Skip to main content
Log in

Corporate Social Responsibility and the Benefits of Employee Trust: A Cross-Disciplinary Perspective

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Research on corporate social responsibility (CSR) has tended to focus on external stakeholders and outcomes, revealing little about internal effects that might also help explain CSR-firm performance linkages and the impact that corporate marketing strategies can have on internal stakeholders such as employees. The two studies (N = 1,116 and N = 2,422) presented in this article draw on theory from both corporate marketing and organizational behavior (OB) disciplines to test the general proposition that employee trust partially mediates the relationship between CSR and employee attitudinal and behavioral outcomes. Both studies provide evidence in support of these general relationships. Theoretical and practical implications of these findings are discussed in the context of CSR and corporate marketing research.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Notes

  1. To further examine model fit we followed the logic of Bollen (1989); all of our SEM analyses were re-run on random sub-samples (N = 500 and N = 200) taken from both studies’ datasets. We observed CMIN/df’s below 5 for all re-analyses, along with good fit for all other fit indices for all models tested in both studies, suggesting that high original CMIN values were indeed artifacts of large sample sizes and not indications of poor model fit.

  2. “Bootstrap analyses” (Efron and Tibshirani 1993) in this context constituted direct measures of the indirect effect of corporate social responsibility on turnover and citizenship behaviors through the mediator (trust), after controlling for education and tenure. Unlike the Sobel test, this method, requiring an SPSS macro, does not assume mathematical distributions and is now considered to be a legitimate follow-up for, if not a replacement of, the Sobel test (Sobel 1982) because of its increased power and ease of use (see MacKinnon et al. 2002; Preacher and Hayes 2008). As part of the boostrapping process, 5,000 resamples from the original datasets set were used to re-estimate the partially mediated model. We observed results that confirmed partial mediation and supported outcomes of Sobel tests and chi-square difference tests.

References

  • Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. (2007). Putting the S back in corporate social responsibility: A multi level theory of social change in organizations. Academy of Management Review, 32, 836–863.

    Article  Google Scholar 

  • Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50, 179–211.

    Article  Google Scholar 

  • 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, 243–253.

    Article  Google Scholar 

  • Allen, D. G., Weeks, K. P., & Moffitt, K. R. (2005). Turnover intentions and voluntary turnover: The moderating roles of self-monitoring, locus of control, proactive personality, and risk aversion. Journal of Applied Psychology, 90, 980–990.

    Article  Google Scholar 

  • Bagozzi, R. P. (2004). Self-control and the self-regulation of dieting decisions: The role of prefactual attitudes, subjective norms, and resistance to temptation. Basic and Applied Social Psychology, 26(2&3), 199–213.

    Article  Google Scholar 

  • Ball, D. (2004). The role of communication and trust in explaining customer loyalty. European Journal of Marketing, 38(9/10), 1272–1293.

    Article  Google Scholar 

  • Balmer, J. M. T. (1998). Corporate identity and the advent of corporate marketing. Journal of Marketing Management, 14, 963–996.

    Article  Google Scholar 

  • 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, 7–15.

    Article  Google Scholar 

  • Balmer, J. M. T., & Greyser, S. A. (2002). Managing the multiple identities of the corporation. California Management Review, 44(3), 72–86.

    Google Scholar 

  • Baron, R. M., & Kenny, D. A. (1986). The Moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1183.

    Article  Google Scholar 

  • Becker-Olsen, K. L., Cudmore, B. A., & Hill, R. P. (2006). The impact of perceived corporate social responsibility on consumer behavior. Journal of Business Research, 59, 46–53.

    Article  Google Scholar 

  • Bentler, P. M., & Chou, C. P. (1987). Practical issues in structural equation modeling. Sociological Methods & Research, 16, 78–117.

    Article  Google Scholar 

  • Bernerth, J. B., Armenakis, A. A., Field, H. S., Giles, W. F., & Walker, H. J. (2007). Leader-member social exchange (LMSX): Development and validation of a scale. Journal of Organizational Behavior, 28, 979–1003.

