Employee reactions to perceived CSR: The influence of the ethical environment on OCB engagement and individual performance

Abstract

In recent years, expectations of firm CSR engagement have increased, as has the nature of employee perceptions and reactions to CSR engagement. In this study, we develop and test a moderated mediation model focusing on employee perceived CSR and its conditional indirect effect on individual performance via organizational citizenship behaviors (OCBs) within an organization with a more or less ethical environment. Drawing on social identity theory and social exchange theory, we argue that when employees perceive their firms as being socially responsible, they are more likely to engage in OCBs, ultimately resulting in increased individual performance. Additionally, drawing on signaling theory, this process is strengthened when it occurs in an organization with a more, as opposed to less, ethical environment. Utilizing a large multi-source and multi-industry sample, we test our hypotheses by employing a latent moderated mediation technique and find strong support for this model.