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UNLV Theses, Dissertations, Professional Papers, and Capstones December 2018 Employee Perceptions of Organizational Corporate Responsibility Employee Perceptions of Organizational Corporate Responsibility and Their Effect on Employee Organizational Commitment and Their Effect on Employee Organizational Commitment Lisa R. Davis Follow this and additional works at: https://digitalscholarship.unlv.edu/thesesdissertations Part of the Sustainability Commons, and the Work, Economy and Organizations Commons Repository Citation Repository Citation Davis, Lisa R., "Employee Perceptions of Organizational Corporate Responsibility and Their Effect on Employee Organizational Commitment" (2018). UNLV Theses, Dissertations, Professional Papers, and Capstones. 3411. http://dx.doi.org/10.34917/14279052 This Dissertation is protected by copyright and/or related rights. It has been brought to you by Digital Scholarship@UNLV with permission from the rights-holder(s). You are free to use this Dissertation in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s) directly, unless additional rights are indicated by a Creative Commons license in the record and/or on the work itself. This Dissertation has been accepted for inclusion in UNLV Theses, Dissertations, Professional Papers, and Capstones by an authorized administrator of Digital Scholarship@UNLV. For more information, please contact [email protected].

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Page 1: Employee Perceptions of Organizational Corporate

UNLV Theses, Dissertations, Professional Papers, and Capstones

December 2018

Employee Perceptions of Organizational Corporate Responsibility Employee Perceptions of Organizational Corporate Responsibility

and Their Effect on Employee Organizational Commitment and Their Effect on Employee Organizational Commitment

Lisa R. Davis

Follow this and additional works at: https://digitalscholarship.unlv.edu/thesesdissertations

Part of the Sustainability Commons, and the Work, Economy and Organizations Commons

Repository Citation Repository Citation Davis, Lisa R., "Employee Perceptions of Organizational Corporate Responsibility and Their Effect on Employee Organizational Commitment" (2018). UNLV Theses, Dissertations, Professional Papers, and Capstones. 3411. http://dx.doi.org/10.34917/14279052

This Dissertation is protected by copyright and/or related rights. It has been brought to you by Digital Scholarship@UNLV with permission from the rights-holder(s). You are free to use this Dissertation in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s) directly, unless additional rights are indicated by a Creative Commons license in the record and/or on the work itself. This Dissertation has been accepted for inclusion in UNLV Theses, Dissertations, Professional Papers, and Capstones by an authorized administrator of Digital Scholarship@UNLV. For more information, please contact [email protected].

Page 2: Employee Perceptions of Organizational Corporate

EMPLOYEE PERCEPTIONS OF ORGANIZATIONAL CORPORATE

RESPONSIBILITY AND THEIR EFFECT ON EMPLOYEE

ORGANIZATIONAL COMMITMENT

By

Lisa R. Davis

Bachelor of Arts in Environmental Studies

University of Nevada, Las Vegas

1997

Master of Business Administration

University of Nevada, Las Vegas

1999

A dissertation submitted in partial fulfillment

of the requirements for the

Doctor of Philosophy - Workforce Development and Organizational Leadership

School of Public Policy and Leadership

Greenspun College of Urban Affairs

The Graduate College

University of Nevada, Las Vegas

December 2018

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Copyright (2019) by Lisa Davis

All Rights Reserved

Page 4: Employee Perceptions of Organizational Corporate

ii

Dissertation Approval

The Graduate College

The University of Nevada, Las Vegas

November 13, 2018

This dissertation prepared by

Lisa R. Davis

entitled

Employee Perceptions of Organizational Corporate Responsibility and Their Effect on

Employee Organizational Commitment

is approved in partial fulfillment of the requirements for the degree of

Doctor of Philosophy - Workforce Development and Organizational Leadership

Department

Christopher Stream, Ph.D. Kathryn Hausbeck Korgan, Ph.D. Examination Committee Chair Graduate College Interim Dean

Jayce Farmer, Ph.D. Examination Committee Member

Patricia Cook-Craig, Ph.D. Examination Committee Member

Howard Gordon, Ed.D. Graduate College Faculty Representative

Page 5: Employee Perceptions of Organizational Corporate

iii

Abstract

EMPLOYEE PERCEPTIONS OF ORGANIZATIONAL CORPORATE RESPONSIBILITY

AND THEIR EFFECT ON EMPLOYEE ORGANIZATIONAL COMMITMENT

By

Lisa R. Davis

Christopher Stream. Ph.D. Committee Chair

Associate Professor of the School of Public Policy and Leadership

University of Nevada, Las Vegas

The debate over whether organizations play a part in society beyond economic profit has

been a major focus of research in corporate social responsibility (CSR). These debates have been

mainly looked at from the macro (societal) or the meso (institutional) level. Very little research

has been done on the role of the firm and looking at CSR from the micro (individual) level.

Questions regarding the role of work for employees, securing economic benefits or making a

difference in the world, would vary greatly depending on the individual and the importance they

place on these areas in their own lives. Scholars have become interested in these questions and

interest in micro CSR has increased greatly.

This study is a micro level study that looks at internal stakeholder perceptions and

personal beliefs and what effect this has on employee organizational commitment. Using a

theoretical framework based on stakeholder theory and social identity theory, this quantitative

study used primary survey data to investigate these relationships.

The purpose of this study was to examine internal stakeholder perception of their

company’s policies and engagement in three segments of external CSR initiatives and how they

affect the employee’s commitment to the organization. The segmented areas are broken into

Page 6: Employee Perceptions of Organizational Corporate

iv

initiatives that are related to customers, the environment, and the community. This study also

investigated the relationship of individual attitudes and beliefs toward business ethics and

sustainability and how those attitudes impacted their employee organizational commitment. The

study controlled for age and gender.

The major findings of this research indicate that four independent variables were

significant: 1) employee perceptions of their company’s policies and engagement in CSR

initiatives related to consumers, 2) employee perceptions of their company’s policies and

engagement in CSR initiatives related to the environment, 3) employee perceptions of their

company’s policies and engagement in CSR initiatives related to the community and individual

attitudes and beliefs towards ethics, sustainability, and 4) corporate social responsibility

positively affected employee commitment to the company all proved to be significant.

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v

Acknowledgments

There are several individuals without whom I would not have made it through this

process. Thank you to my family; my daughters, Elyssa and Brittany, who always kept me on my

toes; my grandchildren, Kadyn, Skyler and Hunter who, as elementary school children, know of

a dissertation, that it takes a lot of work and left me alone when I was working; and to the

wonderful man in my life who on our nightly walks shared conversations regarding statistics,

ideas and thoughts related to my dissertation. To my mom who would have been so proud of me

and to my dad who taught me the value of education and common sense.

Sincere appreciation is extended to my committee (Dr. Chris Stream, Dr. Jayce Farmer,

Dr. Howard Gordon, and Dr. Patricia Cook-Craig) for their time and expertise. Thank you to my

friends and fellow Ph.D. students, Dr. Mary Sanders and Dr. Beth Gersten, for encouraging me

on the days when I suffered from imposter syndrome. They made me laugh, shared ideas and

struggles and reminded me not to take things too seriously. Thank you to my friends, Craig

Ruark, Kim Mynster, Sheila Palacios and Sonya Wilson for their support.

For the support and encouragement I received from my colleagues in the Lee Business

School. Thank you to Dr. Stoney Alder who provided me with an unlimited supply of atomic

fireball candies during the dissertation process. Special thanks to Dr. Vincent Hsu for his time,

support, expertise, and his encouragement; and to Marcela Kofford who actively listened to my

dissertation stories and struggles.

I would also like to thank Dr. Deacon and Dr. Daneshvary, posthumously. Both

individuals impacted my future and helped me to see what I was capable of accomplishing.

They would have been excited and proud that I continued on to finish my Ph.D. I am honored to

join them and hold the title of Dr. D!

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vi

Table of Contents

Abstract ......................................................................................................................................... iii

Acknowledgements ....................................................................................................................... v

Table of Contents ......................................................................................................................... vi

List of Tables ................................................................................................................................ ix

Chapter 1 – Overview of the Study ............................................................................................. 1

Introduction ....................................................................................................................... 1

Purpose of the study.......................................................................................................... 4

Significance of this Study ................................................................................................. 6

Definition of Terms ........................................................................................................... 7

Theoretical Framework .................................................................................................... 8

Research Questions ......................................................................................................... 10

Organization of the study ............................................................................................... 11

Chapter 2 – Review of the Literature ....................................................................................... 13

Corporate Social Responsibility .................................................................................... 13

History of Corporate Social Responsibility .................................................................. 18

Stakeholder Theory ........................................................................................................ 31

Organizational Commitment ......................................................................................... 35

Social Identity Theory .................................................................................................... 39

Perceived Importance of Social Responsibility ............................................................ 42

Hypotheses Development................................................................................................ 43

Summary .......................................................................................................................... 45

Chapter 3 – Research Methods .................................................................................................. 46

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Purpose of the Study ....................................................................................................... 46

Sampling Method and Data Collection ......................................................................... 46

Measures .......................................................................................................................... 48

Validity ............................................................................................................................. 52

Research Questions and Hypothesis Development ...................................................... 52

Variables in the Study .................................................................................................... 54

Independent Variables........................................................................................ 54

Dependent Variable ............................................................................................ 55

Control Variables ................................................................................................ 56

Data Analysis ................................................................................................................... 56

Summary .......................................................................................................................... 57

Chapter 4 - Results...................................................................................................................... 58

Descriptive Statistics ....................................................................................................... 59

Instrument Design ........................................................................................................... 68

Item Generation .................................................................................................. 69

Interview, pretest and a pilot study ................................................................... 75

Pearson’s R Correlation Coefficients ............................................................................ 75

Uni-dimensionality and Reliability ................................................................................ 77

Regression Analysis ........................................................................................................ 84

Regression Model Summary, ANOVA Analysis, and Coefficient Summary ............ 84

Summary .......................................................................................................................... 94

Chapter 5 - Discussion and Conclusion .................................................................................... 95

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viii

Summary of the Study .................................................................................................... 95

Discussion of Results ....................................................................................................... 96

Practical Contributions ................................................................................................ 100

Limitations of the study ................................................................................................ 103

Future Research ............................................................................................................ 104

Conclusions .................................................................................................................... 105

Appendix A: Survey Cover Letter........................................................................................... 107

Appendix B: Survey Questions ................................................................................................ 108

References .................................................................................................................................. 143

Curriculum Vitae ...................................................................................................................... 165

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List of Tables

Table 1. Gender of Respondents. ................................................................................................. 59

Table 2. Age of Respondents. ...................................................................................................... 60

Table 3. Marital Status of Respondents. ..................................................................................... 61

Table 4. Race of Respondents. .................................................................................................... 62

Table 5. Employment Status of Respondents. ............................................................................. 63

Table 6. Years of Work Experience of Respondents. .................................................................. 64

Table 7. Job Title of Respondents. ............................................................................................... 65

Table 8. Industries that respondents worked. ............................................................................... 66

Table 9. Professional Functions of Respondents. ........................................................................ 67

Table 10. Undergraduate Degree of Respondents. ....................................................................... 68

Table 11. Items used to measure the CUS construct. ................................................................... 70

Table 12. Items used to measure the ENV Construct. ................................................................. 71

Table 13. Items used to measure the COMN Construct. .............................................................. 72

Table 14. Items used to measure the PRESOR construct. ........................................................... 73

Table 15. Items used to measure the COMMT construct. ........................................................... 74

Table 16. Pearson's R Correlation Coefficient. ............................................................................ 76

Table 17. CUS Construct – Factor Loadings and Reliability (Retained items). .......................... 79

Table 18. ENV Construct – Factor Loadings and Reliability (Retained items). .......................... 80

Table 19. COMN Construct – Factor Loadings and Reliability (Retained items). ...................... 81

Table 20. PRESOR Construct – Factor Loadings and Reliability (Retained items). ................... 82

Table 21. COMMT Construct – Factor Loadings and Reliability (Retained items). ................... 83

Table 22. Regression Summary for Original Model. ................................................................... 85

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Table 23. Analysis of Variance Summary for Original Model. ................................................... 86

Table 24. Coefficients of Regression Summary for the four independent variables. .................. 87

Table 25. Regression Summary for First Iteration of the Model. ................................................ 88

Table 26. Analysis of Variance Summary for First Iteration of Model. ...................................... 89

Table 27. Coefficients of Regression Summary for CUS, COMN and PRESOR. ...................... 90

Table 28. Regression Summary for Second Iteration of the Model. ............................................ 91

Table 29. Analysis of Variance Summary for Second Iteration of the Model. ............................ 92

Table 30. Coefficients of Regression Summary for CUS, ENV and PRESOR ........................... 93

Table 31. Summary of Statistical Results. ................................................................................... 94

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Chapter 1 – Overview of the Study

Introduction

Over the years, the concept of corporate social responsibility (CSR) has grown in

popularity and has emerged as a global trend in every business sector and type of organization.

The field of CSR is broad, and a standard definition of CSR does not exist yet (Kercher, 2007;

Van der Heijden, Driessen & Cramer, 2010). A plethora of related terms are used, and CSR is

used often interchangeably with similar topics, such as corporate sustainability, corporate

responsibility, triple bottom line, socially responsible investment, corporate social performance

(CSP), corporate sustainability and responsible management (Kercher, 2007).

CSR can be defined generally as corporate behaviors involving more than just an

economic role and taking a wider ethical responsibility for the impacts it has on the environment

that it operates in and on society as a whole (Carroll, 2000, 2004; Van Marrewijk, 2003). More

broadly, it can be seen as an umbrella term for a variety of concepts and practices that recognize

that corporations have a responsibility for their impact on society and the natural world that is

beyond what is legally required (Blowfield & Frynas, 2005; Frynas & Stephens, 2015).

The role of the firm in society has remained an ongoing debate since the beginning of the

CSR literature. The old perception that a company that contributes to the well-being of society

will have to give up profits is being replaced with evidence that shows that a company that

contributes to the good of the people and the planet can increase profitability. A majority of

previous studies have concentrated on the links between CSR and a company’s financial

performance. Orlintzky, Schmidt, and Rynes (2003) conducted a meta-analysis of 52 empirical

studies, over 33,000 observations and found that social and environmental performance is

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positively associated with corporate social/environmental performance (CSP) and corporate

financial performance (CFP). Other studies (Matten & Moon, 2008; Frynas & Stephens, 2015)

looked at macro level issues, highlighting how CSR is shaped by the broader economic, political

and societal backgrounds that frame how a business operates.

The debate over whether organizations play a role in society beyond economic profit has

been a major focus of research within the area of CSR. Primarily these debates have resulted in

significant research conducted at the macro (societal) or the meso (institutional) level. Very little

research has been done on the role of the firm from the micro (individual) level. The micro level

includes 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 & Mallory, 2015).

A majority of previous micro CSR studies have examined the relationship between CSR

and external stakeholders, primarily customers (Aquinis & Glavas, 2012). External stakeholders

include customers, communities, suppliers and partners, creditors and the government. More

recently there has been an interest in internal stakeholders. These stakeholders are the employees

who work within the firm, and play a key role in the organization. They have a significant effect

on creating innovative change toward a company’s move toward sustainability (Verhulst &

Boks, 2014). They produce products, provide services, and interact with customers and other

internal and external stakeholders. Their job satisfaction and how they feel about the corporation

that they work for effects other stakeholders.

Questions regarding the role of work for employees, securing economic benefits or

making a difference in the world, would vary greatly depending on the individual and the

importance they place on these areas in their own lives. Scholars have become interested in these

questions and interest in micro CSR has increased greatly. This has been supported by the

Page 15: Employee Perceptions of Organizational Corporate

3

increase in publications within this area. Two-thirds of Micro CSR articles have been published

within the last five years (Glavas, 2016). Aquinis and Glavas (2012) reviewed 181 articles

related to CSR and found that 90% of the articles focused on an institutional or organizational

unit of analysis. Less than 4% of the studies focused on the individual or the employee as the

unit of analysis (Aquinis & Glavas, 2012).

This increasing body of research in micro CSR suggests that the attitudes and behaviors

of employees are positively correlated with their company’s CSR activities (Brammer,

Millington, & Rayton, 2007; Berger, Cunningham, & Drumwright, 2006; Carmeli, 2005; Collier

& Esteban, 2007; Kim, Lee, Lee, Kim, 2010; Rodrigo & Arenas, 2008). Prior research suggests

that CSR influences a variety of behaviors and attitudes, including job satisfaction (Bauman &

Skitka, 2012; Nambudiri & Tewari, 2010; Valentine & Fleischman, 2008), employee

organizational identification (Berger, Cunningham & Drumwright, 2006; Glavas & Godwin,

2013; Hameed, Riaz, Arain & Farooq, 2016; Kim et al., 2010), employee retention

(Bhattacharya, Sen & Korschun, 2008; Greening & Turban, 2000), organizational trust (Cho &

Park, 2011; Hansen, Dunford, Boss, Boss, & Angermeir, 2011; Hillenbrand, Money, &

Ghobian., 2013; Lee, Song, Lee, Lee, & Bernard, 2013; Vlachos, Theotokis, & Panagopoulos,

2010), and commitment (Ali, Rehman, Ali, Yousaf, & Zia, 2010: Brammer et al., 2007; Carmeli,

2005; Collier & Esteban, 2007; Faroog, Faroog, & Jasimuddin, 2014).

Instead of focusing on the actual CSR efforts of an organization, this study focused on

employee perceptions of their company’s external CSR initiatives. Employee perceptions have

been identified to have a stronger impact on behavior, attitude and performance than the

company’s actual behaviors that employees may or may not be aware of (Rupp, Shao, Thornton

& Skarlicki, 2013). Researchers have studied the link between perception and behavior and

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found a robust link between the two. Perception is an important driving force in understanding

behavior (Glavas, 2012). Dijksterhuis and Knippenberg (1998) found the link between

perception and behavior to hold true even for complex behaviors. Their findings suggest that our

social behavior is influenced in part without our conscious involvement. That makes employee

perception an important factor to consider when looking at employee organizational

commitment.

Purpose of the study

The purpose of this study was to examine internal stakeholder perception of their

company’s policies and engagement in three segments of external CSR initiatives and how they

affect the employee’s commitment to the organization. The segmented areas are broken into

initiatives that are related to customers, the environment, and the community. The customer area

relates to the responsibilities that the corporation pledges to its consumers. This includes

practicing ethical advertising, prioritizing customer health and safety, complying with product

standards and providing products at fair prices. The environmental area involves how

environmentally responsible the company is in its operational methods (e.g. pollution prevention,

waste reduction and other initiatives that are geared to protect or lessen the company’s impact on

the environment). The community area relates to how socially responsible the organization is

throughout its operations in all the communities that they operate, to include sponsoring and

participating in community development projects and initiatives that better the community as a

whole. Studies have found that employees who have positive perceptions of their organization

are more likely to commit affectively to the organization (Chung & Yang, 2016).

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This study also investigated the relationship of individual attitudes and beliefs toward

business ethics and sustainability and how those attitudes impacted their employee

organizational commitment. Studies have shown that CSR initiatives can lead to employee

organizational commitment when employees have a personal belief regarding these activities.

These studies show that there is a link between individual beliefs and their behavior (Peterson,

2004).

Studies investigating the relationship between CSR and commitment have typically

focused on affective commitment (Brammer et al., 2007). Affective commitment is defined as

“an emotional attachment to, identification with, and involvement in the organization” (Allen &

Meyer, 1990, p. 21). Affective commitment has been mainly mentioned as the underlying

psychological outcome in CSR research (Mueller, Hattrup, Spiess, & Lin-Hi, 2012). Empirical

evidence showed that employees in organizations that are socially responsible have a higher

level of affective commitment.

Previous studies found that employee perceptions about their organization’s social

responsibility positively affected employee affective commitment to the organization (Ali, et al.,

2010; Faroog, Payaud, Merunka, & Valette-florence, 2014; Turker, 2009; Panagopoulos, Rapp,

& Vlachos, 2016). Aquinis and Glavas (2012) found that employees who worked for socially

responsible companies not only had increased organizational commitment but also had increased

organizational identification, employee engagement, retention, organizational citizenship

behavior, creative involvement, and improved employee relations. In addition, employees that

worked for socially responsible companies were found to be more engaged, creatively involved

and experienced higher quality relationships with coworkers (Glavas & Piderit, 2009).

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This study will look at affective commitment. Four existing surveys were modified to fit

this study. Two of the studies measured various areas of commitment, one that measured the

importance of CSR initiatives to the employee and one that measured employee’s personal

values regarding ethics and social responsibility. Using questions from these four surveys, a

combined survey was created to measure employee’s perception of their company’s external

CSR initiatives, the importance of these initiatives to the employee and the relationship it had to

employee organizational commitment. This study also looked at employee’s personal values

regarding ethics and social responsibility and the affect their values had on their organizational

commitment. The study controlled for age and gender.

Significance of this Study

This study contributes to the literature in multiple ways. First, this study will add to the

growing body of literature in micro CSR. Few studies have researched the micro level

relationship between CSR and employee organizational commitment. According to Glavas

(2016), this knowledge gap in micro CSR has spurred research into the individual-level of

analysis of job seekers and employees and how they react to CSR. Many of the studies focus on

employee recruitment and employee reactions to CSR (Willness & Jones, 2013; Jones and

Willness, 2013; Rupp & Mallory, 2015; Glavas, 2016b; Gond, Akremi, Swaen & Babu, 2017).

This study was a micro level study and attempted to understand the relationship between

employee perceptions of various aspects of CSR and the effect this had on employee

organizational commitment. Few studies have researched the relationship between employee

perception of various aspects of CSR (customers, environment, and community) and how they

affect employee organizational commitment. This study examined employees’ individual values

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and ethical beliefs of how a company should act, their perception of their organization’s external

CSR initiatives, and how these affected their level of organizational commitment.

Previous research has not combined all of these instruments to look at the relationship

between perceived CSR initiatives and organizational commitment. Turker (2008) looked at

employee perception of various internal and external CSR initiatives in which their organizations

participated. Mowday, Steers, and Porter (1979) and Allen and Meyer’s (1990) researched

organizational commitment and Singhapakdi, Vitell, Rallapalli & Kraft (1996) explored the

perceived role of ethics and social responsibility (PRESOR) looking at individual values, rather

than those of the organization or measuring how socially responsible they are.

This study added to the limited body of knowledge in this area and will add to the

research at the micro CSR level focusing specifically on perceptions of internal stakeholders. It

can also be used by organizational leadership to assist them to determine what employees’

perceptions are regarding their CSR actions are determine which areas are relevant for their

organizational commitment. This information may be used by firms to develop CSR strategies

and internal communications to enhance employee organizational commitment.

Definition of Terms

Corporate Social Responsibility: Corporate behaviors involving more than just an

economic role and taking a wider ethical responsibility for the impacts it has on the environment

that it operates in and on society as a whole (Carroll, 2000, 2004; Van Marrewijk, 2003).