    Article  Google Scholar 

  • 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), 35–54.

    Article  Google Scholar 

  • Blau, P. M. (1964). Exchange and power in social life. New York, NY: Wiley.

    Google Scholar 

  • Bollen, K. A. (1989). Structural equations with latent variables. New York, NY: Wiley.

    Google Scholar 

  • Brown, T. J., & Dacin, P. A. (1997). The company and the product: Corporate associations and consumer product responses. Journal of Marketing, 61(1), 68–85.

    Article  Google Scholar 

  • Brown, M. E., Trevino, L. K., & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97, 117–134.

    Article  Google Scholar 

  • Buchan, N. R., Croson, R. T. A., & Dawes, R. M. (2002). Swift neighbors and persistent strangers: A cross-cultural investigation of trust and reciprocity in social exchange. American Journal of Sociology, 108(1), 168–206.

    Article  Google Scholar 

  • Bunderson, J. S., & Thompson, J. A. (2009). The call of the wild: Zookeepers, callings, and the double-edged sword of deeply meaningful work. Administrative Science Quarterly, 54, 32–57.

    Article  Google Scholar 

  • Byrne, B. (2005). Structural equation modeling with AMOS: Basic concepts, applications, and programming. Mahwah, NJ: Lawrence Erlbaum Associates, Publishers.

    Google Scholar 

  • Campbell, J. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32(3), 946–967.

    Article  Google Scholar 

  • 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), 1–15.

    Article  Google Scholar 

  • Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing, 65, 81–93.

    Article  Google Scholar 

  • Cochran, P. L., & Wood, R. A. (1984). Corporate social responsibility and financial performance. Academy of Management Journal, 27, 42–56.

    Article  Google Scholar 

  • Collier, J., & Esteban, R. (2007). Corporate social responsibility and employee commitment. Business Ethics: A European Review, 16(1), 19–33.

    Article  Google Scholar 

  • Colquitt, J. A., LePine, J. A., & Wesson, M. J. (2009). Organizational behavior: Improving performance and commitment in the workplace. New York, NY: McGraw-Hill Irwin.

    Google Scholar 

  • Colquitt, J. A., Scott, B. A., & LePine, J. A. (2007). Trust, trustworthiness, and trust propensity: A meta-analytic test of their unique relationships with risk taking and job performance. Journal of Applied Psychology, 92(4), 909–927.

    Article  Google Scholar 

  • Colquitt, J. A., Wesson, M. J., Porter, C. O. L. H., Conlon, D. E., & Ng, K. Y. (2001). Justice at the millennium: A meta-analytic review of 25 years of organizational justice research. Journal of Applied Psychology, 86(3), 425–445.

    Article  Google Scholar 

  • Cone/Roper Millennial. (2006). Cause study. See www.coninc.com.

  • Cropanzano, R., Byrne, Z. S., Bobocel, D. R., & Rupp, D. E. (2001). Moral virtues, fairness heuristics, social entities, and other denizens of organizational justice. Journal of Vocational Behavior, 58, 164–209.

    Article  Google Scholar 

  • Darr, K. (1997). Social responsibility in hospitals. Hospital Topics, 75(1), 4–7.

    Article  Google Scholar 

  • Dillman, D. A. (2000). Mail and internet surveys: The tailored design method. New York, NY: John Wiley.

    Google Scholar 

  • Dirks, K. T. (2000). Trust in leadership and team performance: Evidence from NCAA Basketball. Journal of Applied Psychology, 85(6), 1004–1012.

    Article  Google Scholar 

  • Dirks, K. T., & Ferrin, D. L. (2001). The role of trust in organizational settings. Organization Science, 12, 450–467.

    Article  Google Scholar 

  • Dirks, K. T., & Ferrin, D. L. (2002). Trust in leadership: Meta-analytic findings and implications for research and practice. Journal of Applied Psychology, 87(4), 611–628.

