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The contribution of corporate social responsibility to organizational commitment

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This study investigates the relationship between organizational commitment and employee perceptions of corporate social responsibility (CSR) within a model that draws on social identity theory. Specifically, we examine the impact of three aspects of socially responsible behaviour on organizational commitment: employee perceptions of corporate social responsibility in the community, procedural justice in the organization and the provision of employee training. The relationship between organizational commitment and each aspect of CSR is investigated within a model that distinguishes between genders and includes a set of control variables that is drawn from the commitment literature (Meyer et al., 2002). The analysis is based on a sample of 4,712 employees drawn from a financial services company. The results emphasize the importance of gender variation and suggest both that external CSR is positively related to organizational commitment and that the contribution of CSR to organizational commitment is at least as great as job satisfaction.
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The contribution of corporate social responsibility to
organizational commitment
Stephen Brammer; Andrew Millington; Bruce Rayton
Online Publication Date: 01 October 2007
To cite this Article: Brammer, Stephen, Millington, Andrew and Rayton, Bruce
(2007) 'The contribution of corporate social responsibility to organizational
commitment', The International Journal of Human Resource Management, 18:10,
1701 - 1719
To link to this article: DOI: 10.1080/09585190701570866
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The contribution of corporate social
responsibility to organizational
commitment
Stephen Brammer, Andrew Millington and Bruce Rayton
Abstract This study investigates the relationship between organizational commitment
and employee perceptions of corporate social responsibility (CSR) within a model that
draws on social identity theory. Specifically, we examine the impact of three aspects of
socially responsible behaviour on organizational commitment: employee perceptions of
corporate social responsibility in the community, procedural justice in the organization
and the provision of employee training. The relationship between organizational
commitment and each aspect of CSR is investigated within a model that distinguishes
between genders and includes a set of control variables that is drawn from the commitment
literature (Meyer et al., 2002). The analysis is based on a sample of 4,712 employees
drawn from a financial services company. The results emphasize the importance of gender
variation and suggest both that external CSR is positively related to organizational
commitment and that the contribution of CSR to organizational commitment is at least as
great as job satisfaction.
Keywords Organizationa l commitment; corporate social responsibil ity; training;
justice; gender; banking
Introduction
Organizational commitment forms the basis of an extensive literature that has focused
both on the antecedents of commitment and its consequences for work behaviour
(e.g. labour turnover, job performance and employee health). Meta-analytic studies of
the literature suggest that organizational commitment is driven by work experience
rather than the recruitment or selection of employees, and highlight the importance of
perceived organizational support in this process (Meyer et al., 2002). In this paper we
focus on the relationship between organizational commitment and corporate social
responsibility (CSR) within a model that draws on social identity theory and
distinguishes between the importance of CSR for male and female employees. During the
past decade, firms have come under increasing pressure to pursue socially responsive
behaviour from a variety of stakeholder groups including shareholders, employees,
The International Journal of Human Resource Management
ISSN 0958-5192 print/ISSN 1466-4399 online q 2007 Taylor & Francis
http://www.tandf.co.uk/journals
DOI: 10.1080/09585190701570866
Stephen Brammer, Centre for Business Organizations and Society, School of Management,
University of Bath, Claverton Down, Bath BA2 7AY, (tel: þ 44 (0) 1225 385685; e-mail:
mnssjab@management.bath.ac.uk); Andrew Millington, Centre for Business Organizations and
Society, School of Management, University of Bath, Claverton Down, Bath BA2 7AY, UK
(tel: þ 44 (0) 1225 383068; e-mail: mnsaim@management.bath.ac.uk); Bruce Rayton, School of
Management, Work and Employment Research Centre, School of Management, University of Bath,
Claverton Down, Bath BA2 7AY, UK (tel: þ 44 (0) 1225 383922; e-mail: B.Rayton@bath.ac.uk).
Int. J. of Human Resource Management 18:10 October 2007 1701 1719
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investors, consumers and managers (Berman et al., 1999; Donaldson and Preston, 1995;
Kapstein, 2001). The demand for corporate social responsiveness has been accentuated
in the UK through the activities of pressure groups such as the Per Cent Club and
Business in the Community and the increasingly widespread attention given to the
subject in the national media.
1
As the threats and opportunities associated with corporate, social and environmental
responsibilities become better understood, companies have sought to generate strategic
capital from the acceptance of these responsibilities. In light of this, significant strands of
research have investigated whether there are financial payoffs to increased social
responsiveness (Griffin and Mahon, 1997; McWilliams and Siegel, 2000; Orlitzky et al.,
2003; Waddock and Graves, 1997), the influence of perceptions concerning corporate
social responsiveness on customers (Jones, 1995; McGuire et al., 1988; Romm, 1994;
Smith, 1994; Solomon and Hanson, 1985), and the attractiveness of social performance
to investors (Coffey and Fryxell, 1991; Graves and Waddock, 1994; Johnson and
Greening, 1999).
Within this body of research considerable attention has been paid to the importance of
employees in corporate social responsiveness (Albinger and Freeman, 2000; Backhaus
et al., 2002; Greening and Turban, 2000; Moskowitz, 1972; Peterson, 2004; Turban and
Greening, 1996). These studies provide evidence of payoffs to improved social
responsibility, including the observation that more socially responsible corporations are
more attractive to potential employees and that they may therefore benefit from larger
applicant pools (Greening and Turban, 2000; Turban and Greening, 1996), and a more
committed workforce because ‘employees will be proud to identify with work
organizations that have favourable reputations’ (Peterson, 2004: 299). Indeed, a recent
survey found that 58 per cent of UK employees believed that the social and
environmental responsibilities of the organization they worked for are very important
(Dawkins, 2004), with other evidence highlighting that cor porate social and
environmental values may play a particularly significant role in the recruitment of
new graduates (Scott, 2004).
In this paper we investigate the relationship between organizational commitment and
employee perceptions of CSR within a model which draws on social identity theory
and distinguishes between aspects of CSR that are primarily concerned with the external
image and reputation of the organization (what we call ‘external CSR’) and aspects
of CSR that are related to the internal operation of the organization (what we term
‘internal’ CSR). Specifically, we examine the impact of three aspects of socially
responsible behaviour on organizational commitment: employee perceptions of external
CSR and in particular corporate social responsibility in the community, procedural
justice in the organization and the provision of employee training. According to social
identity theory corporate social performance may be expected to contribute positively to
the attraction, retention and motivation of employees because they are likely to identify
strongly with positive organizational values (Peterson, 2004). Earlier work has
emphasized the strong relationships that exist between organizational commitment,
labour retention and a range of work attitudes including productivity and absenteeism
(Meyer et al., 2002). Resource based theory suggests that sustained competitive
advantage is based on the attraction, accumulation, and retention of resources that are
difficult to substitute and hard to imitate (Hart, 1995; Prahalad and Hamel, 1990).
