Advertisement

DECISION

, Volume 45, Issue 4, pp 301–312 | Cite as

Employees’ responses to corporate social responsibility: a study among the employees of banking industry in India

  • Deepak SubbaEmail author
  • Sanjeev Kumar
Research Article
  • 41 Downloads

Abstract

The purpose of this study is to focus on how organizational events, i.e. corporate social responsibility (CSR) develops positive emotions among employees through compassion at workplace in banking industry of India. The employees of banking industry in India were surveyed by using self-administered questionnaire. A total of 241 samples were collected by using convenience sampling technique. This is a comprehensive study which answers how CSR induces positive emotion. Findings indicated that CSR influences positive emotions through compassion at workplace, in addition to the direct effect of CSR on positive emotions. In addition to this, findings of the study revealed that compassion mediates the relationship between CSR and positive emotion which is a new contribution to the literature. This study sheds new light on both CSR and positive emotions. This is the first pieces of research in management literature which addresses positive emotion as a consequence of CSR. In addition to this, this is the first pieces of research where AET mechanism is introduced to see the linkage between CSR and positive emotions.

Keywords

CSR Compassion Positive emotions 

References

  1. Aguilera RV, Rupp DE, Williams CA, Ganapathi J (2007) Putting the S back in corporate social responsibility: a multilevel theory of social change in organizations. Acad Manag Rev 32(3):836–863Google Scholar
  2. Aguinis H, Glavas A (2012) What we know and don’t know about corporate social responsibility: a review and research agenda. J Manag 38(4):932–968Google Scholar
  3. Albinger HS, Freeman SJ (2000) Corporate social performance and attractiveness as an employer to different job seeking populations. J Bus Ethics 28(3):243–253Google Scholar
  4. Allen TD (2001) Family-supportive work environments: the role of organizational perceptions. J Vocat Behav 58(3):414–435Google Scholar
  5. Arevalo JA, Aravind D (2011) Corporate social responsibility practices in India: approach, drivers, and barriers. Corp Gov Int J Bus Soc 11(4):399–414Google Scholar
  6. Bawa A, Saha A (2016) Strength of corporate social responsibility as a corporate brand association: general public perspective. Decision 43(4):313–332Google Scholar
  7. Bowen HR (1953) Social responsibilities of the businessman. Harper and Row, New YorkGoogle Scholar
  8. Brammer S, Millington A, Rayton B (2007) The contribution of corporate social responsibility to organizational commitment. Int J Hum Resour Manag 18(10):1701–1719Google Scholar
  9. Brickson SL (2007) Organizational identity orientation: the genesis of the role of the firm and distinct forms of social value. Acad Manag Rev 32(3):864–888Google Scholar
  10. Carmeli A, Gilat G, Waldman DA (2007) The role of perceived organizational performance in organizational identification, adjustment and job performance. J Manag Stud 44(6):972–992Google Scholar
  11. Carroll B (1979) Three-dimensional conceptual model of corporate performance. Acad Manag Rev 4(4):497–505Google Scholar
  12. Carroll AB (1999) Corporate social responsibility: evolution of a definitional construct. Bus Soc 38(3):268–295Google Scholar
  13. Cropanzano R, Byrne ZS, Bobocel DR, Rupp DE (2001) Moral virtues, fairness heuristics, social entities, and other denizens of organizational justice. J Vocat Behav 58(2):164–209Google Scholar
  14. Davis K (1960) Can business afford to ignore social responsibilities? Calif Manag Rev 2(3):70–76Google Scholar
