The Impact of CSR on Employee Performance: With The Mediation of Employee Trust and Employee Behavior (A Case Study of Companies in Bekasi and Jakarta)
DOI:
https://doi.org/10.24002/kinerja.v22i2.1814Abstract
The Researches on Corporate Social Responsibility (CSR) tends to focus on stakeholders and external outcomes. The impact of CSR on employee performance is still rarely discussed in many studies. This study aims to determine how the impact of CSR affects employee performance and the role of employee trust and employee behavior as a mediator at 3 companies in Bekasi and Jakarta. Every company has a responsibility to develop its environment through social programs. The research questions in this study are: (1) The impact of CSR on Employee performance, (2) The impact of CSR on employee trust (3) The impact of employee trust on employee performance (4) The impact of CSR on employee behavior (5) The impact of employee behavior on employee performance. The sample used in this study was 246 employees from companies in Bekasi and Jakarta District. Data collection method used in this study was questionnaire and forum group discussions (FGD), while analytical method used was SEM Warps PLS.The findings of this study indicate that CSR does not impact directly the employee performance. The CSR indicator that needs to be considered is ethical, where the companies are suggested to have a CSR department. Where employees have lack knowledge about environmental work, environmental laws regarding material sources, emissions, and so on. So that employees realize and understand the importance of having attention and responsibility to the environment. CSR has a significant impact on employee trust, employee trust has a significant impact on employee performance, CSR has a significant impact on employee behavior, and employee behavior significantly impact employee performance. Employee trust and employee behavior mediate the impact of CSR on Employee performance.
Keywords: CSR, employees trust, employee behavior, employee performance
References
Abagail, M.W and Donald, S. 2001. Corporate Social Responsibility: a Theory of the Firm Perspective. Academy of Management Review. 26 (1).
Agle, B.R., Mitchell, R.K. and Sonnenfeld, J.A. 1999. Whom atters to CEO’s ?An investigation of stakeholder attributes and salience, corporate performance and CEO values. Academy of Management Journal, 42(5), pp. 507-525.
Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. 2007. Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32(3): pp. 836–863.
Aguinis, H., Glavas, A. 2012. What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of Management, 38: 932–68. http://dx.doi.org/10.1177/0149206311436079
Albinger, H. S., & Freeman, S. J. 2000. Corporate social performance and attractiveness as an employer to different job seeking populations. Journal of Business Ethics, 28 : pp. 243–253.
Ali, I., Rehman, K. U., Ali, S. I., Yousaf, J., Zia, M. 2010. Corporate social responsibility influences, employee commitment and organizational performance. African Journal of Business Management, 4(12), pp. 2796-2801.
Balmer, J. M. T. 1998. Corporate identity and the advent of corporate marketing. Journal of Marketing Management, 14, pp. 963–996.
Balmer, J. M. T., Fukukawa, K., Gray, E. R. 2007. The nature and management of ethical corporate identity: A commentary on corporate identity, corporate social responsibility and ethics. Journal of Business Ethics, 76, pp. 7–15.
Belaid Rettab, Anis Ben Brik, Kamel Mellahi. 2009. A Study of Management Perceptions of the Impact of Corporate Social Responsibility on Organisational Performance in Emerging Economies: The Case of Dubai. Journal of Business Ethics, 89:371–390. DOI 10.1007/s10551-008-0005-9.
Berrone, P., Surroca, J., Tribo, J. A. 2007. Corporate ethical identity as a determinant of firm-performance: A test of the mediating role of stakeholder satisfaction. Journal of Business Ethics, 76(1), pp. 35–54.
Bhattacharya, C. B., Sen, S., and Korschun, D. 2011. Leveraging corporate responsibility: The stakeholder route to maximizing business and social value. Cambridge: Cambridge University Press.
Blowfield, M. and G. J. Frynas: 2005, ‘Setting New Agendas: Critical Perspectives on Corporate Social Responsibility in the Developing World’, International Affairs 81, 499–513. doi:10.1111/j.1468-2346.2005. 00465.x.
Bolton, S. C., Kim, R. C., and O’Gorman, K. D. 2011. Corporate Social Responsibility as a Dynamic Internal Organization Process: A Case Study. Journal of Business Ethics, 101, pp. 61-74.
Brammer, S., & Millington, A. 2005. Corporate reputation and philanthropy: An empirical analysis. Journal of Business Ethics, 61(1), pp. 29–44.