Organizational knowledge is both intangible and embedded in the organization’s human
resources; it encompasses the technical knowledge, know-how and managerial skills that
underpin the managerial process and the diffusion of knowledge within the organization
(Lawson, 2001; Nonaka and Takeuchi, 1995; Stewart, 1997). The retention of workers
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may, therefore, be seen as central to the maintenance of firm-specific advantages (Lado
and Wilson, 1994; Pfeffer, 1994; Scarbrough, 1999; Wright et al., 1995).
The paper makes two contributions to the literature. First, this is the first study of
organizational commitment to consider the relationship between organizational
commitment and employee perceptions of external CSR. In so doing it adds to our
understanding of the determinants of organizational commitment and to our knowledge
of the impact of external corporate social responsibility on internal stakeholders.
Although earlier work has explored the relationship between CSR and external
stakeholder management (e.g. Brammer and Millington, 2003; Griffin and Mahon,
1997; Johnson and Greening, 1999) few studies have investigated the impact of
external CSR strategies on internal stakeholders and in particular work attitudes
(Peterson, 2004).
Second, we evaluate the contribution of external CSR to organizational commitment in
the context of a model that also includes two aspects of internal CSR (training and
procedural justice) which reflect both corporate investments in the labour force and the
ethical stance of the organization. Our approach to the relationship between CSR and
organizational commitment is therefore both disaggregated and multidimensional and can
be contrasted with earlier work that focuses either on aspects of CSR (e.g. Sweeney and
McFarlin, 1997; Tata, 2000) or generic constructs that fail to distinguish between policy
choices (e.g. Peterson, 2004). This disaggregated approach enables us to investigate the
relative returns, in terms of organizational commitment, to different forms of socially
responsible behaviour, from which we might reasonably infer payoffs in terms of retention
and recruitment and thereby establish a mechanism by which CSR can deliver strategic
benefits.
The analysis is carried out in five sections. The relationship between CSR and
organizational commitment is discussed in the next section within a model which draws
on social identity theory, and a set of hypotheses is introduced. The sample, data and
variable specification are then discussed. The results of the analysis are presented and the
implications are then discussed in the conclusion.
Conceptual background and hypotheses development
Allen and Meyer (1990) distinguish between three forms of organizational commitment:
affective commitment which denotes ‘an emotional attachment to, identification with, and
involvement in the organization’ (p. 21); continuance commitment which denotes ‘the
perceived costs associated with leaving the organization’; and normative commitment
‘which reflects a perceived obligation to remain in the organization’. Recent meta-
analytic studies show that each of these forms of commitment is associated with labour
turnover and intentions to leave the organization but sugg est that a stronger
relationship exists between affective commitment and a range of desirable employee
outcomes which include: attendance, job performance, stress, health, work nonwork
conflict (Meyer et al., 2002). Since the implications of affective commitment encompass
both job behaviour and a set of underlying outcomes that are relevant to the individual
well-being of employees w e focus on aff ective commitment and explore the
relationship between affective commitment and corporate social responsibility within
a model that draws on social identity theory.
Social identity theory proposes that individuals view themselves as members of social
categories (Ashforth and Mael, 1989; Hogg and Abrams, 1988; Tajfel and Turner, 1986;
Turner, 1985). Within social identity theory, an individual’s view of themselves, their
‘self-concept’, is influenced by their membership of social organizations, including the
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organization for which the individual works (Ashforth and Mael, 1989; Dutton et al., 1994).
Individuals attempt to establish or enhance their positive self-concept through the
comparison of the characteristics of themselves and the groups they belong to with other
individuals and groups (Ashforth and Mael, 1989; Tajfel and Turner, 1986; Turner, 1985).
Favourable comparisons lead to an enhanced self-concept, unfavourable ones to reduced
self-esteem. Perceptions of an organization’s identity, the beliefs held by a member of
an organization concerning the ‘distinctive, central, and enduring attributes of the
organization (Dutton et al., 1994: 2334), may influence the strength of identification of
an individual with an organization. Social identity theory therefore hypothesizes that
individuals are happiest when they associate themselves with organizations that have
positive reputations, because it is association with those organizations that will enhance
their self-concept (Maignan and Ferrell, 2001; Tajfel and Turner, 1985).
More recently, it has been suggested that employee perceptions of a firm’s ethics,
values and social responsiveness play a significant role in shaping employees
perceptions of the attractiveness of particular organizations (Greening and Turban,
2000). Recent evidence suggests that employees and the public in general appear to
attach significant and growing importance to the values of corporations and inter alia
socially responsible behaviour by these organizations (Brammer and Millington, 2003).
In addition, individuals ‘choose activities congruent with salient aspects of their
identities, and they support the institutions embodying those identities’ (Ashforth and
Mael, 1989: 25).
Within social identity theory, employees may be expected to identify with socially
responsible behaviour by companies resulting in an increase in organizational
commitment. In this paper we distinguish between three aspects of CSR: external
CSR; procedural justice; and training and explore the implications of each aspect for
organizational commitment. Since social identity theory suggests that an individual’s
self-identity and values are associated with gender (Tajfel and Turner, 1985) the
relationship between organizational commitment and each aspect of CSR is investigated
within a model that distinguishes between gender and includes a set of control variables
that are drawn from the literature (Meyer et al., 2002).
External corporate social responsibility
External CSR encompasses philanthropy and community contributions and also reflects
the way in which the firm interacts with the physical environment and its ethical stance
towards consumers and other external stakeholders (Carroll, 1979). Since CSR is
concerned with those actions that exceed the legal minimum, corporate contributions in
this field are largely discretionary (Carroll, 1979). Employees may be expected to base
their opinions of external CSR on internal and external information sources including the
media and their personal experience within the company (Gilly and Wolfenbarger, 1998;
Maignan and Ferrell, 2001). Recent corporate experience in the oil and pharmaceuticals
industries has emphasized the negative consequences for corporate reputation that
may flow from inappropriate behaviour towards the environment (Fanning, 1990) or
consumers (Peterson, 2004). At the same time recent studies have shown positive
relationships between corporate reputation and philanthropy (Brammer and Millington,
2005) and corporate involvement in social causes and reputation (Hess et al., 2002).
Since social identity theory suggests that employees will be proud to identify with
organizations that have a positive external reputation (Ashforth and Mael, 1989; Dutton
et al., 1994; Gavin and Maynard, 1975; Maignan and Ferrell, 2001) a positive
relationship is expected between organizational commitment and external CSR.
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Hypothesis 1: Perceptions of external CSR and employee commitment are positively
related.
