Aom Panel Symposium 2024docx

Compassionate Banking: Nurturing a Culture of Care for
Sustainable Success
Globalization and deregulation in recent decades have radically reshaped the financial services
sector, fundamentally altering work organization and execution (Giorgi et al., 2017), with
profound consequences for employees due to the adoption of new technologies and structures
(Hassard et al., 2017; Kaur et al., 2017), including repercussions on their psycho-physical well-
being (Van Hal, 2015); stands to benefit significantly from the integration of compassionate
work culture (Biswas & Chakraborty, 2019). Studies have consistently highlighted the
importance of compassionate communication, rooted in "positive psychological concept of
compassion" (Julia et al., 2024, p.2), as integral to workplace relational practice (Salazar, 2013;
Tracy & Huffman, 2017), showcasing its positive impact on the physical, social, and
psychological well-being of both the giver and receiver (Patel et al., 2019). Delgado (2005)
perceived compassion as an inclination towards reciprocal concern and assistance for others,
which engenders contentment and impetus among individuals within the professional sphere.
Demonstrating compassion in a customer-centric nature of the banking sector can enhance not
only client relationships (Itani & Inyang, 2015) and customer loyalty (Padmavathi & Sheriff,
2016) but also lessen employees' psychological distress through a sense of self-compassion
(Andersson et al., 2022), and improves their decision-making abilities (Jnaneswar & Sulphey,
2021).
Beyond enhancing employee well-being, it cultivates a positive organizational climate

that fosters trust, collaboration, and innovation (Dutton et al., 2014; Lilius et al., 2011).
Compassionate leadership has been linked to higher job performance (Guinot et al., 2020),
reduced burnout rate (Poorkavoos, 2016), and increased organizational resilience (Barghouti et
al., 2022), all of which are crucial for the organizational stability and success (Friedman &
Gerstein, 2017). Compassionate work culture in banking not only improves the overall
workplace atmosphere but also contributes to better customer relations and loyalty (Bahadur et
al., 2018). The banking industry's reputation and success are intertwined with client trust (Chung
& Kwon, 2009), making compassionate interactions a critical factor in sustained financial
performance. Understanding the interconnectedness of workplace spirituality and compassion is
paramount for shaping the future of the banking industry. Spirituality in the workplace has been
associated with increased job satisfaction, organizational commitment, and ethical behavior
(Mitroff & Denton, 1999; Giacalone & Jurkiewicz, 2003). As the banking industry evolves,
incorporating these spiritual dimensions into organizational practices can elevate employee
morale and contribute to a more sustainable and socially responsible financial sector. By
acknowledging the human side of banking through compassionate practices, the industry can
build resilience in the face of challenges and enhance its societal impact (Rego et al., 2008).
Questions:
1) How can the banking industry leverage compassionate communication to enhance

employee well-being?
2) What specific strategies can be implemented to infuse compassion into leadership
practices within the banking sector?
3) In what ways can workplace spirituality be integrated into the organizational culture of
banks to foster compassion and ethical behavior?
4) How can the banking industry balance the need for sustainable banking practices with the
cultivation of a compassionate work culture?
5) Considering the future trends in banking, how can a compassionate work culture
contribute to the industry's adaptability and resilience in an ever-changing economic
landscape, particularly in the context of sustainable banking?
References
Andersson, C., Mellner, C., Lilliengren, P., Einhorn, S., Bergsten, K. L., Stenström, E., & Osika,
W. (2022). Cultivating compassion and reducing stress and mental ill-health in
employees—A randomized controlled study. Frontiers in Psychology, 12, 748140.
Bahadur, W., Aziz, S., & Zulfiqar, S. (2018). Effect of employee empathy on customer
satisfaction and loyalty during employee–customer interactions: The mediating role of
customer affective commitment and perceived service quality. Cogent Business &
Management, 5(1), 1491780. https://doi.org/10.1080/23311975.2018.1491780
Barghouti, Z., Guinot, J., & Chiva, R. (2023). Compassion and altruism in organizations: a path
for firm survival. International Journal of Manpower, 44(9), 1-19.
https://doi.org/10.1108/IJM-05-2021-0266
Biswas, W., & Chakraborty, D. (2019). Impact of organizational values, compassion, and well -
being on industrial disputes: An empirical study. Prabandhan: Indian Journal of
Management, 12(1), 36-51.
Chung, N., & Kwon, S. J. (2009). The effects of customers' mobile experience and technical
support on the intention to use mobile banking. Cyber psychology & Behavior, 12(5),
539-543.
Delgado, C. (2005). A discussion of the concept of spirituality. Nursing Science Quarterly,

