Corporate Social Responsibility Practice: A Micro-Level Framework for Examining Predictors, Mediating Processes, and Outcomes

Abstract

This research aims to understand the corporate social responsibility (CSR) practice in an institutionalised CSR environment and explore relationships between predictors, mediating processes, and outcomes at the individual (micro) level of analysis. To achieve the first research objective, a micro-level research framework was formulated. Subsequently, a qualitative research design was employed, utilizing an interpretive inductive approach for analysing interview data. Interviews were conducted with twenty CSR heads from respected Indian organizations. The analysis of data aimed to scrutinize CSR practices within an institutionalized CSR context and unravel the interrelationships between various predictors, intermediary processes, and outcomes at the individual level, thereby fulfilling the remaining three research objectives. Findings highlight that the implementation of CSR is intricate, often subject to varying interpretations, resulting in unclear and unsystematic practices. At the institutional level, legal mandates and ingrained Indian ethos emerge as pivotal predictors of CSR practices in India. At the individual level, positive CSR perceptions among employees and alignment between individual and organizational values emerge as influential predictors of outcomes pertinent to individuals. Moreover, the research unveils that these predictors are channelled through processes such as employees’ organizational identification, the meaningfulness they perceive in their work, and the perceived organizational support (POS) they receive. These processes culminate in outcomes such as organizational commitment, employee engagement, job satisfaction, and organizational citizenship behaviour (OCB). Furthermore, the findings introduce an additional intermediary process: the relationship between happiness and outcomes specifically enhanced productivity and reduced employee turnover. In conclusion, this thesis yields both theoretical and practical implications for the benefit of academia, policymakers, and organizations. From a theoretical perspective, the research enriches our comprehension of how CSR initiatives operate within organizational frameworks. It elucidates individual-level predictors that hold the potential to influence outcomes that are of individual significance, especially in the presence of individual-level mediating processes. Practically, the research findings underscore the necessity for policy reforms aimed at quantifying the impact of social activities. It further advocates the establishment of a central authority to oversee and ensure the effective execution of CSR activities at the grassroots level. Furthermore, the research suggests that organizations should channel resources into enhancing ethical training for their employees. By promoting a greater awareness of their roles and responsibilities, employees can better align with the ethical underpinnings of CSR initiatives, thus fostering the endurance of positive outcomes stemming from CSR practices.