  15. De Roeck K, Delobbe N (2012) Do environmental CSR initiatives serve organizations’ legitimacy in the oil industry? Exploring employees’ reactions through organizational identification theory”. J Bus Ethics 110(4):397–412Google Scholar
  16. Donald B, Thompson R, Higgins C (1995) The partial least squares (PLS) approach to casual modeling: personal computer adoption ans use as an Illustration. Tech Stud 2:285–309Google Scholar
  17. Dutton JE (2003) Energize your workplace: how to create and sustain high-quality connections at work. Joessy-Bass Publication, San FranciscoGoogle Scholar
  18. Dutton JE, Dukerich JM, Harquail CV (1994) Organizational images and member identification. Adm Sci Q 39:239–263Google Scholar
  19. Dutton JE, Worline MC, Frost PJ, Lilius J (2006) Explaining compassion organizing. Adm Sci Q 51(1):59–96Google Scholar
  20. Ellemers N, De Gilder D, Haslam SA (2004) Motivating individuals and groups at work: a social identity perspective on leadership and group performance. Acad Manag Rev 29(3):459–478Google Scholar
  21. Estrada-Hollenbeck M, Heatherton TF (1997) Avoiding and alleviating guilt through prosocial behavior. Guilt Child 1:215Google Scholar
  22. Farooq O, Payaud M, Merunka D, Valette-Florence P (2014) The impact of corporate social responsibility on organizational commitment: exploring multiple mediation mechanisms. J Bus Ethics 125(4):563–580Google Scholar
  23. Fineman S (1996) Emotional subtexts in corporate greening. Org Stud 17(3):479–500Google Scholar
  24. Fineman S, Sturdy A (1999) The emotions of control: a qualitative exploration of environmental regulation. Hum Relat 52(5):631–663Google Scholar
  25. Folkman S, Moskowitz JT (2000) Positive affect and the other side of coping. Am Psychol 55(6):647Google Scholar
  26. Fredrickson BL (2003) Positive emotions and upward spirals in organizations. In Cameron KS, Dutton JE, Quinn RE (eds) Positive organizational scholarship: foundations of a new discipline. Berrett-Koehler, San Francisco, CA, pp 163–175Google Scholar
  27. Fredrickson BL, Tugade MM, Waugh CE, Larkin GR (2003) What good are positive emotions in crisis? A prospective study of resilience and emotions following the terrorist attacks on the United States on September 11th, 2001. J Personal Social Psychol 84(2):365Google Scholar
  28. Frost PJ (1999) Why compassion counts! J Manag Inq 8(2):127–133Google Scholar
  29. Frost PJ, Dutton, JE, Maitlis S, Lilius J, Kanov JM, Worline MC (2006) Seeing organizations differently: three lenses on compassion. In: Hardy C, Clegg S, lawrence T, Nord W (eds) Handbook oforganization studies, 2nd edn. Sage, London, pp 843-866Google Scholar
  30. Frost PJ, Dutton JE, Worline MC, Wilson A (2000) Narratives of compassion in organizations. Emot Org 2:25–45Google Scholar
  31. Fu H, Ye BH, Law R (2014) You do well and I do well? The behavioral consequences of corporate social responsibility. Int J Hosp Manag 40:62–70Google Scholar
  32. Garg P (2016) CSR and corporate performance: evidence from India. Decision 43(4):333–349Google Scholar
  33. George D, Mallery M (2003) Using SPSS for Windows step by step: a simple guide and reference. Allyn and Bacon, Boston, MAGoogle Scholar
  34. Glavas A, Godwin LN (2013) Is the perception of ‘goodness’ good enough? Exploring the relationship between perceived corporate social responsibility and employee organizational identification. J Bus Ethics 114(1):15–27Google Scholar
  35. Glavas A, Kelley K (2014) The effects of perceived corporate social responsibility on employee attitudes. Bus Ethics Q 24(2):165–202Google Scholar
  36. Grappi S, Romani S, Bagozzi RP (2013) Consumer response to corporate irresponsible behavior: moral emotions and virtues. J Bus Res 66(10):1814–1821Google Scholar
