CSR perceptions and employee behaviour: Evidence from Bangladesh

Abstract

The influence of CSR on organisations’ consumers has been studied extensively. However, there is a lack of studies investigating the impact of employee CSR perceptions on their behaviour. Moreover, most of these studies have been conducted in the setting of developed economies, mainly in Western business contexts. Considering this two-fold lacuna, this study analyses to what extent CSR strategies applied by multinational organisations that operate in a non-Western context, influence their employees’ behaviour. Results of a study of 204 employees working in MNOs in Bangladesh reveal that perceived CSR association along with perceived prestige increase organisational identification. Here, employee CSR perceptions are used as an antecedent of perceived prestige and organisational identification. Organisational identification, in turn, affects employees’ organisational commitment, which subsequently influences job satisfaction. By integrating social identity theory and social exchange theory, this study shows a potential link between social identification and social exchange processes. In the case of CSR, exchange relationships improve when employees have identified themselves with the organisation. We also argue that CSR can enable MNOs to strengthen their relationships with employees.