David A. Jones SEMBA Co-Director Grossman School of Business University of Vermont TRANSFORMING TODAY S BUSINESS - CREATING TOMORROW S VENTURES

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1 Corporate Social Responsibility (CSR), Viewed from Within: A Review of Micro-CSR Research on Job Seeker Attraction, Employee Responses, & Leadership Practices David A. Jones SEMBA Co-Director Grossman School of Business University of Vermont David A. Jones 2016

2 Glavas: Contribution of Micro to CSR Literature S L I D E 2

3 1. CSR & Employee Recruitment CSR Effects & Operationalizing CSR A Signal-Based Model of CSR-Recruitment A C-S-R Concerns Framework: Mediators & Moderators 2. CSR & Employee Responses CSR Measurement: A Summary & Critique Effects of External CSR on Employee Outcomes A C-S-R Concerns Framework: Mediators & Moderators 3. CSR & Leadership Practices Presentation Overview S L I D E 3

4 1. CSR & Employee Recruitment S L I D E 4

5 CSR & Employee Recruitment CSR Effects on Job Seeker Attraction Literature reviews show that people tend to be more attracted to employers known for CSR, which (presumably) enhances selection system utility Jones, D. A., & Willness, C. R. (2013). Corporate social performance, organizational reputation, and recruitment. In K. Y. T. Yu & D. Cable (Eds.), The Oxford Handbook of Recruitment (pp ). New York, NY: Oxford University Press. Willness, C. R., & Jones, D. A. (2013). Corporate environmental sustainability and employee recruitment: Leveraging green business practices to attract talent. In A. H. Huffman & S. R. Klein (Eds.), Green Organizations: Driving Change with I-O Psychology (pp ). New York, NY: Routledge Academic. Jones & Rupp (in press) reviewed the effects of External CSR Jones, D. A., & Rupp, D. E. (in press). Social responsibility in and of organizations: The psychology of corporate social responsibility among organizational members. In N. Anderson, D. S. Ones, H. K. Sinangil, & C. Viswesvaran (Eds.), Handbook of Industrial, Work, and Organizational Psychology, 2 nd Edition. Sage. S L I D E 5

6 Research on External CSR & Job Seeker Attraction CSR Operationalization Study and Type of External CSR Activity Note. Superscripted numbers describe the stakeholder focus in the operationalization of external CSR: 1=environment, 2=community, 3= social responsibility, 4=1+2, 5= 1+3, 6=2+3+Internal CSR, 7=customers. Each superscript reflects a significant mean difference, correlation, or regression-based effect, except * = non-significant,! = p of.08, and ± = mixed findings. Source: Jones & Rupp, in press (updated) S L I D E 6

7 Research on External CSR & Job Seeker Attraction CSR Operationalization Experimental Manipulation Study and Type of External CSR Activity Aiman-Smith et al., ; Backhaus et al., ,2 ; Bauer & Aiman-Smith, ; Behrend et al., ; Greening & Turban, 2000, Pilot 1,2±,Main Study 1 ; Gully et al., ; Jones et al., 2014, Study 1 1,2 ; Jones et al., ,2 ; Kim & Parke, ; Tsai & Yang, 2010, Study 2 4,7 Note. Superscripted numbers describe the stakeholder focus in the operationalization of external CSR: 1=environment, 2=community, 3= social responsibility, 4=1+2, 5= 1+3, 6=2+3+Internal CSR, 7=customers. Each superscript reflects a significant mean difference, correlation, or regression-based effect, except * = non-significant,! = p of.08, and ± = mixed findings. Source: Jones & Rupp, in press (updated) S L I D E 7

8 Research on External CSR & Job Seeker Attraction CSR Operationalization Study and Type of External CSR Activity Objective/Independent Measure Jones et al., 2014, Study 2 (coded recruitment materials) 1,2 ; Luce et al., 2001 (KLD ratings) 2 ; Schmidt-Albinger & Freeman, 2000 (expert ratings) 2! ; Turban & Greening, 1997 (KLD ratings) 1*,2± Note. Superscripted numbers describe the stakeholder focus in the operationalization of external CSR: 1=environment, 2=community, 3= social responsibility, 4=1+2, 5= 1+3, 6=2+3+Internal CSR, 7=customers. Each superscript reflects a significant mean difference, correlation, or regression-based effect, except * = non-significant,! = p of.08, and ± = mixed findings. Source: Jones & Rupp, in press (updated) S L I D E 8

