Abstract
Unlike previous studies that examine the direct effect of employees’ perceived corporate social responsibility (CSR) on affective organizational commitment (AOC), this article examines a mediated link through organizational trust and organizational identification. Social exchange and social identity theory provide the foundation for predictions that the primary outcomes of CSR initiatives are organizational trust and organizational identification, which in turn affect AOC. The test of the research model relies on data collected from 378 employees of local and multinational companies in South Asia, as well as structural equation modeling to test the postulated relationships. Both organizational trust and organizational identification fully mediate the CSR–AOC link. However, the identification mechanism is significantly stronger than the trust mechanism in terms of building AOC from CSR. Out of four CSR components, CSR toward employees is the strongest predictor of employees’ trust, identification, and AOC, followed by CSR toward community, whereas CSR toward the environment has no effect. Finally, CSR toward community and employees are more associated with social exchange, whereas CSR toward consumers relates more to the social identity process.
Similar content being viewed by others
Abbreviations
- CSR:
-
Corporate social responsibility
- AOC:
-
Affective organizational commitment
References
Aberson, C. L., Healy, M., & Romero, V. (2000). Ingroup bias and self-esteem: A meta-analysis. Personality and Social Psychology Review, 4(2), 157–173.
Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. (2007). Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32(3), 836–863.
Albert, S., Ashforth, B. E., & Dutton, J. E. (2000). Organizational identity and identification: Charting new waters and building new bridges. Academy of Management Review, 25(1), 13–17.
Albinger, H. S., & Freeman, S. J. (2000). Corporate social performance and attractiveness as an employer to different job seeking populations. Journal of Business Ethics, 28(3), 243–253.
Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of occupational psychology, 63(1), 1–18.
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411.
Aryee, S., Budhwar, P. S., & Chen, Z. X. (2002). Trust as a mediator of the relationship between organizational justice and work outcomes: Test of a social exchange model. Journal of Organizational Behavior, 23(3), 267–285.
Ashforth, B. E., & Mael, F. (1989). Social identity theory and the organization. Academy of Management Review, 14(1), 20–39.
Backhaus, K. B., Stone, B. A., & Heiner, K. (2002). Exploring the relationship between corporate social performance and employer attractiveness. Business and Society, 41(3), 292–318.
Ballou, B., Godwin, N. H., & Shortridge, R. T. (2003). Firm value and employee attitudes on workplace quality. Accounting Horizons, 17(4), 329–341.
Blau, P. M. (1964). Exchange and power in social life. New York: Wiley.
Brammer, S., & Millington, A. (2005). Corporate reputation and philanthropy: An empirical analysis. Journal of Business Ethics, 61(1), 29–44.
Brammer, S., Millington, A., & Rayton, B. (2007). The contribution of corporate social responsibility to organizational commitment. The International Journal of Human Resource Management, 18(10), 1701–1719.
Brammer, S. J., & Pavelin, S. (2006). Corporate reputation and social performance: The importance of fit. Journal of Management Studies, 43(3), 435–455.
Branco, M. C., & Rodrigues, L. L. (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, 69(2), 111–132.
Buchan, N. R., Croson, R. T. A., & Dawes, R. M. (2002). Swift neighbors and persistent strangers: A cross-cultural investigation of trust and reciprocity in social exchange. American Journal of Sociology, 108, 168–206.
Burton, B. K., Farh, J. L., & Hegarty, W. H. (2000). A cross-cultural comparison of corporate social responsibility orientation: Hong Kong vs United States students. Teaching Business Ethics, 4(2), 151–167.
Carmeli, A., Gilat, G., & Waldman, D. A. (2007). The role of perceived organizational performance in organizational identification, adjustment and job performance. Journal of Management Studies, 44(6), 972–992.
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497–505.
Chung, J., & Monroe, G. S. (2003). Exploring social desirability bias. Journal of Business Ethics, 44(4), 291–302.
CIA 2010. The World Fact book.
CIA 2011. CIA Fact Book: Pakistan-Population. http://www.theodora.com/wfb2011/pakistan/pakistan_people.html.
Cook, J., & Wall, T. (1980). New work attitude measures of trust, organizational commitment, and personal need nonfulfillment. Journal of occupational psychology and Marketing, 53, 39–52.
Dahlsrud, A. (2008). How corporate social responsibility is defined: an analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15(1), 1–13.
Das, T. K., & Teng, B. S. (2002). Alliance constellations: A social exchange perspective. Academy of Management Review, 27(3), 445–456.
Datta, D. K., Guthrie, J. P., & Wright, P. M. (2005). Human resource management and labor productivity: Does industry matter? Academy of Management Journal, 48(1), 135–145.
Dietz, G., & Den Hartog, D. N. (2006). Measuring trust inside organisations. Personnel Review, 35(5), 557–588.
