Employee-related Corporate Social Responsibility Research Articles

Corporate social responsibility and the executive-employee pay disparity

We examine the impact of employee-related Corporate Social Responsibility (ER-CSR) on pay disparity between top management and the average worker. Firms with higher ER-CSR ratings have a lower pay disparity and the effect is greatest when executives are paid the most. ER-CSR is associated with a lower ratio of top management's cash and long-term incentive compensation, relative to the average employee's pay. We find that the negative relation is driven by socially responsible firms paying their average employees more. Finally, we document that CSR activities related to employee relations and diversity are those leading to a significant pay disparity reduction.

Employee corporate social responsibility and well-being: the role of work, family and culture spillover

PurposeConsidering the conservation of resources (COR) theory, this research investigates the mediating roles of work, family and culture on the relationship between employee corporate social responsibility (CSR) and employee well-being.Design/methodology/approachSelf-administered questionnaire data from 403 employees working across multiple organisations in the United Kingdom were analysed using path analysis with SmartPLS.FindingsOrganisations can only maximally benefit from their CSR investment when specific HR strategies are in place, as no direct relationship between CSR and well-being outcomes was observed. Family-to-work spillover and work–family culture were significant mediators in the relationship between employee CSR and well-being.Research limitations/implicationsCSR strategies targeted at improving employee well-being do not necessarily do so in a direct approach. They, therefore, may not serve the desired performance outcomes of organisations. Boundary conditions of applying the crossover model of COR theory were observed.Originality/valueThis research contributes to the limited knowledge of the effectiveness of employee-related CSR strategies on HRM and well-being outcomes from an employees' perspective. Employee-related CSR strategies are unlikely to improve employee well-being if the inter-individual level of analysis, i.e. interchange between work, family and culture, is not considered.

How does CEO social class perception impact employee-related CSR? Evidence from privately owned Chinese firms

Despite recent progress, the literature is still unclear on the internal determinants of employee-related corporate social responsibility (CSR), particularly regarding the effect of the chief executive officer (CEO). Integrating upper echelons theory with the social class literature, this study examines how CEO social class perception influences private firms’ employee-related CSR. Based on a unique dataset from the Nationwide Private Firms Survey of China, this study empirically shows that higher CEO social class perception promotes a higher level of employee-related CSR activities in private firms. Additionally, this positive impact of CEO social class perception on employee-related CSR is amplified among younger firms and firms that face higher market munificence. Our study contributes to the current literature by enriching our understanding of the antecedents of employee-related CSR from the perspective of the CEO’s cognition of his or her social class and revealing the related informative boundary conditions.

Population mobility and employee social responsibility: evidence from hukou reform in China

ABSTRACT Population mobility may have a profound impact on the labor market, affecting firms’ employment decisions. We consider hukou reform in China as a quasi-natural experiment in identifying the effects of population mobility on employee-related corporate social responsibility (employee social responsibility, or ESR). The empirical results show that hukou reform prompts firms to invest more in ESR activities, particularly in ESR activities with weak externalities and in regions with a smaller labor market size. Cross-sectional tests suggest that the effects of hukou reform on firms’ ESR investment are stronger for more financially constrained firms and those in high-tech industries, and in more competitive regions. The findings have important practical implications for employment strategies that firms should adopt when the labor market becomes more competitive.

Corporate Social Responsibility: The Impact of Employees’ Perceptions on Organizational Citizenship Behavior through Organizational Identification

The impact of the employees’ perceptions of CSR activities on the employee-organization relationship has been little explored in the literature. This study aims to analyze the impact of corporate social responsibility (CSR) perceptions (Environment-related CSR; Employee-related CSR, Customer-related CSR) on organizational citizenship behavior through the mediating role of the organizational identification of employees in the hotel sector. A questionnaire was applied to a sample of 214 frontline employees who work in four- and five-star hotels. Using Model 4 of the PROCESS macro, a mediation model was designed to test the hypotheses. The results indicate that there is a mediation model that uses the effect of organizational identification in the relationship between perceptions of CSR and organizational citizenship behavior. This study concludes that an increase in identification with the organization based on environmental-related activities, employee-related activities, or customer-related activities impact on OCB. The results of this study represent contributions to the literature in the CSR field, as well as to the case of human resources managers who wish to enhance organizational citizenship behavior and identification among hotel staff.

Reducing Employee Turnover Intentions in Tourism and Hospitality Sector: The Mediating Effect of Quality of Work Life and Intrinsic Motivation.

