Abstract

Corporate social responsibility (CSR) initiatives toward internal and external stakeholders can independently contribute to employee attitudes and behaviors. However, little is known about the joint effects of (in)congruent internal-external CSR strategies on employee outcomes. Drawing from social exchange theory, we argue that when employees perceive that their organizations excessively favor CSR efforts to external rather than internal stakeholders, it can trigger a psychological contract breach, resulting in increased employees' turnover intention. We utilized a fuzzy-set qualitative comparative analysis method and the data of 511 employee from various industries in the Philippines to investigate the interaction effects. The results revealed that a congruent CSR strategy with high internal and external CSR perceptions is critical in fulfilling employees' psychological contracts and retaining employees. However, for employees with low perceived internal CSR, a high incongruent CSR perception led to a psychological contract breach and ultimately to high turnover intention. Psychological contract breach weakened the negative joint effect of high perceived internal and external CSR on turnover intention and strengthened the positive effect of high perceived incongruent CSR on turnover intention. Implications for research and practice are discussed.