Dirks, K. T., & Ferrin, D. L. (2002). Trust in leadership: Meta-analytic findings and implications for research and practice. Journal of Applied Psychology, 87(4), 611.
Donaldson, T., & Dunfee, T. W. (2002). Ties that bind in business ethics: Social contracts and why they matter. Journal of Banking and Finance, 26(9), 1853–1865.
Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65–91.
Dutton, J. E., Dukerich, J. M., & Harquail, C. V. (1994). Organizational Images and Member Identification. Administrative Science Quarterly, 39(2), 239–263.
Ekeh, P. P. (1974). Social exchange theory: The two traditions. London: Heinemann Educational.
Farndale, E., Hope-Hailey, V., & Kelliher, C. (2011). High commitment performance management: The roles of justice and trust. Personnel Review, 40(1), 5–23.
Folger, R., Cropanzano, R., & Goldman, B. (2005). What is the relationship between justice and morality? In J. Greenberg & J. A. Colquitt (Eds.), Handbook of organizational justice (pp. 215–245). Mahwah, NJ: Lawrence Erlbaum Associates Publishers.
Fombrun, C. J. (2005). A world of reputation research, analysis and thinking building corporate reputation through CSR initiatives: Evolving standards. Corporate Reputation Review, 8(1), 7–12.
Fombrun, C., & Shanley, M. (1990). What’s in a name? Reputation building and corporate strategy. Academy of Management Journal, 33(2), 233–258.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
Freeman, R. E., & Evan, W. M. (1990). Corporate governance: A stakeholder interpretation. Journal of Behavioral Economics, 19(4), 337–359.
Fryxell, G. E., & Jia, W. (1994). The fortune corporate ‘reputation’ index: Reputation for what? Journal of management, 20(1), 1–14.
Fulmer, I. S., Gerhart, B., & Scott, K. S. (2003). Are the 100 best better? An empirical investigation of the relationship between being a “great place to work” and firm performance. Personnel Psychology, 56(4), 965–993.
Ganesan, S., & Hess, R. (1997). Dimensions and levels of trust: Implications for commitment to a relationship. Marketing Letters, 8(4), 439–448.
Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53(1), 51–71.
Gergen, K. J. (1969). The psychology of behavior exchange. Reading, MA: Addison Wesley Publishing Company.
Glavas, A., & Godwin, L. (2012). Is the perception of ‘goodness’ good enough? Exploring the relationship between perceived corporate social responsibility and employee organizational identification. Journal of Business Ethics, 15, 1–13.
Greening, D. W., & Turban, D. B. (2000). Corporate social performance as a competitive advantage in attracting a quality workforce. Business and Society, 39(3), 254–280.
Handelman, J. M., & Arnold, S. J. (1999). The role of marketing actions with a social dimension: Appeals to the institutional environment. The Journal of Marketing, 63(3), 33–48.
Henderson, D. (2001). Misguided virtue false notions of corporate social responsibility. The Terrace, Wellington: New Zealand Business Roundtable.
Hofstede, G. (2013). Geert Hofstede™ cultural dimensions. http://geert-hofstede.com/pakistan.html.
Hofstede, G., Hofstede, G. J., & Minkov, M. (2010). Cultures and organizations: Software of the mind, revised and expanded (3rd ed.). New York: McGraw-Hill.
Hogg, M. A., & Terry, D. J. (2000). Social identity and self-categorization processes in organizational contexts. The Academy of Management Review, 25(1), 121–140.
Holmes, J. G. (1981). The exchange process in close relationships; microbehavior and macromotives. In M. J. Lerner & S. C. Lerner (Eds.), The justice motive in social behavior (pp. 261–284). New York: Plenum.
Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. The Academy of Management Journal, 38(3), 635–672.
Iacobucci, D., Saldanha, N., & Deng, X. (2007). A meditation on mediation: Evidence that structural equations models perform better than regressions. Journal of Consumer Psychology, 17(2), 139.
Jones, D. A. (2010). Does serving the community also serve the company? Using organizational identification and social exchange theories to understand employee responses to a volunteerism programme. Journal of Occupational and Organizational Psychology, 83(4), 857–878.
Kakabadse, A. P., Kakabadse, N. K., & Rozuel, C. (2007). Corporate social responsibility: Contrast of meanings and intents. In A. P. Kakabadse & N. K. Kakabadse (Eds.), CSR in practice: Delving deep (pp. 9–45). New York: Palgrave Macmillan.
Khan, H. (2005). Constitutional and political history of Pakistan. Karachi: Oxford University Press.
Kim, H. R., Lee, M., Lee, H. T., & Kim, N. M. (2010). Corporate social responsibility and employee–company identification. Journal of Business Ethics, 95(4), 557–569.
