Abstract
The literature examines the impact of firms' corporate social responsibility (CSR) activities on employees' organizational identification without considering that such activities tend to have different targets. This study explores how perceived external CSR (efforts directed toward external stakeholders) and perceived internal CSR (efforts directed toward employees) activities influence employees' organizational identification. In so doing, it examines the alternative underlying mechanisms through which perceived external and internal CSR activities build employees' identification. Applying the taxonomy prescribed by the group engagement model, the study argues that the effects of perceived external and internal CSR flow through two competing mechanisms: perceived external prestige and perceived internal respect, respectively. Further, it is suggested that calling orientation (how employees see their work contributions) moderates the effects induced by these alternative forms of CSR. The model draws on survey data collected from a sample of 414 employees across five large multinationals in Pakistan. The results obtained using structural equation modeling support these hypotheses, reinforcing the notion that internal and external CSR operate through different mediating mechanisms and more interestingly employees' calling orientation moderates these relationships to a significant degree. Theoretical contributions and practical implications of results are discussed in detail.
Highlights
The widespread growth of corporate social responsibility (CSR) practices makes it important to determine how they influence different stakeholders such as employees, consumers, investors, suppliers, and the government (Aguinis and Glavas, 2012)
The results of structural regression model show that external CSR has a positive relationship with perceived external prestige and perceived external prestige has a positive impact on organizational identification
The results show that perceived external prestige fully mediates the relationship between external CSR and organizational identification as the direct effect of external CSR on organizational identification is insignificant, supporting Hypothesis 1
Summary
The widespread growth of corporate social responsibility (CSR) practices makes it important to determine how they influence different stakeholders such as employees, consumers, investors, suppliers, and the government (Aguinis and Glavas, 2012). Collier and Esteban (2007), Farooq M. et al (2014); Farooq O. et al (2014), and Rodrigo and Arenas (2008) demonstrate the positive relationship between CSR and organizational identification While these studies contribute greatly to our understanding of how CSR affects employees’ identification, most of them suggest there is a direct link between CSR and organizational identification. Kim et al (2010), Jones (2010), and De Roeck and Delobbe (2012) demonstrate this link through the mediation of perceived prestige or pride They do not consider whether a number of underlying mechanisms induced by different types of CSR activities influence organizational identification
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