Brower, H. H., Lester, S. W., Korsgaard, M. A., & Dineen, B. R. 2009. A closer look at trust between managers and subordinates: Understanding the effects of both trusting and being trusted on subordinate outcomes. Journal of Management, 35(2): pp. 327–347.
Castaldo, S., Perrini, F., Misani, N., Tencati, A. 2009. The missing link between corporate social responsibility and consumer trust: The case of fair trade products. Journal of Business Ethics, 84(1), pp. 1–15.
Cochran, P. L., Wood, R. A. 1984. Corporate social responsibility and financial performance. Academy of Management Journal, 27, pp. 42–56.
Crane, A., McWilliams, A., Matten, D., Moon, J., Siegel, D. 2008. The corporate social responsibility agenda. In A. Crane, A. McWilliams, D. Matten, J. Moon, and D. Siegel (Eds.), The Oxford handbook of corporate social responsibility (pp. 3–18). New York, NY: Oxford University Press.
Cropanzano, R., & Mitchell, M. S. 2005. Social exchange theory: An interdisciplinary review. Journal of Management, 31(6), pp.874–900.
De Roeck, K., & Maon, F. 2016. Building the theoretical puzzle of employees’ reactions to corporate social responsibility: An integrative conceptual framework and research agenda. Journal of Business Ethics. doi:10.1007/s10551-016-3081-2.
Dirks, K. T., Ferrin, D. L. 2001. The role of trust in organizational settings. Organization Science, 12, pp. 450–467.
Dutton, J. E., Dukerich, J. M. 1991. Keeping an eye on the mirror: Image and identity in organizational adaptation. Academy of Management Journal, 334(3), pp. 517–554.
El Akremi, A., Gond, J.-P., Swaen, V., de Roeck, K., & Igalens, J. 2015. How do employees perceive corporate responsibility? Development and validation of a multidimensional corporate stakeholder responsibility scale. Journal of Management, 0149206315569311.
European Commission. 2011. A renewed EU strategy 2011-14 for Corporate Social Responsibility. Com (2011), Brussels.
Farndale, E., Hope-Hailey, V., & Kelliher, C. 2011. High commitment performance management: The roles of justice and trust. Personnel Review, 40(1) : pp. 5–23.
Fombrun, C., Shanley, M. 1990. What’s in a name? Reputation building and corporate strategy. Academy of Management Journal, 33, pp. 233–258.
Fukukawa, K., Balmer, J. M. T., & Gray, E. R.2007. Mapping the interface between corporate identity, ethics, and corporate social responsibility. Journal of Business Ethics, 76, pp. 1–5.
Gavin, J. F., & Maynard, W. S. 1975. Perceptions of corporate social responsibility. Personnel Psychology, 28, 377–387.
Gouldner, A. W. 1960. The norm of reciprocity: A preliminary statement. American Sociological Review, 25(2),pp. 161–178.
Greening, D. W., & Turban, D. B. 2000. Corporate social performance as a competitive advantage in attracting a quality workforce. Business & Society, 39, 254–280.
Gross, R. and Holland, B. 2010. Corporate social responsibility and employee engagement: Making the connection [Whitepaper]. Retrieved from http://www.mandrake.ca/bill/images/ corporate_responsibility_white_paper.pdf
Hansen, S. D., Dunford, B. B., Boss, A. D., Boss, R. W., & Angermeier,I. 2011. Corporate social responsibility and the benefits of employee trust: A cross-disciplinary perspective. Journal of Business Ethics, 102: pp. 29–45.
Hasan Raza, M.A, Syed M.Z. 2014. The Impacts of Employee’s Job Performance Behavior and Organizational Culture on Organizational Productivity in Pharmaceutical Industries in Karachi. Interdisciplinary Journal Of Contemporary Research In Business, 5 (12) : pp. 385-400.
Hogg, M. A., and Terry, D. J. 2000. Social identity and self categorization processes in organizational contexts. Academy of Management Review, 25(1), pp. 121-140.
Jean-Pascal Gond, Assâad El Akremi, Valérie Swaen And Nishat Babu. 2017. The psychological microfoundations of corporate social responsibility: A person-centric systematic review. Journal of Organizational Behavior, J. Organiz. Behav. DOI: 10.1002/job.2170
Jones, D.A. 2010. Does serving the community also serve the company? Using organizational identification and social exchange theories to understand employee responses to a volunteerism programme. J. Occup. Organizational Psychology, 83, pp. 857–878. [CrossRef]
Julena M. Bonner, Rebecca Greenbaum, Cynthia S. Wang. 2016. Punishment Contingency and Unethical Behavior: The Role of Uncertainty and Justice Perceptions. Academy of Management Annual Meeting Proceedings 2016. http://dx.doi.org/10.5465/AMBPP.2016.70.