    Article  Google Scholar 

  • Doney, P. M., & Cannon, J. P. (1997). An examination of the nature of trust in buyer–seller relationships. Journal of Marketing, 61, 35–51.

    Article  Google Scholar 

  • Dunford, B. B., Oler, D. K., & Boudreau, J. W. (2008). Underwater stock options and voluntary turnover: A multidisciplinary perspective integrating behavioral and economic theories. Personnel Psychology, 61(4), 687–726.

    Article  Google Scholar 

  • 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), 517–554.

    Article  Google Scholar 

  • Efron, B., & Tibshirani, R. (1993). An introduction to the bootstrap. New York: Chapman & Hall/CRC.

    Google Scholar 

  • Fang, E., Palmatier, R. W., Scheer, L. K., & Li, N. (2008). Trust at different organizational levels. Journal of Marketing, 72, 80–98.

    Article  Google Scholar 

  • Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.

    Google Scholar 

  • Folger, R., Cropanzano, R., & Goldman, B. (2005). What is the relationship between justice and morality? In J. Greenberg & J. A. Colquitt (Eds.), Handbook of organizational justice (pp. 215–245). Mahwah, NJ: Lawrence Erlbaum Associates.

    Google Scholar 

  • Fombrun, C., & Shanley, M. (1990). What’s in a name? Reputation building and corporate strategy. Academy of Management Journal, 33, 233–258.

    Article  Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 19, 39–50.

    Article  Google Scholar 

  • 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, 1–5.

    Article  Google Scholar 

  • Garbarino, E., & Johnson, M. S. (1999). The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing, 63, 70–87.

    Article  Google Scholar 

  • Gatewood, R. D., Gowan, M. A., & Lautenschlager, G. J. (1993). Corporate image, recruitment image and initial job choice decisions. Academy of Management Journal, 36, 414–427.

    Article  Google Scholar 

  • Gavin, J. F., & Maynard, W. S. (1975). Perceptions of corporate social responsibility. Personnel Psychology, 28, 377–387.

    Article  Google Scholar 

  • Gerstner, C. R., & Day, D. V. (1997). Meta-analytic review of leader-member exchange theory: Correlates and construct issues. Journal of Applied Psychology, 82, 827–844.

    Article  Google Scholar 

  • Golob, U., Lah, M., & Jancic, Z. (2008). Value orientations and consumer expectations of corporate social responsibility. Journal of Marketing Communications, 14, 83–96.

    Article  Google Scholar 

  • Green, S. B., Akey, T. M., Fleming, K. K., Hershberger, S. L., & Marquis, J. G. (1997). Effect of the number of scale points on chi-square fit indices in confirmatory factor analysis. Structural Equation Modeling: A Multidisciplinary Journal, 4(2), 108–120.

    Article  Google Scholar 

  • Green Guide for Health Care. www.gghc.org. Accessed Jan 11, 2008.

  • Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis (5th ed.). Englewood Cliffs, NJ: Prentice Hall.

    Google Scholar 

  • Hancock, G. R., & Freeman, M. J. (2001). Power and sample size for the root mean square error of approximation test of not close fit in structural equation modeling. Educational and Psychological Measurement, 61(5), 741–758.

    Article  Google Scholar 

  • Healthcare Registration. (2007). Providers Benefit from Community Commitment. Health Care Registration: The Newsletter for Health Care Registration Professionals, 16(11), 10–11.

    Google Scholar 

  • Hemdi, M. A., Nasurdin, A., & Gadjah, M. (2006). Predicting turnover intentions of hotel employees: The influence of employee development human resource management practices and trust in organization. International Journal of Business, 8(1), 21–42.

    Google Scholar 

  • Hibbart, J. H., Stockard, J., & Tusler, M. (2003). Does publicizing hospital performance stimulate quality improvement efforts? Health Affairs, 22(2), 84–94.

    Article  Google Scholar 

  • Kline, R. B. (2005). Principles and practice of equation modeling (2nd ed.). New York, NY: The Guilford Press.

