ArticlePDF Available

Corporate social responsibility influences, employee commitment and organizational performance

Authors:
  • Jamia Millia Islamia University New Delhi

Abstract and Figures

Research on corporate social responsibility (CSR) majorly describes its effects on corporate financial performance or consumers' behavior towards CSR. Relatively few studies have focused employee's sentiments towards CSR. This study analyzes the multifaceted influence of CSR on employee's organizational commitment and organizational performance. The study uses exploratory approach; primary data is collected from 371 professionals working in different sectors of Pakistan. The study uses structural equation model (SEM) technique to test the hypotheses. The study found significantly positive relationship between CSR actions and employee organizational commitment, CSR and organizational performance and employee organizational commitment and organizational performance. The study discusses important implications regarding uses of CSR for enhancing employee's organizational commitment and improving organizational performance.
Content may be subject to copyright.
A preview of the PDF is not available
... Recent research on Corporate Social Responsibility (CSR) has stressed corporations to assign substantial resources for the welfare of the community. Researchers are advising different business entities to consider the amount spent in CSR as an investment rather than as an expense (Ali, Rehman, Ali, Yousaf & Zia, 2010). Nowadays corporations are realizing the multifaced benefits of CSR and are paying great attention to incorporate it in all spheres of business strategies (Davies & Crane 2010). ...
... To develop sound relationships with employees, organizations are using Corporate Social Responsibility (CSR) as a strategic tool. Corporate social responsibility is being utilized by leading organizations to establish good association not only with external stakeholders but also internal stakeholders as well for example employees (Ali et al., 2010).In this paper, the researcher wants to know if the different CSR activities affect Employee Relations and Motivation. The main problem statement of this paper is "What is the effect of CSR on Employee Relation mediated by Employee Motivation?" ...
... This decision was given against the suit filed by one of the shareholders of Standard Oil, believing that it would reduce shareholder's wealth. Literature provides diverse definitions of CSR; this study follows the definition of Mohr, et al., (2001) which describes CSR as a company's commitment to minimizing or eliminating any harmful influence and maximizing its long-run beneficial impact on society (Ali et al., 2010). Even though there are many CSR definitions, and this concept has been studied in various scientific fields. ...
Article
Full-text available
This research will study about what are the effects of CSR on Employee Relations while being Mediated by Employee Motivation. Aguilera, et al., (2007) use a definition of CSR which refers to “the firm’s considerations of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social [and environmental] benefits along with the traditional economic gains which the firm seeks (Ferreira & de Oliveira, 2014). Motivated employees feel a closer relationship with the organization they work for and hence perform (Chaudhary et al., 2015). The study has 5 Hypotheses this research is a quantitative study that is Casual, Correlational, and Descriptive and will be conducted in a company in Bulacan, a province in the Philippines with a sample population size of 80. This research will look at, effects and relationship of Employee Motivation, Corporate Social Responsibility, and Employee Relation. Data will be analyzed using Descriptive Analytics, Multiple Linear Regression Analysis, and Correlational Analysis. Based on the data CSR is positively and significantly impacts Employee Motivation. If CSR is broken down into its sub constructs of Internal and External CSR only External CSR (Local Community) significantly impacts Employee Motivation. Data analysis also shows that Employee Motivation significantly impacts Employee Retention. While the highlight of the study is the mediation, it was found out that CSR was not a significant predictor of Employee Relation when Employee Motivation was included in the model.
... According to an article from Dr. Hua Jiang, associate professor in S.I. Newhouse School of Public Communications at Syracuse University and published by the Institute for Public Relations (2020), "employee engagement through CSR contributes to employees' perception of their organizations' reputation of 'doing good'," (Ali, Rehman, Ali, Yousaf, & Zia, 2010). Furthermore, "employees can voluntarily share CSR information on social media, which will eventually help enhance their employer's reputation in the marketplace," (Kim & Rhee, 2011). ...
Article
The message is clear: people want to work for organizations where they feel they are engaged and learning. Recently, Benevity in Canada stated, "Today’s employees are expecting a greater sense of purpose in the workplace. In fact, 83% of Millennials say they would be more loyal to their employer when they feel they can make a difference on social and environmental issues at work." Companies that engage in social and environmental stewardship also benefit from employees who are more aware and involved. Once the Corporate Social Responsibility (CSR) strategy and programs have been defined, how do you ensure your communications strategy, plan, and actions are aligned and will help deliver the desired results to get employees interested and engaged? An online survey with 100 respondents in Canada demonstrated a clear shift from years ago where current applicants now research a company’s CSR information when applying there. And once working inside the organization, employees notice CSR initiatives and want to get involved.
