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The purpose of this study is to focus on how organizational events i.e. Corporate Social Responsibility (CSR) develops positive emotions among employees through compassion at workplace in banking industry of India. The employees of banking industry in India were surveyed by using self-administered questionnaire. A total of 241 samples was collected by using convenience sampling technique. This is a comprehensive study which answers how CSR induces positive emotion. Findings indicated that CSR influences positive emotions through compassion at workplace, in addition to the direct effect of CSR on positive emotions. In addition to this, findings of the study revealed that compassion mediates the relationship between CSR and positive emotion which is a new contribution to the literature. This study sheds new light on both CSR and positive emotions. This is the first pieces of research in management literature which addresses positive emotion as a consequence of CSR. In addition to this, this is the first pieces of research where Affective Events Theory is introduced to see the linkage between CSR and positive emotions