9 Research on External CSR & Job Seeker Attraction CSR Operationalization Study and Type of External CSR Activity Participant Perception Jones et al., 2014, Study 2 1,2 ; Lin et al., ; Rupp et al., 2013, Study 1 4 ; Sen et al., ; Tsai & Yang, 2010, Study 1 4,7 ; Tsai et al., Note. Superscripted numbers describe the stakeholder focus in the operationalization of external CSR: 1=environment, 2=community, 3= social responsibility, 4=1+2, 5= 1+3, 6=2+3+Internal CSR, 7=customers. Each superscript reflects a significant mean difference, correlation, or regression-based effect, except * = non-significant,! = p of.08, and ± = mixed findings. Source: Jones & Rupp, in press (updated) S L I D E 9

10 A Signal-Based Model of CSR Recruitment

11 A Signal-Based Model of CSR Recruitment Employer s Specific Values Perceived Value Fit Perceived CSR Employer s Prosocial Orientation Expected Treatment Attraction & Job Choice Employer s Prestige Anticipated Pride Jones, D. A., Willness, C. R., & Madey, S. (2014). Why are job seekers attracted by corporate social performance? Experimental and field tests of three signal-based mechanisms. Academy of Management Journal, 57, Signals Inferences

12 A C-S-R Concerns Framework Jones & Rupp (in press) organized mediators & moderators of the effects of external CSR on job seeker & employee responses within 3 broad categories: 1. Care-Based Concerns 2. Self-Based Concerns 3. Relational-Based Concerns These 3 categories map onto several theories of CSR, including: Multiple Needs Model of CSR (Rupp et al., 2006) Multiple Motives Model of CSR (Aguilera et al., 2007) Attributed Motives for CSR (Vlachos et al., 2010) Employee Engagement in CSR (Mirvis, 2012) and S L I D E 12

13 A Signal-Based Model of CSR Recruitment Employer s Specific Values Perceived Value Fit Perceived CSR Employer s Prosocial Orientation Care-Based Concerns Expected Treatment Self-Based Concerns Attraction & Job Choice Employer s Prestige Anticipated Pride Jones, D. A., Willness, C. R., & Madey, S. (2014). Why are job seekers attracted by corporate social performance? Experimental and field tests of three signal-based mechanisms. Academy of Management Journal, 57, Signals Inferences Relational-Based Concerns

14 Mediators & Moderators: External CSR & Attraction C-S-R Concerns Mediating Mechanisms Moderating Variables Source: Jones & Rupp, in press (updated) S L I D E 14

15 Mediators & Moderators: External CSR & Attraction C-S-R Concerns Mediating Mechanisms Moderating Variables Care-based Concerns Perceived Value Fit (Jones et al., 2014, Study 1 & 2; Jones et al., 2016) Person-Organization Fit (Gully et al., 2013; Kim & Parke, 2011) Environmental Values (Jones et al., 2014, Study 1; Tsai & Yang, 2010, Study 2) Communal Orientation (Jones et al., 2014, Study 1) Moral Identity (Rupp et al., 2013, Study 1) Socio-Environmental Consciousness (Tsai et al., 2014) (continued next slide) Source: Jones & Rupp, in press (updated) S L I D E 15

16 Mediators & Moderators: External CSR & Attraction C-S-R Concerns Self-based Concerns Mediating Mechanisms Expected Treatment (Jones et al., 2014, Study 1 & 2; Jones et al., 2016) Moderating Variables Distributive Justice (Rupp et al., 2013, Study 1) Desire for Impact at Work (Gully et al., 2013) Note. This table comprises empirically supported mediators and moderators reported in located research on relationships between external CSR and variables pertaining to job seeker attraction (e.g., organizational attractiveness, job pursuit intent). Source: Jones & Rupp, in press (updated) S L I D E 16

17 Mediators & Moderators: External CSR & Attraction C-S-R Concerns Mediating Mechanisms Moderating Variables Relationalbased Concerns Anticipated Pride (Jones et al., 2014, Study 1) Employer Prestige (Behrend et al., 2009; Jones et al., 2014, Study 2) Familiarity with Employer (Luce et al., 2001) Note. This table comprises all empirically supported mediators and moderators reported in located research on relationships between external CSR and variables pertaining to job seeker attraction (e.g., organizational attractiveness, job pursuit intent). Source: Jones & Rupp, in press (updated) S L I D E 17

