CSR and their job results, engagement at work, and citizenship behaviour in the workplace (Manimegalai & Baral, 2018).(OCB).Employees' perception, outcome, and job satisfaction in connection to corporate social responsibility (CSR) activities inside a firm are all found to be moderated by the level of trust between management and staff (Archimi et al., 2018).(Abbas and Kumari, 2021).Corporate social responsibility (CSR) is a key factor in stoking confidence in a business and its products or services.The employee's confidence in the organization is crucial to keeping them on staff for the long haul.(Shakoor, Fakhar and Abbas, 2021).The more a person's dedication to the company, the less money and time will be spent on recruiting, training, and replacing them, and the less likely it is that the company will lose a valuable employee.Organizational leadership has to realize that CSR initiatives are essential for establishing and restoring trust among workers.

CSR and Organizational Commitment (OC)
Organizational commitment, defined as an employee's emotional investment in their workplace, was found by Imamoglu et al. (2019) to be a significant predictor of business success.Employees' desire to remain a member of a company is heavily influenced by the degree to which they feel a sense of connection to its mission and values.(Safdar et al., 2020).According to research by Rodrigo et al. (2019), CSR initiatives have a significant impact on employee loyalty.Human rights advocacy, training and development, health and wellbeing initiatives, work-life balance programs, educational drives, and more have all been linked to higher levels of workplace commitment by Kuehnl et al. (2019).Discretionary and legally required CSR are argued to aid in employee retention in a separate study by Trivellas et al. (2019).
It has been found that OC serves as a mediator between caring management and ethical conduct in the workplace.(Tan et al., 2019).Affective organizational commitment from managers can be tapped into with the help of CSR.By the same token, Bouraoui et al. (2019) proved that employees' emotional investment in the company's CSR efforts is an inevitable consequence of such efforts' ethical underpinnings.Zaman and Nadeem (2019) argued that corporate social responsibility (CSR) programs are essential for building loyalty among workers.Socially responsible acts and the perceptions of the firm's stakeholders have a significant impact on employee dedication.(Singhapakdi et al., 2019).

H3:
The CSR activities significantly enhance employees' organizational commitment.

CSR and Corporate Reputation (CR)
One technique of gauging a company's CR is by a rating of its most admired competitors.(Lu et al., 2019).CR is an organization's external and internal stakeholders' collective prediction of its future success based on its past performance.(Abbas,2020a).The CSR activities of a company have significant effects on both CR and performance.Based on the findings of previous studies, the vast majority of businesses now include CSR as an integral aspect of their overall corporate strategies.(Kucharska, 2020).CSR is seen as a long-term strategic investment and a significant action that contributes to the company's CR.For this reason, CSR efforts often result in increased stock price valuations.According to Bardos et al. (2020), CSR actions not only affect CRs significantly, but they may also be used as a risk management and crisis aversion approach when a firm is facing challenging circumstances.This is according with the findings of Tao and Song (2020), who found that CSR was beneficial both before and after a crisis.CSR's propensity to encourage voluntary organizational participation is strongly supported and argued that this factor is crucial in facilitating the development of constructive social exchanges between businesses and their staff.Van Dick et al. (2019) found that employees' perceptions of their organizations' CSR programs were positively related to their levels of job engagement and organizational citizenship behavior, but that this link was mediated by employees' sense of belonging to their organizations.Consistent with this view, we might argue that workers' and management's mutual support for policy decisions is enhanced by their appreciation of the company's CSR efforts.Customers are more likely to be happy with and have faith in a company's products and services if they have a positive impression of the company.(Caruana et al., 2018).According to Cowan and Guzman (2018), CSR ends up helping to enhance the link between workers and their employers.Researchers in the past have found a correlation between a company's corporate social responsibility (CSR) efforts and its financial and public success.(Singhapakdi et al., 2019).The importance of CSR communication in fostering staff awareness and CR has been highlighted in a previous study.(Kim,2019).

Enterprise Risk Management (ERM) Systems and Corporate Reputation (CR)
CR refers to how well stakeholders believe an organization will be able to deliver on their future expectations.(Fombrun, 2002).The legitimacy of CR stems from the striking contrast between its slow accumulation and its possible sudden annihilation, as was indicated above.(Hall, 1992).In this context, a company's CR is at stake, and this predicament is known as reputational risk.As a "risk of risks," this is a serious concern.(Heidinger & Gatzert, 2018).To put it another way, the corporation faces an imminent reputational crisis should any of its risks materialize.The immediate aftermath of any issue involving a company's reputation is never good for CR.However, the total effect of the crisis on CR is contingent on a number of variables, including as the severity of the crisis's negative effect on stakeholders, the company's crisis management, and, most importantly, the extent to which guilt is assigned to the organization.(Mariconda et al., 2021).
Establishing a risk map that systematically classifies each risk based on its chance of harming the firm and the amount of its possible impact is an integral part of ERM, which entails identifying and evaluating the risks that a company confronts.(COSO, 2004).The first step is to pinpoint measures that lessen both the possibility of adverse outcomes and the severity of their effects, and the second is to design safeguards to mitigate potential catastrophes.It is also critical to identify who, at what level of the organization, is accountable for monitoring and revising this procedure.
Companies with strong ERM systems are less likely to experience a crisis that has a negative impact on CR. (Bundy et al., 2017) Support for this link can be found in the limited prior study on the topic (Pérez-Cornejo et al., 2019).Therefore, we argue that ERM helps firms' reputations since it lessens the chances of a catastrophe affecting that reputation.
H.5: ERM system quality significantly enhance Corporate Reputation.