    Google Scholar 

  • 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), 118–119.

    Article  Google Scholar 

  • MacKinnon, D. P., Lockwood, J. M., Hoffman, S. G., & Sheets, V. (2002). A comparison of methods to test mediation and other intervening variable effects. Psychological Methods, 7, 83–104.

    Article  Google Scholar 

  • Margolis, J. D., & Walsh, J. P. (2003). Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48, 268–305.

    Article  Google Scholar 

  • Marin, L., Ruiz, S., & Rubio, A. (2009). The role of identity salience in the effects of CSR on consumer behavior. Journal of Business Ethics, 84(1), 65–78.

    Article  Google Scholar 

  • 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), 404–424.

    Article  Google Scholar 

  • Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20, 709–734.

    Google Scholar 

  • Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58, 20–38.

    Article  Google Scholar 

  • Morsing, M., & Schultz, M. (2006). Corporate social responsibility communication: Stakeholder information, response, and involvement strategies. Business Ethics: A European Review, 15(4), 323–338.

    Article  Google Scholar 

  • Mouzas, S., Henneberg, S., & Naude, P. (2007). Trust and reliance in business relationships. European Journal of Marketing, 41(9/10), 1016–1032.

    Article  Google Scholar 

  • Murray, K., & Vogel, C. M. (1997). Using a hierarchy-of-effects approach to gauge the effectiveness of corporate social responsibility to generate goodwill toward the firm: Financial versus non-financial impacts. Journal of Business Research, 38(2), 141–160.

    Article  Google Scholar 

  • Nan, X., & Heo, K. (2007). Consumer responses to corporate social responsibility (CSR) initiatives. Journal of Advertising, 36(2), 63–74.

    Article  Google Scholar 

  • New York Stock Exchange (NYSE) CEO Report. (2008). The year of the customer. Executive summary. Online article Accessed Jul 13, 2008 available at: http://www.nyse.com/pdfs/NYSE_3rdQtr07_ExecSum.pdf.

  • Niehm, L. S., Swinney, J., & Miller, N. J. (2008). CSR and its consequences for family business performance. Journal of Small Business Management, 46(3), 331–350.

    Article  Google Scholar 

  • Organ, D. W. (1988). OCB: The good soldier syndrome. Lexington, MA: Lexington Books.

    Google Scholar 

  • Organ, D., & Ryan, K. (1995). A meta-analytic review of attitudinal and dispositional predictors of OCB. Personnel Psychology, 48, 775–802.

    Article  Google Scholar 

  • Parkhe, A. (1993). Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm cooperation. Academy of Management Journal, 36, 794–829.

    Article  Google Scholar 

  • Peloza, J., & Papania, L. (2008). The missing link between corporate social responsibility and financial performance: Stakeholder salience and identification. Corporate Reputation Review, 11(2), 169–181.

    Article  Google Scholar 

  • Perrini, F., & Castaldo, S. (2008). Editorial introduction: Corporate social responsibility and trust. Business Ethics: A European Review, 17(1), 1–2.

    Article  Google Scholar 

  • 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), 3–12.

    Article  Google Scholar 

  • Podsakoff, P. M., Ahearne, M., & MacKenzie, S. B. (1997). OCB and the quantity and quality of work group performance. Journal of Applied Psychology, 82, 262–270.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88, 879–903.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers’ trust in leader, satisfaction and organizational citizenship behaviors. Leadership Quarterly, 1(2), 107–142.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Paine, J. B., & Bachrach, D. G. (2000). OCBs: A critical review of the theoretical and empirical literature and suggestions for future research. Journal of Management, 26, 513–563.

    Article  Google Scholar 

  • Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40, 879–891.

    Article  Google Scholar 

  • PricewaterhouseCoopers Health Research Institute. (2005). My brother’s keeper: Growing expectations confront hospitals on community benefits and charity care. Online article Accessed Jan 10, 2008 at: http://www.pwc.com/extweb/pwcpublications.nsf/docid/38BE1BA9F194D10F85257308005936AB.