Employee turnover causes various organizational disruptions, including economic and social loss and a deficit in organizational knowledge-skill inventory. Considering different forms of organizational disruptions associated with employee turnover, the contemporary literature on organizational sciences has shown serious concern in dealing with the challenge of employee turnover. However, shockingly, the employee turnover rate in the tourism and hospitality sector has been reported to be critically high even at a global level. Moreover, considering the customer-facing nature of this industry, employee turnover has more consequences for the tourism and hospitality sector compared to other segments of the economy. Past literature has acknowledged the role of employee-related corporate social responsibility (ERCSR) activities of an organization in influencing employee behavior. However, a critical knowledge gap in this domain still exists. That is, most of the prior studies tested the impact of ERCSR on positive employee behavior and did not test how ERCSR engagement in an organization may reduce employee turnover intentions, especially in a hospitality context. To fill this knowledge gap, this study aimed to investigate the relationship between ERCSR and employee turnover intentions in a hospitality sector of a developing country. Additionally, the mediating roles of quality of work life and intrinsic motivation were also tested in the above-proposed relationship. The hotel employees were the respondents in this survey who provided their responses related to the study variables on a self-administered questionnaire (n = 278). A hypothetical model was developed and analyzed with the help of the structural equation modeling technique. The results confirmed that ERCSR orientation of a hotel organization significantly reduces the turnover intentions of employees, whereas both quality of work life and intrinsic motivation buffered this association by producing mediating effects. These findings have different theoretical and practical implications, among which the most important implication is to realize the key role of ERCSR in reducing employees’ turnover intentions in a hospitality context. Various other implications are discussed in detail.

Legacy of ideology: The enduring effect of CEOs’ socialist ideological imprint on private firms’ employee-related CSR

The question of how the legacy of ideology has an enduring effect on firms’ decisions remains largely unanswered. Drawing from the imprinting theory and corporate social responsibility (CSR) literature, in this study, we examined when and how chief executive officers’ (CEOs) socialist ideological imprints play an economically significant role in shaping firms' employee-related CSR (E-CSR) in China during its remarkable political transitions. We used data from 4,094 private Chinese firms as our sample and found that the socialist ideological imprints of private firms’ CEOs have a positive impact on the firms’ E-CSR decisions. Moreover, this imprinting effect was found to be more salient when CEOs joined the Communist Party of China before the political transition of Deng Xiaoping’s reform, but was found to be more constrained when CEOs perceived that the level of the guanxi requirements was high. This study sheds new light on how business leaders’ ideological imprints may have an enduring influence on their firms’ discretional CSR choices toward multiple stakeholders, particularly the employees. Moreover, it enhances the imprint literature by spotlighting the newly identified boundary conditions of imprinting effects upon firms’ CSR strategies.

The Influence of Hotel Employees’ Perception of CSR on Organizational Commitment: The Moderating Role of Job Level

This study attempts to investigate the relationships among Korean hotel employees’ perception of Corporate Social Responsibility (CSR), their intrinsic motivations, and their organizational commitment (OC). The mediating effect of intrinsic motivation on the relationship between employees’ perception of customer- and employee-related CSR and OC is explored, and the moderating role of job level on the relationship between CSR perceptions and intrinsic motivation is tested. The data were collected via online survey, and the Hayes’ Process macro was used as an analysis tool. We found that (1) both types of CSR perceptions are important in creating intrinsic motivation and OC, (2) intrinsic motivation enhances OC, and (3) job level moderates the link between employee CSR perceptions and intrinsic motivation positively. Interestingly, we found that when customer-related CSR or employee-related CSR is high, the level of intrinsic motivation will significantly differ between managerial and non-managerial employees. This study’s results will contribute to the current literature on CSR, and will aid human resources departments that are considering CSR practices as a means to enhancing employee intrinsic motivation and OC.

CEO Social Class Perception and Employee-Related CSR: Evidence from Chinese Privately Owned Firms

Despite recent progress, the existing literature still contains inadequate knowledge about the internal determinants of employee-related corporate social responsibility (CSR), particularly regarding the effect of the chief executive officer (CEO). Integrating upper echelon theory with social class literature, this study examines how CEO social class perception may influence private firms’ employee-related CSR. Based on a unique dataset from the Nationwide Private Firms Survey of China, this study empirically identifies that higher CEO social class perception will promote a higher level of employee-related CSR activities in private firms. Additionally, this positive impact of CEO social class perception on employee-related CSR may be amplified among younger firms and firms with a smaller amount of intangible resources. Our study contributes to the current literature by enriching our understanding of the antecedents of employee-related CSR from the perspective of the CEO’s cognition of his/her social class and revealing the related informative boundary conditions.

