The present study particularly aims to probe the quadratic effects of the combined and individual sovereign environmental, social, and governance (ESG) activities on the banking sector’s profitability. Furthermore, we attempt to shed light on the channels through which sovereign ESG practices impact the banking sector’s profitability. Unlike the vast majority of prior works that investigated the sustainability practice–firms’ profitability nexus from the firm level, this study originally probes this relationship from the country level by considering the sovereign ESG sustainability activities. To attain this purpose, we focus on banking sectors operating in Gulf Cooperation Council (GCC) economies and employ the panel-fixed effects and panel-corrected standard errors approaches between 2000 and 2022. Remarkably, the findings uncover that the nexus between combined sovereign ESG and profitability is a non-linear and inversed U-shape (concave), implying that investing in sovereign ESG enhances the banking sector’s profitability. However, after exceeding an inflection point (0.349), its effect turns out to be negative and it develops into activities of destruction. Furthermore, the findings underscore that the association between individual sovereign environmental responsibility and the banking sector’s profitability is a non-linear U-shape (convex), while an inversed U-shaped (concave) nexus is uncovered for the individual sovereign social and governance activities. Moreover, the significant non-linear inverted U-shape for the combined sovereign ESG–stability nexus corroborates that financial stability is a channel through which sovereign ESG significantly impacts profitability.

Purpose: Higher education institutions now place a greater emphasis on servant leadership, organizational trust, and justice. This study evaluates the function of organizational and leader trust and justice in mediating the relationship between employee job satisfaction and servant leadership in Kuwait's private universities.Design/methodology/approach: Employees from two private higher education sectors in Kuwait provided 205 valid responses to the study's closed-ended survey, which was given to 240 workers. The job satisfaction and servant leadership, leader's trust and justice and servant leadership, leader's trust and justice and job satisfaction, and the mediating effect of trust and justice on the relationship between servant leadership and job satisfaction among employees in Kuwait's private universities—all four variables—were examined using the simple random procedure method. Partial least squares structural equation modeling was used for data analysis.Findings: The findings provide evidence supporting the positive effects of servant leadership on employee job satisfaction. Moreover, it provided evidence supporting the positive relationship between servant leadership and organizational trust and justice. The findings also showed a positive correlation between organizational trust and justice and job satisfaction among staff members working in Kuwait's private higher education sector. Additionally, the results provided a partial mediation effect of organizational trust and justice on the relationship between servant leadership and employee job satisfaction.Originality/value: Employee job satisfaction, performance, engagement, and outcomes within Kuwait's private higher education sector are significantly improved by the adoption of a servant leadership style, together with organizational and leader’s trust and justice. The findings demonstrate the significance of the servant leadership style in this industry's leadership habits for raising worker job satisfaction.