18 CSR & Recruitment: Future Directions Moderators Reflecting Relational-Based Concerns? Need to Express & Need to Impress (Highhouse et al., 2007) Other Mediating Mechanisms? Jones et al. (2016): Signals from CSR about the employer s values Inferences about the nature of the company s employees Signals from CSR about the employer s prosocial orientation Inferences about the work environment Signals from CSR about financial standing Inferences, + & -, about the firm s growth & survival, & the resulting opportunities & challenges that creates S L I D E 18

19 CSP Perception Formation CSR & Recruitment: Future Directions From what sources do job seekers obtain information about a firm s CSR? Ill-informed impressions, consumer-directed ads, CSR rankings & media, recruiters, websites Effects on Applicant Pool Quality Are prosocial applicants better applicants? Do they accept lower pay? Differentiation via CSP How well does CSP differentiate an employer from its competitors, relative to other characteristics? S L I D E 19

20 2. CSR & Employee Responses S L I D E 20

21 CSR Measurement: A Summary & Critique CSR & Employee Responses Almost all studies of employee responses test the effects of employees perceptions or beliefs pertaining to their employer s CSR practices In many studies, the type of CSR practices that drive an observed effect is quite clear, given the content of the CSR measures used: Perceptions of a specific CSR dimension, such as community involvement (e.g., Kim et al., 2010) or environmental practices (e.g., De Roeck & Delobbe, 2012) Perceptions of separately measured CSR dimensions (e.g., Farooq et al., 2014b; Newman et al., 2014) Attitudes toward a CSR practice, like a volunteerism program (e.g., Jones, 2010) S L I D E 21

22 CSR Measurement: A Summary & Critique CSR & Employee Responses In other studies, the CSR practices that drive an observed effect is less clear In an often cited study (Carmeli et al., 2007), perceived social responsibility and development was measured via 4 items about the employer s performance relative to competitor: 1. Quality of products, services or programmes 2. Development of new products, services or programmes 3. Ability to retain essential employees 4. Relations between management and other employees S L I D E 22

23 CSR Measurement: A Summary & Critique CSR & Employee Responses In other studies, the CSR practices that drive an observed effect is less clear (continued) Some studies tap a broader CSR construct domain by using composite measures comprising multiple CSR dimensions (e.g., Ali et al., 2010; El Akremi et al., 2015; Glavas & Kelly, 2014; Hansen, et al., 2011; Zhang et al., 2014) S L I D E 23

24 Multidimensional CSR Measures: Turker (2009) Turker analyzed each dimension separately, but others have combined them into composite measures (e.g., Ali et al., 2010) Government Perceived CSR CSR to Society Farook et al. s (2014a) data suggests this comprises two distinct dimensions: Environment & Community Customers Employees Turker, D. (2009). Measuring corporate social responsibility: A scale development study. Journal of Business Ethics, 85(4), S L I D E 24

25 Multidimensional CSR Measures: El Akremi et al. (2015) Community Shareholders Suppliers Higher Order Perceived CStR Natural Environment Customers Employees El Akremi, A., Gond, J. P., Swaen, V., De Roeck, K., & Igalens, J. (2015). How do employees perceive corporate responsibility? Development and validation of a multidimensional corporate stakeholder responsibility scale. Journal of Management, published online before print. S L I D E 25

26 CSR Measurement: A Summary & Critique CSR & Employee Responses Notwithstanding the strengths of composite measures of CSR, their use potentially obscures differential dimension-level effects Consider Farooq et al. s (2014a) findings about the effects of 4 CSR dimensions on organizational identification: Employee-related CSR exerted the strongest effect Followed by community-related, & then consumer-related CSR Environmental-related CSR had no effect S L I D E 26

27 CSR & Employee Responses CSR Measurement: A Summary & Critique To advance our understanding of employee responses to CSR, we should avoid confounding findings about topics we already know much about (i.e., employee responses to employee treatment) with findings about topics we are just starting to explore (i.e., employee responses to external CSR) Thus, researchers who use composite CSR measures should consider presenting findings after removing the influence of internal CSR practices The following review focuses on employee responses to External CSR S L I D E 27

28 Effects of External CSR on Employee Outcomes Employee Outcomes Study and Measurement of External CSR Source: Jones & Rupp, in press (updated) S L I D E 28

29 Effects of External CSR on Employee Outcomes Employee Outcomes Organizational Identification Employer Prestige Pride from Affiliation Self-Integrity Study and Measurement of External CSR De Roeck & Delobbe, ; De Roeck et al., ; Farooq et al., in 2014a 1,2*,3 ; Farooq et al., in 2014b 1,3 ; Jones, ; Kim et al., ; Larson et al., De Roeck & Delobbe, ; Kim et al., Jones, Brockner et al., Source: Jones & Rupp, in press (updated) S L I D E 29