Procedural justice
Procedural justice is concerned ‘with fairness in the means by which organizations and
their representatives make allocation decisions (Tepper and Taylor, 2003: 97). Within the
typology developed by Carroll (1979) procedural justice can be placed within the domain
of ethical citizenship (Maignan and Ferrell, 2001). It is concerned with the processes
through which firms evaluate employee performance and ensure the fair treatment of
employees of different gender and race and as such is intimately concerned with socially
responsible behaviour in organizations. The theoretical link between organizational
commitment and measures of organizational justice is an outgrowth of both social
exchange theory and the existence of the reciprocity norm (Peterson, 2004). Put simply,
beneficial actions directed at employees create a reason for employees to reciprocate with
their attitudes and their behaviours. At the same time a positive relationship may be
expected between procedural justice and affective commitment because employees may
be expected to identify with ethical organizations. The existing literature provides
compelling empirical support for these arguments; a strong relationship has been found
between the ethical climate of organizations and job satisfaction (Koh and Boo, 2001;
Viswesvaran et al., 1998) and studies of the relationship between organizational
commitment and procedural justice suggest that they are positively and significantly
related (Cohen-Charash and Spector, 2001; Meyer et al., 2002). We therefore
hypothesize:
Hypothesis 2: Perceptions of procedural justice and organizational commitment are
positively related.
Training
Training may benefit the individual and/or the organization; it may be specific to the
requirements of the organization or may encompass transferable skills that can be used
by the individual in different organizational settings. Since training benefits the
individual as well as the organization, and is subject to free rider effects by other
organizations (Finegold and Wagner, 2002; Hoque, 2003), corporate participation in
training may be seen as both an investment and as a socially responsible activity. A
positive relationship may be expected between training and affective commitment in
response to both the investment benefits that flow to the individual and because
employees are expected to identify with organizations that pursue socially responsible
actions. Earlier studies provide general support for a positive relationship between
affective commitment and corporate investment in training (Lee and Bruvold, 2003;
Meyer et al., 2002) and we therefore hypothesize:
Hypothesis 3: Perceptions of training and employee commitment are positively
related.
Gender and CSR-commitment relationships
Since the congruence between individual and organizational values lies at the heart of
enhancing an individual’s self-concept (Ashforth and Mael, 1989) and, through this, their
commitment to an organization, systematic variations in individual values may play
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a central role in influencing the nature of CSR-commitment relationships. In particular,
earlier studies suggest that attitudes and values may be subject to significant gender
differences (Greening and Turban, 2000; Papamarcos and Sama, 1998). While men are
seen to place greater emphasis on instrumental or economic concerns women are more
likely to be concerned with discretionary behaviour within the organization (Ibrahim and
Angelidis, 1994; Smith et al., 2001). This is supported by recent evidence that suggests
that the relationship between organizational commitment and discretionary measures
of corporate social orientation is stronger for women than for men (Peterson, 2004) and
that corporate charitable behaviour, which is usually considered to be discretionary
(Carroll, 1979), is viewed more favourably by women than men (Roberts, 1993). Since
the benefits of external CSR to employees are largely indirect and can only flow from
association with what are perceived as beneficial and discretionary corporate activities
we expect women to exhibit stronger preferences than men for external CSR.
Earlier evidence suggests that women are subject to significant discrimination in
organizations, which is reflected in both their representation in senior management and
board positions (Singh et al., 2001) and in pay inequities within the organization
(Sweeney and McFarlin, 1993). Because women may face gender discrimination in the
workplace it has been suggested that they will place particular value on ethical treatment
within the workplace (Smith et al., 2001) and therefore the rules and policies
encompassed within procedural justice (Powell and Mainiero, 1992). This contention is
supported by earlier studies that suggest that women place greater emphasis on
procedural justice than men (Ramamoorthy and Flood, 2004; Sweeney and McFarlin,
1997; Tata, 2000).
Earlier studies have often shown that males participate more in organizational training
than women, perhaps because on average women work fewer hours than men (Altonji
and Spletzer, 1991). To the extent that training is perceived as being less important by
women than men, social identity theory would predict that it would have a lower salience
to women in their evaluations of the organization they work for. Furthermore, to the
extent that training has a lower salience to women than men, we would expect it to have a
reduced impact on organizational commitment. In light of this discussion of gender
differences, we hypothesize:
Hypothesis 4: The relationship between external CSR and employee commitment will
be stronger for women than men.
Hypothesis 5: The relationship between procedural justice and employee commitment
will be stronger for women than men.
Hypothesis 6: The relationship between training and employee commitment will be
stronger for men than women.
Control variables
We controlled for a range of variables that have been identified as significant
determinants of affective commitment. Job satisfaction is the degree to which people like
their jobs (Spector, 1987: vii). Both the theoretical and empirical work suggests that
higher levels of satisfaction are associated with higher levels of commitment
(e.g. Bateman and Strasser, 1984; Currivan, 1999; Curry et al., 1986; Meyer et al.,
2002). Strong evidence has also been found of a positive relationship between
leadership and organizational commitment (Bono and Judge, 2003; Lowe et al., 1996;
Walumbwa and Lawler, 2003). Earlier studies also suggest that the age of the respondent,
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length of employment in the organization (organizational tenure) and the seniority of the
respondent will be positively related to affirmative commitment (Meyer et al., 2002).
Methodology
The data used in this study are derived from an employee attitude survey for a large retail
banking services firm in the United Kingdom. The company provides a broad range of
retail financial products and services to over 10 million customers including mortgages,
savings, current accounts, life assurance, personal loans and household insurance. It has a
network of just under 700 branches which covers all of the United Kingdom and employs
around 16,000 people, over 7,500 of whom work in the branch network.
The survey was administered to all employees of the organization and was carried out
in the 2002 fiscal year. The survey was distributed by company mail, and employees were
encouraged to complete them during work time. The surveys were collected by post-paid
envelopes that were pre-addressed to an independent research company who processed
the survey responses. 11,408 responses were received; missing data reduced the data
available for analysis to 10,023 observations across the company. This represents a
usable response rate of 62 per cent. In order to restrict the analysis to a relatively
homogenous group of employees the sample in this study is drawn from the 4,712 usable
responses obtained from those employees who work in the retail branch network Each
branch offers a broad range of standardized products and services including mortgages,
loans, savings and insurance. A typical branch employs around 11 people, including a
mix of full- and part-time employees.
Table 1 presents descriptive statistics for the variables used in this study. The sample
used for the regression analysis is representative of the population of the company’s
Table 1 Descriptive statistics for the full sample of 4,712 observations. Variance inflation factors
reported from the full sample regression (Model 1 in Table 3)
Mean Std deviation VIF
Organizational commitment 4.33 0.75
Procedural justice 2.90 0.76 3.25
External CSR 4.43 0.71 1.38
Training 2.94 0.90 2.56
Job satisfaction 2.96 0.59 3.80
Leadership 3.20 0.66 2.45
Women 0.82 0.38 1.23
Ethnic minority 0.06 0.25 1.05
Part time 0.31 0.46 1.36
Low-level customer facing staff 0.67 0.47
High-level customer facing staff 0.27 0.45 1.45
Non-customer facing staff 0.06 0.23 1.25
Aged less than 24 years 0.13 0.34 1.81
Aged 24 9 years 0.19 0.39 1.39
Aged 30 40 years 0.40 0.49
Aged 41 50 years 0.20 0.40 1.21
Aged 51 or more years 0.08 0.28 1.13
Tenure less than 1 year 0.08 0.27 1.85
Tenure of 1 2 years 0.07 0.26 1.76
Tenure of 2 3 years 0.08 0.27
Tenure of 3 4 years 0.08 0.27 1.86
Tenure of 5 or more years 0.69 0.46 3.60
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employees in retail banking. Women comprise 83 per cent of the sample, although this
proportion declines dramatically as we move away from the flexible, part-time jobs
available at the lower end of the firm job hierarchy. We see that 93 per cent of
respondents are white, and that 68 per cent are employed on a full-time basis.
