The hidden benefits of CSR: Corporate philanthropy begets giving of employees

Firms frequently engage in Corporate Social Responsibility (CSR) and encourage employees to follow their example. We explore the effects of different forms of environmental CSR on workers’ personal pro-environmental behavior in the form of a donation to an environmental charity. In three field experiments (N=2365, N=1156, and N=1462) in an online labor market, we find that environmental corporate philanthropy has a positive impact on workers’ personal pro-environmental behavior. In contrast, CSR that involves directly contributing to environmental sustainability through one’s work shows only directionally positive effects on personal donations. The effect of corporate philanthropy appears to extend across domains, as non-environmental corporate philanthropy also increases personal donations to environmental causes. Normative framing plays an important role, as even verbal expressions of support for environmental causes can influence employee behavior. Yet, CSR actions without normative framing (beyond mentioning the recipient charity) also have an effect. Taken together, the results suggest that both firm behavior and its normative framing can serve as social information that shapes employee behavior and that CSR initiatives can have hidden benefits. Charities cooperating with firms on their philanthropic mission may therefore stand to gain from an increase in overall contributions.