  • Riordan, C. M., Gatewood, R. D., & Bill, J. B. (1997). Corporate image: Employee reactions and implications for managing corporate social performance. Journal of Business Ethics, 16(4), 401–412.

    Article  Google Scholar 

  • Robinson, S. L., & Morrison, E. W. (1995). Psychological contracts and OCB: The effect of unfulfilled obligations on civic virtue behavior. Journal of Organizational Behavior, 16(3), 289–298.

    Article  Google Scholar 

  • Rodrigo, P., & Arenas, D. (2008). Do employees care about CSR programs? A typology of employees according to their attitudes. Journal of Business Ethics, 83, 265–283.

    Article  Google Scholar 

  • Rosse, J. G., & Hulin, C. L. (1985). Adaptation to work: An analysis of employee health withdrawal and change. Organizational Behavior and Human Decision Processes, 36, 324–347.

    Article  Google Scholar 

  • Royle, T. (2005). Realism or idealism? Corporate social responsibility and the employee stakeholder in the global fast-food industry. Business Ethics: A European Review, 14(1), 42–55.

    Article  Google Scholar 

  • 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, 537–543.

    Article  Google Scholar 

  • 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), 225–243.

    Article  Google Scholar 

  • Shore, L. M., Tetrick, L. E., Lynch, P., & Barksdale, K. (2006). Social and economic exchange: Construct development and validation. Journal of Applied Social Psychology, 34, 837–867.

    Article  Google Scholar 

  • Sirdeshmukh, D., Singh, J., & Sabol, B. (2002). Consumer trust, value, and loyalty in relational exchanges. Journal of Marketing, 66, 15–37.

    Article  Google Scholar 

  • 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), 175–187.

    Article  Google Scholar 

  • Sobel, M. E. (1982). Asymptotic intervals for indirect effects in structural equations models. In S. Leinhart (Ed.), Sociological methodology (pp. 290–312). San Francisco, CA: Jossey-Bass.

    Google Scholar 

  • Sparkes, R., & Cowton, C. J. (2004). The maturing of socially responsible investment: A review of the developing link with corporate social responsibility. Journal of Business Ethics, 52(1), 45–57.

    Article  Google Scholar 

  • Tourangeau, R., Rips, L. J., & Rasinski, K. (2000). The psychology of survey response. Cambridge, UK: Cambridge University Press.

    Google Scholar 

  • Turban, D. B., & Greening, D. W. (1997). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40, 658–672.

    Article  Google Scholar 

  • Tzafrir, S. S., & More, K. V. (2006). Trust as a mediator between organizational justice and work behaviors in a cross-cultural context. Academy of Management Best Conference Paper, 2006, E1–E6.

    Google Scholar 

  • Valentine, S., & Fleischman, G. (2008). Ethics programs, perceived corporate social responsibility and job satisfaction. Journal of Business Ethics, 77, 159–172.

    Article  Google Scholar 

  • Van Dyne, L., Graham, J. W., & Dienesch, R. M. (1994). OCB: Construct redefinition, measurement, and validation. Academy of Management Journal, 37, 765–802.

    Article  Google Scholar 

  • Waddock, S. A., & Graves, S. B. (1997). The corporate social performance-financial performance link. Strategic Management Journal, 18(4), 303–319.

    Article  Google Scholar 

  • Zand, D. (1972). Trust and managerial problem solving. Administrative Science Quarterly, 17, 229–239.

    Article  Google Scholar 

  • Zenisek, T. J. (1979). Corporate social responsibility: A conceptualization based on organizational literature. Academy of Management Review, 4(3), 359–368.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to S. Duane Hansen.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Hansen, S.D., Dunford, B.B., Boss, A.D. et al. Corporate Social Responsibility and the Benefits of Employee Trust: A Cross-Disciplinary Perspective. J Bus Ethics 102, 29–45 (2011). https://doi.org/10.1007/s10551-011-0903-0

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-011-0903-0

Keywords

Navigation