30 Effects of External CSR on Employee Outcomes Employee Outcomes Study and Measurement of External CSR Organizational Trust Organizational Cynicism Overall Justice De Roeck & Delobbe, ; Farooq et al., 2014b 1,3 ; Hansen et al., 2011, Study 1 8,2 8 ; Lin, ; Vlachos et al., ,12 Evans, Goodman, & Davis, De Roeck et al., (continued next slide) Source: Jones & Rupp, in press (updated) S L I D E 30

31 Effects of External CSR on Employee Outcomes Employee Outcomes Study and Measurement of External CSR Affective Commitment Brammer et al., ; Brockner et al., ; De Gilder et al., ; Farooq et al., 2014b 1,3 ; Hoffman & Newman, ,4 ; Kim et al., ; Mueller et al., ; Peterson, ; Rego et al *± ; Stites & Michael, ,2 ; Turker, ,4*,7 Source: Jones & Rupp, in press (updated) S L I D E 31

32 Effects of External CSR on Employee Outcomes Employee Outcomes Study and Measurement of External CSR Job Satisfaction/Attitude De Gilder et al., ; De Roeck et al., ; Valentine & Fleischman, Source: Jones & Rupp, in press (updated) S L I D E 32

33 Effects of External CSR on Employee Outcomes Employee Outcomes Study and Measurement of External CSR Intentions to Stay/Leave De Gilder et al., * ; Jones, ; Hansen et al., 2001, Study 1 8,2 8 ; Vlachos et al., ,12* Source: Jones & Rupp, in press (updated) S L I D E 33

34 Effects of External CSR on Employee Outcomes Employee Outcomes Study and Measurement of External CSR In-Role Performance Selling Confidence Engagement Source: Jones & Rupp, in press (updated) Jones, * ; Larson et al., ; Newman et al., , 3*, 4* Larson et al., Lin, (continued next slide) S L I D E 34

35 Effects of External CSR on Employee Outcomes Employee Outcomes Knowledge Sharing Study and Measurement of External CSR Farooq et al., 2014a 1,2*,3 ± Citizenship Behavior Toward the Organization Toward Coworkers External Promotion Mixed/Five Dimensions Hansen et al., 2001, Study 2 8 ; Jones, ; Newman et al., , 3*, 4* ; Rupp et al., 2013, Study 2 7 Jones, Jones, ; Vlachos et al., ,12 De Gilder et al., ; Lin et al., *± Note. Superscripted numbers describe the stakeholder focus or initiative involved in the measure of employees perceived external CSR: 1 = community, 2 = environment, 3 = consumers, 4 = government, 5 = mostly external stakeholders, 6 = discretionary citizenship (Maignan & Ferrell, 2000: 4/8 community, 1/8 environment, 3/8 internal CSR), 7 = external CSR items from 6, 8 = external & internal CSR, 9 = attitudes about employer s volunteerism program, 10 = 3 measures about employer s volunteerism program (perceived employer support for employee volunteerism, volunteer frequency, and employees values-based motives to volunteer), 11 = attributed values motives for community partnership, 12 = attributed profit motives for community partnership, 13 = construed customer attitudes to a cause campaign. Each superscript reflects a statistically significant hypothesized/expected effect, except * = non-significant and ± = mixed findings. Source: Jones & Rupp, in press (updated) S L I D E 35

36 Mediators & Moderators: Effects of External CSR on Employee Outcomes C-S-R Concerns Mediating Mechanisms Moderating Variables Source: Jones & Rupp, in press (updated) S L I D E 36

37 Mediators & Moderators: Effects of External CSR on Employee Outcomes C-S-R Concerns Mediating Mechanisms Moderating Variables Care-based Concerns Self-Integrity (Brockner et al., 2014) Moral Identity (Rupp et al., 2013, Study 2) Humane Orientation (Mueller et al., 2012) Source: Jones & Rupp, in press (updated) S L I D E 37

38 Mediators & Moderators: Effects of External CSR on Employee Outcomes C-S-R Concerns Mediating Mechanisms Moderating Variables Self-based Concerns Organizational Trust (Farooq et al., 2014b; Hansen et al., 2001, Study 1,2; Lin, 2010; Vlachos et al., 2010) Selling Confidence (Larson et al., 2008) Overall Justice (De Roeck et al., 2014) Exchange Ideology (Jones, 2010) Distributive Justice (Rupp et al., 2013, Study 2) Power Distance (Mueller et al., 2012) Future Orientation (Mueller et al., 2012) Source: Jones & Rupp, in press (updated) (continued next slide) S L I D E 38

