Alternative Pathways through Which Employee's CSR Perceptions Influence Turnover Intention

Abstract

CSR literature, examining how employees’ organizational identification is influenced by organization’s CSR activities, have less considered different types of CSR and alternative mediation mechanisms of identification process . This study was aimed to investigate how perceived external CSR (initiatives for the welfare of external stakeholders) and perceived internal CSR (initiatives for the betterment of internal stakeholders i.e. workforce) affect employees’ organizational identification and how organizational identification rooted from these different pathways eventually affects employee’s turnover intention. We have considered social identity theory for analyzing these two different mechanisms by which external and internal CSR affect employee organizational identification. Our sample size was 300 and we received 211 useable responses from employees of banking sector. Data was analyzed using AMOS software. Hypotheses were tested using SEM. We found that CSR activities that are aimed for the welfare of external stakeholders (community and environment sub-facet of external CSR) boost perceived external prestige while CSR activities for employee well-being were found to have significant effect on perceived internal respect, both of which ,consequently, affected employees’ organizational identification. We further found that Organizational Identification from these two different roots have negative indirect effect on employee’s turnover intention.