Kline, R. B. (2011). Principles and practice of structural equation modeling. New York: The Guilford press.
Konovsky, M. A., & Pugh, S. D. (1994). Citizenship behavior and social exchange. Academy of Management Journal, 37(3), 656–669.
Krishnamurthy, S., Chew, W., Soh, T., & Luo, W. (2007). Corporate social responsibility and public relations, perceptions and practices in Singapore. In S. K. May, G. Cheney, & J. Roper (Eds.), The debate over corporate social responsibility. New York: Oxford University Press.
Kwon, I. W. G., & Suh, T. (2004). Factors affecting the level of trust and commitment in supply chain relationships. Journal of Supply Chain Management, 40(2), 4–14.
Loannou, L., & Serafeim, G. (2012). What drives corporate social performance? The role of nation-level institutions. Journal of International Business Studies, 43(9), 834–864.
Macho, S., & Ledermann, T. (2011). Estimating, testing, and comparing specific effects in structural equation models: The phantom model approach. Psychological Methods, 16(1), 34.
MacKinnon, D. P. (2000). Contrasts in multiple mediator models (pp. 141–160)., Multivariate applications in substance use research: New methods for new questions Mahwah: Lawrence Erlbaum Associates.
Macky, K., & Boxall, P. (2007). The relationship between ‘high-performance work practices’ and employee attitudes: an investigation of additive and interaction effects. The International Journal of Human Resource Management, 18(4), 537–567.
Mael, F., & Ashforth, B. E. (1992). Alumni and their alma mater: A partial test of the reformulated model of organizational identification. Journal of Organizational Behavior, 13(2), 103–123.
Mael, F., & Ashforth, B. E. (1995). Loyal from day one: Biodata, organizational identification, and turnover among newcomers. Personnel Psychology, 48(2), 309–333.
Maignan, I., & Ferrell, O. (2000). Measuring corporate citizenship in two countries: The case of the United States and France. Journal of Business Ethics, 23(3), 283–297.
Maignan, I., & Ferrell, O. (2001). Antecedents and benefits of corporate citizenship: An investigation of French businesses. Journal of Business Research, 51(1), 37–51.
Maignan, I., Ferrell, O. C., & Hult, G. T. M. (1999). Corporate citizenship: Cultural antecedents and business benefits. Journal of the Academy of Marketing Science, 27(4), 455–469.
Matten, D., & Crane, A. (2005). Corporate citizenship: Toward an extended theoretical conceptualization. Academy of Management Review, 30(1), 166–179.
Matten, D., & Moon, J. (2008). “Implicit” and” explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. The Academy of Management Review (AMR), 33(2), 404–424.
Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 32, 709–734.
McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review, 26(1), 117–127.
Meyer, J. P., Allen, N. J., & Smith, C. A. (1993). Commitment to organizations and occupations: Extension and test of a three-component conceptualization. Journal of Applied Psychology, 78(4), 538–551.
Mitchell, V. W., Balabanis, G., Schlegelmilch, B. B., & Cornwell, T. B. (2009). Measuring unethical consumer behavior across four countries. Journal of Business Ethics, 88(2), 395–412.
Molm, L. D., Collett, J. L., & Schaefer, D. R. (2007). Building solidarity through generalized exchange: A theory of reciprocity. American Journal of Sociology, 113(1), 205–242.
Molm, L. D., Takahashi, N., & Peterson, G. (2000). Risk and trust in social exchange: An experimental test of a classical proposition. American Journal of Sociology, 105(5), 1396–1427.
Nunnally, J. C. (1978). Psychometric theory. New York: McGraw-Hill.
Pace, S. (2013). Does religion affect the materialism of consumers? An empirical investigation of Buddhist ethics and the resistance of the self. Journal of Business Ethics, 112(1), 25–46.
Peterson, D. K. (2004). The relationship between perceptions of corporate citizenship and organizational commitment. Business and Society, 43(3), 296.
Pivato, S., Misani, N., & Tencati, A. (2008). The impact of corporate social responsibility on consumer trust: The case of organic food. Business Ethics: A European Review, 17(1), 3–12.
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.
Pratt, M. G. (1998). To be or not to be: Central questions in organizational identification. In D. A. Whetton & P. C. Godfrey (Eds.), Identity in organizations (pp. 171–208). Thousand Oaks, CA: Sage.
Randall, D. M., & Gibson, A. M. (1990). Methodology in business ethics research: A review and critical assessment. Journal of Business Ethics, 9(6), 457–471.
Rego, A., Leal, S., Cunha, M., Faria, J., & Pinho, C. (2010). How the perceptions of five dimensions of corporate citizenship and their inter-inconsistencies predict affective commitment. Journal of Business Ethics, 94(1), 107–127.