Julena M. Bonner, Rebecca L. Greenbaum, David M. Mayer. 2016. My Boss is Morally Disengaged: The Role of Ethical Leadership in Explaining the Interactive Effect of Supervisor and Employee Moral Disengagement on Employee Behaviors. Journal of Business Ethics, 137: pp.731–742. DOI 10.1007/s10551-014-2366-6
Kenneth De Roeck, Omer Farooq. 2018. Corporate Social Responsibility and Ethical Leadership: Investigating Their Interactive Effect on Employees’ Socially. Journal of Business Ethics, 151: pp. 923–939, https://doi.org/10.1007/s10551-017-3656-6
Kim, H .R., Lee, M., Lee, H. T., Kim, N. M. 2010. Corporate social responsibility and employee-company identification. Journal of Business Ethics, 95, pp. 557-569.
Koh, H. C., Boo, E. H. Y. 2001. The link between organizational ethics and job satisfaction: A study of managers in Singapore. Journal of Business Ethics, 29(4), pp. 309-324.
Lee, M. 2008. A review of the theories of corporate social responsibility: Its evolutionary path and the road ahead. International Journal of Management Reviews, 10 (1), pp. 53–73. doi: 10.1111/j.1468-2370.2007.00226.x
Lockwood, N.R.2007. Leveraging employee engagement for a competitive advant age, SHRM Research Quarterly. Alexandria, VA: SHRM Foundation. Available at: http://www.shrm.org/research/articles/articles/documents/07marre
Macky, K., & Boxall, P. 2007. The relationship between ‘high performance work practices’ and employee attitudes: an investigation of additive and interaction effects. The International Journal of Human Resource Management, 18(4), pp. 537–567.
Matten, D., Moon, J. 2008. Implicit and explicit CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33(2), pp. 404–424.
Maurer, T. J., Pierce, H. R., and Shore, L. M. 2002. Perceived beneficiary of employee development activity: A three dimensional social exchange model. Academy of Management Review, 27(3), pp. 432–444.
Mayer, R. C., Davis, J. H., & Schoorman, F. D. 1995. An integrative model of organizational trust. Academy of Management Review, 20 : pp. 709–734
Mc Williams, A., Siegel, D. 2001. Corporate social responsibility: A theory of the firm perspective. Acad. Manag. Rev. 2001, 26, pp. 117–127.
Mirvis, P. 2012. Employee engagement and CSR: Transactional, relational, and developmental approaches. California Management Review: 54(4), pp. 93–117.
Moir, L. 2001. What do we mean by corporate social responsibility? Corporate Governance, 1(2), pp. 16-22.
Morgeson, F. P., Aquinis, H., Waldman, D. A., & Siegel, D. S. 2013. Extending corporate social responsibility research to the human resource management and organizational behavior domains: A look to the future. Personnel Psychology, 66, 805–824. doi:10.1111/peps.12055
Omer Farooq, Marielle Payaud, Dwight Merunka, Pierre Valette-Florence. 2014. The Impact of Corporate Social Responsibility on Organizational Commitment: Exploring Multiple Mediation Mechanisms. Journal of Business Ethics, 125: pp. 563–580.
Orlitzky, M., Schmidt, F.L. and Rynes, S.L. 2003. Corporate social and financial performance: a meta-analysis, Organization Studies, 24, pp. 403-41.
Osveh, E., Singaravello, K., & Boerhannoeddin, A. (2015). Linkage between perceived corporate social responsibility and employee engagement: Mediation effect of organizational identification.International Journal of Human Resource Studies, 5(3), pp. 174–190.
Pedersen, E. and M. Huniche: 2006, Corporate Citizenship in Developing Countries (Copenhagen Business School Press, Copenhagen).
Perrini, F., & Castaldo, S. 2008. Editorial introduction: Corporate social responsibility and trust. Business Ethics: A European Review, 17(1), 1–2.
Peterson,C.,&Seligman,M.E.P.2004.Characterstrengthsandvirtues:Aclassificationandhandbook.NewYork:OxfordUniversityPress/Washington,DC:AmericanPsychological Association
Pivato, S., Misani, N., Tencati, A. 2008. The impact of corporate social responsibility on consumer trust: The case of organic food. Business Ethics: A European Review, 17(1), pp. 3–12.
