Corporate social responsibility, organizational trust and commitment: a moderated mediation model

Abstract

PurposeDrawing from the deontic justice theory and the social exchange theory, the purpose of this study attempts to identify the relationship between perceived corporate social responsibility (CSR) and employees' affective commitment, mediated through organizational trust. Furthermore, the authors seek to understand how the attitude of employees toward the importance of CSR, moderates the aforementioned relationship.Design/methodology/approachThe respondents for this descriptive study were drawn from a sample of 500 employees working in manufacturing companies in India. Self-reporting questionnaires were administered among the respondents, who were selected through the judgment sampling method. Measurement model analysis was done using IBM AMOS 21.0 and path analytic procedures using PROCESS 3.0 macro was used to test the proposed hypotheses.FindingsResults revealed that there is a significant indirect effect of all three dimensions of CSR on affective commitment, through organizational trust. The conditional indirect effects varied significantly, and it was identified that both employee-CSR and customer-CSR had a significant indirect effect on employee affective commitment. However, social/nonsocial CSR did not have a conditional indirect effect on affective commitment, through attitude toward the importance of CSR and organizational trust.Research limitations/implicationsThe cross-sectional nature of the study does not allow inference of causality and pose limitations for generalization of results. Though the limitation of common method bias is inherent in studies with self-reporting measures, the authors adopted several procedural remedies to minimize its effect. The study results, particularly the role of attitude toward the importance of CSR need to be tested among employees in different industry sectors. Future studies should examine the same theoretical model in different nations, where CSR activities are not mandated by law.Originality/valueThis study is pioneering in conceptualizing and empirically testing a theoretical model that examined the combined influence of perceived CSR, employees' attitude toward the importance of CSR and organizational trust on their affective commitment toward the organization. This study extends the literature by examining the indirect/mechanisms linking CSR and employees' affective commitment. Exploring more on the employee individual differences and its influence on organizational outcomes will definitely improve individual and organizational functioning.

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

“…Other studies confirmed that the perception of corporate CSR activities by employees enhances employees' OC [31,41,42].…”

“…Managing CSR related to employees and customers is both critical and strategic. Employees are an especially vital asset, as well as a key success factor for the company [31], and they embody the main stakeholder group affecting the quality of goods and services [32]. A company's CSR activities are found to boost employees' intrinsic motivations, commitment, trust, improved engagement, workplace culture, and better ethical behavior [33].…”

“…Previous studies used perceptions of CSR to predict customers' and employees' attitudes and behavioral outcomes [30,31,40]. For our study, we adopted and modified the definition of CSR by Davis and Blomstrom [26] in order to define employee perception of customer-related CSR and employee-related CSR.…”

“…OC and motivation are good predictors of satisfaction and quality of work life [49]. Among the factors concerning organizational performance discussed in previous studies is OC [31]. OC is related to a strong desire to remain a member of an organization, strong confidence in taking on the values and goals of the organization, and a willingness to make considerable efforts for the organization [31].…”

Do Millennials pay attention to Corporate Social Responsibility in comparison to previous generations? Are they motivated to lead in times of transformation? A qualitative review of generations, CSR and work motivation

“…Soni and Mehta (2020) showed that ICSR impacts employee engagement via organizational trust in India. The impact of the three pillars of CSR on affective commitment was mediated by organizational trust in an Indian study by George, Aboobaker, and Edward (2020).…”