Corporate Social Responsibility (CSR) impact on Employees Behavior at International academy-Amman in Jordan
Dana Hamzouq, , Mohammad Farajat ,Omar Abu Arqoub
Abstract: This study investigates the impact of Corporate Social Responsibility (CSR) on Employees Behavior in Jordan through exploring how CSR Behavior affects Organization Citizenship Behavior (OCB), Employees Turnover and Productivity.
Method: This research is exploratory, qualitative in nature, the technique for gathering data through In-depth, semi-structured interviews with ten employees, each interview was moderated by one of the authors of this paper.
Results: the study show many (CSR) activities and organizational Organization Citizenship Behavior (OCB), Employees Turnover and Productivity at International academy-Amman, Jordan
Conclusion: the study show a positive relationship between (CSR) activities and organizational Organization Citizenship Behavior (OCB), Employees Turnover and Productivity at International academy-Amman,Jordan
Keywords: corporate social responsibility, Organization Citizenship Behavior, Employees Turnover, Productivity
This study investigates the linkage between Corporate Social Responsibility (CSR) and Employees Behavior in Jordan through exploring how CSR Behavior affects Organization Citizenship Behavior (OCB), Employees Turnover and Productivity.
Corporate Social Responsibility (CSR) refers to operating a business in a way that accounts for the Social and Environmental impact created by business, not many studies explored relationship between Corporate Social Responsibility (CSR) Citizenship Behavior (OCB), Employees Turnover and Productivity in Jordan .
The term CSR has indeed been defined in various methods from the slim economic perspective of growing shareholder wealth (Friedman, 1962), to economic, legal, ethical and discretionary strands of responsibility (Carroll, 1979) to good corporate citizenship (Hemphill, 2004). Corporate social responsibility (CSR) is an increasing number of considered as an critical factor of company-stage approach because of evolving demands and pressures from numerous stakeholder groups (Jones, 2010).
Among a number of advantages arising from being socially responsible, one important argument for addressing CSR is its “business case”, in some other phrase, the linkage among CSR and corporate competitiveness (Porter and Kramer, 2006). For CSR to be widely wide-spread by means of a business individual , it need to be framed in this type of a way that the complete variety of business responsibilities is embraced. It is suggested by (Carroll, 1991) that four kinds of social responsibilities constitute total CSR as economic, legal, ethical, and philanthropic. Furthermore, these four categories or components of CSR might be depicted as a pyramid. The pyramid of CRS is depicted in Figure 1 (Carroll,1991)
Figure 1:carroll\'s CSR pyramid
The pyramid of CRS depicts the four components of CSR, starting with the fundamental building block notion which is economic performance. It is the foundation upon which all others rest and it shows to be profitable. At the equal time, business is predicted to obey the law because the law is society\'s codification of acceptable and unacceptable behavior. Next is business\' responsibility to be ethical. At its maximum essential level, this is the obligation to do what is right, just, and honest, and to keep away from or limit damage to stakeholders (employees, consumers, the environment, and others). subsequently, business is expected to be a good corporate citizen. This is captured in the philanthropic responsibility, wherein business is anticipated to contribute financial and human resources to the community and to improve the quality of life (Carroll, 1991). Stated in extra pragmatic and managerial terms, (Carroll, 1999) summarized the CSR firm should strive to make a profit, obey the law, be ethical and be a good corporate citizen.
The aim of This study investigates the impact of Corporate Social Responsibility (CSR) on Employees Behavior in Jordan through exploring how CSR Behavior affects Organization Citizenship Behavior (OCB), Employees Turnover and Productivity at International academy-Amman, Jordan.
A study in United States, (Aimee Dars Ellis,2008 ) displays employee perceptions of a firm\'s CSR regulations might be positively associated with perceived organizational assist. CSR perceptions had three dimensions: awareness of CSR rules, the match of CSR rules with the organization, and the motivation of the organization to have interaction in CSR. The wonderful courting between employees' perceived CSR related to Personal social actions PSA become now not supported. None of the scale of CSR perceptions— awareness, fit, or motivation—became a large predictor of PSA
In study in Ghana,( Emmanuel Ocran , 2011)Corporate social responsibility has a enormous impact at the profitability of MNCs, and it is a superb effect, which includes desirable commercial enterprise courting, right will amongst other blessings. Despite the fact that the advantages from CSR are over a long term of.
In study in Pakistan ,( Hassan Ali Khan ,2014) examine a terrible courting between CSR and employees; turnover intentions and a advantageous courting among CSR and OCB.
Another study in United States ,( S. Duane Hansen , 2011 ) realize that employees' react implicitly to their perceptions of the CSR activities in their employers. particularly, employees' who perceived their organization to be greater socially responsible have been much less
CSR & Organization Citizenship Behavior (OCB)
Organizational Citizenship Behavior is a personal and volunteer behavior that is not mentioned without delay in official rewards system of an organization. However, it contributes to effectiveness and efficiency in an organization (Salavati et. al., 2011).
OCB can be examined with five dimensions consisting of Altruism, Conscientiousness, Sportsmanship, Courtesy and Civic Virtue. Corporate engagement with society, also termed corporate social responsibility (CSR), refers to one process by which an organization expresses and develops its “corporate culture” and social consciousness (Rupp et. al., 2006).
Successful organizations need employees who will do more than their usual job duties and provide performance that is beyond expectations. Organizational Citizenship Behaviors (OCB) describes actions in which employees are willing to go above and beyond their prescribed role requirements (Ahmadi, 2010).
Examples of these efforts include cooperation with peers, performing extra duties without complaint, punctuality, volunteering and helping others, using time efficiently, conserving resource, sharing ideas and positively representing the organization (Ahmadi, 2010).