Micro CSR: “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 &

Mallory, 2015).

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Organizational Commitment (OC): The relative strength of an individual’s

identification with and involvement in a particular organization, strong belief in and acceptance

of the organization goals and values, and willingness to exert considerable effort on behalf of the

organization (Porter, Steers, Mowday, & Boulian, 1974).

Purposeful Sample: Sampling that a researcher uses to specify the characteristics of a

population of interest and locates the individual that fits the needed characteristics (Vogt &

Johnson, 2016).

Social Identity Theory: Social-psychological theory that attempts to explain cognitions

and behavior with the help of group-processes (Trepte, 2006).

Stakeholders: Stakeholders include groups or individuals who are under the influence of

or who can influence the business operations of a company and its mission (Pirsch Gupta, &

Grau, 2007).

Theoretical Framework

The role of the firm in society has been an ongoing debate since the beginning of the

CSR literature. The debate over whether organizations play a role in society beyond economic

profit has been a major focus of CSR research. These debates have been mainly looked at from

the macro or institutional level. Very little research has been done on the role of the firm and

looking at CSR from the micro level. Questions regarding the role of work for employees,

securing economic benefits or making a difference in the world, would vary greatly depending

on the individual and the importance they place on these areas in their own lives. Scholars have

become interested in this questions and interest in micro CSR has increased greatly.

Page 21: Employee Perceptions of Organizational Corporate

9

There is growing attention within academia on the impact that CSR has on internal

stakeholders for both internal and external CSR initiatives (Berger, Cunningham, & Drumwright,

2006; Brammer et al., 2007; Collier & Esteban, 2007; Peterson, 2004; Rodrigo & Arenas, 2008;

Rupp, Ganapathi, Aquilera, & Williams, 2006). Organizational Commitment research has

expanded to include how corporate social responsibility affects employee’s organizational

commitment. Empirical evidence shows that employees in organizations that are socially

responsible have a higher level of affective commitment. One reason is that employees who have

positive perceptions of their organization are more likely to commit affectively to the

organization (Chung & Yang, 2016).

This study focused on internal stakeholders. In previous studies, stakeholder theory and

social identity theory have been used to look at employee perceptions of their organization’s

CSR initiatives and how it affects their commitment to their organization (Brammer et al., 2007;

Peterson, 2004; Turker, 2009a). Social identity theory (SIT) has been used widely to explain the

relationship between CSR, organizational identification, and organizational commitment.

Research into the relationship between stakeholders and organizations’ societal and financial

performance has found that this process is mediated by stakeholder’s perceptions, attitudes and

behaviors (Barnett, 2007; Bhattacharya, Korshun & Sen, 2009; Pivato, Misani & Tencati, 2008).

This study included stakeholder theory and social identity theory to examine this relationship.

The theoretical framework for this study is included in Figure 1.

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Figure 1. Theoretical Framework for Research Study

Research Questions

Instead of focusing on the actual CSR efforts of an organization, this study focused on

employee perceptions of their company’s external CSR initiatives. Recent studies have

established a positive connection between organizational commitment and employees’

perception of their companies’ CSR initiatives (Ali et al., 2010; Brammer et al., 2007; Maignan,

Ferrell, & Hult, 1999; Rego, Leal, Cunha, Faria, & Pinho, 2010; Stites & Michael, 2011; Turker,

2009). Employee organizational commitment is a complex and multidimensional phenomenon

that will be influenced both by corporate contextual factors and by employee perceptions.

Looking at the relationship between employee perceptions of their organizations external

CSR initiatives, personal values related to ethical and social responsibility, and their relationship

to employee organizational commitment, this study attempted to answer the proposed research

questions. The corresponding hypotheses relative to the research questions are:

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1. Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (pertaining to customers) positively affect employee organizational

commitment?

2. Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (about the environment) positively affect employee organizational

commitment?

3. Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (pertaining to the community) positively affect employee organizational

commitment?

4. Do individual attitudes and beliefs towards ethics and social responsibility affect

employee organizational commitment?

These questions took into account the relationships between employee perceptions of

their company’s external CSR initiatives relating to the customers, the environment and the

community, their individual attitudes and beliefs toward ethics and social responsibility and how

they affect employee organizational commitment.

Organization of the study

This dissertation consists of five chapters. Chapter one provides an introduction and an

overview of the study, purpose, objectives, significance of the study and an introduction to the

questions that will be addressed by this research. Chapter two provides a study of the literature

regarding corporate social responsibility and its history, stakeholder theory, organizational

commitment, social identity theory, and perception. Chapter three includes the methodology of

the study including sampling, data collection, and data analysis. Chapter four presents the

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demographics of the sample, instrument design, results and findings of the data analysis. Chapter

five provides an overview of the results, the conclusion, the implications of the study, and the

limitations and recommendations for future research.

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Chapter 2 – Review of the Literature

This chapter reviews areas of the literature that is relevant to understanding the

relationship between CSR and organizational commitment. A review of the literature related to

Corporate Social Responsibility, internal and external stakeholders, employee organizational

commitment, perception, and social identity theory was conducted to find out what research has

been done within these areas and how this study relates external CSR to the organizational

commitment of internal stakeholders. The theoretical framework for the present study is also

introduced.

The first half of this chapter reviews the history, development, and definitions of CSR

along with research regarding CSR initiatives. The history of CSR is critical to any CSR study in

order to understand how the concept has evolved. The connections between economics,

environment and social issues within CSR are complex and need further exploration. This

section explores the broad scope of this concept and also develops a definition appropriate for

this study.

The second half of the chapter includes stakeholder theory, organizational commitment,

social identity theory, and employee perception. These areas are also explored in relation to

corporate social responsibility and the theoretical framework that was used for this study. A

summary of the intent and direction of this study concludes the review of literature.

Corporate Social Responsibility

In the past, consumers bought what they needed, and the businesses they supported were

local. Most of the goods and services were produced and distributed in small, locally owned

businesses and customers, owners and employees typically knew each other. The outline of good

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business practices involved ethical, quality treatment of customers who in turn became loyal to

companies who provided better service. There was limited competition in the local market and

few national or multinational companies. As time went on, markets expanded globally, and

businesses developed chain stores and corporate strategies to meet the demand. Goods are now

produced all over the globe. More global companies appeared in the economy, and CSR became

a global phenomenon in the 1990s and into the next century (Carroll, 2008).

Due to the increase in information accessibility, created with the advent of the internet,

consumers have become more aware of the roles that corporations play in society. The

availability of information created with the advancement of technology has allowed for the

dissemination of global information almost instantaneously. In the digital world, companies must

be mindful of not only what they are doing but also how their message is conveyed to their

market. Through the use of media and globalization, consumers began to care about where they

get their products from and the environmental and societal damage that their products can cause.

CSR has a long history of development, varied definitions, and scope and now has

become a recognized and common part of business activity. Over the past seventy years, the

concept of CSR has included the key problems in the global community and has created the most

significant link between the business world and society (Baric, 2017). Some of the issues were

associated with business practices as it related to environmental pollution, quality of work life,

deterioration of urban life, employee health and safety, employment discrimination and

questionable practices of multinational companies (Carroll, 2008; Baric, 2017). CSR was

intended to address these issues and improve the methods company’s use to interact with society

thereby improving their brand image and marketability towards both potential customers and

employees.

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CSR covers a wide range of initiatives that relate to; environmental impact and

preservation, community development programs, fair and sustainable trade practices and various

employee benefit and health programs (Borkowski, 2010). CSR is one of many titles used to

describe corporate attention to various social issues. Sustainability, corporate social performance,

corporate citizenship, and responsible business are just a few of the terms used when discussing

CSR initiatives. The concepts of corporate social responsibility refer to the non-financial factors

related to the environmental, social and governance issues that potentially impact the company

and its future income, value and performance. This business approach creates awareness and

long-term value for both consumers and employees by creating a green strategy toward the

environment and also takes into consideration every dimension of how the business operates in

the social, cultural and economic environment (Satpathy & Patnaik, 2011).

The evidence suggests that there are widespread benefits to companies that participate in

CSR. Aquinis and Glavas (2012) found that CSR initiatives had several positive outcomes. They

include improvement in a firm’s overall reputation, increased market share and brand

positioning, more loyal customers, decreased operating costs, increased appeal to investors and

increased employee engagement and satisfaction.

The public demand for higher standards of conduct from corporations continues to

increase with each new decade. Ethical Behavior can be a major asset to a corporation

(Weinstein, 1995). According to Skeddle (1990), a company that makes a sincere attempt to do

business ethically will be more profitable because its employees will have a higher level of

commitment, be more motivated and become more productive as a result. It is now argued that a

business that engages in unethical behavior will actually damage a business’s brand and

therefore affect their bottom line.

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The obsolete principle of wealth creation, the main function of business and that profits

and growth come at the expense of everything else has been substituted with a more inclusive

model. This value-creation model embraces the recognition that profits alone do not guarantee

success and that non-financial factors must be part of the organization’s plan. In this model,

profit maximization is coupled with other factors including company reputation, brand value,

CSR, the retention of human capital, the inclusion of personal principles, corporate ethics and

commercial sustainability (Ancrum, 2006).

Corporations that use stakeholder and value-driven motives for their CSR initiatives,

versus egoistic-driven motives, positively influenced loyalty among employees and positive

word of mouth about the company in interactions with other stakeholders (Chaudhary, 2017).

According to the Governance and Accountability Institute, data partner for the Global Reporting

Initiative, 85% of S&P 500 companies issued sustainability reports in 2017 and disclosing their

strategy and performance on environmental, social and governance (ESG) metrics.

(https://www.ga-institute.com/research-reports/research-reports-list.html).

Today, more companies are embracing the concepts of CSR and are taking measures to

reform management systems to make them more responsive to the social and environmental

concerns of the various stakeholders. The various stakeholders include those that are external and

internal to the organization. External stakeholders include customers, host communities,

investors, suppliers/allies, governments, and non-governmental organizations (NGOs). Internal

stakeholders include employees, human resources, managers, and owners (Kasum, Mermod, &

Idowu, 2014; Waddock & Rasche, 2012).

The role of the firm in society has been an ongoing debate since the beginning of the

CSR literature. The debate over whether organizations should contribute to society in other ways

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than just economic profit has been a major focus of CSR research. These debates have been

mainly looked at from the macro or institutional level. Very little research has been done on the

role of the firm from the micro level. Questions regarding the role of work for employees,

securing economic benefits or making a difference in the world, would vary greatly depending

on the individual and the importance they place on these areas in their own lives.

Scholars have become interested in these questions and interest in micro CSR has

increased greatly, with two-thirds of these articles being published in the past five years (Glavas,

2016). Rupp et al. (2006) looked at employee perceptions of CSR and the influence on their

emotions, attitudes, and needs through the lens of the model of organizational justice

(Cropanzano, Byrne, Bobecel, & Rupp, 2001). Faroog, Payaud, Merunka & Valette-florence

(2014) looked at how CSR positively influenced employee’s organizational identification. They

looked at the lower non-management level workforce and found that community level and

customer level CSR initiatives had a positive effect on employee’s organizational identification.

Despite the longevity of CSR and its impact on business, a standard definition does not

exist. Looking at the history of CSR will provide some insight into the development of the

concept and how it shaped the way businesses do business today. The continued development in

CSR has shown the complexity of the overall concept and how it represents an inclusive

framework of different concepts that study the relationship between companies, their employees

and the communities they operate. These communities can be local, national or global (Carroll &

Shabana, 2010; Baric, 2017).

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History of Corporate Social Responsibility

The idea that corporations and businesses have some responsibility towards the

betterment of society and not only a focus on expanding profits for the shareholders began to

take hold and become more important post World War II and surged in importance in the 1960s

and beyond (Carroll & Shabana, 2010). Prior to World War II, there were advances toward social

responsibility, beginning in the late 18th

century with the Industrial Revolution and the

introduction of power-driven machinery.

This time period was guided by the view of Adam Smith’s Wealth of Nations, where the

single objective of business managers and corporations was to maximize profits. If corporations

maximize profits and created wealth for the nation, this would, therefore, maximize the public

good. There was very little concern regarding environmental issues or urban problems.

Stewardship of the land, expending natural resources, polluting the environment or social issues

including urban problems, poverty of minority groups, unethical advertising or unsafe conditions

were not considered part of the responsibility of businesses. (Hay & Gray, 1974; Carroll &

Shabana, 2010). Businesses considered these are responsibilities of government.

Most of the ideas related to this era revolved around the workforce and their employee’s

production levels and labeled this as the “labor problem.” The technology in manufacturing was

moving forward, but the labor problem, defined as low worker productivity was causing

inefficiencies and lower outputs. One early pioneer in this area, Frederick Winslow Taylor who

worked at Midvale Steel Company in Philadelphia during the Industrial Revolution, saw the

current work effort as inefficient and determined that the key to productivity was knowledge,

organization, and leadership (Kanigel, 1997). Through the creation of the scientific management

philosophy, he had a significant impact on the area of business and industry. His approach to

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redefining work as a series of tasks allowed for an effective way to integrate the work of

machinery with the work of people (Rakitsky, 2005). He developed reward systems by providing

compensation to reward those who met standards and extra compensation for those who

exceeded them (Wren, 1994). This idea of paying people a higher wage to get more output

demonstrates the continued influence of Adam Smith during this time period (Peach & Wren,

2008).

It was difficult to differentiate what organizations were doing in this area for business

reasons, making the workers more productive, or what they were doing for social reasons,

improving both the standard of living for the employee and that of society (Carroll, 2008).

According to Wren (1994), there were some negative consequences of the industrial revolution.

He states that there were criticisms regarding a new form of slavery to the owners of capital.

Humanity became a commodity that could be bought or sold in the marketplace, and new groups

of individuals were exploited, including female and child labor. Wren also discusses how

industrialization created increased poverty, urbanization, pollution, and a number of other

societal ills.

The concepts of CSR began to evolve during the first half of the twentieth century. Due

to the changing structure of business and society, the idea that corporate managers were

responsible for more than maximizing shareholder wealth started to emerge. There was an

emergence of a newer view of social responsibility that was brought on by two structural trends;

increase diffusion of ownership in corporations and the development of a pluralistic society

(Carroll, 2008).

Spector (2008) suggests that the roots of the current movement can be traced back to the

years following World War II (1945-1960), the early years of the cold war. A significant push

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forward occurred in 1946, when Harvard Business School Dean, Donald David addressed their

incoming MBA students with a message that future executives need to take heed of the

responsibilities that rest on the shoulders of business leaders (Spector, 2008). This speech

directed at incoming MBA students was significant and aligned with advocates who urged

businesses to align their interests with the defense of free-market capitalism against the clear and

present danger of Soviet Communism (Spector, 2008).

The issues related to the people part of business and productivity were the focus during

this era and the interest of employees, customers, creditors, and the community were beginning

to be considered in this new phase (Hay & Gray, 1974). This era brought the rise of unionism

and people were now considered more than a factor of production (Zenisek, 1979). Related

legislation emerged including those limiting the power of Unions. The Taft Hartley Act (1947)

and Landrum Griffin Act (1959) were enacted to protect employee rights in union affairs

(Zenisek, 1979) and many of the laws created focused on improving labor practices (Carroll,

2008).

During this time period, sales volume was added to the other previously mentioned

organizational goals. Companies began to develop marketing concepts in order to sell all that

they produced. There was a growing concern for consumer protection, and various legislative

actions were created to address the safety of products. They include regulations for flour

products (1951), flammable products (1953) and textile fiber (1959).

Support for and criticisms/warnings against the inclusion of social responsibility

continued in the 1950s. Frank Abrams, a former executive of the Standard Oil Company in New

Jersey argued that as management was professionalized, companies had to include employee,

customers and the public at large in business decisions and not only consider profits (Abrams,

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1951). Theodore Levitt (1958) warned businesses about the dangers of social responsibility. He

indicated that the attention paid to social responsibility would detract from the pursuit of profits

and would impact the success of business (Levitt, 1958).

Society was also changing. The 1950’s marked the beginning of the “affluent society.”

The prosperity of middle-class Americans gave way to more discretionary income and scarcity

of basic goods and services were no longer a core problem. This affluent society did spur some

related social problems including poverty, deteriorating cities, air and water pollution, disregard

for the environment and for consumers (Hay & Gray, 1974).

Throughout the 1950s and 1960s, the theoretical focus of research in CSR was on the

macro-social institutions for supporting CSR (Bowen, 1953; Lee, 2008). Stakeholder concerns

for environmental and societal challenges coupled with strong development within scientific and

business circles promoted CSR awareness (Baric, 2017). Bowen’s book Social Responsibility of

the Businessman published in 1953 marks the beginning of the modern literature on CSR. Bowen

(1953) was exploring the study of Christian ethics and economic life, and in his studies, he found

widespread interest in CSR among the businesses that he studied. He was the first to articulate a

definition of Social Responsibility (SR) for businessmen. The definition is as follows:

It (SR) refers to the obligations of businessmen to pursue those policies, to make

those decisions, or to follow those lines of action which are desirable in terms of

the objectives and values of our society. (p.6)

His book was concerned with the social responsibilities of large corporations or “big

business.” Bowen’s broader vision was of a better American society where economic and social

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goals reinforced each other (Lee, 2008). Peter Drucker (1954), described as one of the most

important and influential management thinkers, indicated that companies should include public

responsibility as one of the business objectives. He described organizations as a part of society

and should contribute to the public good through society stability, strength, and harmony

(Turker, Toker & Altunas, 2013).

The 1960s strengthened the foundation of CSR through various social movements that

included Civil rights, women rights, consumer rights, concerns for the environment and the

welfare of society. The people, events, and ideas that came out of these movements were

instrumental for the social changes that occurred and the legislation that was created (Carroll &

Shabana, 2010). Concerns over urban decay, racial discrimination, pollution and disregard for

the natural environment started to take shape, and a series of environmental and anti-

discrimination laws were enacted during this time (Carroll, 2008). Water Pollution Control

(1961), Clean Air (1963), Civil Rights (1965), Occupational Safety and Health Administration

(1970) and the Environmental Protection Agency (1970) were all created to pressure companies

to internalize economic and social externalities.

The momentum gained with the social movements to address many of the previously

mentioned concerns was coupled with an expansion of research in CSR. There was a surge in

academic research focusing on what CSR was, what it meant and how it was important to

business and society (Carroll & Shabana, 2010). Several scholars, Keith Davis, Joseph McGuire,

William C. Frederick, Frederick Murphy, and Clarence Walton all moved forward with

publications that addressed many facets of CSR (Carroll, 2008). Keith Davis (1960) stated that

businessmen make socially responsible decisions for economic reasons. His idea was that

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businesses could benefit from being socially responsible as long as they would bring long-term

economic gain for the company.

Joseph McGuire discussed that social responsibility encourages corporations to go above

and beyond their economic and legal obligations and allows them to assume certain

responsibilities to society (McGuire, 1963). William Murphy also argued that business resources

should be used for social goals (Frederick 1960, p. 60). In 1967, Clarence Walton wrote a book

entitled Corporate Social Responsibilities. The book addressed the role of corporations in

modern society and emphasized the delicate balance between voluntary involvement in CRS

initiatives versus that of coercion. It also included the concept that the acceptance of costs

associated with these initiatives may not show measurable economic return (Carroll, 2008).

With this thought emerged new definitions for CSR. Harold Johnson defines CSR in his

Business in Contemporary Society: Framework and Issues (1971) book as:

A socially responsible firm is one whose managerial staff balances a multiplicity

of interests. Instead of striving only for larger profits for its stakeholders, a

responsible enterprise also takes into account employees, suppliers, dealers, local

communities and the nation. (p. 50)

Wallich and McGowan (1970) recognized that CSR would need to be consistent with

stockholder interest or it would remain controversial. In their article, they looked at modern

corporate equity holding patterns and saw that most stockholders maintain interest in a number

of companies, different than what had occurred previously. This diversification was done to

minimize risk and not to maximize profit in just one company, contradicting Freeman’s

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argument of utility maximization for stockholders (Lee, 2008). Stockholders would not want to

maximize profits in one company at the expense of another company in which they owned

shares. Owners of diversified portfolios would want to spread “social expenditures evenly over

all firms to the point where marginal cost equals marginal appropriable benefits” (Wallich &

McGowan, 1970).

Around the same time, there was a breakthrough in conceptual development spurred by

publications commissioned by the Committee for Economic Development (CED). The CED is a

nonprofit, nonpartisan, business-led public policy organization that delivers well-researched

analysis and reasoned solutions to our nation’s most critical issues. Their first publication, A New

Rationale for Corporate Social Policy was presented by the CED Research and Policy

Committee. The new rationale was of enlightened self-interest. This enlightened self-interest

model shifted research from whether or not corporations should participate in CSR to a focus on

“content and implementation of initiatives that do not conflict with corporations’ fundamental

interest” (Lee, 2008; Ackerman, 1973; Fitch, 1976; Murray, 1976).

The business community also saw the need for corporate initiatives that addressed CSR

issues. Social Responsibilities of Business Corporations was published by the CED in 1971 and

was the result of studies that began in 1966. The publication subcommittee dedicated its efforts

on describing the economic objectives that a business would expect to serve. The publication

came during a time of increasing attention to social problems and the responsibility that the

public and private sector had in solving these problems. Results of the survey indicated that two

thirds of the public believe organizations have a moral duty to be socially responsible, even at

the expense of profitability (CED, p 15) which showed a ‘solid and durable trend’ and was

‘likely to increase rather than diminish in the future’ (CED, p 16).

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This publication presented one of the first descriptions of social responsibility that

encompassed both economic and non-economic concerns. This description was referred to as the

“three concentric circles” approach (Carroll, 1979). The three concentric circles of business

responsibilities include an inner circle, intermediate circle, and outer circle. The inner circle

includes the basic responsibilities for the implementation of the company’s economic functions.

This includes economic growth, jobs, and products. The intermediate circle includes

“responsibility to exercise this economic function with a sensitive awareness of changing social

values and priorities” (CED, p 15). This includes respect for the environment, hiring and

employee relations and fair treatment and protection for consumers. The outer circle included

broad involvement in major social problems, such as poverty and urban blight. According to

Carroll (2008), the views of the CED were influential due to its composition of business people

and educators who served on the CED. They “reflected an important view of the changing social

contract between business and society”, and that “fundamental changes are also taking place in

attitudes, with greater emphasis being put on human values-on individual worth and the

qualitative aspects of life and community affairs” (CED, p 12).

Moving into the late 1970s, a new era emerged, the ‘responsive’ era (Carroll, 2008:

Carroll & Shabana, 2010). This era focused on corporate responsibility, responsiveness, and

performance and the term Corporate Social Performance (CSP) emerged. This area of study

focuses on the emphasis of what firms accomplish in the realm of policies, practices and results.