Riketta, M. (2005). Organizational identification: A meta-analysis. Journal of Vocational Behavior, 66(2), 358–384.
Riordan, C. M., Gatewood, R. D., & Bill, J. B. (1997). Corporate image: Employee reactions and implications for managing corporate social performance. Journal of Business Ethics, 16(4), 401–412.
Robinson, S. L. (1996). Trust and breach of the psychological contract. Administrative Science Quarterly, 41, 4.
Rodrigo, P., & Arenas, D. (2008). Do employees care about CSR programs? A typology of employees according to their attitudes. Journal of Business Ethics, 83(2), 265–283.
Roeck, K., & Delobbe, N. (2012). Do environmental CSR initiatives serve organizations’ legitimacy in the oil industry? Exploring employees’ reactions through organizational identification theory. Journal of Business Ethics, 110(4), 397–412.
Rupp, D. E., Ganapathi, J., Aguilera, R. V., & Williams, C. A. (2006). Employee reactions to corporate social responsibility: An organizational justice framework. Journal of Organizational Behavior, 27(4), 537–543.
Rupp, D. E., Shao, R., Thornton, M. A. & Skarlicki, D. P. (2013). Applicants’ and employees’ reactions to corporate social responsibility: The moderating effects of first-party justice perceptions and moral identity. Personnel Psychology
Ruppel, C. P., & Harrington, S. J. (2000). The relationship of communication, ethical work climate, and trust to commitment and innovation. Journal of Business Ethics, 25(4), 313–328.
Sen, S., & Bhattacharya, C. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), 225–243.
Settoon, R. P., Bennett, N., & Liden, R. C. (1996). Social exchange in organizations: Perceived organizational support, leader–member exchange, and employee reciprocity. Journal of Applied Psychology, 81(3), 219.
Sims, R. R. (2003). Ethics and corporate social responsibility: Why giants fall. Barbara, CA: Greenwood Publishing Group.
Solomon, R. C. (1993). Ethics and excellence: Cooperation and integrity in business. New York: Oxford University Press.
Stites, J. P., & Michael, J. H. (2011). Organizational commitment in manufacturing employees: Relationships with corporate social performance. Business and Society, 50(1), 50.
Tajfel, H., & Turner, J. C. (1985). The social identity theory of group behavior. In H. Tajfel (Ed.), Psychology of intergroup relations. Cambridge: Cambridge University Press.
Triandis, H. C., Bontempo, R., Villareal, M. J., Asai, M., & Lucca, N. (1988). Individualism and collectivism: Cross-cultural perspectives on self-ingroup relationships. Journal of Personality and Social Psychology, 54(2), 323–338.
Turban, D. B., & Greening, D. W. (1997). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40(3), 658–672.
Turker, D. (2009). How corporate social responsibility influences organizational commitment. Journal of Business Ethics, 89(2), 189–204.
Tyler, T. R. (1999). Why people cooperate with organizations: An identity-based perspective. Research in Organizational Behavior, 21, 201–246.
Tyler, T. R., & Blader, S. L. (2002). Autonomous vs. comparative status: Must we be better than others to feel good about ourselves? Organizational Behavior and Human Decision Processes, 89(1), 813–838.
Tyler, T. R., & Blader, S. L. (2003). The group engagement model: Procedural justice, social identity, and cooperative behavior. Personality and Social Psychology Review, 7(4), 349–361.
Uehara, E. (1990). Dual exchange theory, social networks, and informal social support. American Journal of Sociology, 96, 521–557.
Valentine, S., & Fleischman, G. (2008). Ethics programs, perceived corporate social responsibility and job satisfaction. Journal of Business Ethics, 77(2), 159–172.
Wayne, S. J., Shore, L. M., & Liden, R. C. (1997). Perceived organizational support and leader-member exchange: A social exchange perspective. Academy of management journal, 40, 82–111.
Whitener, E. M., Brodt, S. E., Korsgaard, M. A., & Jon, M. W. (1998). Managers as initiators of trust: an exchange relationship framework for understanding managerial trustworthy behavior. The Academy of Management Review, 23(3), 513–530.
Williams, G., & Zinkin, J. (2010). Islam and CSR: A study of the compatibility between the tenets of Islam and the UN Global Compact. Journal of Business Ethics, 91(4), 519–533.
Wong, H. M. (2008). Religiousness, love of money, and ethical attitudes of Malaysian evangelical Christians in business. Journal of Business Ethics, 81(1), 169–191.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Farooq, O., Payaud, M., Merunka, D. et al. The Impact of Corporate Social Responsibility on Organizational Commitment: Exploring Multiple Mediation Mechanisms. J Bus Ethics 125, 563–580 (2014). https://doi.org/10.1007/s10551-013-1928-3
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-013-1928-3