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Perceived CSR and Corporate Reputation: The Mediating Role of Employee Trust

Author

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  • Rama Shankar Yadav
  • Sanket Sunand Dash
  • Shreyashi Chakraborty
  • Manoj Kumar

Abstract

Executive Summary This research article focuses on the importance of corporate social responsibility (CSR) in building corporate reputation of an organization. Scholars have studied CSR as an antecedent of corporate reputation, but the underlying mechanism of this process has been rarely explored. In order to fill this research gap, authors conducted an empirical study on 210 employees working in an automobile organization in India. The conceptual framework based on comprehensive literature review hypothesized that the perceived CSR of an organization may lead to trust development among the employees which in turn may lead to building of corporate reputation of the organization. The model was tested and all the hypotheses were accepted. Hence, it may be inferred that perceived CSR of an organization may develop a sense of trust among employees of an organization and in turn leading to the building of corporate reputation. The study has several implications for managers and scholars. The findings give a clear understanding that CSR activities of any organization can lead to trust development among employees at the same time they may aid in enhancing the corporate reputation of an organization. Hence, we suggest that in order to gain maximum benefits from CSR, managers should ensure that all the employees are aware of their firm’s CSR activities. Further, managers should adopt CSR activities that have high salience among current or potential employees so that its benefits are positively impacting its stakeholders and the firm. Such CSR activities can include investments in institutions where training is imparted to the organization’s workforce; organizing social welfare activities in areas close to the company’s location. The study also has future research implications for researchers working in the area of CSR. Scholars can explore other mediating variables which may explain the underlying mechanism between CSR and corporate reputation. The study can also be replicated in other sectors in order to enhance the generalizability of the findings.

Suggested Citation

  • Rama Shankar Yadav & Sanket Sunand Dash & Shreyashi Chakraborty & Manoj Kumar, 2018. "Perceived CSR and Corporate Reputation: The Mediating Role of Employee Trust," Vikalpa: The Journal for Decision Makers, , vol. 43(3), pages 139-151, September.
    • Handle: RePEc:sae:vikjou:v:43:y:2018:i:3:p:139-151
    DOI: 10.1177/0256090918794823
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    References listed on IDEAS

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    2. Thurasamy Ramayah & Mohammad Falahat & Pedro Soto‐Acosta, 2022. "Effects of corporate social responsibility on employee commitment and corporate reputation: Evidence from a transitional economy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2006-2015, November.
    3. Manabe, Tomonori & Nakagawa, Kei, 2022. "The value of reputation capital during the COVID-19 crisis: Evidence from Japan," Finance Research Letters, Elsevier, vol. 46(PA).
    4. Sajjad A. Afridi & Bilal Afsar & Asad Shahjehan & Wajid Khan & Zia U. Rehman & Muhammad A. S. Khan, 2023. "Impact of corporate social responsibility attributions on employee's extra‐role behaviors: Moderating role of ethical corporate identity and interpersonal trust," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 991-1004, March.
    5. Hongqing He & Yameng Zhang & Yaqi Ding, 2022. "When Does CSR Fail to Incentive Employees’ Affective Organizational Commitment? Exploring the Moderating Effects Based on the C-S-R Concerns Model," Sustainability, MDPI, vol. 14(13), pages 1-20, July.
    6. Huijin Cheng & Hao Ding, 2020. "Incentive Decision for Supply Chain with Corporate Social Responsibility and Lag Effect," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    7. Souad Hassanie & Georgiana Karadas & Okechukwu Lawrence Emeagwali, 2021. "Do CSR Perceptions Influence Work Outcomes in the Health Care Sector? The Mediating Role of Organizational Identification and Employee Attachment," Sustainability, MDPI, vol. 13(17), pages 1-16, September.
    8. Arelys López‐Concepción & Ana I. Gil‐Lacruz & Isabel Saz‐Gil, 2022. "Stakeholder engagement, Csr development and Sdgs compliance: A systematic review from 2015 to 2021," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(1), pages 19-31, January.
    9. Dimple Dhiman & Himani Sharma, 2021. "Does Organizational Trust Mediate the CSR–OCB Relationship? A PLS-SEM Analysis," Vikalpa: The Journal for Decision Makers, , vol. 46(4), pages 223-235, December.

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