Sethi (1975) set a three-stage schema for categorizing the adaption of corporate behavior to

social needs: 1) social obligation 2) social responsibility, and 3) social responsiveness (p 58-64).

Social obligation refers to legal constraints and corporate response to market forces. He stressed

that social responsibility “implies bringing corporate behavior up to a level where it is congruent

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with the prevailing social norms, values and expectations of performance” (p.62) and the need

for corporations to voluntarily adopt social responsibility before they are legally forced.

Corporate actions and activities should be anticipatory and preventative in nature. Social

responsiveness is less about what a company decides to do and more about doing the action and

completing the tasks (Ackerman & Bauer, 1976; Sethi, 1975).

With the greater emphasis placed on corporate responsiveness, companies began to take

significant management and organizational actions to address issues related to CSR (Carroll,

2008). Using a comprehensive definition of CSR, Carroll (1979, 1991) attempted to bridge the

gap and reconcile a firm’s economic orientation with its social orientation. Carroll (1979) states

that for a definition to completely address the variety of obligations a business has towards

society, the definition must include the “economic, legal, ethical and discretionary expectations

that society places on the organization at a given time” (p. 500). Carroll’s contributions,

beginning in the late 1970s, were influential and shaped the ideas of modern academic study in

CSR. Based on the above mentioned four expectations, he created a three-dimensional

conceptual model of corporate social performance (CSP). This created a foundation for his later

development of the pyramid of Corporate Social Responsibility.

The base of Carroll’s CSP model consists of those areas that are economic in nature.

These expectations include creating jobs and fair wages for employees providing a return on

investment to owners and shareholders, innovation and the creation of new products and services

(Carroll, 1979). Legal expectations set the expectation that business fulfil the company’s

economic interest within the legal framework created through the legal system. Ethical

responsibilities surpass what is required by law by creating an ethics ethos that companies can

live by (Solomon, 1994). Responsibilities, like respecting individuals and doing what is just and

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fair, are not founded in the legal system, they are expected from businesses by societal members.

Novak (1996) explains that these expectations are mainly rooted in religious convictions and

include human rights and humane principles. The pyramid is topped off by the discretionary

expectation. This section includes giving back to society in a variety of ways.

During the 1980s, themes regarding corporate social responsiveness, business ethics,

public policy, corporate social performance (CSP) and stakeholder theory/management advanced

greatly (Carroll & Shabana, 2010). Frederick defined the 1980s as the corporate ethics/business

ethics stage. The main concern of this stage was to promote corporate ethical culture. Edward

Freeman’s book on Stakeholder theory, Strategic Management: A Stakeholder Approach,

published in 1984 had its most substantial impact in the fields of business and society, CSR and

business ethics. Freeman’s Stakeholder theory was built on the notion that sustainability and the

success of a business depend on management’s attainment of economic and societal goals while

satisfying the needs of internal and external stakeholders (Pirsch, Gupta, & Grau, 2007).

Within the stakeholder framework, survival of the corporation is not only affected by its

shareholders but also its stakeholders (Lee, 2008). According to Freeman (1984), company

stakeholders include groups or individuals who are under the influence of or who can influence

the mission and business operations of a company. Stakeholders include employees, consumers,

suppliers, governmental organizations, non-governmental organizations (NGOs), financial

institutions, and suppliers (Freeman, 1984). Carroll (1991) suggests that there is a natural fit

between the ideas of CSR and an organization’s stakeholders (p.43).

Though fewer definitions emerged during this time, Thomas Jones (1980) joined the

conversation with a definition of CSR that included the involvement of stakeholders. He stated

that the obligation is a broad one, extending beyond the traditional duty to shareholders to

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include other societal groups such as customers, employees, suppliers, and neighboring

communities (Jones, 1980: 59–60). According to Jones (1980), CSR should be seen as a process

versus a set of outcomes. With this in mind, corporations need to analyze the social impact of

their decisions before they make them. This process of CSR decision making would contribute to

CSR behavior and would include stakeholder input (p.66).

The 1990s continued the interest in stakeholder analysis from the lens of strategic

management. Drucker (1993) considered that the management revolution that began in the 1950s

had come to fruition in the 1990s. There was an increase in strategic management research,

particularly in stakeholder analysis. Other CSR frameworks were explored. Wood (1991) placed

CSR into a comprehensive framework. Her model, the corporate social performance (CSP)

model, divides outcomes into three types: social impacts of corporate behavior, programs used

for implementing responsibilities and corporate policies (Jamali, 2008). She defines CSP as “a

business organization’s configuration of principles of social responsibility, processes of social

responsiveness, and policies, programs, and observational outcomes as they relate to the firm’s

societal relationships” (p.693). Corporate behavior can be positive (creating jobs, innovation) or

negative (toxic waste). The nature of the programs that the company invests in and the impacts

of company policy are also important when looking at assessing the organization's corporate

social performance.

In addition, Carroll (1991) expanded his original three-dimensional conceptual model

developed in the late 1970s into the pyramid of Corporate Social Responsibility. In this model,

he added the philanthropic area where the discretionary section used to be. The Pyramid of

Corporate Social Responsibility is depicted in Figure 2.

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Figure 2. Pyramid of Corporate Social Responsibility. Adapted from Carroll (1991)

In the early 2000s, most corporate giving was linked to strategic philanthropy which

linked directly to the businesses’ goals (Shaw, 2012). Strategic management scholars, such as

Rosabeth Kanter, Philip Kotler, Nancy Lee, and Michael Porter argue that adopting strategic

philanthropy provides new opportunities for innovation and can yield valuable social

relationships improving the firm’s reputation (Lee, 2008; Kanter 1999; Porter & Kramer, 2002).

Corporate philanthropy strengthens relationships with both internal and external stakeholders by

providing a more positive corporate image. Kotler and Lee (2005) discuss charitable giving from

a marketing perspective and the positive impact it has on businesses. Benefits that aid society at

large could also help to increase the branding potential and bottom line of a company.

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Schwartz and Carroll (2003) presented a new model, The Three-Domain Model of

Corporate Social Responsibility. The new model, presented as a Venn diagram, covers three

CSR domains economic, legal, and ethical. The model is consistent with the previous model

except for the philanthropic area. Due to the differing motivations for philanthropic activities, the

philanthropic area is collapsed into both the economic and ethical areas in the new model

(Schwartz & Carroll, 2003).

The twenty-first century moved into the global space for CSR. The concepts of CSR that

originated in western civilization spread to countries throughout the world, and allowed for CSR

to become a global movement that included and unified the different aspects of society, from

non-governmental and legislative to cultural and business aspects (Sriramesh, Ng, Ting, &

Wanyin, 2007; Brammer, Jackson, & Matten, 2012).

This global attention and development in CSR became evident in the European

community (Carroll, 2008). According to Jeremy Moon (2005), CSR in the UK became part of

societal governance and was entrenched in a structure intended to give direction to society.

Numerous studies (Tencati, 2006; Maignan & Ralston, 2002; Fiori, diDonato & Izzo, 2007;

Lambooy, 2010; Berniak-Wozny, 2010) looked at corporations in both Europe and the United

States in regards to their knowledge of and motivations to participate in CSR. Maignan and

Ralston (2002) found that the main motivations for participating in CSR varied, however in both

Europe and the United States, performance-driven CSR was the second most named motivation.

The value-driven approach dominated within the United States and the performance-driven,

mixed with stakeholder-driven view dominated in Europe. Growth in CSR has also become

evident in emergent economies such as China (Li et al, 2010). Several studies look at how CSR

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initiatives affect employees in a variety of countries and cultures (Etheridge, 1999; Kim et al.,

2010; Rodrigo, 2007; Turker; 2009; Zhu et al., 2014).

Stakeholder Theory

Stakeholder theory has been applied to many different disciplines. The idea that

corporations have stakeholders has become commonplace in both academic and professional

literature. Edward Freeman’s book on Stakeholder theory, Strategic Management: A Stakeholder

Approach, published in 1984, had its greatest influence in the areas of business and society, CSR

and business ethics. Since Freeman’s book was published, there have been more than a dozen

books and hundreds of articles related to the topic (Donaldson, 1995). Freeman’s Stakeholder

theory was built on the notion that sustainability and the success of a business depend on

management’s attainment of economic and societal goals while satisfying the needs of important

groups of internal and external stakeholders (Pirsch et al., 2007).

Freeman gave credit for the historic origins of the stakeholder approach to SRI

International for its definition of stakeholders in 1963 (Clarkson, 1995). Preston (1990) traced

the origins back to the great depression where the General Electric Company identified four main

stakeholder groups: Shareholders, employees, customers and the general public. In 1947 these

groups were also used by Robert Johnson of Johnson & Johnson and Sears & Roebuck in 1950

(Preston, 1990).

Within the stakeholder framework, survival of the organization is not only affected by its

shareholders but the numerous stakeholders (Lee, 2008). According to Freeman (1984), company

stakeholders include groups or individuals who can influence or who are under the influence of

the business operations of a company and its mission. Stakeholder interests can be either a legal

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claim, such as an owner or an employee who has an explicit or implicit contract, or a moral

claim, such as a group that asserts the right to be treated fairly (Carroll, 1991). Stakeholders

include employees, consumers, suppliers, governmental organizations, non-governmental

organizations (NGOs), financial institutions, and suppliers (Freeman, 1984; Verdeyen, Put, &

Van Buggenhout, 2004).

Management must determine which stakeholders merit and receive consideration.

Mitchell, Agle & Wood (1997) proposed that there are three key factors that management uses to

determine the impact and importance of stakeholder groups. They are power, legitimacy, and

urgency of the stakeholder. Power is determined by the influence the stakeholder(s) have over

management; legitimacy refers to the validity of the claim and urgency is the degree of need for

immediate attention to the claim. Employees possess, to a greater or lesser extent, these three

factors.

Various scholars have divided stakeholders into various groups. Clarkson (1995) and

Freeman (1984) sorted them into primary and secondary stakeholders, voluntary and involuntary

stakeholders (Clarkson, 1994) and primary social, secondary social, primary non-social and

secondary non-social (Wheeler and Sillanpaa, 1997). There is a significant level of

interdependence between business and primary stakeholders. Businesses would not be able to

survive without primary stakeholders. Employees play a key role in the success or failure of the

organization. They can affect and also be affected by their organization’s activities making them

an important primary stakeholder. Secondary stakeholders are those groups that influence or

affect the corporation. They are not essential for the company’s survival (Clarkson, 1995).

For purposes of this study, the separation by Verdeyen et al. (2004) who separated these

groups into internal and external stakeholders will be used. External stakeholders include

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customers, special interest groups, trade unions, media, NGOs, government, communities,

suppliers and financial institutions. These stakeholders influence the organization from the

outside. Internal stakeholders include company owners, managers, and employees.

The organization's’ survival depends on the ability to incorporate stakeholders’

expectations into their business strategy since stakeholder provide vital resources and returns for

the organization (Donaldson & Preston, 1995). Research into the relationship between

stakeholders and organizations’ societal and financial performance has found that this process is

mediated by stakeholder’s perceptions, attitudes and behaviors (Barnett, 2007; Bhattacharya et

al., 2009; Pivato et al., 2008). This is especially true for consumer attitudes and buying behavior.

There have been significant studies on the relationship between CSR and these external

stakeholders. Studies found that the actions and influence of stakeholders affect whether a

company pursues CSR initiatives and also what type of initiatives they engage in (Aquinis &

Glavas, 2012). Clarkson (1995) and Jones (1995) used the stakeholder model in CSR research

and their studies were instrumental in moving business and society relations to center stage (Lee,

2008).

Employees are one of the most important audiences targeted by corporate sustainability

directors (Unerman, 2007) and recognizing employees as an audience had a significant impact on

employee motivation and led to performance improvement (KPMG, 2011). Goodstein and Wicks

(2007) stress that a greater emphasis must be placed on these internal organizational stakeholders

since they have such a significant impact on business operations. Employees execute social

activities, enact the policies of the organization and interact with other internal and external

stakeholders. Employees are the face of their organization; they communicate their

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organization’s messages and act as ambassadors for the organizations that they work (McShane

& Cunningham, 2012; Collier & Esteban, 2007).

There is growing attention within academia on the impact that CSR has on internal

stakeholders for both internal and external CSR initiatives (Berger et al., 2006; Brammer et al.,

2007; Collier & Esteban, 2007; Peterson, 2004; Rodrigo & Arenas, 2008; Rupp et al., 2006).

Internal CSR initiatives include programs related to health and safety, training, workplace

diversity, incentives and rewards, and addressing work-life balance. These programs are

structured to take care of the needs and wants of the employees allowing them to take care of the

needs and wants of external customers (Basera, 2013). External CSR initiatives are activities that

the corporation engages in outside of the corporation and typically engage the external

stakeholders of an organization. Recent studies that tie both internal and external CSR initiatives

to employees’ commitment to the organization have been conducted (Brammer et al., 2007;

Peterson, 2004; Rupp et al., 2006) and in areas of morale, productivity, recruitment, and

retention (Berger et al., 2006; Branco & Rodrigues, 2006; Fombrun & Van Riel, 2004; Marin &

Ruiz 2007; Turban & Greening, 1997; Turker, 2009).

Despite specific benefits of CSR relating to employees, relatively few studies have

looked at perceived CSR and internal stakeholders (Aquilera, Rupp, Williams & Ganapathi,

2007; Rodrigo & Arenas, 2008; Turker, 2009). Aquinis and Glavas (2012) reviewed 181 articles

related to CSR and found that 90% of the articles focused on institution or organizational unit of

analysis. Less than 4% of the studies focus on the individual or employee as the unit of analysis

(Aquinis & Glavas, 2012). This study will focus on internal stakeholders.

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Organizational Commitment

Employees must be responsive to the organization and be motivated to deliver on CSR

requirements. Motivation comes first then commitment (Collier & Esteban, 2007). Motivation is

the “energizing force that induces action” (Locke, 1997) and motivation is sustained by

commitment. Organizational commitment (OC) can be defined as an individual’s psychological

bond with an organization (Choi, Oh & Colberg, 2015) or the “process by which the goals of the

organization and those of the individual become increasingly integrated or congruent” (Hall,

Schneider & Nygren, 1970 p. 176).

Organizational commitment is similar but different than organizational identification. The

core difference between identification and commitment is that identification reflects the

individuals’ self-definition and commitment does not (Ashforth & Meal, 1989). According to

Pratt (1998) identification is a cognitive/perceptual construct that reflects how integrated the

organization is into one's self-concept. Commitment is viewed more as the attitude that one has

toward organization.

With organizational identification, the self and the organization are perceived as one.

With organizational commitment, they remain independent (Ashforth, Harrison, & Corley,

2008). According to Knippenberg & Sleebos (2006), since identification implies oneness with

the organization, commitment is independent, and it is based more on perceptions of the

relationship between the individual and the corporation.

Porter et al. (1974) originally explored this area and defined organizational commitment

as “the relative strength of an individual's identification with and involvement in a particular

organization.” They characterized employee organizational commitment as a “strong belief in

and acceptance of the organizational goals and values,” along with a “willingness to exert

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considerable effort on behalf of the organization” and a “definite desire to maintain

organizational membership” (p. 604). Commitment also encourages elective behaviors that result

in positive outcomes, reinforcing the employee’s commitment to the organization (Collier &

Esteban, 2007). According to Mowday et al. (1979), an increased understanding of

organizational commitment may assist in the understanding of the psychological processes by

which individuals choose to identify with their environment.

In research conducted by Allen and Meyer (1990) a three-component conceptualization

of OC, affective commitment (AC), normative commitment (NC) and continuance commitment

(CC) was developed. Affective commitment reflects an emotional attachment toward the

company they work for. The employee is strongly committed, involved in and is driven by

attachment to the organization (Collier & Esteban, 2007; Chung & Yang, 2016) and can be

defined as “an emotional attachment to, identification with, and involvement in the organization”

(Allen & Meyer, 1990, p. 21). Normative commitment to the organization happens when an

individual acts out of obligation for the benefits they receive. Continuance Commitment occurs

when the individual’s perception shows that it is more beneficial to stay with the organization

than to leave it.

Meta-analytic studies show that all three forms of commitment are related to labor

turnover and intentions to leave the company. These studies indicate that there is a positive

relationship between desirable employee outcomes associated with attendance, health, job

performance, stress, work/non-work conflict and affective commitment (Meyer, Stanley,

Herscovitch, & Topolnytsky, 2002). In one of the earliest research studies on OC, Mowday,

Porter & Steers (1982) proposed that OC is the employee’s affective bond with the organization.

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Subsequent research looked at the motivations behind employee organizational commitment

(Nambudiri & Tewari, 2010).

Employee organizational commitment to their company can be a fairly accurate predictor

of certain behaviors. Researchers and practitioners have associated organizational commitment

with job performance (Cooper-Hakim & Viswesvaran, 2005; Meyer, Stanley, Herschovitch &

Topolnytsky, 2002; Riketta 2002) and turnover (Meyer et al., 2002; Mathieu & Zajac, 1990).

Most research positions job satisfaction as an antecedent on organizational commitment and is

positively correlated (Bateman & Strasser, 1984; Currivan, 1999; Meyer et al., 2002). Anzam

(2010) proposed that job satisfaction is likely a mediator between CSR perceptions and

organizational commitment.

Research has expanded to include how corporate social responsibility affects an

employee’s organizational commitment. Most studies examining the association between CSR

and commitment have primarily focused on affective commitment (Brammer et al., 2007).

Previous studies divide the relationship between CSR and employees into two categories. The

first is the prospective employer category. These studies (Albinger & Freeman, 2000; Backhaus,

Stone, & Heiner, 2002; Greening & Turban, 2000; Turban and Greening, 1997) indicate that

prospective employees view companies as more trustworthy and as having a good reputation.

Willard (2002) found that organizations that were good corporate citizens provided meaningful

work that assisted to attract the top talent. These factors make the organization more attractive to

prospective employees.

The second category focuses on the impact that CSR initiatives have on current

employees (Brammer Millington & Rayton, 2005; Bauman & Skitka, 2012; El-Kassar, Messarra,

& El-Khalil, 2017; Faroog M. et al., 2014; Maignan, Ferrell, & Hult, 1999; Peterson, 2004; Rupp

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et al., 2006; Viswesvaran, Deshpande, & Milman, 1998; Wood & Jones, 1995). Empirical

evidence showed that employees in organizations that are socially responsible have a higher

level of affective commitment. One reason is that employees who have positive perceptions of

their organization are more likely to commit affectively to the organization (Chung & Yang,

2016). Affective commitment has been stated to be the underlying psychological outcome in

research related to CSR (Mueller, et al. 2012). Previous studies found that employees’

perceptions about their organization’s social responsibility positively affected employees’

affective commitment to the organization (Ali, et al., 2010; Turker, 2009; Panagopoulis et al.,

2016; Grant, Dutton & Rosso, 2008; Hoeven & Verhoeven, 2013).

Peterson (2004) found a positive relationship between employee perceptions of CSR and

their organizational commitment. Aquinis and Glavas (2012) found that employees who worked

for socially responsible companies not only had increased organizational commitment but also

had increased employee engagement, organizational identification, retention, organizational

citizenship behavior, creative involvement, and improved employee relations. In addition,

employees that worked for socially responsible companies were found to be more engaged,

creatively involved and experienced higher quality relationships with coworkers (Glavas &

Piderit, 2009).

The World Business Council for Sustainable Development (2005) published a detailed

report comprised of CSR related surveys and case studies. Their research provided support that

companies that engage in CSR and are good corporate citizens will attract better employees and

retain more loyal, motivated and innovative employees. When employees share values with their

company, they found the work more meaningful. Willard (2002) found that this meaningful work

increased retention of the best employees and increased employee productivity.

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Previous studies have found a weak and inconsistent relationship between age and gender

as it applies to organizational commitment (Meyer & Allen, 1997; Mowday, Porter, & Steers,

1982). Stahnke (2011) found that CSR was a crucial component in keeping the younger

generation of workers engaged. Past studies regarding Generation Y, also referred to as the

millennial generation, show that this generation values companies and their commitment to CSR

(Firely, 2016). Millennials are individuals born between 1979 and 1997, and according to a study

completed by Cone (2013), they feel empowered and truly want to make a difference in the

world. Millennials have been known to be notably the most socially conscious group of

customers in the today’s economy (Fromm, Butler & Dickey, 2014; Hyllegard, Yan, Ogle, &

Attmann, 2010). Wisse, Ejbergen, Rietzschel & Scheibe (2018) found that CSR had a positive

effect on the satisfaction of older workers relative to their younger counterparts. Age may be a

significant differentiating factor when studying the relationship between perceived CSR and

employee organizational commitment.

Social Identity Theory

Social identity theory (SIT) has been used widely to explain the relationship between

CSR, organizational identification and organizational commitment. Research in micro-

organizational behavior investigates the effects of CSR on affective organizational commitment

through the lens of social identity theory (Farooq et al., 2014). Social identity theory (SIT) was

first proposed by Tajfel (1978) and focused on the “group in the individual” (Hoggs & Abrams,

1988, p. 3) and the idea that part of the self-concept is established by inclusion in social groups

(Trepte, 2006). According to Trepte, social identity theory is a “social-psychological theory that

attempts to explain cognitions and behavior with the help of group-processes” (p.256). Tajfel and

Turner (1979) state that people categorize themselves and others into different social groups. To

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enhance their self-esteem, individuals will compare the characteristics of groups that they are

members of with other groups and they are inclined to view their company success as their own

personal success (Ashforth & Mael, 1989; Turker, 2009b)

This categorization and the value placed on this membership within a group is defined as

social identity. Individuals categorize themselves with organizations that they feel a part of.

These interactions likely contribute to a more nuanced understanding of individuals’ beliefs,

attitudes, and behaviors. SIT has been adopted by researchers to explain employee identification

and how the individual’s self-concept and view of themselves, is influenced by their membership

in social organization, including the company that they work for (Ashford & Mael, 1989; Dutton,

Roberts, & Bednar, 1994). Organizational identification is a certain type of social identification

derived from SIT (Teifel & Turner, 1985; Ashforth & Mael, 1989).

Employees identify with organizations when they perceive that the organization has an

attractive and positive image and organizational identification is a cognitive-perceptual construct

that may cause organizational commitment (Pratt, 1998). Several studies in micro CSR propose

that CSR affects organizational identification (El-Kassar, 2017; Glavas & Godwin, 2013;

Faroog, Faroog & Jasimudden., 2014; Faroog O. et al., 2014; El Akremi et al., 2015).

Organizations become more relatable when internal and external stakeholders are aware of their

CSR activities (Sen, Bhattacharya & Korschun, 2006). Smidts, Pruyn & Van Riel (2001) and

Glavas and Godwin (2013) found that employees have a strong association with their company

when the company is involved with social welfare activities.

