In this study, we examine whether, how, and when corporate social responsibility increases promotive and prohibitive voices in accordance with ethical climate theory and multi-experience model of ethical climate. Data from 382 employees at two time points are examined. Results show that CSR is positively related to promotive and prohibitive voices. Other-focused and self-focused climates mediate the relationship between CSR and the two types of voice. Moreover, humble leadership moderates the positive relationship between CSR and other-focused climate. Such leadership moderates (...) the negative relationship between CSR and self-focused climate. Humble leadership also moderates the indirect effect between CSR and the two kinds of voice through other-focused and self-focused climates. The findings of this study provide important insights into how and when CSR influences employee voice. (shrink)

Codes of ethics are directly aimed at behavioral control, but they also affect a company’s ethical culture, which in turn concerns compliance and ethical behavior. To positively influence a company’s ethical culture, employees must be familiar with its code of ethics, perceive that top management is committed to the code, and believe that their peers also comply with the code. The evidence on whether a code’s design affects a company’s ethical culture is limited. This study’s factorial survey experiment contributes to (...) this gap in two ways: first, it investigates whether a code’s design affects how easily the code can be learned and, therefore, contributes to code familiarity. Second, it examines how a code can convey expectations regarding top management’s commitment and peers’ behavior, both of which are part of ethical culture. The results indicate that a positive tone increases code familiarity, and a code signed by top managers sends a strong signal of their commitment to the code. Finally, various implications of the results for research and practice are discussed. (shrink)

Building on the human resource management behavioral and organizational climate literature, this study explores the linkage between socially responsible HRM and employee support for perceived external corporate social responsibility and the underlying social and psychological process. Multilevel analysis of data gathered over two separate periods confirmed that the relationship between SRHRM and employee support for external CSR initiatives of the employing organization is mediated by the organizational CSR climate. Moreover, the indirect effect is contingent on perceived internal CSR. This study (...) extends CSR research into the HRM domain and develops a better understanding of the micro-foundations of CSR by integrating the micro- and macro-perspectives of CSR. Based on the study findings, this paper also discusses theoretical contributions and future research directions. (shrink)

Most studies of corporate social responsibility have focused on the organisational level, while the individual level of analysis has been treated as a ‘black box’ when researching antecedents of CSR engagement or disengagement. This article offers insights into a small and medium-sized enterprise that is recognised as a pioneer in CSR. Although the extant literature suggests that the owner-manager is crucial in the implementation of CSR, this study reveals that employees drive CSR. The employees in the focal firm voluntarily joined (...) forces based on their shared perception of moral responsibility for CSR and they developed strict targets to be achieved by 2030. Despite their strong ethical and moral perspective when enacting CSR, they disengaged from their moral responsibility for CSR in various contexts. This paper contributes to the theory of moral decoupling by uncovering a novel context of disengagement—‘visionary procrastination’. Visionary procrastination is suggested to be a particularly relevant context of disengagement when individuals perceive moral responsibility for CSR. Moreover, by delivering insights into the antecedents of employee-initiated CSR on the organisational level, this study adds to the growing body of literature on the micro-foundations of CSR. (shrink)

Business Ethics: A European Review, EarlyView.

This study examined the association between employee perceptions of two foci of corporate social responsibility and work attitudes in different countries. Using data collected as part of a multinational research project with a core team in the United States, we found that perceptions of externally focused CSR enactment were positively associated with employee engagement and affective commitment. Perceptions of internally focused CSR enactment were positively associated with affective commitment but not with employee engagement. Analyses across countries revealed more cultural than (...) economic differences. For example, perceptions of internally focused CSR enactment were consistently associated with affective commitment across cultural contexts, indicating that they might serve as a general foundation for building commitment. Perceptions of externally focused CSR were more strongly associated with affective commitment in Anglo than in Confucian and Latin American countries, suggesting a need for country-specific tailoring. Based on these results, we provided recommendations for planning and implementation of CSR. (shrink)

Corporate malpractice and malfeasance on an unprecedented scale have brought ethical issues to the fore and accentuated demands from activists, governments, and the public for greater corporate social responsibility (CSR). The predominant response of researchers and policymakers has been to focus on the external impact of business operations and the merits of regulation or persuasion in achieving more responsible practice in these areas. In this article, we focus on a less well explored aspect of CSR, namely the evaluation of an (...) organization's CSR activities by its internal stakeholders (i.e., employees). Salient CSR literature is reviewed to differentiate between CSR and ethical business practice (EBP), conceptualizing the latter as the internal manifestation of CSR as represented by an organization's values and vision, strategy and policy, systems and procedures, and people management practices. This article assesses organizational espousal of EBP in three ways: how successfully it is communicated to employees, how closely espousal aligns with employee expectation, and how this evaluation impacts on employee commitment. Our research approach aligns with and extends previous work in this area that identifies the likelihood of a “false consensus bias” by managers in assuming congruence between organization espousal of EBP and employee expectation. A conceptual model is offered to explain possible employee responses to an organization's EBP. This relates organization espousal of EBP to employee assessment of its salience to identify three positions on commitment that employees can adopt—abrogated, continuance, and affective commitment—together with their likely behavioral implications. The analysis generates a series of research questions and related areas of exploration to empirically test the conceptual model. (shrink)

