Although CSR research in China has received increasing scholarly attention, employee-centered CSR is still an understudied topic. To fill the void, the purpose of this study is to demonstrate the effects of employees’ CSR perceptions on the quality of employee-organization relationships and workplace performance, as well as the underlying mechanisms explaining such effects, in the Chinese context. Guided by both managerial and relational approaches of corporate social responsibility research, we conducted a survey with employees from a large private company in (...) the electric and energy industry in China. Data were analyzed via path analysis using R packages and results revealed that CSR perceptions can lead to positive employee-organization relationship quality and increase employees’ extra-role performance. We also found that these effects can be further explained by increased employee-organization identification or perceived corporate ability. In addition, a qualitative analysis of employees’ responses showed that the influence of government and Confucianism was reflected in employees’ expectations for their employer’s CSR initiatives. This study contributes to the scant research on employee outcomes and the underlying mechanisms of employee-centered CSR in China. Practically, we add empirical evidence addressing the value of internal CSR for professionals and educators. (shrink)

A product harm crisis undermines a firm’s reputation as well as its managers’ career outlook. To shake off the stigmatization resulting from the PHC and regain a firm’s legitimacy among stakeholders, managers usually face an ethical dilemma as they choose to be transparent about the crisis’ financial implications or to obfuscate them to neutralize the negative impact of the PHC. We find evidence that managers engage in income-increasing earnings management when their firms experience PHCs. Moreover, while income-increasing earnings management in (...) PHCs reduces the likelihood of customer loss and CEO forced turnover in the short run, such behavior can be deemed opportunistic and unethical as it carries long-run negative consequences in terms of a higher likelihood of accounting restatement and weaker future operating performance. Finally, managers in firms that are subject to stricter external monitoring and managers in firms with proactive ethical policies are less likely to engage in upward earnings management in PHCs. (shrink)

We conduct an experiment with 459 nonprofessional investors to examine whether they evaluate companies differently based on management’s stated purpose for undertaking corporate social responsibility activities in the presence versus absence of a company-specific negative event. Specifically, we vary whether or not management intends to achieve financial returns from CSR activities in addition to promoting social good. We address investors’ decision processes by investigating whether their judgments are mediated by perceptions of future cash flows and/or the underlying ethical culture of (...) the company. Results show that absent a negative event, investment judgments are stronger when CSR activities are intended to achieve financial returns, through expectations of higher future cash flows. However, when a negative event occurs, we find a moderating effect of independent assurance of CSR disclosures. When disclosures are not assured, investors prefer CSR undertaken only for societal benefit, mediated by perceptions of a stronger ethical culture. However, when disclosures are assured, ethical culture is viewed similarly regardless of management’s intention to achieve financial returns from CSR activities. This suggests that management’s willingness to obtain independent assurance on disclosures is viewed as a positive ethical signal. Thus, assurance complements disclosure of CSR activities by contributing to protection against the impact of negative events. (shrink)

This research examines how one’s construal level of a crisis differs by crisis type, and how the interplay of crisis type and apology appeal type impacts the effectiveness of apology messages in a corporate crisis context. Findings indicate that one’s mental construal toward a crisis varies by crisis type, with a self-threatening crisis leading to a lower level of construal than a society-threatening one. Findings further suggest that in a society-threatening crisis condition, an informational apology was more effective than an (...) emotional one. However, in a self-threatening crisis condition, there was no significant difference between two different message types. These findings offer valuable guidelines for developing effective crisis response strategy. (shrink)

Despite widespread discussion of the impact of corporate social responsibility activities on consumer perceptions, little research has examined how consumers cope with CSR-based crisis response messages as a bolstering strategy. To fill this gap, we propose a framework integrating situational crisis communication theory with the persuasion knowledge model, applying the model to an experiment with a 2 × 2 × 2 between-subjects factorial design. In Study 1, we found interaction effects between CSR motives and crisis type on word-of-mouth intention and (...) purchase intention. In addition, inferences about CSR motives interacted with perceptions about CSR history on purchase intention. In Study 2, we replicated study 1 and found that crisis responsibility mediated the main effect of crisis type on behavioral intentions, but neither the main effect of CSR motives and CSR history nor the interactions effects among those variables were mediated by crisis responsibility. Our results indicate that consumer inferences from a company’s CSR-based crisis communications play a significant role in increasing consumer behavioral intentions in two situations: when a crisis is accidental and when a CSR history is short. Ethical and theoretical implications are discussed. (shrink)