Porathe, P., Christine, 2009. How Toxic Colleagues Corrode Performance. Harvard Business Review, 87 (04).
Porter, M. E., and Kramer, M. R. 2011. Creating shared value. Harvard Business Review, 89, pp. 62–77.
Robbins, S.P., Judge, T.A. 2015. Organizational Behavior, Pearson Education Limited: Harlow, Essex, UK.
Rousseau, D. M., Sitkin, S. B., Burt, R. S., Camerer, C. 1998. Not so different after all: A Cross-discipline view of trust, Academy of Management Review, 23 (3), pp. 393-404.
Ruchi Tewari, Ranjit Nambudiri. 2014. Corporate Social Responsibility and Organizational Commitment: The Mediation of Job Satisfaction. Article in SSRN Electronic Journal • March 2014. 44(1):41-47.
Rupp, D. E., Ganapathi, J., Aguilera, R. V., & Williams, C. A. 2006. Employee reactions to corporate social responsibility: An organizational justice framework. Journal of Organizational Behavior, 27(4),pp. 537–543.
Ruppel, C. P., & Harrington, S. J. 2000. The relationship of communication, ethical work climate, and trust to commitment and innovation. Journal of Business Ethics, 25(4), pp. 313–328.
Schaufeli, W. B., Salanova, M., Gonzalez-Rom, V., Bakker, A. B. 2002. The measurement of burnout and engagement: A confirmatory factor analytic approach. Journal of Happiness Studies, 3(1), pp. 71-92.
Sen, S., Bhattacharya, C. B. 2001. Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), pp. 225–243.
Shim, E.D. 2014. Sustainability, Stakeholder Perspective and Corporate Success: A Paradigm Shift, International Journal of Business, Humanities and Technology, 4(5), pp. 64-67.
Shuck, M. B., Rocco, T. S., Albornoz, C. A. 2011. Exploring Employee Engagement From The Employee Perspective: Implications For HRD, Journal Of European Industrial Training, 35(4), pp. 300 – 325. DOI:10.1108/03090591111128306
Škare, M., Golja, T. 2012. Corporate social responsibility and corporate financial performance – Is there a link? Economic Research – Ekonomska istraživanja, 25, SE 1, pp. 215–242. DOI:10.1080/ 1331677X.2012.11517563
Snider, J., Hill, R. P., Martin, D. 2003. Corporate social responsibility in the 21st century: A view from the world’s most successful firms. Journal of Business Ethics, 48(2), pp. 175–187.
Strike, V. M., Gao, J., Bansal, P. 2006. Being good while being bad: Social responsibility and the international diversification of US firms. Journal of International Business Studies, 37, pp. 850-862.
T. Heinze, K. Pfeiffer, T. Liebert, U. Heinze. 1999. Effective approaches for estimating the functionalization pattern of carboxymethyl starch of different origin starches Starch/Stärke, 511 (1999), pp. 11-16
Tonkiss, F. 2009. Trust, confidence and economic crisis. Intereconomics, 44 (4), pp. 196-202
Valentine, S., Fleischman, G. 2008. Ethics programs, perceived corporate social responsibility and job satisfaction. Journal of Business Ethics, 77, pp. 159–172.
Vlachos, P. A., Panagopoulos, N. G., & Rapp, A. A. 2014. Employee judgments of and behaviors toward corporate social responsibility: A multi-study investigation of direct, cascading, and moderating effects. Journal of Organizational Behavior, 35(7), 990–1017.
Vlachos, P.A., Panagopoulos, N.G., Rapp, A.A. 2013. Feeling good by doing good: Employee CSR-Induced attributions, job satisfaction, and the role of charismatic employee perception of CSR activities, job attachment and organizational commitment. Journal of Business Ethics, 118, pp. 577–588. [CrossRef]
Wang W, Fu Y, Qiu H, Moore JH, Wang Z. 2017. Corporate Social Responsibility and Employee Outcomes: A Moderated Mediation Model of Organizational Identification and Moral Identity. Front Psychology. 2017. Nov 1;8:1906. doi: 10.3389/fpsyg.2017.01906. eCollection 2017.
Yanni Yu, Yongrok Choi. 2014. Corporate social responsibility and firm performance through the mediating effect of organizational trust in Chinese firms Chinese. Management Studies, 8(4), pp. 577-592.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