One of the fundamental struggles in corporate social responsibility (CSR) is the uncertainty and inherent contradictions that stem from a company being an individual legal entity and a community of persons. The authors contend that CSR has departed from the essence of “social responsibility.” The paper is a commentary on CSR, presented as two frameworks rooted in individualism—The Merchant Trade (the strategic view of CSR) and The White Man’s Burden (self-righteous CSR heroism that assumes the shackles of responsibility normally offered (...) by others). Both, however, contradict the essence of “social responsibility” pitting individual against community, business against society, and economic needs and realities versus ethical reflection. The authors present a model that advocates a more moderate and realistic approach to CSR that goes back to the essence of social responsibility. (shrink)

The purpose of cause-related marketing (CRM) is to publicise and capitalise on a firm's corporate social performance (CSP) by enhancing its legitimacy in the eyes of its stakeholders. This study focuses on the firm's internal stakeholders - i.e. its employees - and the extent of their involvement in the selection of social campaigns. Whilst the difficulties of managing a firm that has lost or damaged its legitimacy in the eyes of its employees are well known, little is understood about the (...) extent to which managers and their social partners listen to and involve their employees in the legitimation process. Through telephone interviews with non-profit organisations and senior managers of service sector firms, the extent of employee involvement in CRM campaigns and the perceived benefits of doing so are investigated. Amongst other things, we find that (i) the extent of employee participation varies significantly across firms; (ii) larger CRM campaigns tend to be managed centrally with relatively less employee participation than smaller ones and (iii) financial services firms are more likely to make CRM decisions centrally, with relatively less employee participation than retail services firms. (shrink)

Although in core business practice most leaders are aware of the fact that information needs to be acquired from a wide range of sources, decision makers in corporate enterprises seem to forget this and all they do, in most cases, is ask their consumers and potential customers in the course of planning their CSR (Corporate Social Responsibility) activities. There are only few companies where managers refer to ethical principles as an argument for social contribution and the connection between CSR and (...) sustainability is being rarely explored. This article is based on research (interviews and questionnaires), observations and continuous action research carried out by the Kurt Lewin Foundation. The study focuses on the communication of social responsibility since according to our experience in most cases companies undertake causes in order to improve their own image and for marketing reasons. This article concludes that the reason for difficulties in finding the best CSR solutions for enterprises and creating the commitment of their employees for the undertaken cause is that they do not think of CSR as a consequence of ethical core business process, but rather as a separate task they try to complete aiming at short-term results and maximum benefits. (shrink)

Social enterprises are hybrid organizations that primarily pursue social missions while also seeking economic gains. Drawing on workplace diversity and conflict theories, this article addresses recent calls for further research to explore how employees within social enterprises experience internal conflicts arising from the organizational pursuit of dual, competing missions (i.e., social and economic), and how social enterprises manage, and potentially overcome, these challenges. In the context of Korean social enterprise, we conducted a quantitative study that built on an initial explorative (...) qualitative study. Our research examined whether perceived participatory human resource management practices and diversity climate increase employees’ affective commitment by reducing their relational conflict. We further explored a boundary condition, perceived social impact, which strengthened this mediation relationship. Our results offer significant insights into social enterprise, business ethics, and broader management literature. Implications for future research and practice are also discussed. (shrink)

Cross-sector social partnerships are often studied from a macro and meso perspective, also in an attempt to assess effectiveness and societal impact. This article pays specific attention to the micro perspective, i.e. individual interactions between and within organizations related to partnerships that address the 'social good'. By focusing on the potential effects and mechanisms at the level of individuals and the organization(s) with which they interact, it aims to help fill a gap in research on partnerships, including more insight into (...) the process of interaction. We conceptually explore micro level interactions, and how partnership effects may 'trickle down' (e.g. from management to employees), or 'trickle up' (from employees to management) or 'trickle round' (e.g. between employees). Based on the literature from various disciplines, we discuss how more generic theories on social exchange and contagion, social learning and attraction-selection-attrition can help shed light on micro level interactions in a partnership, considering in particular transmission mechanisms via employees, top and middle management, and customers. In this way, partnerships can have wider benefits, as individuals have multiple roles and effects at the micro level can spread to the meso and macro levels as well. Implications for research and practice are outlined. (shrink)