39 Mediators & Moderators: Effects of External CSR on Employee Outcomes C-S-R Concerns Relationalbased Concerns Mediating Mechanisms Organizational Identification (Farooq et al., 2014a; Farooq et al., 2014b) Organizational Pride Identification (Jones, 2010) Employer Prestige (& Employee Involvement) Identification (Kim et al., 2010) Employer Prestige Trust (De Roeck & Delobbe, 2012) Moderating Variables Importance of CSR to Firm Success (Turker, 2009) Collectivism (Farooq et al., 2014a) In-group Collectivism (Mueller et al., 2012) Institutional Collectivism (Mueller et al., 2012) Note. This table comprises all empirically supported mediators and moderators reported in located research on relationships between external CSR and employee job attitudes and work behaviors. Source: Jones & Rupp, in press (updated) S L I D E 39

40 CSR & Employee Responses: Future Directions Other Mediators & Moderators? Desire to find meaning through work (Glavas, 2016; Glavas & Kelley, 2014) Mediator: Extent CSR is perceived to be meaningful Moderator: Calling Orientation A Deeper Dive into Self vs. Other Treatment See Bridoux et al. (2016), & Rupp et al. (2013) S L I D E 40

41 CSR & Employee Responses: Future Directions The CSR Communication Dilemma How should firms communicate their CSR to employees (& job seekers)? Owned Media (e.g., website, PR) vs. Earned Media (e.g., employee testimonial via social media, 3 rd party awards & endorsements) Attributed Motives Do the reasons why firms engage in CSR matter to employees (& job seekers)? Source Credibility & Backfire Effects How does the source of CSR info affect employee (& job seeker) perceptions? Jones et al. (2016): Some were cynical & skeptical about external CSR info S L I D E 41

42 3. CSR & Leadership Practices S L I D E 42

43 CSR & Leadership Practices Researchers have considered various CSR-leadership topics, including: How & why companies and leaders engage in CSR (e.g., Jackson, 2012; Schmit et al., 2012) Sense-making processes among leaders and others in a CSR contexts (e.g., Basu & Palazzo, 2008; Hahn et al., 2014; Sonenshein et al., 2014). How leaders can use CSR to enhance leader-member exchange (Mallory & Rupp, in press) S L I D E 43

44 Employee Involvement in CSR Practices CSR & Leadership Practices Employee involvement builds internal capacity to engage in environmental practices, & it can contribute to the organization s image as a green employer of choice (Jackson et al., 2011) Kim et al. (2010) found that employee involvement in community service initiatives had direct effects on their organizational identification, independent of their perceptions of the employer s prestige Brockner et al. (2014) likewise found that greater participation in employee volunteering was associated with affective commitment S L I D E 44

45 Transformational Leadership, & Leader Communication CSR & Leadership Practices Researchers have emphasized the importance of leader communication about how their vision & values pertain to their CSR strategies & practices (e.g., Agle et al., 1999; Bansal, 2003; Waldman et al., 2006) Leaders who communicate norms & model behaviors can foster employees environmental passion & greener work behaviors (Robertson & Barling, 2013) Pichel (2003) reported that leader communication created a culture that provided strategic meaning to a firm s CSR practices, thereby encouraging employee engagement in those CSR practices S L I D E 45

46 CSR & Leadership Practices Transformational Leadership, & Leader Communication (continued) Ramus and Steger (2000) found that when managers conveyed the importance of environmental protection & were perceived as being more supportive of it, employees demonstrated greater intrinsic motivation & generated more ideas to help their employer s greening efforts & environmental initiatives Top management s support for sustainability initiatives is a critical ingredient in the creation of a sustainability culture (Berry, 2004) Managers can highlight the importance and value of employees green behaviors by providing recognition, rewards, or incentives for eco-innovation (e.g., Milliman & Clair, 1996; Starik & Rands, 1995) S L I D E 46

47 CSR & Leadership Practices Transformational Leadership, & Leader Communication (continued) Vlachos et al. (2010) highlighted the need for leaders to communicate their values-based and strategic motives for CSR Vlachos et al. (2014) demonstrated cascading effects of managers' CSR judgments on employees CSR judgments Middle managers using a directive leadership style act as linking pins in the CSR strategy implementation process (see also Du et al., 2013) S L I D E 47