The Role of Public Policy, CSR and Customer Engagement towards Green Banking at Commercial Banks in Ho Chi Minh City

Abstract

The current study aims to focus on the role of public policy, corporate social responsibility, customer engagement and perceived environmental value in promoting green banking. This study analysed and evaluated the importance of public policy, corporate social responsibility and customer engagement in green banking using a dataset of 368 individuals who are customers at commercial banks in Ho Chi Minh City. Utilising basic quantitative research statistical analyses such as Cronbach’s alpha reliability assessment, exploratory factor analysis, measurement model and partial least squares structural equation modelling from SPSS and SMART PLS software, the research results indicate that (1) Public policy positively influences Corporate Social Responsibility (CSR); (2) CSR positively influences customer engagement and perceived environmental value and green banking; (3) customer engagement positively influences the perceived environmental value and green banking and (4) perceived environmental value positively influences green banking. Theoretically, this research could significantly contribute to the advancement of the academic field of CSR especially in the landscape of dynamic business environments by responding to the call for more extensive research on CSR and green banking highlighted in previous studies. The results suggest managerial implications for both sides of the government and commercial banks to contribute to the sustainable development of green banking.