Table of Contents
Corporate Social Responsibility Toward Customers
As we all know that customers are considered the most vital part of any association. The majority of studies tell us that the link between corporate social responsibility and customer welfare have been done in settled and developed countries only. (Fatma and Rahman, 2016).
Most of the companies have implemented CSR initiatives to impact the purchasing behavior of their consumers (Turker, 2009; Inoue and Kent, 2014). Some of the CSR initiatives for customers are producing services in a good environment, showing concern for customers health, following ethical norms for the sake of advertisements and setting right prices for the products and services etc. (Mishra & Suar, 2010). Hence, these all steps will increase the business image and also affect the understandings of their own employees as we know that they play intermediating roles or characters in customer transactions.
If we talk about Social Identity Theory (SIT) then we will see that workers will have a sense of enhanced self-perception when involved in accountable or responsible companies. Employees’ insights are influenced by the organizations’ relationship with their customers, which in result affect their attitudes and behaviors toward their organizations (Hansen et al., 2011).
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The findings of this study will provide important insights into the betterment of strategies to improve customer satisfaction with the help of CSR (corporate social responsibility), So, CSR activities toward customers can be considered as the helpful tool in improving employees’ positive attitudes and behaviors.
Thus, it is hypothesized that:
Perceived CSR (corporate social responsibility) activities toward customers will be positively related to work engagement and OCB (organizational citizenship behavior).
Corporate Social Responsibility Toward Environment
Nowadays, we are facing many issues such as global warming, land degradation, river pollution, greenhouse gas emissions and land erosion, among others because of the negligible attitude of the citizens of our country. Now many NGOs are working for environment related causes in the world.
Environmental CSR activities result in additional expenditures for companies as well as financial benefits of them are not instantly visible and not easy measurable. (Waddock and Graves, 1997) So it is a suggestion to all companies that they must think about the improvements like energy savings, labor developments and proficiency in the use of raw materials. So by taking these initiatives by the organizations will helpful in succeeding the companies and result in increasing employee work engagement and OCB
Employees must be provided with incentives for maintaining the environmental standards. It can be seen that employees feel honored to work in an organization that pay attentions for the future generation (Turker, 2009). Some of the organizations took initiatives for the betterment of the surroundings and environment. So the steps taken by companies must include planting trees, training employees on environmental values etc. So, these initiatives can be helpful in creating positive insights into employees. Thus, this positive perception will augment positive work outcomes.
Perceived CSR (corporate social responsibility) activities toward environment will be positively related to work engagement and OCB ( organizational citizenship behavior).
The mediating role of organizational trust in the link between CSR (corporate social responsibility) and work outcomes like OCB and work engagement:
Organizational trust is defined as “employees” willingness at being vulnerable to the actions of their organization, whose behavior and actions they cannot control”. (Lin, 2010). Organizational trust can boost the relationships between employees and employers and produce necessary work outcomes (Dyer and Chu, 2003).
No doubt that many studies have observed the influence of CSR and organizational citizenship behavior (OCB) of employees and of CSR and employee work engagement, both separately and jointly, but there is still a need to examine the mechanism by which CSR can be linked with OCB and work engagement ( Jones, Willness, & Madey, 2014)
“Work engagement is individual commitment to their work their satisfaction from their work and the enthusiasm they feel about their work”. (Robbins and judge, 2012). The first person who starts the research on work engagement of employees or workers is considered as Kahn.
OCB can be defined as “Employee Behavior based on voluntariness that is not identified within the formal reward system of the organization, yet that helps the organization operates as a whole”. (Chughtai and Buckley, 2008) When employees trust their organizations, they show citizenship behaviors, which are the important elements for organizational success.
Observed evidence has shown that CSR is important to internal stakeholders, particularly individuals working in organizations so in this way, there is indication of the influence of CSR on job outcomes, such as organizational citizenship behavior and work engagement. (Lindgreen & Swaen, 2010). Our study will check the mediating effect of organizational trust in the link between CSR activities and employee’s work outcomes like OCB and work engagement.
Organizational trust will mediate the relationship between the perceived CSR (corporate social responsibility) activities toward various stakeholders and the positive work outcomes like work engagement and OCB (organizational citizenship behavior).