... Le concept de la RSE est un concept relativement ancien. Il remonte à la fin de la deuxième guerre mondiale, à ce moment où les dirigeants ont commencé à prendre conscience La plupart des études réalisées sur la RSE se penchent sur sa relation avec la performance financière (Mcwilliams & Siegel, 2001;Ali, Rehman, Ali, Yousaf, & Zia, 2010). ...
... According to a study conducted on Pakistan's oil and gas sector (Khan et al., 2010), the results indicate that organizational commitment positively impacts inrole job performance. Studies by Ali et al. (2010) and Ahmed et al. (2010) also support similar findings. A study by Kula and Guler (2014) on the Turkish National Police reports similar findings. ...
Article
Full-text available
For the success of any project/organization, the performance of its employees contributes the most. Organizational commitment and organizational identification are critical predictors of in-role job performance in an organization. The current study aims to study the impact of organizational commitment on in-role job performance with the mediating role of organizational identification. Furthermore, the current research also explores the moderating role of training concerning organizational commitment and performance. Questionnaires were distributed among 275 personnel of the Specialized Unit of Police Force (A project of the Punjab Police). Data gathered from respondents was then analyzed using SPSS. Furthermore, Hayes' process was used to analyze the mediating role of organizational identification and the moderating role of organizational commitment. The analysis results revealed that organizational commitment significantly impacts the in-role job performance directly and via organizational identification as a mediator. However, as proposed, the moderating role of training has not been proven significant. The current study is a valuable input for policymakers of the police force. Further, the current study will also help overcome the scarcity of research.
Article
Full-text available
The present study is to unveil the concept of stakeholder engagement and participation in CSR, the environment, and society from the realist’s point of view based on a quantitative method. A poll was conducted and carried out among both the organization and the public to capture the connection between CSR, the way it’s been applied, and the realist’s view, as mentioned. The acquired data is quantified and then subjected to statistical testing and verification of the underlying assumptions and hypotheses. As seen from the p-value (> 0.05), implying the assumption of the composite relationship existing and connecting the realist, donations, and social responsibility roles, the realist view is in congruence and connection with the stakeholder’s theory and expectations. The realist view can enhance CSR activities as justified by the results and statistical testing and also based on the verification of the underlying assumptions and hypothesis formulations, providing a better picture, scope, and perspective beyond just donor contributions. These establish and corroborate the fact that organizations can pursue CSR more zealously with integrity and passion to promote and step up activities that impact positively on environmental sustainability, climate change, environmental protection, and sustainable development.
Article
Full-text available
This study investigates the impact of organizational climate on organizational effectiveness, emphasizing the mediating role of employee performance and the moderating role of job satisfaction. Using a quantitative, survey-based design, data was collected from 320 managerial employees in Lahore’s telecommunication sector. Statistical analysis revealed that organizational climate significantly affects organizational effectiveness, with employee performance acting as a key mediator. Moreover, job satisfaction enhances this relationship, indicating its critical moderating role. The study highlights strong correlations among organizational climate, job satisfaction, and employee performance, demonstrating that supportive environments improve employee outcomes and overall organizational success. These findings provide valuable insights for managers aiming to foster a positive climate, improve employee engagement, and drive organizational effectiveness.
Article
Full-text available
The world has been going through a pandemic phase for the past couple of years. In person interactions have been stalled and big organizations with large number of employees have switched gears to address the work commitments while keeping the employees safe. One such evolution is making remote work possible wherever it is feasible. Technology organizations across the world have created platforms for collaboration and execution that made work from home possible for millions of employees. Though the idea of working from home sounds promising for safety of the employees, it opened new avenues for employment fraud. The current case deals one such situation that rose in IT department of a leading Metro rail division in east coast of the Unites States. Purpose: The present case deals with the employee's loyalty towards organisation and their work commitment. The purpose of this case is about employee fraud relating to commitment and personal benefit and consequences thereafter. Scope: Similar situations may be prevailing in different sectors and different jobs engaged from home. This case discussion may be relevant to such situations and find a way to identify and tackle such situations. Such discussions will help in enlightening the employer-employee and to other domains like educational institutions where the online mode is prevailing and may continue with development in education technology. Conclusion: The global data reveals that reveals that almost all sectors are opting the work from home mode. In this backdrop, the employer and employee need to be loyal to each other and continue their loyalty and commitment mutually to go forward in difficult situation like pandemic.
