With Great Power Comes Great Irresponsibility: Effect of The Corporate Social Irresponsibility Perception on CSR, Organization Commitment, Corporate Citizenship, and Work Motivation: The complementary role of Moral, and Organization Identification

Abstract

Corporate Social Responsibility (CSR) has developed a robust body of research while there has been a lack of research focusing on its counterpart, Corporate Social Irresponsibility (CSI). This is particularly true in terms of how workers perceive these activities. Employees' perceptions of corporate social responsibility and corporate social irresponsibility activities are crucial in understanding how their companies' good or poor activities affect them. There were two main goals in this study: 1) provide the first functional measure of corporate social irresponsibility perceptions, and 2) add to the body of literature on corporate social irresponsibility research using various factors. For this, we investigated the effect of Corporate Social Irresponsibility Perception (CSIP) on 1. CSR, 2. Organization Commitment, 3. Corporate Citizenship, 4. Work Motivation. We also infer that Moral, and Organization Identification mediate these effects in a way that higher levels of moral and organizational identities would strengthen the effect of CSIP on their outcomes. Empirical validity was established by conducting a survey using a close-ended questionnaire. Data was collected from 400 full-time employees and analyzed using confirmatory factor analysis and structured equation modeling. The results suggested that CSIP seems to have a positive and significant effect on all four of the outcomes. Moreover, moral identity seems to negatively affect CSR, whereas Organizational Identification seems to negatively impact Organizational Commitment. Both identities have a positive effect on the rest of the three outcomes. Moderation analysis suggested that moral identity seems to be negatively moderate, whereas organizational identity seems to positively moderate the effect of CSIP on all four outcomes. This shows that higher morals may decrease the effect of CSIP on CSR, Organization Commitment, Corporate Citizenship, Work Motivation, whereas organizational identity complements that effect. The research's practical consequences, future research directions, and the current study's shortcomings are all highlighted