Approximately 69 per cent have been with the company for at least five years; although
there is clear evidence that turnover is greater at the lower levels of the job hierarchy.
Variables used in the analysis
The variables employed in this study are constructed entirely from the employee attitude
survey. Some are simple demographic controls, while others are constructs built from
groups of attitudinal questions. This section begins with a description of the dependent
variable and then describes the independent variables
Dependent variable The measurement of organizational commitment forms the basis
of an extensive literature (e.g. Balfour and Wechsler, 1996; Kacmar et al., 1999;
Mowday et al., 1979). In this study we measure organizational commitment using a
three-item scale, which draws on the questions developed by Balfour and Wechsler
(1996). In each case the questions are placed in the context of the surveyed company and
assessed either in the context of a five-point Likert scale (1 ¼ ‘disagree’ and 5 ¼
‘agree’). Typical questions include: ‘I am proud to say I work for the company’; and ‘I
would recommend a job at the company to friends.’ The construct has a Cronbach’s alpha
of 0.85.This implies a high degree of internal consistency in the responses to the
individual questions. We used confirmatory factor analysis to examine the proposed
construct, and the construct loads onto a single factor explaining 78 per cent of the
variance. Consistent with the approach suggested in Hair et al. (1998: 119 20), we use
normalized summated scores for our constructs instead of factor scores, in order to
facilitate interpretation, generalizability and transferability.
Independent variables Since commitment reflects employee perceptions, regardless of
their accuracy (Mahon, 2002; Peterson, 2004; Whetten and Mackey, 2002), each of the
measures of CSR is based on employee perceptions of social performance rather than
the objective measurement of CSR policy or commitment. Following Tepper and Taylor
(2003) we estimated procedural justice using a six-item scale, which draws on earlier
work by Moorman (1991). Respondents used a five-point Likert scale (1 ¼ ‘disagree,’ to
5 ¼ ‘agree’) to indicate their level of agreement with a set of statements that were framed
within the context of the survey company. Typical statements included: ‘The decisions
management makes about employees are usually fair’ and ‘I believe the company offers
equality of opportunity to all employees.’ The proposed construct is unidimensional and
displays a Cronbach’s alpha of 0.87. Employee perceptions of external corporate social
responsibility were measured using a single item construct (External CSR). Employees
were asked to respond-on a five-point Likert scale (1 ¼ ‘disagree’ to 5 ¼ ‘agree’) to the
statement The company is a socially responsible member of the community.’ Employee
perceptions of training and development were investigated using a three-item construct
(Training). Respondents were asked to express a level of agreement with these three
statements on a Likert scale (1 ¼ ‘disagree’ to 5 ¼ ‘agree’). Typical questions included:
‘There are sufficient opportunities to develop and improve my skills in my current job.’
The proposed construct is unidimensional and displays an alpha of 0.81.
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Control variables Job satisfaction is measured using a nine facet scale (pay, promotion,
supervision, fringe benefits, contingent rewards, operating conditions, co-workers, nature
of work, communication) adapted from the Job Satisfaction Survey (JSS), as detailed by
Spector (1997). Our measure contains 28 questions and typical questions include; ‘how
satisfied are you with your current opportunities?’, ‘how satisfied are you with your basic
pay?’ In each case respondents were asked to respond on a five-point Likert scale. The
construct has good internal reliability with a Cronbach’s alpha of 0.93. Leadership is
measured using a seven-item construct. Typical questions included; ‘senior management
is doing a good job at leading the business forward’, The company is well led.’
Respondents expressed their agreement with these statements on a five point Likert scale,
and confirmatory factor analysis reveals that these questions load onto a single factor
with an alpha of 0.91. Gender is coded as a dummy variable which takes the value of one
for women (Women), and is otherwise equal to zero. We also use a dummy variable
which is equal to one for all respondents from ethnic minorities (Ethnic Minority).
A further dummy variable is created which is equal to one for all respondents who are not
full-time employees (Part time). There are ten different job levels represented in the
survey, and we used dummy variables to isolate three ranges of this hierarchy. We use
these variables to control for the different levels of commitment associated with different
levels of the firm hierarchy. Our approach is similar to the one taken by Gibson and
Barron (2003), but our approach is slightly more general as it does not impose any linear
restrictions on the way different hierarchical levels influence commitment. Age and
tenure are described by sets of dummy variables (Age, Tenure).
Results
This section reports the results of estimating the model described above. Correlation
coefficients are provided in Tables 2a and 2b. The correlation coefficients between the
independent variables are generally low and the variance inflation factors (from
Table 1) do not exceed four, suggesting that multicollinearity is unlikely to prove a
significant problem.
All of the hypothesized correlations are significantly different from zero and have the
anticipated sign. The significance levels are not surprising, given the sample size at our
disposal.
2
The high degree of power available in our statistical tests also means that we
should focus at least as much on coefficient magnitudes instead of simply examining
significance levels. Tables 2a and 2b demonstrates a strong bivariate correlation between
organizational commitment and procedural justice (0.69), and a weaker relationship
between commitment and employee perceptions of external CSR (0.49). The other
correlations in Tables 2a and 2b are consistent with earlier studies of organizational
commitment and provide support for the model within which the relationship between
employee perceptions of CSR and organizational commitment is estimated.
The results of estimating the econometric model outlined above are reported in
Table 3. A common set of explanatory variables was included in each model so that
the impact of gender on the relationship between aspects of CSR and organizational
commitment could be explored. Since significance levels are likely to be relatively high
in models with large sample sizes the standardized coefficients are presented so that both
the significance of the explanatory variables and their contribution to the explanatory
power of the model can be explored. Heteroscedastic consistent estimates of the standard
errors were generated using the procedure developed by White (1980). The aggregate
results are considered in Model 1, which also includes a control for gender; separate
estimates for men and women are presented in Models 2 and 3.