Global Corporate Citizenship (GCC) continues to become increasingly popular in large corporations. However, this concept has rarely been considered in small and medium size enterprises (SMEs). A case study of a Norwegian clothing company illustrates how GCC can be also applied to small companies. This case study also shows that SMEs can be very innovative in exercising corporate citizenship, without necessarily following the patterns of large multinational companies. The company studied engages as partner in some voluntary labor initiatives promoted by (...) the government, employs people in marginal situations, and exerts influence for the adoption of good working conditions in its supply chain. Environmental issues and actions of solidarity are also considered within a global scope. Ethics of care and concern for specific aspects of the common good seem crucial as GCC drivers in this company, as do personal values, character, and leadership of the owner-manager of the firm. (shrink)

Literature reviews have repeatedly emphasized the need to further investigate relationships between corporate social responsibility and micro-organizational variables. The present research attempts to address this call by examining the direct and indirect relationship between individual perceptions of CSR and employees’ organizational citizenship behaviors. Multiphasic data from 207 workplace supervisor–subordinate dyads recruited from an online panel were analyzed to show that organizational identification mediated the relationship between CSR and OCBs. Furthermore, supervisor transformational leadership style moderated the mediation, such that the indirect (...) effect of the organizational identification on the relationship between CSR and OCBs became nonsignificant under low transformational leadership. Based on these results, we make suggestions for using embeddedness programs to improve perceptions of CSR. (shrink)

This paper focuses on the significance of codes of conduct (CoCs) in the internal work context of two retail companies. A stepwise approach is used. First, the paper identifies in what way employees use and refer to CoCs internally. Second, the function and relevance of CoCs inside the two companies are identified. Third, the paper explains why CoCs tend to function in the identified ways. In both cases, the CoCs are clearly decoupled in the sense that they do not concern (...) the immediate work context of the employees. Counter-intuitively, this facilitates the process of establishing the CoCs. Even though the CoCs are not directly relevant for the employees, they are accepted and embraced with regard to contents, focus and function. Above all, the CoCs seem to confirm and even strengthen employee identity. On the basis of these observations, it is suggested that CoCs should not only be valued in light of their direct organisational consequences or lack of such consequences. The issue is not just whether CoCs are decoupled or not. Rather, it is argued that researchers should consider more closely a two-level analysis that takes into account not only the concrete application of CoCs but also their function and meaning. An implication of this is that what might appear as a decoupled code cannot be dismissed as irrelevant to the ‘core’ business processes of the organisation. (shrink)

Management plays an important role in reinforcing ethics in organizations. To support this aim, managers must use incentive and goal programs in ethical ways. This study examines experimentally the potential ethical costs associated with incentive-driven and goal-induced employee behavior from a managerial perspective. In a quasi-experimental setting, 243 MBA students with significant professional work experience evaluated a hypothetical employee’s ethical behavior under incentive pay systems modeled on a business case. In the role of the employee’s manager, participants evaluated the ethicality (...) of the employee’s incentive-driven and goal-induced ethical/unethical behavior and the outcomes of behavior, with consequences that were either favorable or unfavorable to the organization. The results indicated that participants discounted the ethical considerations of incentive-driven and goal-induced behavior when consequences were favorable to the organization. Participants’ morals and outcome orientations were also significantly related to their ethical judgments and intentions to intervene. The implications of these findings for research and practice are discussed. (shrink)

In the December 2006 edition of Harvard Business Review , Michael Porter and Mark Kramer argue that by approaching corporate social responsibility (CSR) based on corporate priorities, strengths and abilities, firms can develop socially and fiscally responsible solutions to current CSR issues, which will provide operational and competitive advantages. We agree that an effective approach to CSR includes a mapping of strategy, risk and opportunity. However, we also caution that the identification of these to the exclusion of societal input may (...) not be to the corporation's advantage. Instead, an investment in both strategic analysis and social capital can pay off from a social and an organizational standpoint. Compared with their larger counterparts, small- and medium-sized enterprises (SMEs) frequently have stronger relationships with their internal and external stakeholders that foster the development of social capital. As such, we believe that the sector offers a unique opportunity to identify additional models and frameworks in order to approach a strategic CSR model as espoused by Porter and Kramer. This paper explores a case study of one Canadian SME that uses a community development framework called Asset Based Community Development (ABCD) for its CSR programming. Because ABCD relies heavily on the development and maintenance of social capital and can be utilized to attain set objectives, we propose that it provides a supplementary framework through which the arguments of Porter and Kramer can be expanded. In applying the ABCD framework for CSR, we can begin to establish a programme that supports strategy, integrates employees and stakeholders towards a common vision, and creates unique and sustainable alternatives towards the resolution of social and corporate goals. (shrink)