  37. Greening DW, Turban DB (2000) Corporate social performance as a competitive advantage in attracting a quality workforce. Bus Soc 39(3):254–280Google Scholar
  38. Hair JF, Black WC, Babin BJ, Anderson RE, Tatham RL (1998) Multivariate data analysis, vol. 5, 3rd edn. Prentice Hall, Upper Saddle RiverGoogle Scholar
  39. Hair JF, Black, WC, Babin, BJ, Anderson RE (2010) Multivariate data analysis, 7th edn. PearsonGoogle Scholar
  40. Isen AM, Daubman KA (1984) The influence of affect on categorization. J Personal Soc Psychol 47(6):1206Google Scholar
  41. Isen AM, Daubman KA, Nowicki GP (1987) Positive affect facilitates creative problem solving. J Personal Soc Psychol 52(6):1122Google Scholar
  42. Kanov JM, Maitlis S, Worline MC, Dutton JE, Frost PJ, Lilius JM (2004) Compassion in organizational life. Am Behav Sci 47(6):808–827Google Scholar
  43. Kim H-R, Lee M, Lee H-T, Kim N-M (2010) Corporate social responsibility and employee–company identification. J Bus Ethics 95(4):557–569Google Scholar
  44. Kim JS, Song HK, Lee C-K (2016) Effects of corporate social responsibility and internal marketing on organizational commitment and turnover intentions. Int J Hos Manag 55:25–32Google Scholar
  45. Kotler P, Lee N (2005) Best of breed: when it comes to gaining a market edge while supporting a social cause, “corporate social marketing” leads the pack. Soc Mark Q 11(3–4):91–103Google Scholar
  46. Lee Y-K, Lee KH, Lee D-X (2012) The impact of CSR on relationship quality and relationship outcomes: a perspective of service employees. Int J Hosp Manag 31(3):745–756Google Scholar
  47. Lilius J, Worline M, Dutton J, Kanov J, Frost P, Maitlis S (2003) What good is compassion at work. Ann Arbor 1001:48109Google Scholar
  48. Lilius JM, Worline MC, Maitlis S, Kanov J, Dutton JE, Frost P (2008) The contours and consequences of compassion at work. J Org Behav 29(2):193–218Google Scholar
  49. Lin C-P, Liu M-L (2017) Examining the effects of corporate social responsibility and ethical leadership on turnover intention. Pers Rev 46(3):526–550Google Scholar
  50. Maignan I, Ferrell OC (2001) Corporate citizenship as a marketing instrument-concepts, evidence and research directions. Eur J Mark 35(3/4):457–484Google Scholar
  51. Maignan I, Ferrell OC, Hult GTM (1999) Corporate citizenship: cultural antecedents and business benefits. J Acad Mark Sci 27(4):455–469Google Scholar
  52. McEwen WJ (2010) Does corporate social responsibility matter? http://gmj.gallup.com/content/125351/corporate-social-responsibility-matter.aspx#1. Accessed Mar 2
  53. McWilliams A, Siegel D (2001) Corporate social responsibility: A theory of the firm perspective? Acad Manag Rev 26(1):117–127Google Scholar
  54. Meyer JP, Allen NJ, Allen NJ (1997) Commitment in the workplace. Sage Publications, Thosand OaksGoogle Scholar
  55. Mitra M (2007) It’s only business!: India’s corporate social responsiveness in a globalized world. Oxford University Press, OxfordGoogle Scholar
  56. Moon T-W, Hur W-M, Ko S-H, Kim J-W, Yoon S-W (2014) Bridging corporate social responsibility and compassion at work: relations to organizational justice and affective organizational commitment. Career Dev Int 19(1):49–72Google Scholar
  57. Newman A, Nielsen I, Miao Q (2015) The impact of employee perceptions of organizational corporate social responsibility practices on job performance and organizational citizenship behavior: evidence from the Chinese private sector. Int J Hum Resour Manag 26(9):1226–1242Google Scholar
  58. Nussbaum M (1996) Compassion: the basic social emotion. Soc Philos Policy 13(1):27–58Google Scholar