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Table 2a Correlation coefficients
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
1. Organizational
commitment
1.000
2. Procedural justice 0.693
***
1.000
3. External CSR 0.489
***
0.449
***
1.000
4. Training 0.606
***
0.652
***
0.334
***
1.000
5. Job satisfaction 0.689
***
0.776
***
0.426
***
0.771
***
1.000
6. Leadership 0.670
***
0.730
***
0.498
***
0.566
***
0.671
***
1.000
7. Women 2 0.044
***
2 0.054
***
2 0.003 2 0.046
***
2 0.033
**
2 0.008 1.000
8. Ethnic minority 2 0.087
***
2 0.095
***
2 0.059
***
2 0.040
***
2 0.083
***
2 0.067
***
2 0.025
*
1.000
9. Part time 2 0.053
***
2 0.056
***
2 0.006 2 0.095
***
2 0.041
***
2 0.044
***
0.282
***
2 0.038
***
1.000
10. Low-level customer
facing staff
2 0.214
***
2 0.168
***
2 0.111
***
2 0.168
***
2 0.143
***
2 0.145
***
0.337
***
0.059
***
0.338
***
1.000
11. High-level customer
facing staff
0.177
***
0.132
***
0.090
***
0.146
***
0.115
***
0.120
***
2 0.222
***
2 0.044
***
2 0.284
***
2 0.874
***
12. Non-customer facing
staff
0.094
***
0.087
***
0.052
***
0.059
***
0.070
***
0.065
***
2 0.256
***
2 0.034
**
2 0.141
***
2 0.350
***
13. Aged less than 24 years 2 0.023 0.028
*
2 0.058
***
0.016 2 0.002 0.012 2 0.058
***
0.054
***
2 0.164
***
0.190
***
14. Aged 249 years 2 0.037
**
2 0.013 2 0.030
**
0.000 2 0.018 2 0.027
*
2 0.069
***
0.063
***
2 0.190
***
2 0.016
15. Aged 3040 years 0.033
**
0.010 0.030
**
2 0.014 0.017 0.020 0.069
***
2 0.008 0.190
***
2 0.120
***
16. Aged 4150 years 0.014 2 0.019 0.028
*
2 0.003 2 0.006 2 0.006 0.020 2 0.056
***
0.057
***
2 0.030
**
17. Aged 51 or more years 0.001 2 0.006 0.020 0.010 0.008 2 0.003 0.018 2 0.060
***
0.048
***
0.046
***
18. Tenure less than 1 year 0.059
***
0.083
***
0.000 0.077
***
0.061
***
0.066
***
2 0.052
***
0.107
***
2 0.093
***
0.168
***
19. Tenure of 12 years 2 0.038
***
2 0.004 2 0.042
***
2 0.004 2 0.014 2 0.012 2 0.003 0.076
***
2 0.086
***
0.155
***
20. Tenure of 23 years 2 0.023 2 0.001 2 0.031
**
2 0.004 2 0.026
*
2 0.020 2 0.002 0.049
***
2 0.094
***
0.114
***
21. Tenure of 34 years 2 0.049
***
2 0.047
***
2 0.008 2 0.047
***
2 0.054
***
2 0.052
***
2 0.018 0.039
***
2 0.062
***
0.016
22. Tenure of 5 or more
years
0.030
**
2 0.017 0.046
***
2 0.012 0.020 0.012 0.044
***
2 0.156
***
0.193
***
2 0.260
***
Notes:
***
significant at the 0.01 level;
**
significant at the 0.05 level;
*
significant at the 0.1 level.
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Table 2b Correlation coefficients
(11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21)
1. Organizational
commitment
2. Procedural justice
3. External CSR
4. Training
5. Job satisfaction
6. Leadership
7. Women
8. Ethnic minority
9. Part time
10. Low-level customer
facing staff
11. High-level customer
facing staff
1.000
12. Non-customer facing
staff
2 0.150
***
1.000
13. Aged less than 24 years 2 0.158
***
2 0.082
***
1.000
14. Aged 249 years 0.027
*
2 0.021 2 0.186
***
1.000
15. Aged 3040 years 0.107
***
0.039
***
2 0.319
***
2 0.392
***
1.000
16. Aged 4150 years 0.015 0.033
**
2 0.193
***
2 0.237
***
2 0.406
***
1.000
17. Aged 51 or more years 2 0.055
***
0.013 2 0.117
***
2 0.144
***
2 0.247
***
2 0.149
***
1.000
18. Tenure less than 1 year 2 0.144
***
2 0.064
***
0.329
***
0.012 2 0.145
***
2 0.073
***
2 0.058
***
1.000
19. Tenure of 12 years 2 0.134
***
2 0.057
***
0.286
***
0.056
***
2 0.144
***
2 0.083
***
2 0.053
***
2 0.080
***
1.000
20. Tenure of 23 years 2 0.091
***
2 0.056
***
0.183
***
0.109
***
2 0.108
***
2 0.077
***
2 0.075
***
2 0.086
***
2 0.082
***
1.000
21. Tenure of 34 years 2 0.011 2 0.012 0.124
***
0.143
***
2 0.101
***
2 0.065
***
2 0.081
***
2 0.086
***
2 0.082
***
2 0.088
***
1.000
22. Tenure of 5 or more
years
0.218
***
0.109
***
2 0.529
***
2 0.187
***
0.287
***
0.172
***
0.155
***
2 0.430
***
2 0.413
***
2 0.443
***
2 0.443
***
Notes:
***
significant at the 0.01 level;
**
significant at the 0.05 level;
*
significant at the 0.1 level.
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Table 3 Standardized coefficients from ordinary least squares regressions. T-statistics in parentheses. Dependent variable in all models is organizational
commitment
(1) (2) (3)
Full sample Men Women
Sample size 4,712 826 3886
R-squared 0.613 0.639 0.609
Variables related to hypotheses
Procedural justice 0.2055 (12.397)
***
0.1583 (3.863)
***
0.2140 (11.812)
***
External CSR 0.1429 (13.221)
***
0.1379 (5.346)
***
0.1429 (11.999)
***
Training 0.1174 (7.967)
***
0.1955 (5.693)
***
0.1018 (6.231)
***
Control variables
Constant 0.0000 (19.432)
***
0.0000 (8.466)
***
0.0000 (18.525)
***
Job satisfaction 0.2121 (11.828)
***
0.1713 (4.053)
***
0.2198 (11.081)
***
Leadership 0.2246 (15.586)
***
0.2264 (6.370)
***
0.2265 (14.351)
***
Women 0.0070 (0.684)
Ethnic minority 2 0.0176 (1.864)
*
2 0.0485 (2.187)
**
2 0.0082 (0.788)
Part time 0.0140 (1.303) 0.0462 (2.069)
**
0.0107 (0.924)
High-level customer facing staff 0.0838 (7.551)
***
0.1328 (3.918)
***
0.0745 (6.490)
***
Non-customer facing staff 0.0487 (4.732)
***
0.1252 (3.940)
***
0.0249 (2.367)
**
Aged less than 24 years 2 0.0225 (1.818)
*
2 0.0025 (0.074) 2 0.0273 (2.047)
**
Aged 24 9 years 2 0.0227 (2.094)
**
2 0.0043 (0.160) 2 0.0254 (2.137)
**
Aged 41 50 years 0.0066 (0.649) 0.0423 (1.745)
*
2 0.0020 (0.183)
Aged 51 or more years 2 0.0021 (0.216) 2 0.0325 (1.419) 0.0028 (0.257)
Tenure less than 1 year 0.0190 (1.523) 0.0958 (3.030)
***
0.0013 (0.097)
Tenure of 1 2 years 2 0.0103 (0.840) 2 0.0001 (0.004) 2 0.0126 (0.929)
Tenure of 3 4 years 2 0.0103 (0.823) 0.0089 (0.292) 2 0.0149 (1.075)
Tenure of 5 or more years 2 0.0256 (1.465) 0.0424 (0.959) 2 0.0423 (2.216)
**
Notes:
***
significant at the 0.01 level;
**
significant at the 0.05 level;
*
significant at the 0.1 level.