Organizational Trust and Corporate Reputation (CR)
According to the research of Wu et al. (2018), workers' perspectives are strongly influenced by the level of trust they feel they can place in their superiors.Supervisors play a vital role in building a culture of trust inside a business.(Mahmood et al., 2020).Kim (2019) identified a strong correlation between CR and trust inside organizations.However, previous studies have confirmed that an organization's reputation plays a significant influence in gaining the confidence of its constituents.(Schultz et al., 2019).Methods for earning the confidence of crucial parties were established in order to create a CR.Employees are more likely to have faith in their employers if they see the company succeeding in areas such as customer happiness, brand loyalty, and competitive advantage (Mahmood et al., 2014).An organization's overall evaluation and reputation can benefit greatly from the trust built through CR among both internal and external stakeholders.(Habib, Abbas and Noman, 2019).Therefore, there is substantial historical data to suggest that trust inside organizations is related to CR.

Organizational Commitment and CR
To be committed to one's organization means to feel a strong emotional connection to it.(Redditt et al, 2019).A dedicated worker is invaluable and is seen as an asset to any company.Staff members who feel a strong sense of belonging to their company are more likely to go the extra mile for the company.(Thakur et al., 2020).According to Abbas and Sagsan (2019), a company's reputation is directly affected by the level of dedication its employees have to the company.An organization's CR is a reflection of the organization to its internal and external stakeholders and is influenced not just by the organization itself but also by its employees, product reviews, services, managers, business representatives, and anyone else connected to the organization.(Rantanen et al, 2019).People working at the CR hub are among the most crucial internal stakeholders.Organizational reputation is how outsiders perceive and interact with the company.
A survey of the relevant literature lends credence to the notion that successful businesses strike a balance between social responsibility and the pursuit of profit.Strong employee organizational commitment builds CSR outcomes like CR. (Almeida et al., 2019).In this way, businesses may make the most of their employees' dedication to the company by engaging in actions that are good for the community and the environment.Many authors believe that CR and an employee's performance are mutually reinforcing.(Almeida et al., 2019).

CONCEPTUAL MODEL
Building on past empirical research, the article presents a model in Figure 1 for finding out the relationship between CSR, enterprise risk management (ERM), Organisational trust and commitment and corporate reputation (CR).

RESEARCH METHODOLOGY
A self-structured close ended questionnaire was distributed with a 5-point Likert scale (from "1.Strongly disagree" to "5.Strongly agree") for the aim of data collecting.The instrument's measuring components were culled from a pool of preexisting, reliable surveys.Individuals working for private banks in Delhi were selected as the study's primary population.A total of 340 employees were selected at random for this empirical study.SPSS version 22 was used to do statistical analysis on the gathered data.The significance of conforming constructs was evaluated using the EFA.A factor loading of 0.50 has been utilised as a threshold in this study.In light of these findings, it appears that factor analysis is an appropriate method for this data set.Twenty items were included in the final analysis, and all of them had loadings greater than 0.5.

Reliability
A value of 0.70 for Chronbach's Alpha is generally accepted as the minimum threshold for an internally consistent scale.The same threshold of Cronbach's alpha 0.7 has been used in this analysis.
Table3: Result of Reliability Analysis

Regression Analysis
Table 4 revealed by regression analysis shows that CSR and ERM are the significant predictors of Corporate reputation (CR).The R square values .277,.435and .588indicate that -ERM‖ is able to explain CSR to the extent of 27.7%, CSR is able to explain OT to the extent of 43.5%, and OC to the extent of 58.8%.The R square value .733indicates that CSR, OT, OC and ERM jointly able to explain CR to the extent of 73.3% at the confidence level of 95%.
The coefficient summary as shown in Table 4 gives beta value of .526for ERM to CSR, .659for CSR to OT, .767for CSR to OC, .426for CSR to CR, .185for OT to CR, .293for OC to CR, and .059for ERM to CR which are fairly representing their impact on respective dependent variable..883Over all questionnaire .949

RESULTS OF HYPOTHESES TESTING
Table 5 shows that all seven assumptions given at the outset of the conceptual investigation have been verified.

CONCLUSION
To that end, this research analyzed how CSR and ERM help businesses gain a better reputation.(CR).The results showed that CSR spending is correlated with a better company image.Empirical findings also reveal that CSR practices and business reputation are mediated by employees' levels of commitment and trust in the company.
This research shows how CSR perceptions within organizations might affect CR by modifying the underlying processes that drive CSR behaviour among workers.CSR has the potential to improve a company's standing with its workforce by rewarding and recognizing their efforts and accomplishments.When CSR is high, workers are more likely to believe in their company and be invested in its success.Potential employees can learn more about the company's values and mission thanks to enhanced CSR.Further, it's a fundamental framework for grasping the concept of reputation.

LIMITATIONS AND RECOMMENDATIONS
The scope of this study is limited to the private banking industry; further testing of the framework in other settings could help broaden its applicability.Predictions can only be generalized if they are tested in a number of contexts and by a variety of institutions.In addition, there weren't too many people included in the study (340 total), thus the results may not be representative of the entire community.
In addition, employees were the only source of data for analyzing the multiple metrics in this study, thus any inefficiency or shortcoming in that source could contaminate all the measurements and lead to inaccurate conclusions.Therefore, in the future, it is proposed that the data to be surveyed should be gathered from numerous sources in order to limit the consequences of any such disparity.

Figure
Figure 1: Conceptual framework

Table 1 :
Descriptive Statistics of Demographic Profile

Table 4 :
Result of Regression Analysis

Table 5 :
Summary of Hypotheses Testing