The double‐edged sword of boundary‐spanning Corporate Social Responsibility programs

Abstract

AbstractResearch SummaryThis paper builds theoretical arguments and shows empirical evidence of the direct benefits and indirect costs of corporate volunteering in developing countries. Spanning corporate and humanitarian sectors to work in challenging environments should activate motivational and learning benefits for participating employees. However, results from a field study of a 10‐year partnership between logistics provider TNT and the United Nations World Food Program show that such boundary‐spanning corporate social responsibility (CSR) can be a double‐edged sword. Task interdependence with nonprofit peers while volunteering strengthens employees' partnership identification and institutional learning. However, institutional learning triggers identity strain (associated with attrition) when they return, unless firms foster a sense that they recognize CSR experiences as valuable. The findings inform the behavioral and micro‐foundations of the potential consequences of CSR.Managerial SummaryFirms expect to benefit from corporate volunteering programs in developing countries through employee motivation and new skill acquisition. This paper shows that task interdependence with nonprofit peers during such programs can strengthen employees' identification with a corporate‐nonprofit partnership and generate valuable institutional learning about operating in challenging environments. However, institutional learning can also trigger unanticipated costs in the form of identity strain (and, ultimately, attrition) when employees return, unless they feel their CSR experience is valued. Thus, firms should foster task interdependence during corporate volunteer assignments and CSR recognition to validate institutional learning when employees return.