Can corporate social responsibility protect firm value during the COVID-19 pandemic?

The novel coronavirus (COVID-19) pandemic has caused a significant decline in the stock market worldwide, and hospitality companies are experiencing serious financial problems. Protecting and preserving firm value is a critical way of helping hospitality companies survive the crisis. The influence of corporate social responsibility (CSR) on firm value has been widely investigated. However, little is known about the stock price movement following CSR activity adoption during an industrial crisis. Using event study and difference-in-difference method, this study reveals that engaging in CSR activities can increase the stock returns and stakeholder attention of hospitality firms during the pandemic. Community-related CSR has a stronger and more immediate effect on stock returns than customer- and employee-related CSR. Results also indicate that hospitality firms that pursue improved stock market performance during a pandemic can invest in CSR to protect communities, customers, and employees for attracting further stakeholder attention.

Employee-related corporate social responsibilities and corporate innovation: Evidence from China

This study investigates corporate innovation from the perspective of a firm’s employee-related corporate social responsibility (CSR) in China. We find that more employee-related CSR generates more innovation success. The results suggest that a firm’s incentive to offer better employee-related CSR is an important determinant of its innovation. The positive effect is more pronounced when employees’ input into innovation is more important, and when free-riding among employees is stronger. Additional tests indicate that more employee-related CSR spurs innovation through employee stability and innovation efficiency. Our results hold up to a variety of model specifications and endogeneity issues.

Do a company’s sincere intentions with CSR initiatives matter to employees?

PurposeThis study aims to examine how employees’ perceptions of customer-related and employee-related corporate social responsibility (CSR) initiatives influence their job satisfaction. Further, the study investigates whether employees’ organizational commitment mediates this proposed relationship and, more importantly, tests how such mediated relationships change according to the level of employees’ perceptions of their company’s sincerity in investing in CSR activities.Design/methodology/approachThis study used an online survey to collect data and collected a total of 490 responses for the main analysis. A regression analysis and standard path-analytic approaches described by Hayes (2013) were conducted to test the proposed hypotheses.FindingsFindings support the main effect of customer- and employee-related CSR on employees’ job satisfaction mediated by employees’ organizational commitment, as well as the moderating effect of the perceived sincerity of customer-related CSR but not employee-related CSR.Originality/valueThe current study focuses on comparing two types of CSR initiatives, i.e. employee- and customer-related, because these two groups are any company’s core stakeholders with the closest relationship to its operations, and they represent the internal and external stakeholders, respectively. Further, the current study investigates the moderating effect of employees’ perceptions of the sincerity of their company’s CSR initiatives on the relationship between the two types of CSR initiatives and employees’ job commitment.

Why Steve Jobs Avoided CSR: The Impact of CSR on Innovation

This study aims to explore the relationship between corporate social responsibility (CSR) and innovation. We differentiate between two types of CSR: ESG (environmental, societal and governance), which addresses remote stakeholders’ interests, and employee-related CSR, which addresses internal stakeholders’ interests. Fixed-effects panel analyses on approximately 1,000 U.S. public manufacturing companies for the 2001-2012 period reveals that while increasing employee-related CSR exhibits a positive impact on firm innovation, increasing ESG leads to significantly lower innovation output. An instrumental variable approach and a difference-in- differences approach both confirm that increasing ESG indeed leads to decreased innovation output. Furthermore, supplementary analyses rule out alternative explanations such as resource allocation or shifting to quality innovation. We contend that although employee-related CSR enhances firm innovation, ESG may distract attention and create cognitive complexity for managers and employees. Our study suggests that firms should carefully design and implement their stakeholder strategies.