Corporations are spending a substantial and increasing amount of money on corporate social responsibility. However, little is known about the effects on key stakeholders of these activities. This study investigates if CSR activities have an effect on employees’ affective commitment. Two models test to what extent employees’ CSR perception, involvement in decision processes, and demographic variables are related to their AC relative to their perception of positive organizational support. The analysis is based on a sample of 512 employees from 4 (...) Scandinavian companies; 3 Norwegian and 1 Swedish, randomly selected from a population of 6,710 mostly Norwegian and Swedish employees in those 2 countries. The results indicate that CSR perception is a significant predictor of AC, although how employees feel that the company cares about them has stronger explanatory power on AC. Contrary to the few other studies addressing AC and CSR, gender was not found to be a significant variable in the model. (shrink)

Corporate malpractice and malfeasance on an unprecedented scale have brought ethical issues to the fore and accentuated demands from activists, governments, and the public for greater corporate social responsibility (CSR). The predominant response of researchers and policymakers has been to focus on the external impact of business operations and the merits of regulation or persuasion in achieving more responsible practice in these areas. In this article, we focus on a less well explored aspect of CSR, namely the evaluation of an (...) organization's CSR activities by its internal stakeholders (i.e., employees). Salient CSR literature is reviewed to differentiate between CSR and ethical business practice (EBP), conceptualizing the latter as the internal manifestation of CSR as represented by an organization's values and vision, strategy and policy, systems and procedures, and people management practices. This article assesses organizational espousal of EBP in three ways: how successfully it is communicated to employees, how closely espousal aligns with employee expectation, and how this evaluation impacts on employee commitment. Our research approach aligns with and extends previous work in this area that identifies the likelihood of a “false consensus bias” by managers in assuming congruence between organization espousal of EBP and employee expectation. A conceptual model is offered to explain possible employee responses to an organization's EBP. This relates organization espousal of EBP to employee assessment of its salience to identify three positions on commitment that employees can adopt—abrogated, continuance, and affective commitment—together with their likely behavioral implications. The analysis generates a series of research questions and related areas of exploration to empirically test the conceptual model. (shrink)

We bring together social identity and social exchange perspectives to develop and test a moderated mediation model that sheds light on employees’ perceptions regarding the interrelations between an organization’s external and internal CSR initiatives and their job attitudes and work behaviours. This is important because employees’ sensemaking of CSR motives as being either self-focussed or others-focussed can produce meaningful variations in their job satisfaction and the dimensions of organizational commitment. Also, the consolidation of CSR’s underlying psychological mechanisms can advance our (...) understanding of the processes, contingencies, and outcomes of employees’ perceptions of their employing organization’s CSR initiatives. Our findings indicate that of the two orientations, only external CSR is associated with increased levels of employee commitment through the enhancement of job satisfaction. In particular, job satisfaction was found to fully mediate the impact of external CSR on behavioural commitment and partially mediate its impact on attitudinal commitment. To our surprise, internal CSR has no significant association with job attitudes or work behaviours. We further reveal the complementarity of external and internal CSR orientations; the effect of external CSR on employee outcomes is stronger when employed in concert with internal CSR. Our results contribute to and have implications for both theory and practice. (shrink)

This article investigates conceptual and strategic relationships between corporate identity, organizational identity and ethics, utilizing the Benetton Corporation as an illustrative case study. Although much attention has been given to visual aspects of Benetton's renowned ethical brand building efforts, few studies have looked at how Benetton's employees, retail environments and trade events express ethical aspects of their well-known corporate identity. A multi-method case study, including interviews at retail outlets and trade events, sheds light on several important yet under-studied components of (...) corporate identity, including stakeholders such as retail managers and contract employees. Analysis of Benetton's operations revealed disconnection and inconsistency, as well as a failure to communicate ethical values and socially responsible attributes throughout organizational identity. Operational identity emerged as a useful complement to models of corporate identity. We demonstrate the way in which organizations may fail to capitalize on positive aspects of their organizational identity by neglecting their operational identity. (shrink)

This article investigates conceptual and strategic relationships between corporate identity, organizational identity and ethics, utilizing the Benetton Corporation as an illustrative case study. Although much attention has been given to visual aspects of Benetton's renowned ethical brand building efforts, few studies have looked at how Benetton's employees, retail environments and trade events express ethical aspects of their well‐known corporate identity. A multi‐method case study, including interviews at retail outlets and trade events, sheds light on several important yet under‐studied components of (...) corporate identity, including stakeholders such as retail managers and contract employees. Analysis of Benetton's operations revealed disconnection and inconsistency, as well as a failure to communicate ethical values and socially responsible attributes throughout organizational identity. Operational identity emerged as a useful complement to models of corporate identity. We demonstrate the way in which organizations may fail to capitalize on positive aspects of their organizational identity by neglecting their operational identity. (shrink)