18(2), 157-162.
Dutton, J. E., Workman, K. M., & Hardin, A. E. (2014). Compassion at work. Annu. Rev. Organ.
Psychol. Organ. Behav., 1(1), 277-304.
Friedman, H. H., & Gerstein, M. (2017). Leading with compassion: The key to changing the
organizational culture and achieving success. Psych sociological Issues in Human
Resource Management, 5(1), 160-175.
Giacalone, R. A., & Jurkiewicz, C. L. (Eds.). (2003). Handbook of workplace spirituality and
organizational performance. Me Sharpe.
Giorgi, G., Arcangeli, G., Perminiene, M., Lorini, C., Ariza-Montes, A., Fiz-Perez, J. & Mucci,
N. (2017). Work-related stress in the banking sector: a review of incidence, correlated
factors, and major consequences. Frontiers in Psychology, 8, 2166.
https://doi.org/10.3389/fpsyg.2017.02166
Guinot, J., Miralles, S., Rodríguez-Sánchez, A., & Chiva, R. (2020). Do compassionate firms
outperform? The role of organizational learning. Employee Relations, 42(3), 717-734.
https://doi.org/10.1108/ER-07-2019-0275
Hassard, J., Teoh, K. R., Visockaite, G., Dewe, P., & Cox, T. (2018). The cost of work-related
stress to society: A systematic review. Journal of Occupational Health
Psychology, 23(1), 1-17. https://psycnet.apa.org/doi/10.1037/ocp0000069
Itani, O. S., & Inyang, A. E. (2015). The effects of empathy and listening of salespeople on
relationship quality in the retail banking industry: The moderating role of felt
stress. International Journal of Bank Marketing, 33(6), 692-716.
Jnaneswar, K., & Sulphey, M. (2021). A study on the relationship between workplace
spirituality, mental well-being and mindfulness. Management Science Letters, 11(3),
1045-1054.
Julia, G. J., Romate, J., Allen, J. G., & Rajkumar, E. Compassionate Communication: A Scoping
Review. Frontiers in Communication, 8, 1294586.
Kaur, K., Kaur, P., & Kumar, P. (2017). Stress, coping mechanisms and its socio-economic
impact on organisations-A review. Indian Journal of Economics and
Development, 13(2a), 744-751. http://dx.doi.org/10.5958/2322-0430.2017.00163.9
Lilius, J. M., Worline, M. C., Dutton, J. E., Kanov, J. M., & Maitlis, S. (2011). Understanding
compassion capability. Human Relations, 64(7), 873-899.
https://doi.org/10.1177/0018726710396250
Mitroff, I. I., & Denton, E. A. (1999). A study of spirituality in the workplace. MIT Sloan
Management Review.
Padmavathi, T., & Sheriff, J. K. (2016). Impact of Empathy on Customer Loyalty through the
Mediating Role of Relationship Quality in Retail Banks. International Journal of
Management Research and Social Science, 3(3), 74-79.
Patel, S., Pelletier-Bui, A., Smith, S., Roberts, M. B., Kilgannon, H., Trzeciak, S., & Roberts, B.
W. (2019). Curricula for empathy and compassion training in medical education: a
systematic review. PloS one, 14(8), e0221412.
https://doi.org/10.1371/journal.pone.0221412
Poorkavoos, M. (2016). Compassionate leadership: What is it and why do organisations need

more of it. Roffey Park Institute, 1-16.
Rego, A., Pina E. Cunha, M., & Souto, S. (2008). Workplace spirituality, commitment, and self‐
reported individual performance: An empirical study. Management Research: Journal of
the Iberoamerican Academy of Management, 5(3), 163-183.
Salazar, L. R. (2013). Communicating with compassion: The exploratory factor analysis and
primary validation process of the compassionate communication scale. Arizona State
University.
Tracy, S. J., & Huffman, T. P. (2017). Compassion in the face of terror: A case study of
recognizing suffering, co-creating hope, and developing trust in a would-be school
shooting. Communication Monographs, 84(1), 30-53.
https://doi.org/10.1080/03637751.2016.1218642
Van Hal, G. (2015). The true cost of the economic crisis on psychological well-being: a
review. Psychology Research and Behavior Management, 8, 17-25.
https://doi.org/10.2147/PRBM.S44732
Author's Biography
Akshay Kumar is currently a Ph.D. scholar of Faculty of Management Studies,

Department of Management, University of Delhi, India under the guidance of
Prof. Sunita Singh Sengupta, Faculty of Management Studies, University of
Delhi, Delhi, India. He holds a Master’s degree in Commerce from University of
Delhi itself and his research interests are based on his fascination for how managerial philosophy
and practices in the contemporary corporate world complement and shape each other. He has
been exploring this phenomenon from different perspectives in both his research and other
practices. He is further interested in integrating Intertemporal Stewardship Theory (Workplace
Spirituality * Organizational Stewardship) in Decision-Making of Commercial Banking Units,
especially, in Indian context.

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Compassionate Banking: Nurturing a Culture of Care for

Beyond enhancing employee well-being, it cultivates a positive organizational climate

1) How can the banking industry leverage compassionate communication to enhance

Delgado, C. (2005). A discussion of the concept of spirituality. Nursing Science Quarterly,

Poorkavoos, M. (2016). Compassionate leadership: What is it and why do organisations need

Akshay Kumar is currently a Ph.D. scholar of Faculty of Management Studies,

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