There is a developing body of research built on social identity theory (SIT) that suggests

that there is a positive correlation between perceived CSR and employee attitudes (Brammer et

al., 2007; Peterson, 2004; Turker, 2009a). Brammer et al. (2007) suggested that external CSR,

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specifically organizational reputation, was positively associated with organizational

commitment. Peterson (2004) found that employees were proud to identify with a socially well-

regarded organization. It boosted their self-esteem and positively influenced their employee

organizational commitment. Turker (2009a) looked at affective commitment and how corporate

CSR initiatives aimed at various stakeholder groups can influence employees’ attitudes.

These studies specify that SIT, and its underlying self-enhancement process, privides a

framework for explanation of CSR’s impact on employees’ attitudes. Based on the SIT literature,

a company that is socially responsible tends to be more attractive to prospective employees and

motivates and retains current employees at a higher rate as a result of the employees’

identification with the positive organizational values of the organization (Peterson, 2004).

External CSR is discretionary and the benefits to employees are indirect, emphasizing the

contribution of social identity theory (Brammer, et al., 2007).

An organization that is socially responsible has an improved image and reputation with

its stakeholders. An organization that engages in external and internal CSR initiatives positively

affects employees and they feel honored to be members of the organization. Employees believe

that the organization cares and, as a result, CSR activities can enhance an employee’s motivation

to associate with the organization. Social identity also suggests that if treating others well is part

of an employee’s self-concept then companies that also treat others well will strengthen the

employee organizational commitment to the organization (Dutton et al., 2010).

Rodrigo and Arenas (2008) conducted a qualitative study that investigated how employee

attitudes were affected by CSR initiaves. They found that there was a progression in employee

attitudes regarding the organization. At the beginning of their employment, they felt that

company was just a place to work. This transitioned to a view that the organization shared their

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own social views and values, increasing commitment through their social identity. Several other

studies (Jones, 2010; Kim et al., 2010; Riketta, 2005) found that CSR participation and perceived

CSR were both positively related to employee organization identification.

Perceived Importance of Social Responsibility

The question then becomes whether employees identify with the actual acts of their

company’s CSR initiatives, employee perceptions of these initiatives or both. Researchers have

looked at the link between perception and behavior and found the link to be powerful. Perception

is an important driving force in understanding behavior (Glavas, 2012). Bargh and Burrows

(1996) found that the perception of the behavior of others increases the likelihood that they will

engage in the behavior themselves. Dijksterhuis and Knippenberg (1998) found the link between

perception and behavior to hold true even for complex behaviors. Their findings suggest that our

social conduct is partially influenced without our conscious involvement.

Perceived external prestige (PEP) refers to the way that employees believe that external

stakeholders view the organization (Herrbach & Mignonac, 2004; Smidts, Pruyn & VanRiel,

2001). Lee, Park and Lee (2013) define employee perception of CSR activities as “the degree to

which employees perceive a company supports the activities related to a social cause” (p. 1717).

PEP or employee perception differs from employees who actually participate in CSR initiatives.

Kim et al. (2010) suggests that employee perceptions of the organization's CSR initiatives and

employee participation in those initiatives have different psychological mechanisms that can

explain the impact on employees. Their research suggests that employee participation and

employee perceptions of CSR initiatives increased organizational identification, influencing

organizational commitment. Herrbach and Mignonac (2004) add that identification acts as a

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bridge between perception and organizational commitment. Kim et al. (2010) found that

employee perceptions of external CSR focusing on the community had a higher level of affective

commitment.

Additional research suggests that employee perception of company’s initiatives in CSR

have a direct effect on loyalty and commitment (Greening & Turban, 2000; Ali et al., 2010;

Brammer et al., 2007; Zhu, 2014), organizational identification (Carmeli, Gilat & Waldman,

2007; de Roeck & Delobbe, 2012) and job satisfaction (Valentine & Fleischman, 2008).

Employee perceptions regarding CSR vary. According to Glavas (2016), these perceptions vary

due to what is meaningful to them, their individual differences and how individuals construct

their self-concepts.

Hypotheses Development

There is growing attention within academia on the impact that CSR has on internal

stakeholders for both internal and external CSR initiatives (Berger et al., 2006; Brammer et al.,

2007; Collier & Esteban, 2007; Peterson, 2004; Rodrigo & Arenas, 2008; Rupp et al., 2006).

Organizational commitment research has expanded to include how corporate social responsibility

affects employee organizational commitment.

Empirical evidence showed that employees in organizations that are socially responsible

have a higher level of affective commitment. One reason is that employees who have positive

perceptions of their organization are more likely to commit affectively to the organization

(Chung & Yang, 2016). Employee organizational commitment is a complex and

multidimensional phenomenon that will be influenced by both corporate contextual factors and

by employee perceptions (Collier & Esteban, 2007).

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In previous studies, stakeholder theory and social identity theory have been used to look

at employee perceptions of their organization’s CSR initiatives and how it affects their

commitment to their organization. This study will also use these theories to examine this

relationship. Looking at the relationship between employee perceptions of their organizations

external CSR initiatives, personal values related to ethical and social responsibility and employee

organizational commitment, the following hypotheses are proposed to answer the research

questions:

H1: Employee perceptions of their company’s policies and engagement in CSR

initiatives related to consumers will positively affect employee organizational

commitment to the company.

H2: Employee perceptions of their company’s policies and engagement in

environmental CSR initiatives will positively affect employee organizational

commitment to the company.

H3: Employee perception of their company’s policies and engagement related to

community CSR initiatives will positively affect employee organizational

commitment.

H4: Individual attitudes and beliefs towards ethics, sustainability and corporate

social responsibility will affect employee commitment to the company.

It would be expected that employees that have positive perceptions of their organizations

CSR practices will experience higher levels of affective commitment. It would also be expected

that individual attitudes and beliefs regarding ethics and social responsibility would also affect

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an employee’s affective commitment toward their organization. Figure 3 illustrates the structural

research model for the study.

Figure 3. Research model and hypotheses.

Summary

This chapter introduced the concepts of CSR, its history and how employee perception of

CSR can affect their behavior. It also introduced the theoretical framework based on Stakeholder

Theory and Social Identity Theory that is guiding this study. A review of the literature related to

these areas and how they affect OC was conducted. The development of the hypotheses was also

discussed. The next chapter presents the details of the research design, sample, and method of

data collection and the analysis that was utilized for the study.

CSR -Customer-orientation

(CUS)

Individual -Ethics-orientation

(PRESOR)

CSR -Environment-orientation

(ENV)

CSR -Community-orientation

(COMN)

Organizational Commitment

(COMMT)

H1

H2

H3

H4

CorporateLevel

PersonalLevel

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Chapter 3 – Research Methods

Purpose of the Study

The purpose of this study was to investigate the perceptions of internal stakeholders and

organizational commitment. This study takes into consideration employee perceptions of their

company’s CSR initiatives, their individual attitudes and beliefs toward business ethics and

sustainability, and how those perceptions and attitudes impacted their organizational

commitment. This chapter describes the steps that were taken to conduct this study. This chapter

provides a description of the sampling method and data collection, validity and reliability

measures, variables, research design, and statistical methods used in this study.

Sampling Method and Data Collection

The quantitative research method was used to conduct this study. According to Creswell

(2003), the best method for a research study that identifies factors that influence an outcome or

the best predictors of the outcome is the quantitative method. The quantitative method was

considered appropriate for this study because it sought to determine the influence that perceived

CSR has on organizational commitment.

A purposive sampling method to obtain participants was used for the study. A purposive

sample occurs when the researchers specify the characteristics of a population of interest (Vogt

& Johnson, 2016). In the current study, the purposive sample provides the means to investigate a

cross-sectional sample of business professionals working in the public and private sector who

hold positions at various levels within their organization. The sample for this study was

comprised of 1,430 current and former part-time MBA students from a University located in the

southwestern United States. These students and alumni provided a diverse sample that represent

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various industries, companies, positions, and work experience. The study included only

professionals who have pursued graduate education in business. Previous studies (Etheredge,

1999; Shafer, Fukukawa, & Lee, 2007; Sims & Gegez, 2004; Singhapakdi, Vitell, Rallapalli,

1996) have used MBA students as study participants in similar studies.

A standardized survey instrument was used for collecting data. Prospective responders

were sent an invitation to participate in the study via electronic mail. The invitation included an

assurance of confidentiality, a brief explanation of the research study and a link to complete the

online survey. To assure anonymity, no personal identifying data was requested from the

respondent. In order for respondents to take the survey, they had to consent to participate in the

study. The invitation to participate and the survey are included in Appendix A.

The survey data were analyzed to examine the relationship between employee

perceptions of their company’s CSR initiatives regarding the environment, the community and

customers, individual values regarding ethics and corporate social responsibility and how they

affect employee organizational commitment. The study controlled for age and gender.

The data was collected over a four-week period during summer 2018. The survey was

sent by email to members of the sample. Two reminders were sent. The first reminder was sent

out a week after the initial survey was sent and the second, a week later. Out of 1,430 surveys

sent out, 211 participants responded (15%). The participants’ responses were imported into

Qualtrics. The responses were verified for missing data, organized after coding and then was

extracted into an excel spreadsheet. Once the data was extracted, an initial data analysis was

performed to check for issues with integrity or outliers resulting in 200 valid responses (14%).

These responses were then transferred into SPSS for final analysis.

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Measures

All of the measures used in this study have been used in previous research and were

adapted for this study. A comprehensive review of the literature was done to identify valid

measurements for the related constructs. Measurement items that were used and tested

in previous studies were adopted for use in this study. Questions from four surveys were

used in the instrument that was created for this study. The previous research included two

research instruments that measured various areas of commitment (Mowday et al., 1979 and Allen

and Meyer, 1990), one instrument that measured the importance of various CSR initiatives to the

employee (Turker, 2008) and one that measured a person’s ethics and social responsibility

(Singhapakdi et al.,1996). In a review of the literature, previous research studies that combined

all of these instruments to look at the relationship between perceived CSR initiatives and

organizational commitment was not found.

Mowday et al. (1979) and Allen and Meyer (1990) researched organizational

commitment. The instruments used in those studies were adapted to measure organizational

commitment in this study. Mowday et al. (1979) developed the Organizational Commitment

Questionnaire (OCQ) based on a series of studies conducted among 2,563 employees in nine

different industries. The OCQ was tested for reliability through a test-retest process, and the

results found that the “data compared favorably to other attitude measures.” The scale was also

subjected to tests for convergent, discriminant and predictive validity. Allen and Meyer’s (1990)

tested a three-component model that included affective commitment, continuance commitment

and normative commitment.

Turker (2008) looked at employee perception of various internal and external CSR

initiatives that their organizations participated. The four factors of CSR that were studied were;

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CSR directed to customers, CSR focusing on the environment, CSR focusing on the community,

and CSR directed toward employees. For this study, the questions regarding employee

perception of internal CSR initiatives (CSR directed toward employees) were excluded.

The remaining sections of the survey that addressed employee perceptions of CSR

initiatives to the environment, to the community, and to customers were used to determine

employee perceptions of external CSR initiatives. Turker (2008) used exploratory factor analysis

in the development of the CSR scale. The reliability analysis was conducted through both an

inter-item correlation of each scale. The internal consistencies of each measure were measured

by computing Cronbach’s alpha (Turker, 2008).

Singhapakdi et al., (1996) explored the perceived role of ethics and social responsibility

(PRESOR) looking at individual values, rather than those of the organization or measuring how

socially responsible they are. The study’s purpose was to develop a scale to measure how

marketers perceive ethics and social responsibility in organizational effectiveness. The premise

was that marketers must believe ethics and social responsibility are important for them to act in

that manner. The PRESOR scale was tested for validity and reliability. It was reviewed by a

panel of expert judges to assess its content validity. Exploratory factor analysis was conducted,

and four factors emerged; social responsibility and profitability, long-term gains, short-term

gains and a fourth that was deleted due to low reliability on the scale (Singhapakdi et al., 1996).

Reliability analysis of each subscale was conducted by using Cronbach’s alpha.

Questions were selected from all four instruments to better fit this study. To measure

employee perception of their company’s CSR initiatives, thirty-one of the forty-two questions on

Turker’s (2009) scale were used. Included in the thirty-one questions were ten questions related

to employee perception of CSR initiatives to customers, eleven questions that related to

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employee perceptions of CSR initiatives to the environment and ten questions that related to their

perception of CSR initiatives to the community. The PRESOR originally had sixteen questions to

measure perceived ethics and social responsibility, and ten of those questions were used for this

study. To measure organizational commitment a total of fourteen questions were selected. The

questions used were comprised of eleven of the original fifteen questions asked on the OCQ and

three of the eight questions measuring affective commitment on the Allen and Meyer’s

instrument. This study developed measures for the constructs that were indicated in the research

model: (1) customers (CUS), (2) environment (ENV), (3) community (COMN), (4) ethics

(PRESOR), and (5) organizational commitment (COMMT).

The survey questions used a 5-point Likert point scale. The Likert-type point scale ranged

from 1 “strongly disagree” to 5 “strongly agree.” The Likert scale was originally developed in

1932 and was devised to measure attitude in a way that was scientifically accepted (McLeod,

2014). The instruments modified for this study used the Likert scale and it was determined that it

was appropriate for this study.

The second part of the survey collected demographic data and was measured on a

nominal scale. Participants were asked to provide socio-demographic information including age,

gender, marital status, ethnicity, race, and undergraduate degree. Questions were also asked

regarding their employment. Questions included employment status, years of experience, job

title, industry and function in which they work. The study controlled for age and gender.

Though not part of this study, it was found that ethnicity may affect response to CSR

initiatives. In studies conducted by Hofman and Newman (2014) and Etheredge (1999), they

found that there were differences in response to CSR initiatives between Chinese and Western

employees. Mueller et al. (2012) found that perceptions of CSR were more positively related to

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affective commitment in cultures that are high in humane orientation, institutional collectivism,

and future orientation and also in cultures with lower power distance. This was not considered in

this study since a majority of the respondents worked and lived in the United States.

Employment status included the following four categories: employed full time, employed

part time, started own business, not currently working. Professional function was segmented into

nine categories and industry that employees worked in was segmented into fifteen categories.

Position level determined whether the individual was included in the management (senior, upper,

or middle) ranks or if the individual was a rank and file employee. Years of professional

experience was segmented into the following categories: 0-3 years, 4-7 years, 8-12 years, 13-20

years and over 20 years. Meyer and Allen (1997) found the link between tenure and

organizational commitment the strongest correlation across previous studies.

Since all survey respondents will be either a student or alumni from an MBA program,

we collected data related to the individual’s undergraduate course of study. Undergraduate

degrees were segmented by field of study as follows: Business, education, fine arts, health

professions, hospitality related, liberal arts, science, and engineering.

The final instrument used for this study was divided into the following sections:

perceived CSR initiatives directed toward consumers, perceived CSR initiatives regarding the

environment and perceived CSR initiatives regarding the community, individual values related to

ethics and social responsibility, questions regarding organizational commitment, and

demographic questions. The questions that were utilized for the instrument can be found in

Appendix B.

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Validity

The scale that was used for this study was adopted from the previously mentioned

studies. To ensure content validity, the measurement items generated from the literature review

were reviewed by several academics and practitioners. This process allowed for a review of the

relevance and clarity of each construct. Individuals were asked to review each item and modify

them if they felt it was necessary. This process was done to ensure the items were

comprehensible and to assess whether the items were measuring what they were intended to

measure.

A pilot study was then conducted with a small number (n=10) of respondents before the

survey was distributed to the sample. This provided valuable preliminary information for a last

opportunity to identify any problems in comprehension, structure, flow, and relevancy of

questions, and to increase the internal validity of the survey instrument. The participants of the

pilot study were selected through a convenient sample. Voyt and Johnson (2016) indicate that a

pilot study allows the entire study instrument to be taken by a small sample to discover any

problems with the instrument. This differs from a pre-test that typically only uses part of the

instrument or is used as an initial test in a before and after study. In this case, the pilot study was

conducted to ensure the instrument was ready for final distribution.

Research Questions and Hypothesis Development

Employee organizational commitment is a multidimensional phenomenon that is

influenced by both corporate contextual factors and employee perceptions. Using a theoretical

framework that incorporated stakeholder theory and social identity theory, this study focused on

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employee perceptions of their organization’s CSR initiatives, individual attitudes and beliefs

toward ethics and social responsibility and their effect on organizational commitment.

The four research questions are:

1. Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (pertaining to customers) positively affect employee commitment?

2. Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (about the environment) positively affect employee commitment?

3. Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (pertaining to the community) positively affect employee commitment?

4. Do individual attitudes and beliefs towards ethics and social responsibility affect

employee organizational commitment?

The corresponding hypotheses relative to the research questions are:

H1: Employee perceptions of their company’s policies and engagement in CSR initiatives

related to consumers will positively affect employee commitment to the company.

H2: Employee perceptions of their company’s policies and engagement in environmental

CSR initiatives will positively affect employee commitment to the company.

H3: Employee perception of their company’s policies and engagement related to

community CSR initiatives will positively affect employee commitment.

H4: Individual attitudes and beliefs towards ethics, sustainability, and corporate social

responsibility will affect employee commitment to the company.

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Variables in the Regression Model

This section presents the variables that were used for this study.

Independent Variables

Perception of External CSR Initiatives. The measures used in this study were designed

to test connections between employee perceptions of their company’s external CSR initiatives

related to consumers, the environment, and the community and how individually they affect

employee organizational commitment. Though there are many scales to measure the importance

of CSR to employees, the scale developed by Turker (2009) was adapted for this study. The

purpose of Turker’s study was to analyze how CSR affects the organizational commitment of

employees based on the social identity theory. This model was tested on a sample of 269

business professionals in Turkey. Turker’s CSR scale measured four subscales comprised of

CSR to Social and non-social stakeholders, customers, government and employees (Turker,

2009).

Faroog et al. (2014) further refined the scale and looked at CSR to consumers, the

environment, community, and employees. Both studies included internal CSR initiatives. In

order to gauge the importance of external CSR initiatives, we excluded questions that related to

internal CSR initiatives for employees. The questions that were utilized for the survey can be

found in Appendix B.

Perceived Role of Ethics and Social Responsibility. Singhapakdi et al., (1996) explored

the perceived role of ethics and social responsibility (PRESOR). He looked at individual values

rather than those of the organization or measuring how socially responsible the organizations

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were. The study’s purpose was to develop a scale to measure how marketers perceive ethics and

social responsibility in organizational effectiveness.

The research suggests that there are normative motives for employee engagement in

CSR, such as the alignment of personal values and their concern of individual issues (Aquinis &

Glavas, 2012). To measure how these values affected employees’ organizational commitment,

the instrument developed by Singhapakdi et al., (1996) was used. The instrument titled the

perceived role of ethics and social responsibility (PRESOR) was adapted for this study. Work

completed by Kraft and Jauch (1992) provided the foundation for the PRESOR. This instrument

measured individual values, rather than those of the organization or how socially responsible the

organizations were. The questions that were utilized for the survey can be found in Appendix B.

Dependent Variable

Employee organizational commitment was the dependent variable for this study. To

measure the level of organizational commitment, the Organizations Commitment Questionnaire

(OCQ) proposed by Mowday, Steers and Porter (1979) and Allen and Meyer’s (1990) affective

commitment scale, two most commonly used measure of organizational commitment were

adapted for this study. Eleven of the original fifteen questions from the OCQ were used and three

Alan and Meyer’s Affective Commitment Scale were used for this study. According to Turker

(2009) the selected scale is used most frequently and is a reliable measure of affective

commitment among employees. The questionnaire represents possible feelings that employees

may have for their organization. Some items were phrased negatively and related score was

reversed to reduce response bias (Mowday et al., 1979). The questions that were utilized for the

survey can be found in Appendix B.

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Control Variables

The study controlled for age and gender to determine if either variables were significant

determinants of affective commitment. Previous studies have found an inconsistent relationship

between age and gender of the respondent and organizational commitment (Meyer & Allen,

1997; Mowday et al., 1982). Other studies indicated that the respondent’s age, length of

employment and their seniority were positively related to commitment (Meyer et al, 2002). Age

may be a significant differentiating factor, with Generation Y, also referred to as the millennial

generation, in the workforce. Millennials are individuals born between 1979 and 1997, and

according to a study completed by Cone (2013), they feel empowered and truly want to make a

difference in the world. The millennial generation is the most socially conscious set of

consumers in today’s economy (Fromm, Butler & Dickey, 2014; Hyllegard, Yan, Ogle, &

Attmann, 2010).

Previous studies have found differences between men and women in regard to CSR.

Zalesna (2018) and other authors (Wozniak, 2016; Fitzpatrick, 2013) found that gender does

matter among job seekers. These findings were consistent that women demonstrated higher CSR

expectations as a prospective employee than men. Other studies (Bear, Rahman & Post, 2010;

Wiengarten, Lo & Lam, 2017; Williams, 2003) found a positive relationship between having

women on the board of directors and other executive leadership roles and company engagement

in CSR practices.

Process of Data Analysis

The collected data were analyzed by using IBM SPSS software. First, A Pearson’s R

correlation coefficient matrix was run to determine if there was a relationship between the

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constructs. Then the data was subject to exploratory factor analysis (EFA) to assess the

dimensionality and accuracy of measurement of constructs through item deletion. The data for

this research were generated using scaled responses and it is necessary to test for reliability.

Reliability is an assessment of the degree of consistency between multiple measures of a concept

(Hair, Anderson, Tatham & Black, 1998). Cronbach’s alpha coefficients were calculated for the

reliability test. Cronbach’s alpha is the measure of internal consistency or how closely a set of

items is related. Typically, an alpha value that is greater than 0.7 is considered acceptable

(Nunnally, 1978) and suggest that the items are measuring the same construct (Vogt & Johnson,

2016).

These methods were used for organizational commitment, PRESOR and the three areas

within CSR. The researcher then conducted multiple liner regression on employee perceptions of

external CSR (customers, environment, and community) and individual beliefs on ethics as the

four independent variables to determine their effect on organizational commitment as the

dependent variable.

Summary

In this chapter, the methods the current study used to examine the impact of employee

perception of the company’s CSR initiatives related to customers, the environment and the

community and their personal ethical beliefs had on organizational commitment were presented.

Validity and reliability were discussed, and the data analysis was addressed.

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Chapter 4 - Results

The purpose of this study was to examine internal stakeholder perception of their

company’s policies and engagement in external CSR initiatives related to customers, the

environment and to the community, and how they affect the employee’s commitment to the

organization. The four independent variables in this study were employee perceptions of the

company’s external CSR to customers, CSR to the environment, CSR to the community and

individual value of ethics and social responsibility. The dependent variable was employee

organizational commitment. The study controlled for age and gender.

The first part of this chapter describes the sample and the respondents. The second

section includes the instrument design, item generation and reliability for this study. The third

section includes a detailed review of the analysis and the results. The final section will conclude

with a summary of the answered research questions and the results of the study.