The impact of corporate social responsibility on brand equity

PurposeDespite the significant investment in research on corporate social responsibility (CSR), there still exists a lack of clarity in terms of how different types of CSR activities lead to the outcomes a firm desires with their investment in CSR. The purpose of this paper is to provide greater insight on the relationship between types of CSR activities and brand equity (BE). The authors develop and test a conceptual framework, which examines the unique relationship between each CSR dimension and BE, as well as the interaction of product-related CSR activities and employee-related CSR activities with CSR activities across the other dimensions.Design/methodology/approachThe authors collected data from multiple secondary sources, including Kinder, Lydenberg and Domini (KLD) Research and Analytics Inc., Interbrand, Compustat and CMR. The authors used random-effect estimations to estimate panel regressions of BE as a function of the different dimensions of a firm’s CSR, interaction terms between CSR dimensions and product quality and interaction terms between employee relations and other CSR dimensions, as well as a set of control variables and Year dummy variables.FindingsBased upon a large-scale panel data set including 78 firms for the period of 2000–2014, the results show that diversity- and governance-related CSR have a positive effect on BE, employee-related CSR has a negative effect on BE and both product and employee dimensions play important roles in the relationships between other CSR dimensions and BE. These results have important implications for both theory and practice.Originality/valueThis study makes several contributions to extant literature on CSR and brand strength. First, this study examines the impact of CSR on BE vs alternative measures of brand-related outcomes. This study uses the KLD database to determine scores for firm CSR activity. It is the first to use the extensive KLD database to examine the relationship between types of CSR activities and BE. Last, this study seeks to better understand some of the organizational factors which influence the success of CSR outcomes. Specifically, the research will examine the interaction of product-related and employee-related CSR activities with CSR activities across the other dimensions.

Cultural configuration models: corporate social responsibility and national culture

PurposeThis study aims to empirically examine the underlying cultures of corporate social responsibility (CSR) activities contributing toward employee: compensation and benefits (CB); diversity and labor rights (DLR); and training, safety and health (TSH), with a view of supporting both business corporations and policymakers in effectively designing and implementing employee-related CSR strategies in the global market.Design/methodology/approachThe proposed empirical model, namely, pooled ordinary least square (OLS) regression, is tested against a novel proprietary data set of 8,940 corporations from 48 countries across nine different regions. The prototypical models of cultural configurations are benchmarked against Hofstede’s country cultural scores on six dimensions to categorize the lists of countries in which the three specific employee-related CSR activities would appear to be culturally appropriate, as well as difficult to implement.FindingsThe study offers the cultural configuration models to identify the potential nature and range of cultural values that seem to support CSR activities contributing toward employee: CB – high power distance, high individualism, low masculinity, low uncertainty avoidance, medium long-term orientation and either relatively medium or low indulgence; DLR – medium power distance, medium individualism, low masculinity, high uncertainty avoidance, either relatively medium or low long-term orientation and medium indulgence; TSH – medium power distance, medium individualism, low masculinity, high uncertainty avoidance, medium long-term orientation and medium indulgence. The study further categorizes countries (cultural areas) in which these three specific employee-related CSR activities would appear to be culturally appropriate, as well as difficult to implement.Research limitations/implicationsThe findings provide both the motivation and a starting point for further academic inquiries. First, future research should further explore how specific industry and firm size have an impact on firms’ employee-related CSR activities. Second, the dynamic relationship of national culture and employee-related CSR activities over time should also be examined. Finally, appropriate management techniques or interventions to overcome the cultural constraints that prevent business corporations from promoting employee physical and mental fineness should also be fruitful area for further investigation.Practical implicationsThe study offers meaningful strategic implications of employee-related CSR activities for business corporations and policymakers. Specifically, the cultural configuration models, together with the practical framework, should serve as a benchmark for evaluating a likelihood of successful implementation on a particular employee-related CSR activity in a given context and for customizing business corporations’ CSR strategies and activities to fit within a cultural environment of the host country in which they operate. For policymakers dealing with employee rights and labor standards, the findings can be applied to assess foreign investor’s preferences regarding employee-related CSR engagement and activities.Originality/valueThis is the first study to develop the cultural configuration models that provide business corporations culturally meaningful insights into how to effectively design and implement their employee-related CSR strategies in the global market. The study also offers a practical framework – a set of countries in the global marketplace where employee-related CSR activities are likely to be implemented successfully, or encounter challenges and difficulties.

English

This paper aims to examine the main Corporate Social Responsibility (CSR) dimensions in order to provide a preliminary representation of the several perspectives of study dealt by the literature. Subsequently, for each CSR dimension, a proposition is suggested, which highlights the most critical issues emerging from the literature. Such propositions summarize the main characteristics of CSR dimensions and could be useful for further future studies. Similar approach is applied in the second part of the paper, which is focused on the relationship between CSR and the family business and suggest propositions addressed to some peculiarities of CSR and family business, such as: (a) the association between family ownership and community-related CSR performance and (b) the association between family ownership and the employee-related CSR performance. Key words: Corporate social responsibility, family business, corporate social responsibility performance, environment, small and medium-sized enterprises (SMEs).

