MEDIATING EFFECT OF CORPORATE REPUTATION ON THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND ORGANIZATIONAL COMMITMENT

Year 2022, Volume: 9 Issue: 2, 101 - 114, 20.10.2022

Aliye Gündoğdu , Harun Şeşen

https://doi.org/10.18394/iid.1114769

Abstract

A strong reputation gives companies an advantage in a challenging competitive environment and contributes to sustainable success. The signals emitted about activities involving social and environmental awareness strengthen the company's reputation. Another factor that increases the reputation is the employees affiliated with the organization. Based on this, this research aims to investigate the mediating role of corporate reputation in the relationship between corporate social responsibility and organizational commitment. The data were obtained from 162 employees of a privately-owned bank operating in the Turkish Republic of Northern Cyprus. Developed hypotheses were tested by running a structural equation model with AMOS software. The findings show that the bank's reputation and organizational commitment of its employees are positively affected by the signals related to corporate social responsibility activities. The relationship between corporate social responsibility and organizational commitment is mediated by corporate reputation. It contributes to the literature by evaluating the perception of corporate social responsibility from employees’ perspective within the scope of stakeholder theory and understanding the relationship between corporate social responsibility - organizational commitment and the mediation effect of corporate reputation in this relationship by using signal theory.

Keywords

Corporate Social Responsibility, Corporate Reputation, Organizational Commitment

Kurumsal Sosyal Sorumluluk ve Örgütsel Bağlılık İlişkisinde Kurumsal İtibarın Aracılık Etkisi

Abstract

Güçlü bir itibar zorlu rekabet ortamında firmalara avantaj sağlamakta ve sürdürülebilir başarıyı yakalamasına katkıda bulunmaktadır. Sosyal ve çevresel duyarlılık içeren faaliyetlerle ilgili olarak yayılan sinyaller, firmanın itibarını güçlendirmektedir. İtibarı artıran bir diğer unsur ise örgüte bağlı çalışanlardır. Bundan hareketle araştırmamızın amacı, kurumsal sosyal sorumluluk-örgütsel bağlılık ilişkisinde kurumsal itibarın aracılık rolünün araştırılmasıdır. Veriler, Kuzey Kıbrıs Türk Cumhuriyeti’nde faaliyet gösteren özel sermayeli bir bankanın 162 çalışanından oluşan bir örneklemden elde edilmiştir. Geliştirilen hipotezler, AMOS yazılımı ile bir yapısal eşitlik modeli çalıştırılarak test edilmiştir. Bulgular, bankanın kurumsal sosyal sorumluluk faaliyetlerine ilişkin sinyallerle, itibarının ve çalışanlarının örgütsel bağlılıklarının olumlu yönde etkilendiğini ve kurumsal sosyal sorumluluk ile örgütsel bağlılık arasındaki ilişkiye kurumsal itibarın aracılık ettiğini göstermektedir. Kurumsal Sosyal Sorumluluk algısı paydaş teorisi kapsamında çalışanların perspektifinden değerlendirilmekle ve Kurumsal Sosyal Sorumluluk - Örgütsel Bağlılık ilişkisi ile bu ilişkide kurumsal itibarın arabuluculuk etkisinin sinyal teorisinden yararlanılarak anlaşılması yönleri ile literatüre katkı sağlamaktadır.