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Descriptive Statistics

The respondents in this study were 200 business professionals who have completed or are

currently pursuing an MBA degree. Participants were asked to provide socio-demographic

information including age, gender, marital status, ethnicity, race, and undergraduate degree.

The gender distribution of respondents included 60.0% male, 38.5% females with a small

percentage, 1.5% who chose not to answer this question. This is comparable to U. S. News and

World reports profile of a typical MBA. According to a recent report, 39.1% of MBA students in

part-time MBA programs are female (Kowarski, 2017). Gender information for the respondents

is included in Table 1.

Table 1. Gender of Respondents.

Gender

Frequency Percent Valid

Percent

Cumulative

Percent

Male 120 60.0 60.9 60.9

Female 77 38.5 39.1 100.00

Missing 11 1.5

Total 200 100.0

The average age of incoming MBA students for the sample was 28 years old. This sample

was comprised of MBA students and alumni. The age range of the respondents seems to be

consistent with the sample, approximately 20% of the sample being current MBA students and

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80% alumni. This would account for the majority of the respondents being between 25 and 44

years old.

In regards to age of the respondents, 3.5% were between 18-24 years, 27.0% were

between 25-34 years, 35.5% were between 35-44 years, 22.0% were between 45-54 years, 9.0%

were between 55-64 years and 2.5% were over 65. Age information for the respondents is

included in Table 2.

Table 2. Age of Respondents.

Age

Frequency Percent Valid

Percent

Cumulative

Percent

18 to 24 years 7 3.5 3.5 3.5

25 to 34 years 54 27.0 27.1 30.7

35 to 44 years 71 35.5 35.7 66.3

45 to 54 years 44 22.0 22.1 88.4

55 to 64 years 18 9.0 9.0 97.5

Age 65 or older 5 2.5 2.5 100.0

Missing 1 .5

Total 199 99.5 100.0 199

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Most of the individuals were married (55.5%), followed by single (34%), divorced

(8.5%), widowed and separated (2%). This information is shown in Table 3.

Table 3. Marital Status of Respondents.

Marital Status

Frequency Percent Valid

Percent

Cumulative

Percent

Single 68 34.0 34.0 34.0

Married 111 55.5 55.5 89.5

Separated 2 1.0 1.0 90.5

Widowed 2 1.0 1.0 91.5

Divorced 17 8.5 8.5 100.0

Total 200 100.0 100.0

The MBA students used for the sample are very similar to the respondent’s

demographics. Based on historical admission data, a majority of the sample were approximately

Caucasian (60%), followed by Asian (20%). Approximately 6% did not disclose their race.

Minority representation was approximately 12%; including 6% Hispanic, 4% African American,

2% American Indian and Pacific Islander. This information is based on domestic students and

did not include the approximate 11% international students who completed the MBA program.

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A majority of the respondents were Caucasian (73%), followed by Asian (14.5%).

Minority representation totaled 12.5 % of respondents, including 6.5% Hispanic, 4.5% African

American, .5% American Indian and 1% Pacific Islander. The information regarding the marital

status and race of respondents is shown in Table 4.

Table 4. Race of Respondents.

Race

Frequency Percent Valid

Percent

Cumulative

Percent

American Indian or

Alaska Native 1 .5 .5 .5

Asian 29 14.5 14.5 15.0

Black or African

American 9 4.5 4.5 19.5

Native Hawaiian or

Other Pacific Islander 2 1.0 1.0 20.5

Caucasian 146 73.0 73.0 93.5

Hispanic or Latino 13 6.5 6.5 100.0

Total 200 100.0 100.0

Questions were also asked regarding employment. Questions included employment

status, years of experience, job title, industry and function of their work.

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The employment status of respondents seems to be similar to the sample, approximately

20% of the sample being current MBA students and 80% alumni. Approximately 60% of the

part-time MBA program students work while they complete their MBA program. Most of the

respondents were working (93.5%). They worked full-time (80.0%), part-time (4.0%) or started

their own business (9.5%). Only 6.5% of the respondents were not currently working. These

individuals did report years of work experience. The employment status of the respondents is

included in Table 5.

Table 5. Employment Status of Respondents.

Employment Status

Frequency Percent Valid

Percent

Cumulative

Percent

Employed, full time 160 80.0 80.0 80.0

Employed, part time 8 4.0 4.0 84.0

Started own business 19 9.5 9.5 93.5

Not currently working 13 6.5 6.5 100.0

Total 200 100.0 100.0

The sample had an average of 5 years of work experience when they entered the MBA

program. The years of work experience of the respondents seems to be consistent with the

sample, approximately 20% of the sample being current MBA students and 80% alumni.

According to Kowarski (2017), incoming part-time MBA students have an average of 6.4 years

of work experience.

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A majority of the respondents (78.0%) had over 8 years of work experience. This

included respondents with eight to twelve years (23.0%), 13 to 20 years of experience (27.0%)

and respondents with more than 21 years of work experience (28.0%). The remaining

respondents had less than 8 years of work experience (22.0%) and distributed as follows; four to

seven years (13.5%) and less than 4 years (8.5%). The years of work experience for respondents

is included in Table 6.

Table 6. Years of Work Experience of Respondents.

Years of Work Experience

Frequency Percent Valid

Percent

Cumulative

Percent

0-3 17 8.5 8.5 8.5

4-7 years 27 13.5 13.5 22.0

8-12 years 46 23.0 23.0 45.0

13-20 years 54 27.0 27.0 72.0

21+ years 56 28.0 28.0 100.0

Total 200 100.0 100.0

Of the respondents who were currently working, most worked in North and Central

America (94.6%). The remaining respondents (5.4%) worked in other regions of the world;

Middle East, Sub-Saharan Africa and North Africa (2.15%), less than two percent worked in in

Europe (1.61%) and Asia and Oceania (1.08%), and less than one percent worked in South

America (.54%).

Of the individuals who were working, they worked at a variety of levels including as an

intern, entry level or as an associate or analyst (22.7%), director or a manager (50.5%), had a job

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title of vice president, C level executive or president (15.1%) and owners of their own companies

(11.6%). This would be expected and similar to the sample. The job function of the respondents

seems to be consistent with the sample, approximately 20% of the sample being current MBA

students and 80% alumni. Respondents’ job level is described in Table 7.

Table 7. Job Title of Respondents.

Job Function or Title

Frequency Percent Valid

Percent

Cumulative

Percent

Intern 2 1.0 1.0 1.0

Entry Level 9 4.5 4.5 5.6

Analyst / Associate 34 17.0 17.2 22.7

Manager 44 22.0 22.2 44.9

Senior Manager 30 15.0 15.2 60.1

Director 26 13.0 13.1 73.2

Vice President 16 8.0 8.1 81.3

Senior Vice President 5 2.5 2.5 83.8

C level executive (CIO,

CTO, COO, CMO, Etc)

46 3 1.5 1.5

President or CEO 6 3.0 3.0 88.4

Owner 23 11.5 11.6 100.0

Missing 2 1.0

Total 200 100.0 100.0

The respondents worked in various industries and held a variety of job functions. A

majority of the respondents worked in accounting, finance and consulting (29.7%), government

(18.6%), and media/entertainment (13.1%).

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Other industries were represented as follows: technology (8%), non-profit (6%),

healthcare (5.5%), retail (4.5%), manufacturing (4 %), real estate (3.5%), energy (2.5%),

consumer packaged goods, education and other (1.5% each), and transportation and logistics

services (5%). The industries that the respondents worked are included in Table 8.

Table 8. Industries that respondents worked.

Industries

Frequency Percent Valid

Percent

Cumulative

Percent

Accounting 4 2.0 2.0 2.0

Consulting 27 13.5 13.6 15.6

Packaged Goods 3 1.5 1.5 17.1

Financial Services 28 14.0 14.1 31.2

Government 37 18.5 18.6 49.7

Healthcare 11 5.5 5.5 55.3

Manufacturing 8 4.0 4.0 59.3

Media/Entertainment 26 13.0 13.1 72.4

Non-Profit 12 6.0 6.0 78.4

Energy 5 2.5 2.5 80.9

Real Estate 7 3.5 3.5 84.4

Retail 9 4.5 4.5 88.9

Technology 16 8.0 8.0 97.0

Transport & Logistic 1 .5 .5 97.5

Education 2 1.0 1.0 98.5

Other 3 1.5 1.5 100.0

Missing 1 .5

Total 200 100.0 100.0

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Job functions varied as well. Most respondents worked in general management (23.0%),

marketing and sales (16.0%), finance (13.5%), consulting (13.0%) and information technology

(12.5%). A number of respondents worked in other areas that included education and

engineering (12%). The remaining respondents worked in operations and logistics (2.5%),

human resources (2.0%), and accounting (5.5%). This information is represented in Table 9.

Table 9. Professional Functions of Respondents.

Professional Function

Frequency Percent Valid

Percent

Cumulative

Percent

Accounting 11 5.5 5.5 5.5

Consulting 26 13.0 13.0 18.5

Finance 27 13.5 13.5 32.0

General Management 46 23.0 23.0 55.0

Human Resources 4 2.0 2.0 57.0

Marketing/Sales 32 16.0 16.0 73.0

Information Technology 25 12.5 12.5 85.5

Operations/Logistics 5 2.5 2.5 88.0

Other 24 12.0 12.0 100.0

Total 200 100.0 100.0

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A majority of the respondents had an undergraduate degree within a business discipline

(51.5%). The majors included Accounting, Economics, Marketing, Finance, and Management.

The remaining respondents obtain their degrees within the following areas; Liberal Arts and

Social Science (17.5%), Engineering (10.5%), Health related and Science (11.5%), Hospitality

(6%), Fine Arts, Education and Other (3%). The respondents’ undergraduate degree is very

similar to the undergraduate degree of the sample. This information is included in Table 10.

Table 10. Undergraduate Degree of Respondents.

Undergraduate Degree

Frequency Percent Valid

Percent

Cumulative

Percent

Business 103 51.5 51.5 51.5

Education 1 .5 .5 52.0

Fine Arts 3 1.5 1.5 53.5

Health professions 8 4.0 4.0 57.5

Hospitality 12 6.0 6.0 63.5

Liberal Arts 30 15.0 15.0 78.5

Science 15 7.5 7.5 86.0

Engineering 21 10.5 10.5 96.5

Social Science 5 2.5 2.5 99.0

Other 2 1.0 1.0 100.0

Total 200 100.0 100.0

Instrument Design

A valid and reliable instrument for each construct must be developed to determine the

relationship between the constructs. This study developed measures for the constructs that were

indicated in the research model: (1) customers (CUS), (2) environment (ENV), (3) community

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(COMN), (4) ethics (PRESOR), and (5) organizational commitment (COMMT). The following

steps were used for the instrument development: item generation, pretest and a pilot study

(Churchill, 1979).

Item Generation

To create items for each construct, the researcher first went through an intensive study of

the literature to identify valid measurements for the related constructs. In this study, whenever

possible, measurement items that have been used and tested in previous studies were adopted.

Content validity indicates that the measurement items are measuring the construct that

they are intended to measure (Churchill, 1979). Content validity can be attained through a

comprehensive literature review and discussions with academics and practitioners (Fink, 1998).

To ensure content validity for this study the list of items for each construct was selected from the

literature review. Items were organized into groups to measure each construct. Information

regarding the details of each of the constructs (CUS, ENV, COMN, PRESOR and COMMT) is

included below.

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CUS assessed the humanity-, caring-, and dignity-orientations that firms use to

implement operational strategies. Respondents were asked to indicate on a five-point Likert scale

(1 = strongly disagree, 5 = strongly agree) their perceptions on how the following focuses, and

practices guide their firm’s operational strategies in terms of customer and various concerns of

the society. Table 11 shows the ten items measuring CUS construct. The frequency tables for

each item are included in Appendix C.

Table 11. Items used to measure the CUS construct.

CUS Construct

CUS_1 One of the main principles of our company is to provide high-quality

products to its customers.

CUS_2 Our products comply with national and international standards.

CUS_3 The guarantee extension of our products is the most advantageous choice

in the market.

CUS_4 Our company provides full and accurate information about its products

to its customers.

CUS_5 Our company respects consumer rights beyond the legal requirements.

CUS_6 Customer satisfaction is highly important for our company.

CUS_7 Our company is responsive to the complaints of its customers.

CUS_8 Our company emphasizes the importance of its social responsibilities to

society.

CUS_9 Our company is known as a respected and trustworthy company.

CUS_10 Our company contributes to campaigns and projects that promote the

well-being of society.

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ENV assessed the environment-orientation that firms use to implement green operation

initiatives. Respondents were asked to indicate on a five-point Likert scale (1 = strongly

disagree, 5 = strongly agree) how the following focusses, and practices guide their firm’s green

operation initiatives in terms of environmental impacts, future generation concerns, and honest

business practices. Table 12 shows the eleven items measuring ENV construct. The frequency

tables for each item are included in Appendix C.

Table 12. Items used to measure the ENV Construct.

ENV Construct

ENV_1 Our company participates in activities which aim to protect and improve

the quality of the natural environment.

ENV_2 Our company has the necessary equipment to reduce its negative

environmental impact.

ENV_3 Our company makes well-planned investments to avoid environmental

degradation.

ENV_4 Our company targets sustainable growth which considers future

generations.

ENV_5 Our company makes investments to create a better life for future

generations.

ENV_6 Our company’s main principle is honesty in every business dealing.

ENV_7 Our company cooperates with its competitors in social responsibility

projects.

ENV_8 Our company competes with its rivals in an ethical framework.

ENV_9 Our company always avoids unfair competition.

ENV_10 Our company implements special programs to minimize its negative

impact on the natural environment.

ENV_11 Our company conducts R&D projects to improve the well-being of

society in the future.

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COMN assessed the community-orientation that firms use to operate. Respondents were

asked to indicate on a five-point Likert scale (1 = strongly disagree, 5 = strongly agree) how the

perceived their firm’s community operational goals. Table 13 shows the ten items measuring the

COMN construct. The frequency tables for each item are included in Appendix C.

Table 13. Items used to measure the COMN Construct.

COMN Construct

COMN_1 Our company supports nongovernmental organizations working in

problematic areas.

COMN_2 Our company complies with legal regulations completely and promptly.

COMN_3 Our company’s main principle is honesty in every business dealing.

COMN_4 Our company endeavors to create employment opportunities.

COMN_5 Our company always pays its taxes on a regular and continuing basis.

COMN_6 Our company tries to help the government in solving social problems.

COMN_7 Our company contributes to campaigns and projects that promote the

well-being of society.

COMN_8 Our company encourages employees to participate in voluntary

activities.

COMN_9 Our company makes sufficient monetary contributions to charities.

COMN_10 Our company contributes to schools, hospitals, and parks according to

the needs of society.

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PRESOR measured individual values, rather than those of the organization or measuring

how socially responsible they are. Respondents were asked to indicate on a five-point Likert

scale (1 = strongly disagree, 5 = strongly agree) how their beliefs guide their perceptions

regarding ethics and social responsibility. Table 14 shows the ten items measuring PRESOR

construct. The frequency tables for each item are included in Appendix C.

Table 14. Items used to measure the PRESOR construct.

PRESPOR Construct

PRESOR_1 Corporate planning and goal setting sessions should include discussions

of ethics and social responsibility.

PRESOR_2 Efficiency is much more important to a firm than whether or not the firm

is seen as ethical or socially responsible. (R)

PRESOR_3 Being ethical and socially responsible is the most important thing a firm

can do.

PRESOR_4 The m The most important concern for a firm is making a profit, even if it

means bending or breaking the rules. (R)

PRESOR_5 Social responsibility and profitability can be compatible.

PRESOR_6 Business has a social responsibility beyond making a profit.

PRESOR_7 If the stockholders are unhappy, nothing else matters. (R)

PRESOR_8 While output quality is essential to corporate success, ethics and social

responsibility are not.

PRESOR_9 Business ethics and social responsibility are critical to the survival of a

business enterprise.

PRESOR_10 The overall effectiveness of a business can be determined to a great

extent by the degree to which it is ethical and socially responsible.

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COMMT was measured by using a series of statements that represented feelings that

individuals might have regarding the organization that they work for. In regards to the

respondent’s feelings about the specific organization they worked for, respondents were asked to

indicate the degree of their agreement or disagreement with each statement by selecting from 1

to 5 using the following five-point Likert scale (1 = strongly disagree, 5 = strongly agree). Table

15 shows the fourteen items measuring COMMT construct. The frequency tables for each item

are included in Appendix C.

Table 15. Items used to measure the COMMT construct.

COMMT Construct

COMMT_1 I am willing to put in a great deal of effort beyond that normally

expected in order to help this organization be successful.

COMMT_2 I talk up this organization to my friends as a great organization to work

for.

COMMT_3 I feel very little loyalty to this organization. (R)

COMMT_4 I would accept almost any type of job assignment in order to keep

working for this organization.

COMMT_5 I find that my values and the organization’s values are very similar.

COMMT_6 I am proud to tell others that I am part of this organization.

COMMT_7 I could just as well be working for a different organization as long as the

type of work was similar. (R)

COMMT_8 It would take very little change in my present circumstances to cause me

to leave this organization. (R)

COMMT_9 I am extremely glad that I chose this organization to work for over others

I was considering at the time I joined.

COMMT_10 For me this is the best of all possible organizations for which to work.

COMMT_11 Deciding to work for this organization was a definite mistake on my part.

(R)

COMMT_12 I do not feel like ‘part of the family’ at my organization. (R)

COMMT_13 This organization has a great deal of personal meaning for me.

COMMT_14 I do not feel emotionally attached to this organization. (R)

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Expert review, pretest, and a pilot study

To further ensure content validity, the measurement items were reviewed by several

academics and practitioners. The process allowed for the reviewers to check the relevance and

clarity of each construct. First, the measurement items were distributed to five professors for

review purposes. They were asked to review each item and modify the instrument as they saw

necessary. The pre-test step was used to refine the items and to determine whether the items were

measuring the constructs they were intended to measure. A pilot study was then conducted with a

small number of respondents before the survey was administered to the sample. The pilot study

provided valuable preliminary information for a last opportunity to refine the survey instrument.

The participants of the pilot study were selected through a convenient sample and were not

included in the final analysis.

Pearson’s R Correlation Coefficients

In order to look at a possible correlation between the various constructs used in this

study, a Pearson’s R Correlation Coefficient test was conducted. Pearson’s R is used to measure

the strength of a linear association between two variables. This test was run for the following

variables: Years of work experience, job title, industry, undergraduate degree, age, gender, ethics

(PRESOR), community (COMN), environment (ENV) and customers (CUS). The Pearson’s R

Correlation Coefficient results are listed in Table 16.

In the correlation matrix, there were a few items that seemed to be highly correlated. The

first was between two control variables, age and years of work experience. This positive

correlation shows that as individuals age they typically obtain more work experience.

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Table 16. Pearson's R Correlation Coefficient.

Correlation Matrix

Year Exp. Job Title Industry Degree Age Gender

Year Exp. 1

Job Title .486 ** 1

Industry -.145 * -.107 1

Degree .016 .005 .093 1

Age .742 ** .408 ** -.135 .066 1

Gender .098 .124 -.001 .106 .359 1

Ethics -.054 .108 -.073 .095 .008 -.190 **

Community -.097 -.182 * -.110 .007 -.121 -.013

Environment -.037 -.030 -.105 .068 -.041 -.079

Customer .092 .195 ** -.090 -.095 .061 -.030

The other highly correlated relationship was found was between two independent

variables, ENV and COMN. This was a concern due to the possibility of multicollinearity.

Multicollinearity occurs when two or more independent variables are highly correlated. This

can make it problematic to determine their distinct effects on the dependent variable (Vogt &

Johnson, 2016).

In defining the correlations, Cohen (1988) research dictated that large correlations had R

values greater than .50. Cohen (1988) further stated R values less than .30 have small

correlations and less than .50 have medium correlations.

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Correlation Matrix (continued)

Ethics Community Environment Customer

Year Exp.

Job Title

Industry

Degree

Age

Gender

Ethics 1

Community .348 ** 1

Environment .386 ** .758 ** 1

Customer 0148 * .284 ** .325 ** 1

More details regarding how this affected this study are included in the regression analysis

section of this chapter.

Uni-dimensionality and Reliability

Since the data for this research were generated using scaled responses, it was necessary to

test for reliability. Reliability provides an assessment of the degree of consistency between

multiple measurements of a concept (Hair, Anderson, Tatham & Black, 1998). The most

commonly used measure of reliability is internal consistency. Flynn, Sakakibara, Schroader,

Bates & Flynn (1990) suggest that the most acceptable measure of a measure's internal

consistency is Cronbach's alpha; hence Cronbach's alpha coefficient was used (Nunnally, 1994)

to measure the internal consistency of the items included in each of the constructs. Alpha values

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greater than 0.7 are considered acceptable (Nunnally, 1978).

The following processes were used to test the reliability of the constructs. First, EFA was

applied along with the principal component analysis method in order to reduce the data collected

to find out the main constructs measured by the items. Cronbach's alpha was then applied to

assess the reliability of each construct. Through EFA, the uni-dimensionality of the measurement

scales was tested. EFA and Cronbach’s alpha were applied interactively to decide which items

were to be deleted.

The final results of the factor analyses for CUS, ENV, COMN, PRESOR and COMM

constructs are shown in Tables 17-21. The tables indicate that all the measurement items have

large loadings on the construct that they are supposed to measure, indicating uni-dimensionality

of each of the constructs. The Cronbach alpha values of each of the five constructs are shown in

Table 17-21. The alpha values of all the constructs are above 0.80, which indicates that the

measurements are unidimensional and reliable. A brief description of the construct, a factor

analysis and Cronbach’s alpha was conducted and the details are included in this section.

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The CUS construct was initially represented by ten items. EFA and Cronbach’s alpha was

conducted to test for reliability. Items were eliminated if they had high cross-loading or low

loading less than 50%. Thus, the following four items were eliminated: CUS_2, CUS_3, CUS_8,

and CUS_10. The factor loading of the retained items in CUS is reported in Table 17. The six

remaining items had fairly high loadings, ranging from 0.640 to 0.793 and loaded onto one

factor. A reliability analysis for the CUS showed an alpha of 0.814. This provided adequate

evidence of the high level of reliability and showed that the CUS Construct was reliable and

valid.

Table 17. CUS Construct – Factor Loadings and Reliability (Retained items).

CUS Construct – Factor Loadings and Reliability (Retained items)

Factor

Loading

Cronbach

Alpha

CUS_1 One of the main principles of our company is to

provide high-quality products to its customers. 0.650

0.814

CUS_4 Our company provides full and accurate

information about its products to its customers. 0.769

CUS_5 Our company respects consumer rights beyond the

legal requirements. 0.640

CUS_6 Customer satisfaction is highly important for our

company. 0.793

CUS_7 Our company is responsive to the complaints of

its customers. 0.775

CUS_9 Our company is known as a respected and

trustworthy company. 0.723

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The ENV construct was initially represented by eleven items. EFA and Cronbach’s alpha

was conducted for reliability. Items were eliminated if they had high cross-loading or low

loading less than 50%. Thus, the following three items were eliminated: ENV_6, ENV_8, and

ENV_9. The factor loading of the retained items in ENV is reported in Table 18. The eight

remaining items all had fairly high loadings, ranging from 0.650 to 0.884 and loaded onto one

factor. A reliability analysis for the ENV showed an alpha of 0.917. This provided adequate

evidence of the high level of reliability and that the ENV Construct was reliable and valid.