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The overall explanatory power of the models is satisfactory within the context of a
cross-section study; R
2
is greater than 0.60 in each model and the F statistic is highly
significant in each case. Taken together, the results suggest that CSR contributes
significantly to organizational commitment and provide substantial support for the
hypothesized relationships. We now discuss each model in turn.
Results for the full sample
The aggregate results (Model 1) provide substantial support for a significant relationship
between CSR and organizational commitment. All three measures of CSR are significant
(p , 0.01) and the results provide substantial support for the hypothesized relationships.
As anticipated a positive and significant relationship (p , 0.01) was found between
employee perceptions of external CSR (EXTERNALCSR) and organizational
commitment providing support for Hypothesis 1. Two measures of internal CSR were
defined; TRAINING which provides a measure of employee perceptions of training
opportunities and PROCEDURAL which provides a measure of procedural justice in the
organization. PROCEDURAL is positively and significantly related to organizational
commitment (p , 0.01) providing support for Hypothesis 2 and TRAINING is
positively and significantly related to organizational commitment providing support for
Hypothesis 3. Although all three aspects of perceived CSR are positively related to
organizational commitment the strength of this relationship differs significantly between
types of CSR. Procedural justice has the highest standardized coefficient and the
difference between procedural justice and the coefficients for TRAINING and
EXTERNALCSR is highly significant (p , 0.01). These results emphasize the
importance of fairness and equity within organizations; indeed only job satisfaction
(JOBSATISFACTION) contributes more to organizational commitment than procedural
justice and this difference is not significant (p , 0.10). Within the set of CSR
variables EXTERNALCSR has the second highest standardized coefficient and the
difference between EXTERNALCSR and TRAINING is highly significant (p , 0.01).
Although External CSR is both discretionary and has at best an indirect benefit to
employees through social identity theory while TRAINING has both a direct benefit
to employees through corporate investment in the employees human capital and an
indirect benefit through employee identification with a socially responsible organization
external CSR is seen to have a significantly larger impact on organizational commitment.
This emphasizes the importance of external CSR and the contribution of social identity to
organizational commitment.
The results for the control variables are consistent with earlier studies. Organizational
commitment levels increase with age and there is no evidence that tenure with the firm is
an important determinant of commitment, except for very junior members of the
company (length of service less than one year). Part time employees are no more or less
committed to the organization than their full time counterparts. Men and women display
equivalent levels of commitment. The effect of membership of a racial minority is
significant and negative. Job satisfaction and level within the organization are positively
related to organizational commitment.
Results by gender
The results presented in Models 2 and 3 suggest that the relationship between CSR and
organizational commitment is subject to significant gender variation. The results
emphasize differences in the relative importance of procedural justice and training
between men and women and provide some support for Hypotheses 5 and 6 respectively.
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With respect to women (Model 3) the differences between each form of CSR are
significant (p , 0.01) and as expected (Hypothesis 5) women are seen to place greater
emphasis on procedural justice than training as a determinant of organizational
commitment. Although the differences between each form of CSR are not significant
when the sample is restricted to men (Model 2) training has the highest coefficient
providing tentative support for Hypothesis 6 and the difference between the coefficients
on training in Models 2 and 3 is significant (p , 0.01) supporting the contention that
the relationship between training and employee commitment will be stronger for men
than women. With respect to EXTERNALCSR the results provide some support for
Hypothesis 4. In the context of women the relationship between EXTERNALCSR and
organizational commitment is significantly stronger than that between TRAINING
and organizational commitment while EXTERNALCSR has a weaker relationship with
organizational commitment than TRAINING or PROCEDURAL JUSTICE in Model 2
where the sample is restricted to men. It is important to note however that the difference
between the standardized coefficients for EXTERNALCSR in Models 2 and 3 is small
and insignificant (p , 0.10).
Discussion and conclusion
The growing imperative for business organizations to pursue socially responsible
strategies (Kapstein, 2001) has raised questions about the impact of such strategies on the
behaviour of external and internal stakeholders. This paper investigates the impact of
corporate social responsibility on organizational commitment. The relationship between
employee perceptions of corporate social responsibility and organizational commitment
is investigated within a model that discriminates by gender and draws on social identity
theory.
The empirical results suggest that employee perceptions of corporate social
responsibility have a major impact on organizational commitment. Such results are
particularly important in the light of the observed relationships between organizational
commitment, labour retention, labour health, and staff performance (Meyer et al., 2002).
Taken together the contribution of CSR to organizational commitment is at least as great
as job satisfaction. The results also suggest that external CSR is positively related to
organizational commitment. This is an interesting result because external CSR is both
discretionary and provides at best an indirect benefit to employees; supporting a
conceptual framework which emphasizes the contribution of social identity theory. In
addition to its role in external stakeholder management, external CSR appears, therefore,
to offer indirect benefits to internal stakeholders through organizational commitment.
Consistent with the earlier literature, procedural justice and training provision are
both seen to contribute positively to organizational commitment (Meyer et al., 2002).
These results are subject to significant gender variations, which appear to reflect female
preferences for discretionary behaviour and fair working practices. Thus women may
show stronger preferences for external CSR and procedural justice while men have
stronger preferences for training provision.
The results have significant implications for the implementation of CSR strategies
within companies. First the positive relationship between each aspect of employee
perception of CSR and organizational commitment emphasizes the payoff in terms of
organizational commitment that may flow from corporate investments in CSR. The
standardized coefficients emphasize the contribution of each aspect and imply that
the contribution of procedural justice is as large as that flowing from job satisfaction.
Second, the relationship between external CSR and commitment suggests that the
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benefits of corporate community contributions are not restricted to external reputation
and external stakeholder management but may also be reflected in the behaviour of
internal stakeholders. This emphasizes the importance that firms should attach to the
communication of CSR policies and in particular external CSR policies such as corporate
community policies to employees. Third, the results suggest that the effects of CSR on
corporate commitment vary with the type of policy and the individuals’ gender. Gender
variation in the relationship between each aspect of CSR and organizational commitment
suggests that organizations with large female labour forces should pay particular
attention to procedural justice and external CSR while firms with large male workforces
should focus on the provision of training. The gender distinction is of particular
importance in a context where women form an increasing proportion of both the labour
force and senior management positions.