Integration of CSR principles in quality management

Purpose– This paper aims to analyse the case of a non-governmental organization (NGO) and the possibilities of implementing corporate social responsibility (CSR) strategy and principles in an organizational quality management system (QMS) to reduce the rate of staff turnover and improve the overall excellence of the organization. QMS provides a framework for implementing CSR policy, strategy, activities and culture at all management levels of organization, creating a basis for establishing a sustainable development policy and providing overall employee and management commitment and continuous improvement of the system.Design/methodology/approach– Several research methods, such as literature review, logical and comparative analysis, in-depth interviews, Ishikawa diagram method and organization performance assessment via M. Baldrige excellence criteria, were applied in this research.Findings– The authors came to the conclusion that implementing employee-related CSR activities in an organizational QMS in a long-term period can reduce employee turnover, increase loyalty and commitment and improve the overall process performance in an NGO. The QMS framework allows maintaining, monitoring and evaluating continuous effect and execution of CSR principles, and including CSR strategies in organizational policy.Research limitations/implications– The research is restricted due to the fact that the authors cannot disclose the name of the analysed NGO because of ethical and confidentiality considerations.Originality/value– The paper presents an encompassing approach of integration of CSR principles in quality management principles for reducing staff turnover, completing a case study of an NGO.

Practices and Challenges of Corporate Social Responsibility (CSR) in the Hospitality Industry: The Case of First Level Hotels and Lodges in Gondar City, Ethiopia

Now a day, hospitality industry establishments especially hotels and lodges are the major component and come up with in the business area in Corporate Social Responsibility (CSR) concept, the major concern of 21 century business enterprise. Tourism and hospitality industry as a business sector this study investigates the question of what are the employee oriented CSR practices in the first level hotels and lodges in Gondar city. To investigate and identify the issues a descriptive type of research was applied with a survey design. As far as the data collection instrument; close ended questionnaire were used to collect primary data. Concerning to the sampling technique, a sample of 133 employees were involved from each ten hotels and lodge that were selected based on simple random sampling method with the judgment of one year and above service year. For the interview all the ten first level hotels and lodges managers was contacted. The finding of the study revealed, the first level hotels and lodges in the Gondar city practice gender equality acceptance, the commitment to balance the private and professional life, the employees freedom to go freely in sick and maternity were the highly practiced area while; reward and proper salary system, secure job and promotion of work were less practiced issues to the employees. Based on the finding of the study constructive recommendations including involve in employee related CSR practices especially in the practice of competitive salary and reward system, secure job adjustments for the long term, health and safety for the employee are forwarded.

Corporate Social Responsibility in the Framework of Quality Management

Quality management system (QMS) provide a framework for implementing corporate social responsibility (CSR) strategy in all management levels of organization, that create basis for establishment of sustainable development policy and related activities. Key for organizational excellence is the combination of focusing on quality in the process level and following the needs of stakeholders, giving the valuable contribution to the well-being of society.The aim of the research is to analyse concept of CSR in the context of organizational quality management system. This article presents the literature review on CSR definitions, organization excellence and sustainability concepts. The research showed that implementing employee-related CSR activities in quality management system of organization is the best alternative which helps to minimize staff rotation and improve the quality of processes and the overall performance of organization. Quality management system framework allows maintaining, monitoring and evaluating continuous effect and execution of CSR principles, and including CSR strategies in organizational policy.

Firms’ corporate social responsibility behavior: An integration of institutional and profit maximization approaches

Understanding firms’ behavior across countries – a key concern in the international business literature – requires the joint consideration of both institutional influences and firms’ profit maximization goals. In the corporate social responsibility (CSR) area, however, researchers have utilized theories that take into account only one or the other – institutional theory, which explains CSR as legitimacy-seeking activities in line with national-level institutions, or economic-based approaches that consider CSR effects only in terms of firm profitability. While an institutional argument implies convergence in CSR behavior among firms in similar institutional contexts, profit maximization logic treats CSR as a firm-specific behavior. We integrate these perspectives by demonstrating the moderating effects of firms’ economic motivations for seeking legitimacy on the relationship between institutional environment and CSR responsiveness. We argue that variations in firms’ economic visibility and economic vulnerability can bring about differences in their need for societal goodwill, and in turn, their legitimacy seeking. Findings on a database of apparel firms’ employee-related CSR across 23 countries support this overall argument. The integration of such fundamentally different theoretical perspectives allows us to contribute new theoretical insights to international business on the influence of national institutions on firms’ behavior.