Purpose This research aims to investigate the influence of corporate social responsibility (CSR) on employee retention among banking employees in Pakistan, along with the moderating effect of innovative leadership on the relationship between CSR and employee retention. Design/methodology/approach The nature of this study is quantitative, where structured questionnaires were used to collect the data from 327 employees working in different banks. The sample size was calculated using the Krejice and Morgan model. Data was analysed through SPSS and smart-PLS 4. Findings Results of this study indicate that CSR has a significantly positive relationship with employee retention. Study results also suggest that innovative leadership has a significant positive relationship with employee retention and that innovative leadership moderates the relationship between CSR and employee retention. Research limitations/implications This study is limited to banking employees; therefore, future studies can be extended to other service sectors such as telecom and private educational institutions. This study model can also be tested in other industries as well. Furthermore, longitudinal studies can also be conducted in future. Originality/value This study is different from the previously available studies based on the following grounds. Firstly, this tests the relationship of CSR and employee retention through stakeholder and social exchange theories on a micro-level perspective of CSR. Secondly, the role of innovative readership as a moderator has not yet been explored in the existing studies, whereas this study is enriching the literature on this topic.