Table 18. ENV Construct – Factor Loadings and Reliability (Retained items).

ENV Construct – Factor Loadings and Reliability (Retained items)

Factor

Loading

Cronbach

Alpha

ENV_1

Our company participates in activities which aim

to protect and improve the quality of the natural

environment.

0.853

0.917

ENV_2 Our company has the necessary equipment to

reduce its negative environmental impact. 0.677

ENV_3 Our company makes well-planned investments to

avoid environmental degradation. 0.861

ENV_4 Our company targets sustainable growth which

considers future generations. 0.884

ENV_5 Our company makes investment to create a better

life for future generations. 0.853

ENV_7 Our company cooperates with its competitors in

social responsibility projects. 0.650

ENV_10

Our company implements special programs to

minimize its negative impact on the natural

environment.

0.854

ENV_11 Our company conducts R&D projects to improve

the well-being of society in the future. 0.733

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The COMN construct was initially represented by ten items. EFA and Cronbach’s alpha

was conducted for reliability. Items were eliminated if they had high cross-loading or low

loading less than 50%. Thus, the following four items were eliminated: COMN_2, COMN_3,

COMN_4, and COMN_5. The factor loading of the retained items in COMN is reported in

Table 19. The six remaining items all loaded onto one factor and had fairly high loadings,

ranging from 0.727 to 0.855. A reliability analysis for the COMN showed an alpha of 0.873.

This indicated a high level of reliability. This showed that the COMN Construct was reliable and

valid.

Table 19. COMN Construct – Factor Loadings and Reliability (Retained items).

COMN Construct – Factor Loadings and Reliability (Retained items)

Factor

Loading

Cronbach

Alpha

COMN_1 Our company supports nongovernmental

organizations working in problematic areas. 0.727

0.873

COMN_6 Our company tries to help the government in

solving social problems. 0.735

COMN_7 Our company contributes to campaigns and

projects that promote the well-being of society. 0.855

COMN_8 Our company encourages employees to

participate in voluntary activities. 0.798

COMN_9 Our company makes sufficient monetary

contributions to charities. 0.747

COMN_10 Our company contributes to schools, hospitals,

and parks according to the needs of society. 0.835

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The PRESOR construct was initially represented by ten items. EFA and Cronbach’s

alpha was conducted for reliability. Items were eliminated if they had high cross-loading or low

loading less than 50%. Thus, the following four items were eliminated: PRESOR_2, PRESOR_4,

PRESOR_7, and PRESOR_8. The factor loading of the retained items in PRESOR is reported in

Table 20. The six remaining items all loaded onto one factor and had fairly high loadings,

ranging from 0.533 to 0.812. A reliability analysis for the PRESOR construct showed an alpha

of 0.824 indicating that the PRESOR Construct was reliable and valid.

Table 20. PRESOR Construct – Factor Loadings and Reliability (Retained items).

PRESOR Construct – Factor Loadings and Reliability (Retained items)

Factor

Loading

Cronbach

Alpha

PRESOR_1

Corporate planning and goal setting sessions

should include discussions of ethics and social

responsibility.

0.733

0.824

PRESOR_3 Being ethical and socially responsible is the

most important thing a firm can do. 0.744

PRESOR_5 Social responsibility and profitability can be

compatible. 0.533

PRESOR_6 Business has a social responsibility beyond

making a profit. 0.774

PRESOR_9 Business ethics and social responsibility are

critical to the survival of a business enterprise. 0.812

PRESOR_10

The overall effectiveness of a business can be

determined to a great extent by the degree to

which it is ethical and socially responsible.

0.764

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The COMMT construct was initially represented by fourteen items. EFA and Cronbach’s

alpha was conducted for reliability. Items were eliminated if they had high cross-loading or low

loading less than 50%. Thus, the following seven items were eliminated: COMMT_1,

COMMT_3, COMMT_4, COMMT_7, COMMT_8, COMMT_12 and COMMT_14. The factor

loading of the retained items in COMMT is reported in Table 21. The seven remaining items all

had fairly high loadings, ranging from 0.689 to 0.849 and loaded onto one factor. A reliability

analysis for the COMMT shows an alpha of 0.886. This indicated sufficient evidence of

reliability and showed that the COMMT Construct was reliable and valid.

Table 21. COMMT Construct – Factor Loadings and Reliability (Retained items).

COMMT Construct – Factor Loadings and Reliability (Retained items)

Factor

Loading

Cronbach

Alpha

COMMT_2 I talk up this organization to my friends as a

great organization to work for. 0.762

0.886

COMMT_5 I find that my values and the organization’s

values are very similar. 0.745

COMMT_6 I am proud to tell others that I am part of this

organization. 0.849

COMMT_9

I am extremely glad that I chose this

organization to work for over others I was

considering at the time I joined.

0.849

COMMT_10 For me this is the best of all possible

organizations for which to work. 0.829

COMMT_11 Deciding to work for this organization was a

definite mistake on my part. (R) 0.689

COMMT_13 This organization has a great deal of personal

meaning for me. 0.704

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Regression Analysis

Presented in this section are the statistical results and analysis of the research questions

and corresponding hypotheses. In order to determine the statistical significance of the

hypotheses, multiple linear regression analysis was used. The results and explanations to support

and describe the analysis are also presented. The researcher defined the independent and

dependent variables as CUS, ENV, COMN, PRESOR, and COMMT. The analysis controlled

for age and gender.

Regression Summary, Variance Analysis, and Coefficient Summary for Models

A highly correlated relationship was found was between two independent variables, ENV

and COMN. This was a concern due to the possibility of multicollinearity that was discovered in

the EFA. Multicollinearity exists when two or more independent variables are highly correlated.

This can make it difficult to determine their separate effects on the dependent variable (Vogt &

Johnson, 2016).

In the original model, the data was run using all four predictor variables CUS, ENV,

COMN, and PRESOR. The first iteration of the model included CUS, COMN, and PRESOR,

removing the ENV predictor. The second iteration of the model included CUS, ENV and

PRESOR, removing the COMN predictor. The two iterations were conducted to determine the

significance of each of the highly correlated ENV and COMN variable.

Original Model

A linear regression was conducted to answer the research questions. The regression

utilized CUS, ENV, COMN, and PRESOR as predictors. The analysis controlled for age and

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gender. R is the square root of R-Squared. Effect sizes for all regressions were reported as R2.

R-squared is the correlation between the observed and predicted values of the dependent

variable, COMMT.

R-Square indicates the proportion of variance in the dependent variable (COMMT) which

can be explained by the independent variables (CUS, ENV, COMN, and PRESOR) controlling

for age and gender. Adjusted R-square is an adjustment of R-squared for the number of

independent variables in the model. The R-square value indicates that the model accounts for

38% of the variation in the dependent variable, COMMT, around its mean. Cohen (1988)

specified the following interpretive guidelines for R2: .010-.299 as small; .300-.499 as medium;

and ≥ .500 as large. The linear regression model summary related to research question 1-4 is

described in Table 22.

Table 22. Regression Summary for Original Model.

Regression Model Summary

(Dependent Variable: COMMT)

Category Statistic

R 0.615

R Square 0.379

Adjusted R Square 0.357

The sums of squares and the associated degrees of freedom are shown in the analysis of

variance summary. The regression sum of squares showed that 69.444 deviations about the mean

could be explained. This was a smaller number than the residual sum of squares. The residual

sum of squares indicated a 109.015 deviation about the mean not explained by the predictors.

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The degrees of freedom for the regression were the number of independent variables. The

residual degrees of freedom included the number of parameters n - k – 1 (Starks, 2014).

The F ratio was an important part of the variance summary. A large F ratio specified

the alternative hypothesis be accepted, rejecting the null hypothesis. The F ratio of 17.167 is

enough to reject the null hypothesis and accept the alternative. Significance levels are shown

when p < .050. This is shown by an F ratio of 17.167, with significance p < 0.000, better than an

adequate predictive value of p < 0.050. The model has a strong predictive value as show by the

variance calculations. The Analysis of Variance Summary is included in Table 23.

Table 23. Analysis of Variance Summary for Original Model.

Analysis of Variance Table

(Dependent Variable: COMMT)

Model Sum of

Square d.f.

Mean

Square F Sig.

Regression 66.444 6 11.074 17.167 0.000

Residual 109.015 169 0.654

Total 175.459 175

The coefficients of regression summary is presented in Table 24. The key element to

interpret in the summary is the standardized coefficients Beta (β) value. There are four

independent variables: CUS, ENV, COMN, and PRESOR. Support was found for H1, in which it

was argued that employee perceptions of their company’s policies and engagement in CSR

initiatives related to consumers (CUS) will positively affect employee commitment to the

company (βCUS = 0.321, p < 0.050).

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However, H2 was not supported in this model. It was predicted that employee

perceptions of their company’s policies and engagement in environmental (ENV) CSR initiatives

will positively affect employee commitment to the company (βENV = 0.098, p > 0.050).

Employee perception of their company’s policies and engagement related to community

(COMN) CSR initiatives will positively affect employee organizational commitment, in support

of H3 (βCOMN = 0.240, p < 0.050). Finally, H4 was fully supported in which it was proposed that

individual attitudes and beliefs towards ethics, sustainability and corporate social responsibility

(PRESOR) will affect employee commitment to the company (βPRESOR = 0.195, p < 0.050).

Table 24. Coefficients of Regression Summary for the Four Independent Variables.

Coefficients of Regression Summary

(Dependent Variable: COMMT)

Unstandardized

Coefficients

Standardized

Coefficients

Beta Std. Error Beta T Sig

(Constant) -0.519 0.268 -1.933 .055

CUS 0.321 0.064 0.322 5.016 0.000

ENV 0.098 0.095 0.099 1.033 0.303

COMN 0.240 0.095 0.240 2.532 0.012

PRESOR 0.195 0.067 0.197 2.913 0.004

AGE 0.077 0.056 0.085 1.379 0.170

GENDER 0.162 0.128 0.079 1.265 0.208

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When the initial analysis was conducted using the four independent variable CUS, ENV,

COMN and PRESOR, H2 was not supported. Two more iterations were conducted to test the

possibility of a multicollinearity problem that was identified in the EFA.

First Iteration of Model

The first iteration of the regression excluded the independent variable: ENV. The three

independent variables used were: CUS, COMN, and PRESOR. The analysis controlled for age

and gender. Table 25 describes the linear regression model summary related to the research

questions. The R-square value indicates that the model accounts for 37.5% of the variation in the

dependent variable, COMMT, around its mean.

Table 25. Regression Summary for First Iteration of the Model.

Regression Model Summary

(Dependent Variable: COMMT)

Category Statistic

R 0.612

R Square 0.375

Adjusted R Square 0.356

The sums of squares and the associated degrees of freedom are shown in the analysis of

variance summary. The regression sum of squares indicated that 65.755 deviations about the

mean were explained. That residual sum of squares showed a 109.704 deviation about the mean

was not explained by the predictors. The degrees of freedom for the regression were the number

of independent variables or predictors. The residual degrees of freedom included the number of

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parameters n - k – 1 (Starks, 2014).

A large F ratio indicated the alternative hypothesis be accepted, rejecting the null

hypothesis. The F ratio of 20.379 is enough to reject the null hypothesis and accept the

alternative. Significance levels are shown when p < .050. The significance p < 0.000 is better

than an acceptable predictive value of p < 0.050. The model has a strong predictive value as

show by the variance calculations. The Analysis of Variance Summary is included in Table 26.

Table 26. Analysis of Variance Summary for First Iteration of Model.

Analysis of Variance Table

(Dependent Variable: COMMT)

Model Sum of

Square d.f.

Mean

Square F Sig.

Regression 65.755 5 13.151 20.379 0.000

Residual 109.704 170 0.645

Total 175.459 175

Support was found for H1, in which it was argued that employee perceptions of their

company’s policies and engagement in CSR initiatives related to consumers (CUS) will

positively affect employee commitment to the company (βCUS = 0.331, p < 0.050). Employee

perception of their company’s policies and engagement related to community (COMN) CSR

initiatives will positively affect employee organizational commitment, in support of H3 (βCOMN =

0.308, p < 0.050).

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Finally, H4 was fully supported in which it was proposed that individual attitudes and

beliefs towards ethics, sustainability and corporate social responsibility (PRESOR) will affect

employee commitment to the company (βPRESOR = 0.205, p < 0.050). This is presented in the

coefficients of regression summary presented in Table 27.

Table 27. Coefficients of Regression Summary for CUS, COMN and PRESOR.

Coefficients of Regression Summary

(Dependent Variable: COMMT)

Unstandardized

Coefficients

Standardized

Coefficients

Beta Std. Error Beta T Sig

(Constant) -0.514 0.268 -1.918 0.057

CUS 0.331 0.063 0.332 5.236 0.000

COMN 0.308 0.068 0.308 4.524 0.000

PRESOR 0.205 0.066 0.207 3.096 0.002

AGE 0.079 0.056 0.087 1.410 0.160

GENDER 0.155 0.128 0.075 1.211 0.228

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Second Iteration of Model

The second iteration of the regression excluded the independent variable: COMN. The

three independent variables used were: CUS, ENV, and PRESOR. The analysis controlled for

age and gender. Table 28 describes the linear regression model summary related to the research

questions. The R-square value indicates that the model accounts for 35.5% of the variation in the

dependent variable, COMMT, around its mean.

Table 28. Regression Summary for Second Iteration of the Model.

Regression Model Summary

(Dependent Variable: COMMT)

Category Statistic

R 0.596

R Square 0.355

Adjusted R Square 0.337

The sums of squares and the associated degrees of freedom are shown in the analysis of

variance summary. The regression sum of squares showed that 62.450 deviations about the mean

were explained. That residual sum of squares showed a 113.280 deviation about the mean was

not explained by the predictors. The degrees of freedom for the regression were the number of

independent variables or predictors. The residual degrees of freedom included the number of

parameters n - k – 1 (Starks, 2014).

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The F ratio of 18.854 is enough to reject the null hypothesis and accept the alternative.

The significance p < 0.000 is better than an acceptable predictive value of p < 0.050. The model

has a strong predictive value as show by the variance calculations. The Analysis of Variance

Summary is included in Table 29.

Table 29. Analysis of Variance Summary for Second Iteration of the Model.

Analysis of Variance Table

(Dependent Variable: COMMT)

Model Sum of

Square d.f.

Mean

Square F Sig.

Regression 62.450 5 12.490 18.854 0.000

Residual 113.280 171 0.662

Total 175.730 176

Support was found for H1, in which it was argued that employee perceptions of their

company’s policies and engagement in CSR initiatives related to consumers (CUS) will

positively affect employee commitment to the company (βCUS = 0.331, p < 0.050). Employee

perception of their company’s policies and engagement related to environment (ENV) CSR

initiatives will positively affect employee organizational commitment, in support of H2 (βENV =

0.264, p < 0.050). This was different that the original model that indicated that H2 was not

significant.

Finally, H4 was fully supported in which it was proposed that individual attitudes and

beliefs towards ethics, sustainability and corporate social responsibility (PRESOR) will affect

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employee commitment to the company (βPRESOR = 0.203, p < 0.050). This is presented in the

coefficients of regression summary presented in Table 30.

Table 30. Coefficients of Regression Summary for CUS, ENV and PRESOR

Coefficients of Regression Summary

(Dependent Variable: COMMT)

Unstandardized

Coefficients

Standardized

Coefficients

Beta Std. Error Beta t Sig

(Constant) -0.508 0.272 -1.869 .063

CUS 0.331 0.065 0.333 5.123 0.000

ENV 0.264 0.069 0.266 3.821 0.000

PRESOR 0.220 0.067 0.222 3.283 0.001

AGE 0.059 0.056 0.065 1.058 0.292

GENDER 0.193 0.129 0.094 1.491 0.138

The results of Table 27 and-30 indicate a multicollinearity problem between the two

independent variables, ENV and COMN. This was reflected in the results shown in Table 24 that

H2 was not supported, where in fact, in Table 30, the results showed that employee perception of

their company’s policies and engagement related to environment (ENV) CSR initiatives would

positively affect employee organizational commitment, in support of H2.

Age and gender were controlled for and was included in the analysis. Neither one

effected the relationship between the independent and the dependent variable.

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Summary

The purpose of this chapter was to present the descriptive statistics for the sample and

the results of the statistical analysis conducted for each of the research questions. Table 31

summarizes the statistical analysis for this study. The next chapter will explore these results.

Table 31. Summary of Statistical Results.

Summary of Statistical Results

Hypotheses Statistical

Results

H1

Employee perceptions of their company’s policies and engagement in CSR

initiatives related to consumers (CUS) will positively affect employee

organizational commitment to the company

Supported

H2

Employee perceptions of their company’s policies and engagement in

environmental (ENV) CSR initiatives will positively affect employee

organizational commitment to the company.

Supported

H3

Employee perception of their company’s policies and engagement related

to community (COMN) CSR initiatives will positively affect employee

organizational commitment. Supported

H4

Individual attitudes and beliefs towards ethics, sustainability and corporate

social responsibility (PRESOR) will affect employee organizational

commitment to the company. Supported

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Chapter 5 - Discussion and Conclusion

This chapter summarizes and discusses the findings of the study. First, a summary of the

study along with general results from the hypothesis testing from chapter four is discussed.

Broader discussions of the results are offered along with the implication of results, followed by

the limitations of the study. The chapter concludes with suggestions for further research.

Summary of the Study

The purpose of this study was to examine internal stakeholder perception of their

company’s policies and engagement in external CSR initiatives and how these areas affected

employee organizational commitment. The three areas investigated of external CSR were;

employee perceptions of the company’s external CSR toward customers, CSR to the community

and CSR to the environment. The study also looked at the employee’s personal values regarding

ethics and social responsibility and its relationship with employee organizational commitment.

The quantitative research method was used to conduct this study and the relationship between

these four independent variables and the dependent variable; employee organizational

commitment was analyzed. The study controlled for age and gender.

The purposive sample was used. Of the 1,430 surveys that were sent out, 200 (14%)

respondent surveys were used for this study. The sample was comprised of MBA students and

alumni from a University located in the southwestern part of the United States. These students

and alumni provided a diverse sample that represents various industries, companies, positions

and work experience.

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The study included four research questions:

1. Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (related to customers) positively affect employee organizational

commitment?

2. Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (related to the environment) positively affect employee organizational

commitment?

3. Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (related to the community) positively affect employee organizational

commitment?

4. Do individual attitudes and beliefs towards ethics and social responsibility affect

employee organizational commitment?

To answer these questions, data was obtained from the respondents through the survey

questions, and multiple linear regression was performed to analyze the participants’ responses.

Discussion of Results

Previous studies found that employee perceptions about their organization’s social

responsibility positively affected employee affective commitment to the organization (Ali et al.,

2010; Faroog et al., 2014; Turker, 2009; Panagopoulos, Rapp, Vlachos, 2016). Empirical

evidence showed that employees in organizations that are socially responsible have a higher

level of affective commitment. One reason is that employees who have positive perceptions of

their organization are more likely to commit affectively to the organization (Chung & Yang,

2016). The results of this study suggest that employee perceptions of their company’s external

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CSR initiatives and individual beliefs regarding ethics and social responsibility do have an effect

on employee corporate commitment.

Research Question #1

Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (related to customers) positively affect employee commitment?

The findings resulting from research question one indicate a positive and significant

relationship between employee perceptions of their company’s external CSR initiatives related to

customers and employee commitment. Over the decades, consumers have become more aware of

the role that corporations play in society and placed pressure on companies to become more

socially responsible. This prompted the need for companies to respond to consumer demand,

implement changes to move towards a more socially responsible business model and be able to

report their progress. These changes and the transparency that came with them allowed

companies to promote their external CSR efforts improving their brand image and marketability

with both customers and employees.

Turker (2009) found that employees prefer to work for organizations that care about their

customers. Many employees have to interact with customers on a day to day basis. Perceived

external prestige (PEP) refers to the way that employees believe that external stakeholders view

the organization (Herrbach & Mignonac, 2004; Smidts et al., 2001). If employees believe that the

company has a great image due to their external CSR initiatives, they feel a sense of pride

working for the company and this can increase their organizational commitment.

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Research Question #2

Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (related to the environment) positively affect employee commitment?

The findings resulting from research question two indicate a significant relationship

between employee perceptions of their company’s external CSR initiatives related to

environment and employee commitment. Initially, this finding did not indicate a significant

relationship due to a multicollinearity problem. When the ENV and COMN variables were run

separately, this research question was supported. There may be several explanations for this

result.

There may be a number of respondents that consider the community and the environment

as the same thing. For example, respondents may consider that a question regarding unsafe

drinking water or the effects of an oil spill may be considered a community issue, an

environmental issue or both. A negative perception of the company’s environmental practices

can hurt their brand identity, and the community, including customers, may have a negative view

of the organization. These examples could negatively affect employees’ organizational

commitment due to the association of their company and the negative view that individuals have

of them. If the company is environmentally responsible, participates in green initiatives in the

community and throughout their supply chain, the view that the community and customers have

is positive, and this can be reflected in increase organizational commitment of their employees.

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Research Question #3

Do employee perceptions of their company’s policies and engagement related to external

CSR initiatives (related to the community) positively affect employee commitment?

The findings resulting from research question three indicate a positive and significant

relationship between employee perceptions of their company’s external CSR initiatives related to

community and employee commitment. According to SIT, individuals identify with

organizations when they perceive that the organization has an attractive and positive image. If

the organization has a positive image with the communities that it serves, it increases the self-

esteem of the employees and increases their organizational commitment. The results confirm the

results found in previous studies (Faroog et al., 2014; El-Kassar, Messarra & El-Khalil, 2017; Ali

et al., 2010).

Individuals are part of the company’s internal community and the external community.

Many companies have volunteer programs that allow employees to engage with both of these

communities. Being able to participate within these communities strengthens the bond between

the employee and company. This study shows that the CSR efforts that are directed to the

community and to the employee are of more relevance to the employee’s interest (Anthony

Wong & Hong Gao, 2014) and in result, increase employee organizational commitment.

Research Question #4

Do individual attitudes and beliefs towards ethics and social responsibility affect

employee organizational commitment? The findings from research question three indicate a

positive and significant relationship between employee’s individual attitudes and beliefs toward

ethics and social responsibility and employee organizational commitment. According to Ashforth

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and Mael (1989) found that “individuals tend to choose activities congruent with salient aspects

of their identities, and they support the institutions embodying those identified” (p. 25).

