Abstract

The internal dimension of Corporate Social Responsibility (CSR) refers to the socially responsible behavior of an organization towards its employees. The CSR relationship to employee behavior has received some attention but in general, there is little knowledge about the underlying explanatory mechanisms that can describe this relationship. In this study, a theoretical model of mediation and moderation is developed to explain how CSR can influence employee behavior. Organizational identification and work engagement are used as proxies for employee behavior in the model and internal dimension of CSR is assumed to affect both of them positively. Further, it is proposed that CSR influences the organizational identification positively and this relationship will be stronger in a collectivist culture, which will eventually lead to higher work engagement. A proposed model was tested on a sample of bank employees in Pakistan by using the Structural Equation Modeling (SEM) method. The results of this study provide contextual and empirical insights into how CSR influences employee behavior.

Highlights

  • Stakeholders inside and outside organizations are raising concerns about corporate issues such as workforce diversity, employee treatment and environmental protection

  • The results express the fact that the 4-factor model has a better fit than the other estimated models, which confirms that the respondents were able to differentiate between the constructs under examination for the current study

  • Social Identity Theory (SIT) is related to the group behavior that is congruent with the Hofstede national cultural dimension of collectivism, the SIT model provides an examination of the role of collectivism as a moderator in the relationship between internal dimension Corporate Social Responsibility (CSR) and organizational identification

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Summary

Introduction

Stakeholders inside and outside organizations are raising concerns about corporate issues such as workforce diversity, employee treatment and environmental protection. These issues are often grouped together and labelled sustainability or Corporate Social Responsibility (CSR) [1]. Sheehy (2014) defined CSR as “international private business self-regulation.”. If the organization claims to have a CSR policy it must include of all its aspects, that is, environmental sustainability, human rights, employment conditions, business practices in dealings with partners, suppliers and consumers and social impacts starting with basic conformity with the established legal framework and gradually moving towards the consideration of stakeholder concerns [3]

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