Abstract

PurposeThe purpose of this paper is to investigate the relationship between perceived corporate social responsibility (PCSR) and perceived organizational corruption (POC) in a developing country context. The research suggests mediating roles of perceived ethical leadership (PEL) and job satisfaction (JS) in the PCSR–POC relationship.Design/methodology/approachData were collected through survey questionnaires. The sample consisted of 434 employees working in private and public organizations in Kosovo. Regression analysis was conducted by using a serial mediation model.FindingsApplying a social learning framework, this study provides evidence that employees’ perceptions of corporate social responsibility (CSR) are positively related to perceived ethical leadership and job satisfaction and negatively related to perceived organizational corruption. Furthermore, results confirm that the relationship between CSR perception and organizational corruption perception is mediated by ethical leadership perception and job satisfaction.Practical implicationsArmed with the findings, organizations can adopt CSR practices to positively influence employee behaviors and attitudes. From these results, it is possible to better comprehend the role of CSR in dealing with relevant aspects such as corruption at the organizational level, especially in developing and emerging markets.Social implicationsThe findings of this research indicate that employees in socially responsible organizations perceive less organizational corruption. Adopting a more ethical and responsible management approach might represent a promising solution to fight the corruption phenomenon inside and even outside organizations. These results should serve as reflection for both managers and public authorities.Originality/valueWith regard to CSR, previous studies have investigated different employee outcomes but never considered the potential impact on corruption at the organizational level. Furthermore, this study extends the literature by conceptualizing perceived ethical leadership and job satisfaction as mediators between perceived CSR and organizational corruption perception, in a developing country context where the concept of CSR is still less investigated.

Highlights

  • Corruption is receiving significant prominence in public and scholarly debates

  • Education and salary/wage are significantly positively correlated with perceived corporate social responsibility (PCSR), perceived ethical leadership (PEL) and job satisfaction (JS), whereas education and salary/wage are significantly negatively correlated with perceived organizational corruption (POC)

  • It appears that organizational j j VOL. 20 NO. 7 2020 CORPORATE GOVERNANCE PAGE 1361 corruption is lower in organizations that are highly engaged in activities related to corporate social responsibility (CSR)

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Summary

Introduction

Corruption is receiving significant prominence in public and scholarly debates. It represents the misuse of public power or organizational resources for private or personal gain and is commonly understood to be strongly undesirable by any community (Lange, 2008). Festim Tafolli is a PhD student at the Department of Marketing and International Management at Alpen-Adria-Universitat Klagenfurt, Klagenfurt, Austria. Sonja Grabner-Krauter is an associate professor of marketing at Alpen-AdriaUniversitat Klagenfurt, Klagenfurt, Austria. The full terms of this licence maybe seen at http://creativecommons. org/licences/by/4.0/legalcode

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