Individuals’ Assessment of Corporate Social Performance, Person-Organization Values and Goals Fit, Job Satisfaction and Turnover Intentions

Abstract

Recent research in the domain of corporate social responsibility (CSR) has underlined the importance of moving away from an institutional perspective of CSR towards research at the micro-level. Such calls have insisted on the necessity of a developing a deeper, and more nuanced understanding of its impacts and mechanisms at the individual level. This paper addresses this issue by focusing on the nexus between how employees judge their companies’ actual CSR performance and how that judgement can affect individual, micro-level outcomes such as job satisfaction and turnover intentions. We study this by a consideration of how perceived fit between employees and their organization mediates the relationship between perceived corporate social performance (CSP) on the one hand, and job satisfaction and turnover intentions on the other.While there is a notion, commonly embraced in the literature, that corporate social performance can have beneficial effects on individual employee outcomes, there have not been many empirical studies looking into the mechanisms by which this occurs. Through a survey of 317 young employees from differing company sizes and sectors in Europe and Asia, we find that positive assessment of CSP does not have a direct influence on job satisfaction and turnover intention, but is mediated by person-organization fit. The latter, in turn, has a positive effect on job satisfaction and reduced turnover intention.The implications of these findings are that the achievement of efficient and effective performance in social and environmental terms reinforces the perception of employees that their values fit with those of the organization. This process then creates value in terms of increased job satisfaction and reduced employee turnover intentions. We note also that simply improving CSP objectively, without involving and raising awareness among employees, will not necessarily lead to improved perceptions of how the employee fits within the organization and the potential positive knock-on employee outcomes.Des recherches récentes dans le domaine de la responsabilité sociale de l’entreprise (RSE) ont souligné l’importance de ne pas se limiter à une perspective purement institutionnelle de la RSE et de se tourner vers le niveau micro. Elles insistent également sur la nécessité de développer une compréhension plus approfondie, ainsi que plus nuancée, des impacts et des mécanismes sur les individus. Notre article prend en compte cet enjeu en s’attardant à l’étude de la relation entre l’appréciation que font les employés de l’actuelle RSE dans le cas de leur propre entreprise et la manière dont cette appréciation peut influer sur des résultats individuels ou de niveau micro, tels la satisfaction au travail et l’intention de quitter ou pas son emploi. Nous abordons cette question en étudiant la façon dont l’adéquation perçue entre les employés et leur organisation induit la relation entre la perception de la performance sociale de l’entreprise (PSE), d’une part, et la satisfaction au travail ou l’intention de quitt...

The Mediating Role of Person-Organization Fit in the Relationship Between Socially Responsible-HRM Practices and Employee Engagement

“…(Valentine, & Godkin 2017) Perceived CSR was related to increased employees' fit with and commitment to their employer and lead to lower turnover intentions. (Hudson et al, 2017) Employee assessments of CSP are positively attached to perceived P-O fit.…”

Enhancing the organisational commitment of public sector accounting staff through the pursuit of CSR objectives

“…Turker (2009a) also found a positive relationship between organisational commitment and aspects of external-CSR (customers, social and nonsocial stakeholders) and internal-CSR (employees) but failed to find a significant impact from another aspect of external-CSR (government). In a recent study, Hudson et al (2017) found that perceived CSR had a positive relationship with person-organisation fit and that such congruence was a significant factor in mediating the relationship between CSR and turnover intention.…”

“…Early CSR literature explored macro-level instrumental outcomes such as organisational financial and competitive performance. However, over the past two decades there has been a growing focus on CSR at the micro-level and the normative impact it has on employee attitudes and behaviour (Hudson et al, 2017). Micro-CSR can be defined as "the study of the effects and experiences of CSR (however it is defined) on individuals (in any stakeholder group) as examined at the individual level of analysis" (Rupp and Mallory, 2015;p.216).…”

“…A perception of relatively high CSR values can thereby result in an emotional attachment to the firm and greater organisational commitment (Brammer et al, 2007). Furthermore, whilst CSR values are, to a large degree, universally accepted and should thereby engender a greater level of person-organisation fit, the relationship can be expected to be stronger when employees share a similar set of ethical values (Hudson et al, 2017). Organisational justice theory also helps explain why CSR, especially with respect to internal stakeholders (i.e.…”

Statistical Verification of Management Culture and Corporate Social Responsibility Correlation

“…Management culture, as an integral part of organisational culture, albeit indirectly, is often mentioned in works by different authors describing the criteria of organisational culture. Tichomirova [1] points out strong relationships between workers of the organisation, Zohar and Marshall [2] distinguish significance of general reasoning and other authors [3][4][5][6][7][8][9] highlight the principles of ideology, beliefs and values shared by all enterprises. However, substantially high level of management culture is essential for successful implementation of corporate social responsibility [10].…”