Employees may have more organizational commitment if they feel that their beliefs are in

congruence with their companies’ external CSR efforts. This shows that the CSR efforts that are

directed to the community and to the employee are of more relevance to the employee’s interest

(Anthony Wong & Hong Gao, 2014)

Practical Contributions

Internal Marketing Campaign regarding external CSR initiatives.

Internal Marketing Campaign to Create Awareness. Employees are more aware of

internal CSR initiatives that are focused towards them then they are on external initiatives. Many

employees are not even aware of what their company’s external CSR initiatives are. External

CSR is discretionary and the benefits to employees are indirect, emphasizing the contribution of

social identity theory (Brammer et al., 2007). Employees may base their opinions regarding

external CSR initiatives on internal and external sources. This includes their personal

experiences within the company and external media sources (Gilly & Wolfenbarger, 1998;

Maignan & Ferrell, 2001).

The information obtained in this research can be used by organizational leadership to

assist them in determining what employees’ perceptions are regarding their CSR actions, to

develop CSR strategies and internal communications to inform their employees on these

initiatives and subsequently enhance employee organizational commitment. This can benefit

companies in several ways. Internal communications can affect employee attitudes and

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commitment towards the company. This can affect their interactions with customers which can

impact customer perceptions, attitudes, and intentions (Schneider & Bowen, 1985).

The results show that external CSR initiatives related to all three areas (community,

environment, and customers) are significant in relation to employee organizational commitment.

To increase awareness of these initiatives, companies could expand their marketing efforts to

inform employees about their external CSR initiatives.

Internal Marketing Campaign to Reinforce Business’s Values and Ethics. Individual

attitudes’ regarding ethics and social responsibility was also significant. Companies can enhance

their internal marketing to reinforce the business’s values and code of ethics. These internal

communications would inform employees of initiatives they may be unaware of or reinforce the

good things that their company does if they already know about the initiatives. This could

enhance employee organizational commitment.

Corporations, Environmental, Social and Governance (ESG) and

Stakeholders/Shareholders

Transparency in Reporting. The evidence suggests that there are widespread benefits to

companies that participate in CSR. Historically, corporate social responsibility has been difficult

to quantify since companies previously only referred to financial items in their financial

reporting. In the 1990’s there was a paradigm shift from companies and their employees being

rewarded for their bottom line financial gains to a more inclusive reporting process. This

reporting went beyond the traditional measures of profits, shareholder value and return on

investment to a framework that included environmental and social dimensions. In 1997, The

Coalition for Environmentally Responsible Economies (CERES), a Boston nonprofit, started a

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Global Reporting Initiative (GRI) and in 1999 released a draft of the GRI Sustainability

Reporting Guidelines.

The creation of Global Reporting Initiatives (GRI) allowed companies to voluntarily

report on their sustainability initiatives, allowing the concept of CSR to become more recognized

and considered a standard practice. Since then there has been an upward trend of business

involvement in CSR initiatives and increased reporting (Kotler & Lee, 2005). In 2005 only 32%

of the top 100 companies were using sustainability reports. This jumped to 73% in 2008

(Borkowski, 2010) and according to the Governance and Accountability Institute 2017 report,

85% of S&P 500 companies issued sustainability reports in 2017.

ESG Measures and Shareholders. The global financial crisis, effects of global

warming, corporate scandals have all increased stakeholder interest in environmental, social and

governance concerns (ESG). These concerns have expanded, and a trend has emerged within

industry. ESG factors have become an important link between corporations and all stakeholders,

especially investors. Corporations are taking a more proactive attitude to integrate ESG metrics

into the management system and disclosing their strategy and performance. This can result in

“value for their stakeholders by providing better products and services, attracting and retaining

higher quality employees, enhancing the company’s reputation, increasing customer loyalty,

gaining social legitimacy and improving risk management among others,” (p. 1) (Ferrero-

Ferrero, Fernandez-Izquierdo & Munoz-Torres, 2016).

ESG metrics are increasingly being looked at by investors “shareholders” to determine an

organization’s ethical impact and sustainable practices. They are not only looking at the

organization’s ethical impact and sustainable practices, but also on avoiding firms that are at risk

of suffering tangible losses as a result of their ESG practices. This can be seen in two recent

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examples including BP’s 2010 oil spill and the Volkswagen emission scandal; both affected the

firms’ stock prices and resulted in billions of dollars in associated losses. Investment funds are

now considering ESG criteria into their investment decisions.

Link CSR, OC and Organizational Brand and Bottom Line Profits. This study has

looked at the connection of external CSR initiatives and employee commitment. The information

can offer additional ways to enhance the organizational brand and bottom line profits.

Limitations of the study

As with any research, this study has several limitations that should be considered when

generalizing the validity of the data. The current study only reflects the perceptions of

employees, not the actual CSR initiatives that the company is engaged. It is possible that the

respondents were not aware of the CSR initiatives that their organizations participated. This is a

limitation since the study does not look at the outcomes of external CSR initiatives.

The assumption was made that the respondents answered the questions truthfully and

accurately. It is possible that incorrect information was provided. In either case, the employee

responds based on their perception even if it is based on incomplete information. This occurs

often with empirical studies based on individual perceptions. When it comes to organizational

commitment, regardless of the accuracy of the employee’s perception, SIT suggests that

employee perception is more important than any other measure of social performance (Peterson,

2004).

Another limitation is that our sample was comprised of students and alumni who pursued

or currently pursuing an MBA and is not generalizable. The students’ undergraduate degrees and

MBA focus may vary, but the graduate degree that the student obtained is the same. This study is

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fairly representative to the individuals pursing or who have pursued an MBA, however this study

may not be representative for all employees. It could be that individuals with a different

educational background may have a different perception of their corporation and have a different

level of commitment.

A final limitation is the sample size. These limitations can provide opportunities for

further research in this area.

Future Research

Questions regarding level of education and how it relates to CSR and organizational

commitment may provide opportunities for future research. This study was conducted using

MBA students as a sample. Future research could look at the difference between MBA students

who have a business undergraduate degree versus those with other undergraduate degrees. In this

study over 50% of the respondents had business undergraduate degrees. Future research could

be conducted using the same scale and broadening the sample to those individuals with a high

school education, various trade school specialties or by major in college. Quazi (2003) found a

significant relationship between education and training and perception of CSR. Similar studies

could be conducted.

Future research could be conducted and individuals from different geographical locations

or different positions within companies. A majority of the respondents (94.6%) in this study

lived and worked in North America. With CSR as a global phenomenon, and varying influences

of culture and work environments, a similar scale study could be conducted to look at these

factors in other regions. Studies related to national culture and CSR have been done (Mueller et

al., 2012; Gallen & Peraita, 2017; Halkos & Skouloudis, 2016). This scale could provide more

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insight if national culture influences the relationship between CSR and Organizational

Commitment.

This study looked at employee perceptions in general. It did not separate the data by job

title. Research could be done to determine if there would be a difference in the results if the data

were separated into groups, for example, leadership and rank and file employees. Future research

is encouraged to explore the cross-cultural and job function differences in respect to the current

findings.

Other areas of future research could be done to relate environmental, social and

governance concerns that investors are taking into account and how these items can be affected

by employee perceptions of their company’s efforts in CSR.

Conclusions

This study proposed an analytical framework based on stakeholder theory and social

identity theory to examine the relationship between employee perceptions of their organizations

external CSR initiatives, personal values related to ethical and social responsibility and how they

affect employee organizational commitment.

The major findings of this research indicate that the four independent variables were

significant. Employee perceptions of their company’s policies and engagement in CSR initiatives

related to consumers, employee perceptions of their company’s policies and engagement in CSR

initiatives related to the environment, employee perceptions of their company’s policies and

engagement in CSR initiatives related to the community and individual attitudes and beliefs

towards ethics, sustainability and corporate social responsibility positively affected employee

commitment to the company. The study also found that age and gender did not have a

moderating effect on the dependent variable.

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This study was a micro level study and attempts to understand the relationship between

employee perceptions of various aspects of CSR and the effect this had on employee

organizational commitment. Few studies have done research on the micro level relationship

between CSR and employee organizational commitment. Previous research has not combined all

of these instruments to look at the relationship between perceived CSR initiatives and

organizational commitment. This study added to the limited body of knowledge in this area and

will add to the research at the micro CSR level focusing specifically on perceptions of internal

stakeholders.

The study has practical implications as well. The information obtained in this research

can be used by organizational leadership to assist them in determining what employees’

perceptions are regarding their CSR actions, to develop CSR strategies and internal

communications to inform their employees on these initiatives and subsequently enhance

employee organizational commitment. This can benefit companies in several ways. Internal

communications can affect employee attitudes and commitment towards the company. This can

affect their interactions with customers which can impact customer perceptions, attitudes, and

intentions. Any ideas that provide assistance in obtaining and keeping good employees is worth

studying.

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Appendix A: Survey Cover Letter

The following is the information that accompanied the electronic survey.

Dear MBA Student/Graduate:

You are invited to participate in an online survey for a research study. This study will

examine employee's perception on their company’s engagement in external Corporate Social

Responsibility (CSR) initiatives and how it affects the employee’s commitment to the

organization. The results of the survey can provide insight into whether or not there is a

significant relationship between these areas. I am conducting this research for my dissertation in

the Workforce Development and Organizational Leadership PhD program.

Your participation in this survey is completely voluntary and all of your responses are

anonymous and will be kept confidential. None of the responses will be connected to identifying

information. They will only be used for statistical purposes and will be reported only in

aggregated form.

The survey is very brief and will only take about 10-15 minutes to complete. Please click

the link below to go to the survey Web site (or copy and paste the link into your Internet

browser).

CSR and Organizational Commitment Survey for Lisa's Dissertation

Thank you for your time and participation. I really appreciate it!

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Appendix B: Survey Questions

Headings and descriptions are provided below to help the reader/reviewer distinguish

between the different instruments. However, in the actual survey that was provided to

participants, the headings and descriptions did not appear. Questions were grouped by

sections/constructs for easier identification of related items for each construct by participants.

Questions on demographic information were also provided.

Survey Instrument Questions

You are invited to participate in an online survey for a research study. The findings in this survey

will be used for academic purposes only.

Instructions: Listed below is a series of statements that represent feelings that individuals might

have about the company or organization for which they work. With respect to your own feelings

about the particular organization for which you are now working, please indicate the degree of

your agreement or disagreement with each statement by clicking on a number from 1 to 5 using

the scale below.

Customers (CUS) This section assessed the humanity-, caring-, and dignity-orientations that firms use to implement

operational strategies. The respondents were asked to indicate on a five-point Likert scale (1 =

strongly disagree, 5 = strongly agree) their perceptions on how the following focuses, concepts,

and practices guide their firm’s operational strategies in terms of customers and various concerns

of the society.

Strongly

Disagree

Strongly

Agree

1

1.

One of the main principles of our company is to

provide high-quality products to its customers. 1 2 3 4 5

2

2.

Our products comply with the national and

international standards. 1 2 3 4 5

3

3.

The guarantee extension of our products is the

most advantageous choice in the market. 1 2 3 4 5

4

4.

Our company provides full and accurate

information about its products to its customers. 1 2 3 4 5

5Our company respects consumer rights beyond 1 2 3 4 5

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5. the legal requirements.

6

6.

Customer satisfaction is highly important for

our company. 1 2 3 4 5

7

7.

Our company is responsive to the complaints of

its customers. 1 2 3 4 5

8

8.

Our company emphasizes the importance of its

social responsibilities to the society. 1 2 3 4 5

9

9.

Our company is known as a respected and

trustworthy company. 1 2 3 4 5

1

10.

Our company contributes to campaigns and

projects that promote the well-being of the

society.

1 2 3 4 5

Environment (ENV) This section assessed the environment-orientation that firms use to implement green operation

initiatives. The respondents were asked to indicate on a five-point Likert scale (1 = strongly

disagree, 5 = strongly agree) their perceptions of how the following focuses, concepts, and

practices guide their firm’s green operation initiatives in terms of environmental impacts, future

generation concerns, and honesty business practices.

Strongly

Disagree

Strongly

Agree

1

1.

Our company participates in activities which

aim to protect and improve the quality of the

natural environment.

1 2 3 4 5

2

2.

Our company has the necessary equipment to

reduce its negative environmental impact. 1 2 3 4 5

3

3.

Our company makes well-planned investments

to avoid environmental degradation. 1 2 3 4 5

4

4.

Our company targets sustainable growth which

considers future generations. 1 2 3 4 5

5

5.

Our company makes investment to create a

better life for future generations. 1 2 3 4 5

6

6.

Our company’s main principle is honesty in

every business dealing. 1 2 3 4 5

7

7.

Our company cooperates with its competitors in

social responsibility projects. 1 2 3 4 5

8

8.

Our company competes with its rivals in an

ethical framework. 1 2 3 4 5

9Our company always avoids unfair 1 2 3 4 5

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9. competition.

1

10.

Our company implements special programs to

minimize its negative impact on the natural

environment.

1 2 3 4 5

1

11.

Our company conducts R&D projects to

improve the wellbeing of society in the future. 1 2 3 4 5

Community (COMN) This section assessed the community-orientation that firms use to operate. Respondents were

asked to indicate on a five-point Likert scale (1 = strongly disagree, 5 = strongly agree) their

perceptions of how the following focuses, concepts, and practices guide their firm’s community

operational goals.

Strongly

Disagree

Strongly

Agree

1

1.

Our company supports nongovernmental

organizations working in problematic areas. 1 2 3 4 5

2

2.

Our company complies with legal regulations

completely and promptly. 1 2 3 4 5

3

3.

Our company’s main principle is honesty in

every business dealing. 1 2 3 4 5

4

4.

Our company endeavors to create employment

opportunities. 1 2 3 4 5

5

5.

Our company always pays its taxes on a regular

and continuing basis. 1 2 3 4 5

6

6.

Our company tries to help the government in

solving social problems. 1 2 3 4 5

7

7.

Our company contributes to campaigns and

projects that promote the well-being of the

society.

1 2 3 4 5

8

8.

Our company encourages employees to

participate in voluntary activities. 1 2 3 4 5

9

9.

Our company makes sufficient monetary

contributions to charities. 1 2 3 4 5

1

10.

Our company contributes to schools, hospitals,

and parks according to the needs of the society. 1 2 3 4 5

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Perceived Role of Ethics and Social Responsibility (PRESOR)

This section measures individual values, rather than those of the organization or measuring how

socially responsible they are. Respondents were asked to indicate on a five-point Likert scale (1

= strongly disagree, 5 = strongly agree) how the following focuses, concepts, and practices guide

their perceptions.

Strongly

Disagree

Strongly

Agree

1

1.

Corporate planning and goal setting sessions

should include discussions of ethics and social

responsibility.

1 2 3 4 5

2

2.

Efficiency is much more important to a firm

than whether or not the firm is seen as ethical

or socially responsible.

1 2 3 4 5

3

3.

Being Being ethical and socially responsible is the

most important thing a firm can do. 1 2 3 4 5

4

4.

The most important concern for a firm is

making a profit, even if it means bending or

breaking the rules.

1 2 3 4 5

5

5.

Social responsibility and profitability can be

compatible. 1 2 3 4 5

6

6.

Business has a social responsibility beyond

making a profit. 1 2 3 4 5

7

7.

If the stockholders are unhappy, nothing else

matters. 1 2 3 4 5

8

8.

While output quality is essential to corporate

success, ethics and social responsibility are not. 1 2 3 4 5

9

9.

Business ethics and social responsibility are

critical to the survival of a business enterprise. 1 2 3 4 5

1

10.

The overall effectiveness of a business can be

determined to a great extent by the degree to

which it is ethical and socially responsible.

1 2 3 4 5

Organizational Commitment (COMM) Listed below are a series of statements that represent feelings that individuals might have about

the company or organization for which they work. Respondents were asked to indicate on a five-

point Likert scale (1 = strongly disagree, 5 = strongly agree) answer with respect to their own

feelings about the particular organization for which they were now working

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112

Strongly

Disagree

Strongly

Agree

1

1.

I am willing to put in a great deal of effort

beyond that normally expected in order to help

this organization be successful.

1 2 3 4 5

2

2.

I talk up this organization to my friends as a

great organization to work for. 1 2 3 4 5

3

3.

I feel very little loyalty to this organization. (R) 1 2 3 4 5

4

4.

I would accept almost any type of job

assignment in order to keep working for this

organization.

1 2 3 4 5

5

5.

I find that my values and the organization’s

values are very similar. 1 2 3 4 5

6

6.

I am proud to tell others that I am part of this

organization. 1 2 3 4 5

7

7.

I could just as well be working for a different

organization as long as the type of work was

similar. (R)

1 2 3 4 5

8

8.

It would take very little change in my present

circumstances to cause me to leave this

organization. (R)

1 2 3 4 5

9

9.

I am extremely glad that I chose this

organization to work for over others I was

considering at the time I joined.

1 2 3 4 5

1

10.

For me this is the best of all possible

organizations for which to work. 1 2 3 4 5

1

11.

Deciding to work for this organization was a

definite mistake on my part. (R) 1 2 3 4 5

1

12.

I do not feel like ‘part of the family’ at my

organization (R) 1 2 3 4 5

1

13.

This organization has a great deal of personal

meaning for me. 1 2 3 4 5

1

14.

I do not feel emotionally attached to this

organization (R) 1 2 3 4 5

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113

Demographic Information

What is your employment status

Employed, full time 1

Employed, part time 2

Started own business 3

Not currently working 4

Professional Function

2 Accounting 1

Consulting 2

Finance 3

General Management 4

Human Resources 5

Marketing/sales 6

Information Technology 7

Operations/Logistics 8

Other 9

Years of Professional Experience

3 0-3 1

4-7 years 2

8-12 years 3

13-20 years 4

21+ years 5

Which of the following most closely matches your job title?

Intern 1

Entry Level 2

Analyst / Associate 3

Manager 4

Senior Manager 5

Director 6

Vice President 7

Senior Vice President 8

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114

C level executive

(CIO, CTO, COO, CMO, Etc)

9

President or CEO 10

Owner 11

What industry do you work in?

5 Accounting 1

Consulting 2

Consumer Packaged Goods 3

Financial Services 4

Government 5

Healthcare (inc. products & services) 6

Manufacturing 7

Media/Entertainment 8

Non-Profit 9

Energy 10

Real Estate 11

Retail 12

Technology 13

Transportation & Logistic Services 14

Other 15

What are did you pursue in your undergraduate course of study?

Business 1

Education 2

Fine Arts 3

Health professions 4

Hospitality 5

Liberal Arts 6

Science 7

Engineering 8

What is your Age?

7 18 to 24 years 1

25 to 34 years 2

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115

35 to 44 years 3

45 to 54 years 4

55 to 64 years 5

Age 65 or older 6

What is your gender?

8 Female 1

Male 2

What is your marital status?

9 Single (never married) 1

Married 2

Separated 3

Widowed 4

Divorced 5

Are you Hispanic or Latino? (A person of Cuban, Mexican, Puerto Rican, South or Central

American, or other Spanish culture or origin, regardless of race.)

No, not Hispanic or Latino 1

Yes, Hispanic or Latino 2

No matter what you selected above, please continue to answer the following, if applicable, by

marking one or more boxes to indicate what you consider your race to be.

How would you describe yourself? (Choose one or more from the following racial groups)

American Indian or Alaska Native 1

Asian 2

Black or African American 3

Native Hawaiian or

Other Pacific Islander

4

White 5

What world region do you work? ( Choose one from the following)

Asia and Oceania 1

Europe 2

Middle East and North Africa 3

North and Central America 4

South America 5

Sub-Saharan Africa 6

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116

Appendix C: Frequency Tables for CUS, ENV, COMN, PRESOR, AND COMMT Questions

Respondents were asked following questions for the CUS variable. Below are the

frequencies for each question.

CUS_1 One of the main principles of our company is to provide high-

quality products to its customers.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 3 1.4 1.6 1.6

2 2 1.0 1.1 2.7

3 32 15.4 17.5 20.2

4 38 18.3 20.8 41.0

5 108 51.9 59.0 100.0

Total 183 88.0 100.0

Missing System 25 12.0

Total 208 100.0

CUS_2 Our products comply with the national and international

standards.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 2 1.0 1.1 1.1

2 2 1.0 1.1 2.2

3 27 13.0 14.8 16.9

4 36 17.3 19.7 36.6

5 116 55.8 63.4 100.0

Total 183 88.0 100.0

Missing System 25 12.0

Total 208 100.0

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CUS_3 The guarantee extension of our products is the most

advantageous choice in the market.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 3 1.4 1.6 1.6

2 4 1.9 2.2 3.8

3 112 53.8 61.2 65.0

4 29 13.9 15.8 80.9

5 35 16.8 19.1 100.0

Total 183 88.0 100.0

Missing System 25 12.0

Total 208 100.0

CUS_4 Our company provides full and accurate information about its

products to its customers.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 2 8 3.8 4.4 4.4

3 28 13.5 15.3 19.7

4 43 20.7 23.5 43.2

5 104 50.0 56.8 100.0

Total 183 88.0 100.0

Missing System 25 12.0

Total 208 100.0

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CUS_5 Our company respects consumer rights beyond the legal

requirements.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 2 1.0 1.1 1.1

2 6 2.9 3.3 4.4

3 39 18.8 21.5 26.0

4 60 28.8 33.1 59.1

5 74 35.6 40.9 100.0

Total 181 87.0 100.0

Missing System 27 13.0

Total 208 100.0

CUS_6 Customer satisfaction is highly important for our company.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 2 5 2.4 2.8 2.8

3 14 6.7 7.7 10.5

4 34 16.3 18.8 29.3

5 128 61.5 70.7 100.0

Total 181 87.0 100.0

Missing System 27 13.0

Total 208 100.0

CUS_7 Our company is responsive to the complaints of its customers.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 2 7 3.4 3.9 3.9

3 11 5.3 6.1 9.9

4 50 24.0 27.6 37.6

5 113 54.3 62.4 100.0

Total 181 87.0 100.0

Missing System 27 13.0

Total 208 100.0

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119

CUS_8 Our company emphasizes the importance of its social

responsibilities to the society.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 8 3.8 4.4 4.4

2 16 7.7 8.8 13.3

3 40 19.2 22.1 35.4

4 53 25.5 29.3 64.6

5 64 30.8 35.4 100.0

Total 181 87.0 100.0

Missing System 27 13.0

Total 208 100.0

CUS_9 Our company is known as a respected and trustworthy

company.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 2 4 1.9 2.2 2.2

3 22 10.6 12.2 14.4

4 56 26.9 30.9 45.3

5 99 47.6 54.7 100.0

Total 181 87.0 100.0

Missing System 27 13.0

Total 208 100.0

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120

CUS_10 Our company contributes to campaigns and projects that

promote the well-being of the society.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 14 6.7 7.7 7.7

2 8 3.8 4.4 12.2

3 45 21.6 24.9 37.0

4 52 25.0 28.7 65.7

5 62 29.8 34.3 100.0

Total 181 87.0 100.0

Missing System 27 13.0

Total 208 100.0

Respondents were asked following questions for the ENV variable. Below are the

frequencies for each question.

