Ethical dilemmas arise when one must decide between conflicting ethical imperatives. One potential ethical dilemma is a manager’s decision of whether to engage in corporate social responsibility activities. This decision could pit the ethical imperative of honoring unwritten obligations to society against the ethical imperative of honoring contractual obligations to the firm. However, CSR activities might only be a minor ethical dilemma or none at all if they simultaneously benefit the firm and society. To examine this I test the association (...) between future-period employee productivity and current-period use of one type of CSR activity: employee volunteer programs. I use a unique sample of 1428 firm-years, hand-collected from sustainability reports of 373 firms. I find evidence that the current-period use of an employee volunteer program has a positive association with future-period employee productivity. I find this result in future periods up to 6 years after a firm uses an employee volunteer program. I also find a positive association between incentives that focus CEOs’ attention on long-term firm outcomes and more extensive employee volunteer programs. (shrink)

The purpose of the study is to investigate whether internal and external institutional environmental conditions play a role in the institutionalization of strategic commitment to corporate social responsibility (CSR) among Indian firms in the wake of the mandatory CSR norms or not (where the firms of certain size and profitability are mandated to spend on CSR). The study examines the fixed effects regression on balanced panel data collected from the annual reports and Prowess database of Bombay Stock Exchange-listed firms. Our (...) results show that both internal and external institutional environments play a major role in diffusing a strategic commitment to CSR among firms. Furthermore, we find that firms indulge in frequency, outcome, and trait-based imitations while learning from peer firms to attain legitimacy from their stakeholders. Overall, our findings show that vicarious learning through imitation plays an important role in making firms truly committed to CSR instead of just donating money or greenwashing. To the best of our knowledge, our study is among the pioneering attempts to look at the impact of both internal and external environments on institutionalizing CSR commitment among firms in India. (shrink)

This editorial outlines the articles included in the special thematic symposium on corporate social responsibility and employees and highlights their contributions to the literature. In doing so, it highlights the novel theoretical and empirical insights provided by the articles, how the articles inform and expand the methods and research designs researchers can use to study phenomena in this area, and identifies promising directions for future research.

The corporate ethics literature has considerably focused on whether giving results in getting. However, the relationship between corporate philanthropy and performance and the underlying mechanisms remain unclear. Drawing on signaling and cue consistency theories, we develop and test a model that specifies whether, how, and when corporate philanthropy benefits relative competitive performance from a micro-process perspective. Using a Chinese sample of 1623 employees, 145 CEOs, and 145 human resources managers, we found that corporate philanthropy could positively influence relative competitive performance (...) through the internal processes—organization-level citizenship behaviors of employees. Moreover, work–life balance practices strengthen the aforementioned mediation. In particular, when a firm performs high levels of work–life balance practices, corporate philanthropy tends to promote more citizenship behaviors in the entire organization, thereby enhancing the relative competitive performance of the firm. By contrast, when organizations perform low levels of work–life balance practices, the aforementioned mediation becomes nonsignificant. The theoretical and practical implications of these findings are discussed. (shrink)

The micro-level corporate social responsibility (CSR) literature has broadly demonstrated the effects of CSR on employees’ behavior but has mostly been limited to employees’ behavior within the work domain. This business-centered focus overlooks the potential of organizations to change employees’ private social and environmental behavior and thus to address grand societal challenges. Based on the social psychology literature on moral consistency and moral balancing, we conduct three experiments to investigate whether employees’ private prosocial behavior is consistent with their organization’s corporate (...) social (ir)responsibility or whether employees aim to balance their private prosocial behavior, e.g., by compensating for their organization’s CSR activities with a reduced willingness to contribute outside the work domain. Our results provide support for a consistency effect such that employers’ environmental CSR activities increase employees’ donations and willingness to volunteer outside work. Environmental corporate social irresponsibility activities, on the contrary, reduce employees’ private donations and willingness to volunteer. We further find that the positive effects of environmental CSR are partly explained by the strengthening of employees’ environmental self-identity. Our findings highlight that organizational activities have consequences for employees’ moral behavior outside the work domain and thus have important implications for research and practice. (shrink)