The Influence of Perceived Corporate Sustainability Practices on Employees and Organizational Performance

Abstract

Most previous studies on corporate sustainability (corporate social responsibility) practices tend to focus on external stakeholders and outcomes. However, the influence of CSR practices on employees remains largely unexplored. In this study, we examine the influence of CSR practices on employees" attitudes and behaviors. We investigate the mediation effect of employees" attitudes and behaviors on the relationship between CSR practices and organizational performance. The empirical results indicate that employees" perceptions of CSR practices have a positive impact on their organizational commitment and organizational citizenship behavior. The organizational citizenship behavior partially mediates the relationship between CSR practices and organizational performance, whereas organizational commitment indirectly mediates the relationship only through organizational citizenship behavior. This study also raises some important implications based on the empirical results.

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“…For the reliability test, we use the widely known Cronbach's alpha coefficient, the corrected item-total correlation coefficient, and the construct reliability coefficient. These are the most commonly used criteria for measuring reliability [41]. As shown in Table 3, each measure is well above the suggested threshold of 0.7, 0.5, and 0.8, respectively.…”

“…Second, we used Harman's one-factor test via CFA by specifying a hypothesized method factor as the underlying driver of all of the indicators. The results revealed that the fit of the single-factor model was extremely unsatisfactory, indicating that common method variance is not the major source of the variations in the items [41].…”

“…There were no reports of misunderstanding during the pilot test. The interviewees stated that the items were easily understood, which indicates good content validity [41].…”

“…As summarized by Choi and Yu [41], convergent validity occurs when (a) all the factor loadings are significantly over the 0.5 cut-off point; and (b) the average variance extracted (AVE) from the items by their respective constructs is greater than 0.5. Table 3 shows the results of the convergent validity measured using CFA.…”

“…If all of these conditions are satisfied, and the influence of the independent variable becomes non-significant in the presence of the mediator, the effects of the independent variable are said to be "completely" or "fully" mediated by the mediator. If all the conditions are satisfied while the influence of the independent variable remains significant in the presence of the mediator, the effects of the independent variable are said to be "partially" mediated [41,46].…”