Keywords

Kurumsal Sosyal Sorumluluk, Kurumsal İtibar, Örgütsel Bağlılık

References

• Adeosun, L. P. K., and Rahim Ajao Ganiyu (2013). Corporate reputation as a strategic asset. International Journal of Business and Social Science, 4(2):220–25.
• Aguilera-Caracuel, J., & Guerrero-Villegas, J. (2017). How corporate social responsibility helps mnes to ımprove their reputation. the moderating effects of geographical diversification and operating ın developing regions: MNEs’ CSR and corporate reputation. Corporate Social Responsibility and Environmental Management, 25(4):355–72. doi: 10.1002/csr.1465.
• Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63(1):1–18. doi: 10.1111/j.2044-8325.1990.tb00506.x.
• Alsop, R. (2004). The 18 immutable laws of corporate reputation: creating, protecting, and repairing your most valuable asset. New York: Free Press.
• Angle, H. L., & James L. P. (1983). Organizational commitment: Individual and organizational ınfluences. Work and Occupations, 10(2):123–46. doi: 10.1177/0730888483010002001.
• Asrar-ul-Haq, M., Kuchinke, K. P. & Iqbal, A., (2017). The relationship between corporate social responsibility, job satisfaction, and organizational commitment: Case of Pakistani higher education. Journal of Cleaner Production, 142:2352–63. doi: 10.1016/j.jclepro.2016.11.040.
• Barnett, M. L., Jermier, J. M., & Lafferty, B. A. (2006). Corporate reputation: The definitional landscape. Corporate Reputation Review, 9(1):26–38. doi: 10.1057/palgrave.crr.1550012.
• Bhatti, M. H., Bhatti, M. H., Akram, M. U., Hashim, M. & Akram, Z. (2016). Relationship between job stress and organizational commitment: An empirical study of banking sector. E3 Journal of Business Management and Economics, 7(1):029–037. doi: 10.18685/EJBME(7)1_EJBME-15-013.
• Bouraoui, K., Bensemmane, S., & Ohana, M. (2020). Corporate social responsibility and employees’ affective commitment: A moderated mediation study. Sustainability, 12(5833):1–12. doi: 10.3390/su12145833.
• Bouraoui, K., Bensemmane, S., Ohana, M., & Russo, M. (2019). Corporate social responsibility and employees’ affective commitment: A multiple mediation model. Management Decision, 57(1):152–67. doi: 10.1108/MD-10-2017-1015.
• Brammer, S. J., & Pavelin, S. (2006). Corporate reputation and social performance: The importance of fit. Journal of Management Studies, 43(3):435–55. doi: 10.1111/j.1467-6486.2006.00597.x.
• Brammer, S., Millington, A., & Rayton, B. (2007). The contribution of corporate social responsibility to organizational commitment. The International Journal of Human Resource Management, 18(10):1701–19. doi: 10.1080/09585190701570866.
• Bunting, M., & Lipski, R. (2001). Drowned out? Rethinking corporate reputation management for the internet. Journal of Communication Management, 5(2):170–78. doi: 10.1108/13632540110806758.
• Burke, L., & Logsdon, J. M. (1996). How corporate social responsibility pays off. Long Range Planning, 29(4):495–502. doi: 10.1016/0024-6301(96)00041-6.
• Byrne, B.M. (2016). Structural Equation Modeling with Amos: Basic Concepts, Applications, and Programming, Third Edition. New York: Routledge.
• Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. The Academy of Management Review, 4(4):497. doi: 10.2307/257850.
• Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders’. Business Horizons, 34(4):39–48. doi: 10.1016/0007-6813(91)90005-G.
• Cheung, G. W. & Wang, C., (2017). Current approaches for assessing convergent and discriminant validity with SEM: Issues and solutions. Academy of Management Proceedings, 2017(1):12706. doi: 10.5465/AMBPP.2017.12706abstract.
• Connelly, B. L., Certo, S. T., Ireland, R.D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1):39–67. doi: 10.1177/0149206310388419.
• Cravens, K. S., & Oliver, E. G. (2006). Employees: The Key link to corporate reputation management. Business Horizons, 49(4):293–302. doi: 10.1016/j.bushor.2005.10.006.
• Dell’Atti, S., & Trotta, A., (Eds.) (2016). Managing reputation in the banking ındustry - theory and practice. Cham: Springer International Publishing.
• Dell’Atti, S., Trotta, A., Iannuzzi, A.P., & Demaria, F. (2017). Corporate social responsibility engagement as a determinant of bank reputation: An empirical analysis: CSR engagement as a determinant of bank reputation. Corporate Social Responsibility and Environmental Management, 24(6):589–605. doi: 10.1002/csr.1430.
• Farooq, O., Payaud, M., Merunka, D. & Valette-Florence, P. (2014). The impact of corporate social responsibility on organizational commitment: Exploring multiple mediation mechanisms. Journal of Business Ethics, 125(4):563–80. doi: 10.1007/s10551-013-1928-3.
• Finegan, J. E. (2000). The impact of person and organizational values on organizational commitment. Journal of Occupational and Organizational Psychology, 73:149–69.
• Fombrun, C. (1996). Reputation: Realizing value from the corporate image. Boston: Harvard Business School Press.
• Fombrun, C. J., Gardberg, N.A. & Sever, J.M. (2000). The reputation QuotientSM: A multi-stakeholder measure of corporate reputation. Journal of Brand Management, 7: 241–255.