Article
Some corporate entities especially from the non-financial services firms in Nigeria had sustained series of socio-economic shocks leading to huge decline in performance of the listed firms’ overtime. The deteriorating nature of firms’ performance generation prevents them from being able to satisfy their financial obligations. This study looked at how corporate voluntary reporting affected Nigerian non-financial enterprises' performance. For this study, an ex-post facto research strategy was utilized, with positivism serving as the research paradigm. All 74 non-financial services companies listed on the Nigeria Exchange make up the study's population., while 41 was the sample size after filtering. The published annual financial statements of the non-financial companies listed on the Nigeria Exchange served as secondary sources of the data used in this study. This study was conducted for a period of eleven (11) years spanning from 2013 to 2023. The regression results revealed that quality assurance disclosure and local community disclosure were found to have significant effect on performance of listed non-financial firms in Nigeria. The study recommended that the regulatory bodies should persuade the inclusion of additional females in the board of directors of non-financial services firms in Nigeria, and the management of the affected firms should make a choice of quality assurance disclosure as their component of corporate social responsibility, as well as consider allocating reasonable funds to improve investment on local community services, environmental projects/programs, and human capital development. The Nigeria’s standard-setter should enforce the implementation of corporate social responsibility as a mandatory disclosure requirement for corporate entities in Nigeria as it is now done in South-Africa.
Article
Full-text available
The concept of CSR has begun to attract the attention of management researchers and practitioners over the past twenty years. To this end, several models have been developed Carroll (1979), Watrick and Cochran (1985), Wood (1991), Donaldson and Preston (1995) and Mitchell, Agle and Wood (1997), to illustrate the diversity of approaches to CSR, highlighting the growing importance for companies to adopt sustainable and socially responsible practices to meet society's expectations and contribute positively to sustainable development. This research work seeks to explore the different models proposed by authors and academics, through an analysis of the divergences and similarities in the way this construct is perceived
Article
Full-text available
Drawing on propositions from social identity theory and signaling theory, we hypothesized that firms' corporate social performance (CSP) is related positively to their reputations and to their attractiveness as employers. Results indicate that independent ratings of CSP are related to firms' reputations and attractiveness as employers, suggesting that a firm's CSP may provide a competitive advantage in attracting applicants. Such results add to the growing literature suggesting that CSP map provide firms with competitive advantages.
Article
Companies are facing increasing pressure to both maintain profitability and behave in socially responsible ways, yet researchers have provided little information on how corporate social responsibility impacts profitability. This paper reports the findings from in-depth interviews of consumers to determine their views concerning the social responsibilities of companies. A typology of consumers whose purchasing behavior ranges from unresponsive to highly responsive to corporate social responsibility was developed from the analysis.
Article
The authors address a key controversy in the marketing literature about the suitability of global standardization. An empirical investigation of the differences between firms that emphasize global standardization and others that use less standardization was conducted within the global industry context. The results indicate that market coverage and capacity utilization are important considerations for firms emphasizing global standardization. Emphasis on specialty products and the development of high priced products for market niches are also of some importance to these firms. However, in the critical area of performance, no difference is observed between firms stressing global standardization and others.
Article
The current paradigm of business pedagogy has come under additional scrutiny for its inability to link socially responsible behavior by firms to their performance in ways that students find meaningful. We suggest a pedagogical approach that examines aspirational as well as consequentialist antecedents of socially responsible behavior by firms. We also advance a framework where the "dependent variable" of firm behavior, that is, competitive advantage, can be rendered more inclusive of nonmarket and idealistic elements. Our framework suggests that social responsibility can then be rendered endogenous to firm performance. We argue that an emphasis on such an approach can offer business schools a way to make social responsibility more meaningful to students.
Article
The authors investigate whether it is necessary to include disconfirmation as an intervening variable affecting satisfaction as is commonly argued, or whether the effect of disconfirmation is adequately captured by expectation and perceived performance. Further, they model the process for two types of products, a durable and a nondurable good, using experimental procedures in which three levels of expectations and three levels of performance are manipulated for each product in a factorial design. Each subject's perceived expectations, performance evaluations, disconfirmation, and satisfaction are subsequently measured by using multiple measures for each construct. The results suggest the effects are different for the two products. For the nondurable good, the relationships are as typically hypothesized. The results for the durable good are different in important respects. First, neither the disconfirmation experience nor subjects' initial expectations affected subjects' satisfaction with it. Rather, their satisfaction was determined solely by the performance of the durable good. Expectations did combine with performance to affect disconfirmation, though the magnitude of the disconfirmation experience did not translate into an impact on satisfaction. Finally, the direct performance-satisfaction link accounts for most of the variation in satisfaction.