Abstract
The COVID-19 outbreak wreaked havoc on the hospitality business, resulting in significant layoffs, salary cuts, and unpaid leaves globally. This study uses the sensemaking theory to investigate how COVID-19 induced unfavorable human resource (HR) practices affect the link between perceived corporate social responsibility (CSR) and employee identification and commitment. We tested this model using the data collected from 392 hospitality sector employees in Pakistan. The results reveal that “cut in salaries” and “work from home” positively moderate CSR’s impact on employees’ identification and commitment. On the other hand, employee layoff and leave without pay do not impact the positive relationship between CSR and employees’ attitudes. Furthermore, the study finds that CSR during this pandemic has a significant positive impact on employees’ attitudes. However, this relationship becomes insignificant for employees who reported unfavorable HR practices in their organizations. The finding further reveals that CSR’s impact during COVID-19 on employees’ attitudes is moderated by the different levels of CSR importance in employees’ minds. This evidence is significant since HR practices implemented during this crisis need to be identified and framed to understand the effects of CSR on employee commitment and identification. CSR involvement in the pandemic can help managers keep their employees committed to organizations; only if this charity begins from their internal stakeholders first.
Highlights
The COVID-19 demonstrated a devastating effect on countries worldwide
We argue that corporate social responsibility (CSR) is a possible antecede to three components of commitment
We argue that employees try to understand CSR in the context of unfavorable human resource (HR) practices
Summary
The COVID-19 demonstrated a devastating effect on countries worldwide. This condition has sparked a global crisis that has affected every aspect of our lives (Hinojosa et al, 2020). This pandemic outbreak had a significant adverse effect on the organization’s day-to-day processes. Organizations have implemented various tactics to survive this pandemic (Khan et al, 2021a). CSR and HR Practices to the people impacted by the pandemic (Asghar et al, 2021). The hospitality industry is not an exception and is severely affected (Gursoy and Chi, 2020; Khan et al, 2021b). A significant impact on the hospitality industry’s operational viability and growth capability is observed (Fong et al, 2020; Zhang et al, 2020). Two-thirds of restaurant employees have lost their employment, either furloughed or laid off (National Restaurant Association [NRA], 2020)
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