• Fombrun, C., & Shanley, M. (1990). What’s in a name? Reputation building and corporate strategy. Academy of Management Journal, 33(2):233–258. doi: 10.5465/256324.
• Freeman, R. E., & Dmytriyev, S. (2017). Corporate social responsibility and stakeholder theory: Learning from each other. Symphonya Emerging Issues in Management, 1:7–15. doi: 10.4468/2017.1.02freeman.dmytriyev.
• González-Rodríguez, M. R, Martín-Samper, R.C., Köseoglu, M.A. & Okumus, F. (2019). Hotels’ corporate social responsibility practices, organizational culture, firm reputation, and performance. Journal of Sustainable Tourism, 27(3):398–419. doi: 10.1080/09669582.2019.1585441.
• Grover, P., Kar, A. K. & Ilavarasan, P. V. (2019). Impact of corporate social responsibility on reputation—ınsights from tweets on sustainable development goals by CEOs’. International Journal of Information Management, 48:39–52. doi: 10.1016/j.ijinfomgt.2019.01.009.
• Hair J.F., Hult G.T.M., Ringle C., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks: Sage Publications.
• He, H., & Harris, L. (2020). The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy. Journal of Business Research, 116:176–82. doi: 10.1016/j.jbusres.2020.05.030.
• Hayes, A.F. (2017) Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach. New York, NY: Guilford Press.
• Javed, M., Rashid, M. A., Hussain, G. & Ali, H. Y. (2020). The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadership. Corporate Social Responsibility and Environmental Management, 27(3):1395–1409. doi: 10.1002/csr.1892.
• Kim, S. (2019). The process model of corporate social responsibility (CSR) Communication: CSR communication and ıts relationship with consumers’ CSR knowledge, trust, and corporate reputation perception’. Journal of Business Ethics, 154:1143–59. doi: 10.1007/s10551-017-3433-6.
• Meydan, C. H. & Şeşen, H. (2011). Yapısal Eşitlik Modellemesi AMOS Uygulamaları. Ankara: Detay Yayıncılık.
• Meyer, J. P., Paunonen, S. V., Gellatly, I. R., Goffin, R. D. & Jackson, D. N. (1989). Organizational commitment and job performance ıt’s the nature of the commitment that counts. Journal of Applied Psychology, 74(1):152–56.
• Mowday, R. T., Steers, R. M. & Porter, L. W. (1979). The measurement of organizational commitment. Journal of Vocational Bhavior, 14:224–247.
• Nguyen, T. H., & Tu, V. B. (2020). Social responsibility, organizational commitment, and organizational performance: Food processing enterprises in the Mekong River Delta. The Journal of Asian Finance, Economics and Business, 7(2):309–16. doi: 10.13106/JAFEB.2020.VOL7.NO2.309.
• Nguyen, T. T.H., Pham, T. T. H., Le, Q. B., Pham, T. T. H., Bui, T. V. A. & Nguyen, T.Q.A. (2020). Impact of corporate social responsibility on organizational commitment through organizational trust and organizational identification. Management Science Letters, 10:3453–62. doi: 10.5267/j.msl.2020.5.032.
• Park, E. (2019). Corporate social responsibility as a determinant of corporate reputation in the airline industry. Journal of Retailing and Consumer Services, 47:215–21. doi: 10.1016/j.jretconser.2018.11.013.
• Ramos, C. M. Q., & Casado-Molina, A-M. (2021). Online corporate reputation: A panel data approach and a reputation index proposal applied to the banking sector. Journal of Business Research, 122:121–30. doi: 10.1016/j.jbusres.2020.08.061.
• Shirin, A. & Kleyn, N. (2017). An evaluation of the effects of corporate reputation on employee engagement: The case of a major bank in South Africa. International Studies of Management & Organization, 47(3):276–92. doi: 10.1080/00208825.2017.1318023.
• Singh, K., & Misra, M. (2021). Linking corporate social responsibility (CSR) and organizational performance: The moderating effect of corporate reputation. European Research on Management and Business Economics, 27(100139):1–10. doi: 10.1016/j.iedeen.2020.100139.
• Steers, R. M. (1977). Antecedents and outcomes of organizational commitment. Administrative Science Quarterly, 22(1):46–56. doi: 10.2307/2391745.
• Tabachnick, B.G. & Fidell, L.S. (2013). Using multivariate statistics. Boston: Pearson Education, Inc.
• Tai, F-M., & Chuang, S-H. (2014). Corporate social responsibility. IBusiness, 06(03):117–130. doi: 10.4236/ib.2014.63013.
• Tangngisalu, J., Mappamiring, M., Andayani, W., Yusuf, M. & Putra, A. H. P.K. (2020). CSR and firm reputation from employee perspective. The Journal of Asian Finance, Economics and Business, 7(10):171–82. doi: 10.13106/JAFEB.2020.VOL7.NO10.171.
• Wiedmann, K-P. (2017). Future research directions based on a critical assessment of reputation management ın practice: A German perspective. Corporate Reputation Review, 20(3–4):217–23. doi: 10.1057/s41299-017-0028-1.
• Zabala, I., Panadero, G., Gallardo, L.M., Amate, C.M., Sánchez-Galindo, M., Tena, I. & Villalba, I. (2005). Corporate reputation in professional services firms: Reputation management based on intellectual capital management. Corporate Reputation Review, 8(1):59–71. doi: 10.1057/palgrave.crr.1540239.