The study is subject to two possible limitations. First, both employee perceptions of CSR
and organizational commitment are obtained from a single source. The results are
therefore, at least potentially, subject to common methods bias. However, since our
analysis focuses on the impact of different forms of CSR on organizational commitment,
rather than the aggregate relationship between CSR and organizational commitment, the
impact of common methods bias on our results is likely to be small. In any case social
identity theory assumes that it is employee perceptions of CSR which are relevant
(Peterson, 2004) and it is these measures which this study uses. Second, the use of data
drawn from a company-sponsored questionnaire of its own employees may result in biased
estimates. However, the impact of the source on the results is likely to be limited. The data
were collected by an external agency and our primary concern is with variations between
types of CSR and gender rather than aggregate relationships where biases are most likely to
occur. In any case the use of this source permits access to a large data base and, therefore,
avoids the statistical problems associated with the omission of relevant variables.
Finally we offer two suggestions for future research. First, our study focuses on broad
measures of socially responsible activity in the organization. Future research could
introduce disaggregated measures of training and procedural justice which seek to separate
individual financial and non-financial benefits clarifying the relationship between social
identity theory and internal CSR. Second, the results show a clear relationship between
employee perceptions of external CSR and organizational commitment; future research
could usefully investigate the relationship between employee participation in external
CSR through payroll giving schemes or corporate volunteering and organizational
commitment. Third, the results are based on the analysis of detailed attitudinal data from a
single multi-site firm; future research could extend the investigation to different industrial
and cultural settings to assess the generality of our findings.
Notes
1. For example, The Guardian, a British national daily newspaper, began publishing its ‘giving
list’, an examination of patterns of corporate philanthropy among the UK’s leading companies,
in November 2001 with the stated aim of ‘naming and shaming’ British corporations into
accepting increased social responsibility (The Guardian Giving List, 5 November 2001, p. 2).
2. DeGroot (1984: 450).
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Brammer et al.: Corporate social responsibility ... commitment 1719
... However, these studies lack a comparison with previous age groups like Generation X or Baby Boomers, which should be included in the research design to discover the age effects on work values and ICSR. Further, some gender effects could occur (see Brammer et al., 2007aBrammer et al., , 2007bBustamante, 2014), with higher CSR values for women than for men. Moreover, Europe and the USA were the main focus of the research on discovering the preferences of Generation Y concerning CSR impact on employer attractiveness, with a few studies in China and the opposite results in Africa. ...
... In a survey with Taiwanese companies, Lin (2010) showed that perceived corporate citizenship affects work engagement directly and indirectly via the mediation of organizational trust. Brammer et al. (2007aBrammer et al. ( , 2007b identified gender effects moderating the impact of external CSR on employee commitment. In Korea, Kim, Lee, Lee, and Kim (2010) identified that active CSR participation directly influenced employee identification, which in turn impacted employee commitment in contrast to mere CSR perceptions. ...
... Further, there was no moderating age impact on the pattern of perceived CSR and organizational identification or commitment. In contrast to previous results (e.g., Brammer et al., 2007aBrammer et al., , 2007b, a higher proportion of male employees (than female employees) enhances the relationship between perceived CSR and the following five outcomes: the external prestige of the company, work engagement or job performance, organizational citizenship and deviance. Moreover, national culture, in particular Hofstede's values like individualism, negatively moderates the relationship between perceived CSR and job satisfaction, job performance, and citizenship, but positively moderates the link between perceived CSR and organizational trust or work engagement. ...
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... Larger pools of candidates facilitate the firms to source candidates that have a good "fit" with the organization (Kristof−Brown et al., 2005) and therefore have a lower tendency to depart. Furthermore, association with an organization that is being regarded as a "good" performer by outsiders may bring positive utility to the employees (Brammer et al., 2007;Badar and Irfan, 2018), bringing the chances of them quitting to minimal after controlling other influences. This discussion forms the basis of the hypothesis connecting peripheral CSR activities with the turnover intentions of the employees. ...
... The results indicate a direct as well as a mediating relationship between embedded CSR and the turnover intentions, whereas in the case of peripheral CSR, we observed an insignificant relationship between peripheral CSR and the turnover intention and a full-mediated relationship between peripheral CSR and the turnover intention through OCB. Prior research have studied how employee satisfaction is influenced by CSR (Brammer et al., 2007;Turker, 2009); however, relatively how important the embedded CSR is as compared to the peripheral CSR for employee's turnover remains undiscovered, and our research adds to the limited understanding of stakeholders' responses to the tradeoffs between the selfdirected and other-directed CSR. We address a theoretical concern of finding common grounds in stakeholders with competing interests. ...
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... 3 Nonfinancial outcomes are examined less frequently but nevertheless receive broader coverage. For example, Brammer et al. (2007) find that firms that donate more to charities enjoy a higher reputation. Cao and Rees (2020) show that better employee relations lead to better labor investment efficiency. ...
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... (Ashforth and Mael, 1989;Peterson, 2004). Employees that have a positive attitude toward corporate social responsibility activities are more likely to be committed to the company (Brammer et al., 2007;Turker, 2009 ...
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The literature on green human resource management and its impact on employee eco-friendly behaviour, employee environment-friendly response, and organizational sustainability is scarce and rarely explored by researchers. This empirical study reports how an employee's eco-friendly behaviour, employee environment-friendly response through green human resource management enhances the organizational sustainability and employees' green behaviour. Organizational sustainability is a multidimensional concept that embodies social, environmental and economic objectives. The results indicate that green human resource management enhances employee eco-friendly behaviour, and employee environment-friendly response. A statistically significant impact of green human resource management on organizational sustainability was observed. The data were analyzed using the partial least square structural equation modeling (PLS-SEM). Abstract-The literature on green human resource management and its impact on employee eco-friendly behaviour, employee environment-friendly response, and organizational sustainability is scarce and rarely explored by researchers. This empirical study reports how an employee's eco-friendly behaviour, employee environment-friendly response through green human resource management enhances the organizational sustainability and employees' green behaviour. Organizational sustainability is a multidimensional concept that embodies social, environmental and economic objectives. The results indicate that green human resource management enhances employee eco-friendly behaviour, and employee environment-friendly response. A statistically significant impact of green human resource management on organizational sustainability was observed. The data were analyzed using the partial least square structural equation modeling (PLS-SEM). All three variables are statistically significant and predict organizational sustainability. A structured undisguised questionnaire was used to collect the data for this empirical study, publishing the questionnaire on google forms and providing a link to 5000 information technology employees. The 984 responses received and 924 valid responses were used and subjected to PLS-SEM analysis. This study recommends that the information technology policymakers should consider incorporating green human resource policies for green organizations and promote organizational sustainability.
