Employees' Response to CSR: Role of Organizational Identification and Organizational Trust

Abstract

Since last decade, Corporate Social Responsibility (CSR) has become an inspiring catchall in the eyes of researchers. Many studies have been conducted examining the influence of CSR on stakeholders including customers, suppliers and shareholders. However, only a dearth of research is found that attempted to understand its impact on most important stakeholders (i.e. employees). This study aims to understand the relationships among CSR, organizational trust, organizational identification and organizational commitment. The study conducted a questionnaire-based survey of 758 employees working in the banking sector on a random basis. Data was analyzed using structural equation modeling and noted that employee when perceive CSR activities, exhibit trust, identification and commitment to their organization. In addition, organizational trust and organizational identification mediate the relationship between CSR and organizational commitment, while organizational trust mediates the relationship between CSR and organizational identification. The data were collected at one point of time, which restrict researchers to establish causal relationship. The study suggests bankers gain employees' support by engaging in CSR related activities.

Keywords

• organizational commitment
• organizational trust
• organizational identification
• affective commitment
• social identity theory
• banking sector