ENV_1 Our company participates in activities which aim to protect

and improve the quality of the natural environment.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 19 9.1 10.2 10.2

2 11 5.3 5.9 16.1

3 53 25.5 28.5 44.6

4 56 26.9 30.1 74.7

5 47 22.6 25.3 100.0

Total 186 89.4 100.0

Missing System 22 10.6

Total 208 100.0

Page 133: Employee Perceptions of Organizational Corporate

121

ENV_2 Our company has the necessary equipment to reduce its

negative environmental impact.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 12 5.8 6.5 6.5

2 20 9.6 10.8 17.2

3 54 26.0 29.0 46.2

4 64 30.8 34.4 80.6

5 36 17.3 19.4 100.0

Total 186 89.4 100.0

Missing System 22 10.6

Total 208 100.0

ENV_3 Our company makes well-planned investments to avoid

environmental degradation.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 14 6.7 7.5 7.5

2 17 8.2 9.1 16.7

3 68 32.7 36.6 53.2

4 54 26.0 29.0 82.3

5 33 15.9 17.7 100.0

Total 186 89.4 100.0

Missing System 22 10.6

Total 208 100.0

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122

ENV_4 Our company targets sustainable growth which considers

future generations.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 12 5.8 6.5 6.5

2 18 8.7 9.7 16.1

3 52 25.0 28.0 44.1

4 60 28.8 32.3 76.3

5 44 21.2 23.7 100.0

Total 186 89.4 100.0

Missing System 22 10.6

Total 208 100.0

ENV_5 Our company makes investment to create a better life for

future generations.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 12 5.8 6.5 6.5

2 17 8.2 9.1 15.6

3 46 22.1 24.7 40.3

4 45 21.6 24.2 64.5

5 66 31.7 35.5 100.0

Total 186 89.4 100.0

Missing System 22 10.6

Total 208 100.0

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123

ENV_6 Our company’s main principle is honesty in every business

dealing.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 3 1.4 1.6 1.6

2 7 3.4 3.8 5.4

3 32 15.4 17.4 22.8

4 50 24.0 27.2 50.0

5 92 44.2 50.0 100.0

Total 184 88.5 100.0

Missing System 24 11.5

Total 208 100.0

ENV_7 Our company cooperates with its competitors in social

responsibility projects.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 16 7.7 8.7 8.7

2 11 5.3 6.0 14.7

3 73 35.1 39.7 54.3

4 48 23.1 26.1 80.4

5 36 17.3 19.6 100.0

Total 184 88.5 100.0

Missing System 24 11.5

Total 208 100.0

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124

ENV_8 Our company competes with its rivals in an ethical

framework.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 6 2.9 3.3 3.3

2 8 3.8 4.3 7.6

3 53 25.5 28.8 36.4

4 40 19.2 21.7 58.2

5 77 37.0 41.8 100.0

Total 184 88.5 100.0

Missing System 24 11.5

Total 208 100.0

ENV_9 Our company always avoids unfair competition.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 9 4.3 4.9 4.9

2 16 7.7 8.7 13.6

3 66 31.7 35.9 49.5

4 45 21.6 24.5 73.9

5 48 23.1 26.1 100.0

Total 184 88.5 100.0

Missing System 24 11.5

Total 208 100.0

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ENV_10 Our company implements special programs to minimize its

negative impact on the natural environment.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 14 6.7 7.6 7.6

2 18 8.7 9.8 17.4

3 59 28.4 32.1 49.5

4 56 26.9 30.4 79.9

5 37 17.8 20.1 100.0

Total 184 88.5 100.0

Missing System 24 11.5

Total 208 100.0

ENV_11 Our company conducts R&D projects to improve the

wellbeing of society in the future.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 27 13.0 14.8 14.8

2 18 8.7 9.8 24.6

3 69 33.2 37.7 62.3

4 36 17.3 19.7 82.0

5 33 15.9 18.0 100.0

Total 183 88.0 100.0

Missing System 25 12.0

Total 208 100.0

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126

Respondents were asked following questions for the COMN variable. Below are the

frequencies for each question.

COMN_1 Our company supports nongovernmental organizations

working in problematic areas.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 18 8.7 9.6 9.6

2 16 7.7 8.5 18.1

3 58 27.9 30.9 48.9

4 45 21.6 23.9 72.9

5 51 24.5 27.1 100.0

Total 188 90.4 100.0

Missing System 20 9.6

Total 208 100.0

COMN_2 Our company complies with legal regulations completely

and promptly.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 1 .5 .5 .5

2 3 1.4 1.6 2.1

3 8 3.8 4.3 6.4

4 38 18.3 20.2 26.6

5 138 66.3 73.4 100.0

Total 188 90.4 100.0

Missing System 20 9.6

Total 208 100.0

Page 139: Employee Perceptions of Organizational Corporate

127

COMN_3 Our company’s main principle is honesty in every business

dealing.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 1 .5 .5 .5

2 10 4.8 5.3 5.9

3 24 11.5 12.8 18.6

4 50 24.0 26.6 45.2

5 103 49.5 54.8 100.0

Total 188 90.4 100.0

Missing System 20 9.6

Total 208 100.0

COMN_4 Our company endeavors to create employment

opportunities.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 2 1.0 1.1 1.1

2 22 10.6 11.7 12.8

3 28 13.5 14.9 27.7

4 68 32.7 36.2 63.8

5 68 32.7 36.2 100.0

Total 188 90.4 100.0

Missing System 20 9.6

Total 208 100.0

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COMN_5 Our company always pays its taxes on a regular and

continuing basis.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 3 30 14.4 16.0 16.0

4 9 4.3 4.8 20.7

5 149 71.6 79.3 100.0

Total 188 90.4 100.0

Missing System 20 9.6

Total 208 100.0

COMN_6 Our company tries to help the government in solving social

problems.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 16 7.7 8.6 8.6

2 22 10.6 11.8 20.4

3 51 24.5 27.4 47.8

4 42 20.2 22.6 70.4

5 55 26.4 29.6 100.0

Total 186 89.4 100.0

Missing System 22 10.6

Total 208 100.0

COMN_7 Our company contributes to campaigns and projects that

promote the well-being of the society.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 18 8.7 9.6 9.6

2 9 4.3 4.8 14.4

3 32 15.4 17.1 31.6

4 58 27.9 31.0 62.6

5 70 33.7 37.4 100.0

Total 187 89.9 100.0

Missing System 21 10.1

Total 208 100.0

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129

COMN_8 Our company encourages employees to participate in

voluntary activities.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 9 4.3 4.8 4.8

2 15 7.2 8.0 12.8

3 24 11.5 12.8 25.7

4 43 20.7 23.0 48.7

5 96 46.2 51.3 100.0

Total 187 89.9 100.0

Missing System 21 10.1

Total 208 100.0

COMN_9 Our company makes sufficient monetary contributions to

charities.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 16 7.7 8.6 8.6

2 18 8.7 9.6 18.2

3 45 21.6 24.1 42.2

4 47 22.6 25.1 67.4

5 61 29.3 32.6 100.0

Total 187 89.9 100.0

Missing System 21 10.1

Total 208 100.0

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COMN_10 Our company contributes to schools, hospitals, and parks

according to the needs of the society.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 19 9.1 10.2 10.2

2 14 6.7 7.5 17.6

3 47 22.6 25.1 42.8

4 52 25.0 27.8 70.6

5 55 26.4 29.4 100.0

Total 187 89.9 100.0

Missing System 21 10.1

Total 208 100.0

Respondents were asked following questions for the PRESOR variable. Below are the

frequencies for each question.

PRESOR_1 Corporate planning and goal setting sessions should

include discussions of ethics and social responsibility.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 2 1.0 1.1 1.1

2 9 4.3 4.7 5.8

3 13 6.3 6.8 12.6

4 65 31.3 34.2 46.8

5 101 48.6 53.2 100.0

Total 190 91.3 100.0

Missing System 18 8.7

Total 208 100.0

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PRESOR_2 Efficiency is much more important to a firm than whether

or not the firm is seen as ethical or socially responsible.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 43 20.7 22.6 22.6

2 65 31.3 34.2 56.8

3 30 14.4 15.8 72.6

4 42 20.2 22.1 94.7

5 10 4.8 5.3 100.0

Total 190 91.3 100.0

Missing System 18 8.7

Total 208 100.0

PRESOR_3 Being ethical and socially responsible is the most

important thing a firm can do.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 7 3.4 3.7 3.7

2 39 18.8 20.5 24.2

3 38 18.3 20.0 44.2

4 71 34.1 37.4 81.6

5 35 16.8 18.4 100.0

Total 190 91.3 100.0

Missing System 18 8.7

Total 208 100.0

Page 144: Employee Perceptions of Organizational Corporate

132

PRESOR_4 The most important concern for a firm is making a profit,

even if it means bending or breaking the rules.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 100 48.1 52.6 52.6

2 57 27.4 30.0 82.6

3 18 8.7 9.5 92.1

4 10 4.8 5.3 97.4

5 5 2.4 2.6 100.0

Total 190 91.3 100.0

Missing System 18 8.7

Total 208 100.0

PRESOR_5 Social responsibility and profitability can be compatible.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 4 1.9 2.1 2.1

2 5 2.4 2.6 4.7

3 9 4.3 4.7 9.5

4 37 17.8 19.5 28.9

5 135 64.9 71.1 100.0

Total 190 91.3 100.0

Missing System 18 8.7

Total 208 100.0

Page 145: Employee Perceptions of Organizational Corporate

133

PRESOR 6 Business has a social responsibility beyond making a

profit.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 4 1.9 2.1 2.1

2 8 3.8 4.2 6.3

3 13 6.3 6.9 13.2

4 71 34.1 37.6 50.8

5 93 44.7 49.2 100.0

Total 189 90.9 100.0

Missing System 19 9.1

Total 208 100.0

PRESOR 7 If the stockholders are unhappy, nothing else matters.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 43 20.7 22.8 22.8

2 91 43.8 48.1 70.9

3 27 13.0 14.3 85.2

4 22 10.6 11.6 96.8

5 6 2.9 3.2 100.0

Total 189 90.9 100.0

Missing System 19 9.1

Total 208 100.0

Page 146: Employee Perceptions of Organizational Corporate

134

PRESOR 8 While output quality is essential to corporate success,

ethics and social responsibility are not.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 87 41.8 46.3 46.3

2 67 32.2 35.6 81.9

3 19 9.1 10.1 92.0

4 13 6.3 6.9 98.9

5 2 1.0 1.1 100.0

Total 188 90.4 100.0

Missing System 20 9.6

Total 208 100.0

PRESOR 9 Business ethics and social responsibility are critical to the

survival of a business enterprise.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 3 1.4 1.6 1.6

2 18 8.7 9.6 11.2

3 15 7.2 8.0 19.1

4 73 35.1 38.8 58.0

5 79 38.0 42.0 100.0

Total 188 90.4 100.0

Missing System 20 9.6

Total 208 100.0

Page 147: Employee Perceptions of Organizational Corporate

135

PRESOR 10 The overall effectiveness of a business can be

determined to a great extent by the degree to which it is ethical and

socially responsible.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 7 3.4 3.7 3.7

2 27 13.0 14.4 18.1

3 46 22.1 24.5 42.6

4 75 36.1 39.9 82.4

5 33 15.9 17.6 100.0

Total 188 90.4 100.0

Missing System 20 9.6

Total 208 100.0

Respondents were asked following questions for the COMMT variable. Below are the

frequencies for each question.

COMMT 1 I am willing to put in a great deal of effort beyond that

normally expected in order to help this organization be successful.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 2 1.0 1.0 1.0

2 6 2.9 3.1 4.1

3 9 4.3 4.6 8.8

4 63 30.3 32.5 41.2

5 114 54.8 58.8 100.0

Total 194 93.3 100.0

Missing System 14 6.7

Total 208 100.0

Page 148: Employee Perceptions of Organizational Corporate

136

COMMT 2 I talk up this organization to my friends as a great

organization to work for.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 2 1.0 1.0 1.0

2 10 4.8 5.2 6.2

3 30 14.4 15.5 21.6

4 76 36.5 39.2 60.8

5 76 36.5 39.2 100.0

Total 194 93.3 100.0

Missing System 14 6.7

Total 208 100.0

COMMT 3 I feel very little loyalty to this organization. (R)

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 89 42.8 45.9 45.9

2 41 19.7 21.1 67.0

3 24 11.5 12.4 79.4

4 27 13.0 13.9 93.3

5 13 6.3 6.7 100.0

Total 194 93.3 100.0

Missing System 14 6.7

Total 208 100.0

Page 149: Employee Perceptions of Organizational Corporate

137

COMMT 4 I would accept almost any type of job assignment in order

to keep working for this organization.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 41 19.7 21.1 21.1

2 40 19.2 20.6 41.8

3 38 18.3 19.6 61.3

4 51 24.5 26.3 87.6

5 24 11.5 12.4 100.0

Total 194 93.3 100.0

Missing System 14 6.7

Total 208 100.0

COMMT 5 I find that my values and the organization’s values are

very similar.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 3 1.4 1.6 1.6

2 12 5.8 6.3 7.8

3 22 10.6 11.5 19.3

4 77 37.0 40.1 59.4

5 78 37.5 40.6 100.0

Total 192 92.3 100.0

Missing System 16 7.7

Total 208 100.0

Page 150: Employee Perceptions of Organizational Corporate

138

COMMT 6 I am proud to tell others that I am part of this

organization.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 1 .5 .5 .5

2 7 3.4 3.6 4.2

3 19 9.1 9.9 14.1

4 62 29.8 32.3 46.4

5 103 49.5 53.6 100.0

Total 192 92.3 100.0

Missing System 16 7.7

Total 208 100.0

COMMT 7 I could just as well be working for a different organization

as long as the type of work was similar. (R)

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 22 10.6 11.5 11.5

2 39 18.8 20.3 31.8

3 40 19.2 20.8 52.6

4 57 27.4 29.7 82.3

5 34 16.3 17.7 100.0

Total 192 92.3 100.0

Missing System 16 7.7

Total 208 100.0

Page 151: Employee Perceptions of Organizational Corporate

139

COMMT 8 It would take very little change in my present

circumstances to cause me to leave this organization. (R)

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 59 28.4 30.7 30.7

2 77 37.0 40.1 70.8

3 25 12.0 13.0 83.9

4 19 9.1 9.9 93.8

5 12 5.8 6.3 100.0

Total 192 92.3 100.0

Missing System 16 7.7

Total 208 100.0

COMMT 9 I am extremely glad that I chose this organization to work

for over others I was considering at the time I joined.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 2 1.0 1.0 1.0

2 9 4.3 4.7 5.7

3 22 10.6 11.5 17.2

4 64 30.8 33.3 50.5

5 95 45.7 49.5 100.0

Total 192 92.3 100.0

Missing System 16 7.7

Total 208 100.0

Page 152: Employee Perceptions of Organizational Corporate

140

COMMT 10 For me this is the best of all possible organizations for

which to work.

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 9 4.3 4.7 4.7

2 33 15.9 17.3 22.0

3 38 18.3 19.9 41.9

4 67 32.2 35.1 77.0

5 44 21.2 23.0 100.0

Total 191 91.8 100.0

Missing System 17 8.2

Total 208 100.0

COMMT 11 Deciding to work for this organization was a definite

mistake on my part. (R)

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 133 63.9 69.6 69.6

2 31 14.9 16.2 85.9

3 14 6.7 7.3 93.2

4 11 5.3 5.8 99.0

5 2 1.0 1.0 100.0

Total 191 91.8 100.0

Missing System 17 8.2

Total 208 100.0

Page 153: Employee Perceptions of Organizational Corporate

141

COMMT 12 I do not feel like ‘part of the family’ at my organization

(R)

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 78 37.5 40.8 40.8

2 60 28.8 31.4 72.3

3 28 13.5 14.7 86.9

4 16 7.7 8.4 95.3

5 9 4.3 4.7 100.0

Total 191 91.8 100.0

Missing System 17 8.2

Total 208 100.0

COMMT 13 This organization has a great deal of personal meaning

for me

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 6 2.9 3.1 3.1

2 23 11.1 12.0 15.2

3 48 23.1 25.1 40.3

4 56 26.9 29.3 69.6

5 58 27.9 30.4 100.0

Total 191 91.8 100.0

Missing System 17 8.2

Total 208 100.0

Page 154: Employee Perceptions of Organizational Corporate

142

COMMT 14. I do not feel emotionally attached to this organization.

(R)

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 64 30.8 33.5 33.5

2 51 24.5 26.7 60.2

3 30 14.4 15.7 75.9

4 32 15.4 16.8 92.7

5 14 6.7 7.3 100.0

Total 191 91.8 100.0

Missing System 17 8.2

Total 208 100.0

Page 155: Employee Perceptions of Organizational Corporate

143

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Curriculum Vitae

Lisa R. Davis

Skilled, focus-driven and highly competent graduate enrollment management professional with more than

ten years’ experience with a strong record of achievement in higher education in the areas of recruitment,

external relations, enrollment, advisement, and program management. Core competencies include:

Promoter of Continuous Improvement • Collaborative Approach to Work

Program Planning Expertise • Administration • Marketing • Public Relations

PROFESSIONAL EXPERIENCE

Associate Director, MBA Programs 2014 – Present

University of Nevada, Las Vegas, Lee Business School

Collaborate with the MBA Director with MBA and graduate certificate programs and related

initiatives.

Compile MBA program statistics for National Surveys

Oversee day to day operations of the MBA and dual MBA programs, supervise staff and student

workers.

Serve as advisor for MBA student association. Create activities to engage MBA students and

alumni.

Advise prospective and current MBA students, conduct MBA recruitment activities, marketing

and outreach and social media.

Outreach to MBA alumni.

Planning and travel with the MBA International Seminar.

Assistant Director. MBA Programs 2012 – 2014

University of Nevada, Las Vegas, Lee Business School

Assist MBA Director with MBA Program and initiatives

• Compile MBA program statistics for National Surveys

• Oversee day to day operations of the MBA and dual MBA programs

• Advise MBA students and work with students on career opportunities

Assistant Director, MBA Operations University of Nevada, Las Vegas, Lee Business School 2010 – 2012

Program management of the Executive MBA Program

Coordinate international trips for MBA and Executive MBA Programs

Compile MBA and Executive MBA program statistics for National Surveys

Oversee day to day operations of the MBA and EMBA programs

Liaison between Executive MBA students and other campus offices

March 2011-present, advise MBA students and work with students on career opportunities

MBA Recruitment Director University of Nevada, Las Vegas, Lee Business School 2000 - 2010

Responsible for coordination of recruitment strategies, advertising, and activities

Duties include devising and implementing strategies to recruit MBA graduate students with a

focus on recruiting academically talented and diverse domestic and international students

Coordinate the development, design, and maintenance of recruiting materials and develop,

coordinate and present at information sessions and other recruitment events

e: [email protected]

Las Vegas, Nevada 89103

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Represent the MBA programs at recruitment events; help maintain prospect communication, as

well as draft, edit and distribute communications; oversee two staff positions

Coordinate recruitment events for MBA and Executive MBA, current student events, and

Executive MBA summer student and alumni events

Program management of Executive MBA 2009-2010

Coordinate International trip for Executive MBA 2009-2010

Compile MBA program statistics for Business Week and Princeton Review

Grant Coordinator 1998-2010

University of Nevada, Las Vegas and Southwest Gas Cooperative, Energy Education

Responsible for maintaining grant account and writing yearly proposal for funding

Coordinate and teach three Energy Education courses each year for the Clark County School

District

Coordinate Energy Carnival for Southwest Gas’ focus school. Part-time position

Senior Advisor 1999-2000

University of Nevada, Las Vegas, College of Business

Assistant dean’s designee for handling Student Services in the College

- Supervise Advising, Records and Registration functions, and four full-time staff

- Responsible for the College’s scholarship program, college admissions, recruitment,

orientation, and student grievances. Advised students half time

- Responsible for the implementation of student database tracking system and advising web

site

Advisor University of Nevada, Las Vegas, College of Business 1998-1999

Provide academic advising for undergraduate students

Advise students regarding class schedules and major requirements

Provide information regarding university and college rules and regulations

Complete eligibility forms for athletes, veterans and financial aid

Conduct recruitment activities and new student orientation

Created and maintain the Advising Center WebPages

Graduate Assistant 1997-1998

University of Nevada, Las Vegas, College of Business

Provide academic advising for undergraduate students

Audit student’s files, perform general office and phone duties, and participate in the DARS pilot

program

Project Coordinator 1996-1998

University of Nevada, Las Vegas, Environmental Studies Program

Environmental Studies Cooperative Education Center

Program manager for the Innovations in Reuse for Education program

Included grant writing, budgeting, supervising work-study workers and program logistics

Maintain two grant award accounts

EDUCATION

University of Nevada, Las Vegas (UNLV)

Ph.D. Candidate, Workforce and development and Organizational Behavior

Anticipated Graduation, December 2018

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Master of Business Administration, 1999

Bachelor of Arts, Environmental Studies, 1997

- Emphasis in Energy/Environmental Education

- Academic Thesis - Innovations in Reuse,1996

- An overview of existing reuse centers in the United States and a feasibility study of a

reuse center in the Las Vegas community

- Funded by the Nevada Department of Environmental Protection for startup

- Community Impact-Public Education Foundation created the Teacher Exchange in Las

Vegas.

- Received Channel 13 Community service Recognition Award, November 1996

PROFESSIONAL AND VOLUNTEER ACTIVITIES

UNLV Sustainability Council, Co-Chair, 2015-2017

UNLV Administrative Faculty Committee (AFC), Elected Position representing the Law

- Business and Hotel College, 2014 - Present

Registered Student Organization Advisor, UNLV MBA Student Association, 2013-present

Registered Student Organization Advisor, Golden Key Honor Society, 2016-present

National Association of Graduate Admission Professionals (NAGAP) - Experts Bureau, 2015-present

- Membership Committee 2010-2012

- Board Member, External Relations Chair 2008-2010

- Board Member, 2008 Annual Conference Chair, 2007-2008

- Conference Committee Member, 2005-2007

Super Summer Theatre - Emeritus Board Member, 2016 - Present

- Board Member, Publicity Chair 2008-2016

- General Board Member 2007-2008

- Volunteer 1999-2007

American Marketing Association, Board Member, VP Administration, 2006-2008

AWARDS & RECOGNITION

My Vegas Magazine, Top 100 Women of Influence, 2018

UNLV Lee Business School, Administrative Faculty of the Year, 2015

UNLV, Graduate Academic Advisor Award, 2014