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Toward a Communality with Employees: The Role of CSR Types and Internal Reputation

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Abstract

The aim of this study is to examine the impacts of organizations’ corporate social responsibility (CSR) types from internal perspectives. By building linkages among CSR, organization–employee relationship, and internal reputation, the current study investigates how organizations’ CSR practices influence the communal relationship between an organization and employees as well as their perceived external prestige (PEP) of an organization. An online survey was conducted with 507 current full-time employees working in large-sized companies in the United States. Results show that four dimensions of CSR activities—discretionary, ethical, legal, and economic CSR—are significantly related to employees’ perceived external prestige. Furthermore, the study found that employees’ PEP is positively related to their perceptions of communal relationships, as well as their communal willingness to the companies. Different direct impacts of CSR activities on the communal relationship between an organization and its employees are also investigated. Theoretical and practical implications of this study are discussed.

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Authors and Affiliations

  1. Department of Strategic Communication, School of Communication, University of Miami, 5100 Brunson Dr, Coral Gables, FL, 33146, USA

    Yeunjae Lee

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  1. Yeunjae Lee
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Appendix: Measurement Items

Appendix: Measurement Items

Measurement items

Standardized loadings

α

Perceived Communal Relationship (Hon and Grunig 1999)

 

.87

My company especially enjoy giving employees aids

.652

 

My company is concerned about the welfare of people like me

.802

 

I feel that my company does not take advantage of people who are vulnerable

.679

 

I do not think that my company succeeds by stepping on other people

.666

 

My company helps people like me without expecting anything in return

.722

 

I consider my company as a particularly helpful organization

.776

 

CFI = .963, \(\varvec{\chi}2_{{\varvec{df}}}\)(9) = 55.119, SRMR = .034, RMSEA = .101 [.076, .127]

  

Employees’ Communal Willingness (Mills et al., 2004)

 

.83

How happy do you feel when doing something that helps your company?

.684

 

How large a benefit would you be likely to give to your company?

.725

 

How high a priority for you is meeting the needs of your company?

.688

 

How much would you be willing to give up to benefit your company?

.724

 

How far would you go out of your way to do something for your company?

.807

 

CFI = .923, \(\varvec{\chi}2_{{\varvec{df}}}\)(5) = 67.163, SRMR = .042, RMSEA = .101 [.065, .139]

  

Perceived External Prestige (Smidts et al., 2001)

 

.87

My company is looked upon as a prestigious place to work for

.808

 

People in my community think highly of my company

.822

 

My company is considered one of the best in its industry

.776

 

Employees of other organizations would be proud to work in my company

.822

 

CFI = .999, \(\varvec{\chi}2_{{\varvec{df}}}\)(5) = 6.212, SRMR = .009, RMSEA = .022 [.000, .068]

  

Employees’ Perceptions of CSR Activities (Dhanesh, 2014)

  

Discretionary CSR

 

.80

 My company gives adequate contribution to charities

.798

 

 My company encourages partnership with local businesses and schools

.750

 

 Flexible policies in my company enable employees to better coordinate work and personal life

.696

 

Ethical CSR

 

.76

 Fairness towards co-workers and business partners is an integral part of our employee evaluation process

.704

 

 A confidential procedure is in place for employees to report any misconduct at work

.728

 

 Our sales persons and employees are required to provide full and accurate information to all customers

.743

 

Legal CSR

 

.81

 My company seeks to comply with all laws regulating hiring and employee benefits

.760

 

 My company has programs that encourage the diversity of our workforce

.810

 

 Internal policies prevent discrimination in employees’ compensation and promotion

.783

 

Economic CSR

 

.73

 My company has been successful at maximizing profits

.717

 

 My company tries to lower its operating costs

.698

 

 My company’s top management sets long-term strategies

.752

 

 CFI = .923, \(\varvec{\chi}2_{{\varvec{df}}}\)(48) = 284.273, SRMR = .045, RMSEA = .099 [.088, .110]

  

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Lee, Y. Toward a Communality with Employees: The Role of CSR Types and Internal Reputation. Corp Reputation Rev 23, 13–23 (2020). https://doi.org/10.1057/s41299-019-00069-x

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