  59. Panagopoulos NG, Rapp AA, Vlachos PA (2016) I think they think we are good citizens: meta-perceptions as antecedents of employees’ reactions to corporate social responsibility. J Bus Res 69(8):2781–2790Google Scholar
  60. Peterson DK (2004) The relationship between perceptions of corporate citizenship and organizational commitment. Bus Soc 43(3):296–319Google Scholar
  61. Pio E (2005) Eastern karma: perspectives on corporate citizenship. J Corp Citizensh 19:65Google Scholar
  62. Podsakoff PM, Organ DW (2016) Self-reports in organizational research: problems and prospects. J Manag 12(4):531–544Google Scholar
  63. Rafaeli A, Worline M (2001) Individual emotion in work organizations. Soc Sci Inf 40(1):95–123Google Scholar
  64. Raub S, Blunschi S (2014) The power of meaningful work: how awareness of CSR initiatives fosters task significance and positive work outcomes in service employees. Cornell Hospital Quart 55(1):10–18Google Scholar
  65. Riordan CM (1997) Advancing relational demography theory: a construct validity study of three measures of demographic similarity. In: Academy of management proceedings, vol. 1997, no. 1, pp 159–163. Academy of Management, 1997.13Google Scholar
  66. Romani S, Grappi S, Bagozzi RP (2013) Explaining consumer reactions to corporate social responsibility: the role of gratitude and altruistic values. J Bus Ethics 114:193–206Google Scholar
  67. Rupp DE, Ganapathi J, Aguilera RV, Williams CA (2006) Employee reactions to corporate social responsibility: an organizational justice framework. J Org Behav 27(4):537–543Google Scholar
  68. Russell S, Griffiths A (2008) The role of emotions in driving workplace pro-environmental behaviors. In: Emotions, ethics and decision-making, pp 83–107Google Scholar
  69. Sharma N (2011) CSR practices and CSR reporting in Indian banking sector. Int J Adv Econ Bus Manag 1(2):58–66Google Scholar
  70. Sharma AK, Talwar B (2005) Corporate social responsibility: modern vis-à-vis Vedic approach. Meas Bus Excell 9(1):35–45Google Scholar
  71. Swaen V, Maignan I (2003) Organizational citizenship and corporate citizenship: two constructs, one research theme. Bus Rites Writs Responsib Read Ethics Soc Impact Manag 31:107–134Google Scholar
  72. Turban DB, Greening DW (1997) Corporate social performance and organizational attractiveness to prospective employees. Acad Manag J 40(3):658–672Google Scholar
  73. Turker D (2009) Measuring corporate social responsibility: a scale development study. J Bus Ethics 85(4):411–427Google Scholar
  74. Valentine S, Fleischman G (2008) Ethics programs, perceived corporate social responsibility and job satisfaction. J Bus Ethics 77(2):159–172Google Scholar
  75. Vlachos PA, Panagopoulos NG, Rapp AA (2014) Employee judgments of and behaviors toward corporate social responsibility: a multi-study investigation of direct, cascading, and moderating effects. J Org Behav 35(7):990–1017Google Scholar
  76. Weick KE (1995) Sensemaking in organizations, vol 3. Sage, Thousand OaksGoogle Scholar
  77. Weiss HM, Cropanzano R (1996) Affective events theory: a theoretical discussion of the structure, causes and consequences of affective experiences at work. In: Staw BM, Cummings LL (eds) Research in Organizational Behavior, vol 18. JAI Press, Greenwitch, CT, pp 1–74Google Scholar
  78. Zhu Q, Liu J, Lai K-H (2016) Corporate social responsibility practices and performance improvement among Chinese national state-owned enterprises. Int J Prod Econ 17(1):417–426Google Scholar

Copyright information

© Indian Institute of Management Calcutta 2018

Authors and Affiliations

  1. 1.Department of ManagementUniversity of North BengalSiliguriIndia
  2. 2.Department of Humanities and Social SciencesIndian Institute of Technology RoorkeeRoorkeeIndia

Personalised recommendations