... (Ashforth and Mael, 1989;Peterson, 2004). Employees that have a positive attitude toward corporate social responsibility activities are more likely to be committed to the company (Brammer et al., 2007;Turker, 2009 ...
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The literature on green human resource management and its impact on employee eco-friendly behaviour, employee environment-friendly response, and organizational sustainability is scarce and rarely explored by researchers. This empirical study reports how an employee's eco-friendly behaviour, employee environment-friendly response through green human resource management enhances the organizational sustainability and employees' green behaviour. Organizational sustainability is a multidimensional concept that embodies social, environmental and economic objectives. The results indicate that green human resource management enhances employee eco-friendly behaviour, and employee environment-friendly response. A statistically significant impact of green human resource management on organizational sustainability was observed. The data were analyzed using the partial least square structural equation modeling (PLS-SEM). Abstract-The literature on green human resource management and its impact on employee eco-friendly behaviour, employee environment-friendly response, and organizational sustainability is scarce and rarely explored by researchers. This empirical study reports how an employee's eco-friendly behaviour, employee environment-friendly response through green human resource management enhances the organizational sustainability and employees' green behaviour. Organizational sustainability is a multidimensional concept that embodies social, environmental and economic objectives. The results indicate that green human resource management enhances employee eco-friendly behaviour, and employee environment-friendly response. A statistically significant impact of green human resource management on organizational sustainability was observed. The data were analyzed using the partial least square structural equation modeling (PLS-SEM). All three variables are statistically significant and predict organizational sustainability. A structured undisguised questionnaire was used to collect the data for this empirical study, publishing the questionnaire on google forms and providing a link to 5000 information technology employees. The 984 responses received and 924 valid responses were used and subjected to PLS-SEM analysis. This study recommends that the information technology policymakers should consider incorporating green human resource policies for green organizations and promote organizational sustainability.
... Second, many extant works have mainly focused on the positive perceptions or attitudes of employees toward CSR activities, such as organizational commitment, organizational identification, work engagement, and creativity [16][17][18][19][20][21][22], relatively underexploring the importance of employee's "behaviors" [2,9,10]. In addition, the previous works on CSR have paid less attention to the "negative" aspects of employee's reactions toward CSR [2,9,10]. ...
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The purpose of this study was to investigate the influence of corporate social responsibility (CSR) on an employee’s negative behavior, in addition to its intermediating mechanism (i.e., mediators and moderator) in the relationship. This paper proposes that CSR may diminish an employee’s negative behavior, such as counterproductive work behavior. Relying on the context–attitude–behavior framework, this study investigated the mediators and moderator of the relationship between CSR and counterproductive work behavior. Specifically, this study hypothesized that not only does CSR diminish the level of counterproductive work behavior by sequentially boosting the level of employees’ organizational trust and commitment, but their work overload also negatively moderates the association between CSR and organizational trust. Utilizing three-wave time-lagged online survey data from 342 employees in South Korean companies, this study tested the hypotheses by building a moderated mediation model with structural equation modeling analysis. The results indicate that CSR decreases the level of employees’ counterproductive work behavior through enhancing their organizational trust and commitment. Moreover, work overload negatively moderates the association between CSR and organizational trust. The findings of this study make theoretical and practical contributions to the CSR literature.
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This paper aims to identify the conditions under which corporate social responsibility (CSR) affects employees' work‐related attitudes. A meta‐analysis of 42 studies published between 1999 and 2019 is elaborated considering the moderating effect of several contextual factors (country, industry, and national culture' values) and employees' demographic features (gender, age, education, tenure, and position) on the impact of perceived CSR on three work‐related attitudes (organizational identification, commitment, and turnover intentions). The results reveal that the positive impact of CSR in employees' attitudes is not universal, it may vary due to the level of development and the national culture of the country where a company operates, the industry to which it belongs as well as employees' age and position. Furthermore, although individually some variables do not have a significant moderating effect, they are significant in combination with other variables, which opens new research avenues. The findings provide valuable help to human resource management policies.
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Considering the fact that Corporate Social Responsibility (CSR) is widely recognized for its positive impact on environmental performance, little research exists on its effect on the relationship between Green Human Resource Management (GHRM) and an Organization’s Environmental Performance (OEP). This study investigates how CSR affects GHRM and the OEP, along with its moderating effect. Data was collected from the Malaysian manufacturing industry and subsequently analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM). The results revealed that GHRM and CSR positively and significantly affect the OEP. The study also revealed that CSR strengthens the existing relationship between GHRM and the OEP. Therefore, this study contributes to the existing literature by providing new scholarly evidence on the moderating effect of CSR on the GHRM-OEP nexus. The findings provide policymakers and the management of the manufacturing industry in Malaysia with fresh insights into the formulation of effective policies to promote CSR and GHRM practices within organizations.
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Objectives: In order to increase corporate social responsibility (CSR) activities with organizations, the support of employees in times of climate change is crucial: employees with CSR awareness of sustainability and their subsequent extra-role work behavior are an asset to an organization. Sustainable HRM promotes sustainable employee behavior. The purpose of this paper is to investigate the relationship between personal values orientations and internal CSR preferences which increase subsequent sustainable employee behavior fostered by sustainable HRM practices. Specifically, our central research question here examines the extent to which personal value orientations predicts internal CSR preferences towards sustainable employee behavior. In this paper, we look at this issue from the perspective of young, highly qualified job seekers who have to face issues of sustainability. Methodology: We conducted an integrative literature review of empirical studies on internal CSR and sustainable HRM. In addition, we reviewed the application and relationship of Schwartz’s personal values framework and employees’ internal CSR preferences. Findings: The findings conclude that the relationship between personal value orientations of employees and their preferences in the focus of the company’s internal CSR is heterogeneous, as positive vs. negative paths between personal values and internal CSR preferences were identified. Further, different scales for internal CSR dimensions were applied. Value Added: Based on previous studies we develop an integrative internal CSR framework (with employee vs. organizational dimensions) that could be applied in organizations to measure their internal CSR maturity level and be supported by the specific, sustainable HRM practices discussed. In addition, we dealt with the question of how the connection between the personal value orientations of potential candidates or employees and their internal CSR preferences can be proven in field research. Recommendations: Based on recent heterogeneous study results, we identify five research gaps and propose research design ideas for future research. Practical implications are also discussed.
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Researchers have reported a positive, negative, and neutral impact of corporate social responsibility (CSR) on financial performance. This inconsistency may be due to flawed empirical analysis. In this paper, we demonstrate a particular flaw in existing econometric studies of the relationship between social and financial performance. These studies estimate the effect of CSR by regressing firm performance on corporate social performance, and several control variables. This model is misspecified because it does not control for investment in R&D, which has been shown to be an important determinant of firm performance. This misspecification results in upwardly biased estimates of the financial impact of CSR. When the model is properly specified, we find that CSR has a neutral impact on financial performance. Copyright © 2000 John Wiley & Sons, Ltd.