The relationship between CSR and OCB and the influence of CSR activities of firms on employees have not been investigated a lot in the related literature. However, a recent global survey of 1,122 corporate executives suggests CEOs perceived that businesses benefit from CSR because it increases attractiveness to capacity and existing employees (Economist, 2008).
CSR & Employee Retention
Employee retention can be defined as “the effort by an employer to keep desirable workers in order to meet business objectives” (Frank et al, 2004). Turnover, on the other hand, is most often used to describe the unplanned loss of workers who voluntarily leave and whom employers would prefer to keep.
(Waldman and Arora, 2004) argue \"retention rate is not simply the inverse of turnover Retention rate measures what is wanted rather than what is undesirable”.
By translating the general principles of CSR into business practices, by developing better measures of CSR, and by empowering and engaging employees, businesses are more likely to embrace CSR so that it penetrates all business activities.
In a study on more than 2,000 employees of a large, profitable organization in the United States, results show that a firm's CSR activity indeed appears to increase employee trust in the firm and that this trust then leads to employee behaviors (decreased turnover intentions and increased OCB) and is capable of increasing the firm's performance on bottom line (Hansen, 2010).
consequently, it can be proposed that the perception of CSR increases employees' feelings of oneness with and belonging to the organization, thus reducing their intentions to leave the organization.
CSR &Staff Productivity:
Employees are critical stakeholders who create demand for CSR. One way an organization can respond to these demands is to create an employee volunteerism program, which refers to any program or system intended to encourage employees to carry out community service. Employees may also experience higher levels of organizational pride if they believe that outsiders view the company more favorably as a result of its volunteerism program. Research has proven that employees identify with their organization more strongly when they believe that other people view it as prestigious that a firm's reputation and prestige is related to its social welfare activities (Jones, 2010).
Researches on employee behavior and corporate social responsibility have suggested use of CSR to build strong employee bond with corporations and to achieve better employee and organizational performance., Turker (2009) argues that the internal firm environment, i.e. as determined by CSR measures, provides opportunities to fulfill high order employee needs such as esteem or self-actualization, which in turn also positively influences identification and hence staff productivity. Ashforth and Mael (1989) argue that for those individuals who identify with an organization, leaving it would create some kind of psychological loss.
This research is exploratory ,qualitative in nature, the technique for gathering data through In-depth, semi-structured interviews with ten employees , All participants received a study information sheet before signing a consent form , Interviews were arranged at a time and place that was convenient for the employee , each Interview which was audio recorded was moderated by two of the authors of this paper, then the data were analyzed thematically.
The original questions were written in English and translated into Arabic (the main language of the participants), these questions are :
1.How do the International academy-Amman participate in CSR?
2.How you aware of the fact that your academy has participated in program CSR?
3.How Does the involvement of the company make you think better of the company?”
4.What Do you think your academy should do for more such activities? In which areas?
5. Explain how do the (CSR) activities in the academy reducing your intentions to leave the academy?
6. Explain how do the (CSR) activities increase your (OCB) behavior like work than the academy\'s required, help other college with their work?
7. do the (CSR) activities influences you to display extra work efforts towards the academy?
RESULTS AND DISCUSSION::
The correlation between CSR and OCB, Staff Retention, Staff Productivity was investigated through In-depth, semi-structured interviews from different departments working at IAA.
The discussion was centered on the CSR activities implemented at IAA and it became evident that a strong linkage is found between CSR and the values which the organization prophesizes. All CSR practices that IAA follows have enhanced citizenship and a sense of belonging and this has created a feeling of gratitude among staff. Among the examples mentioned was the Health Insurance program that covers above and beyond the basic necessities as it also covers all members of the family; this reflects IAA genuine concern for its staff. IAA takes the initiative far beyond the provision of the insurance; it supports members emotionally by visiting the family of the ill member as well as providing child care, when needed.
IAA's focus on the environment and recycling has triggered a feeling of citizenship, not only on campus, but throughout the community. The installation of Solar panels to reduce electricity consumption and assisted with water heating have built a sense of awareness and responsibility individually and collectively. This was further strengthened with the provision of regular workshops that talk about the methods each member can practice to help the environment. Recycling is another practice that has become a part of the community. All materials used on campus today, is recycled when possible. This has made staff much more wary of their responsibility towards their community as well as setting a positive example to students and families.
As far as the retention of staff goes, Management have worked tirelessly to ensure staff satisfaction is achieved. This has been done through conducting regular surveys and questionnaires. Staff retention figures have seen a sharp increase in recent years and that has been primarily due to the accreditation the school was granted by three of the world's leading bodies. The availability of regular social activities have strengthened the sense of belonging and the feeling of a well-connected community and this in turn has encouraged staff to stay longer at IAA.
On the point of Staff Productivity, it was felt that IAA's Professional Development Program is inclusive and frequent. Staff is afforded the opportunity to train throughout the year in areas related to their expertise and it can be both on a local or international level. Staff feels that personal development within IAA is strong where members receive numerous awards and certificates that can then be included in their CVs. The provision of wage bonuses to those who have less than average monthly income provides families with financial support giving them a better living standard. IAA's Community and Service Program and the adoption of several charity organizations within Jordan, has helped with staff productivity on many levels. Staff feels a sense of self-worth when they participate in such projects realizinghow their contributions to the community make a difference. This has also reflected positively on IAA's reputation within the community, as the school demonstrates its empathy towards the less fortunate.
However, it was noted, by those interviewed, that communication beyond the IAA community is lacking. Staff felt that much of the CSR activities taking place are not being widely communicated to the outer community. This in turn is depicting the IAA as a secluded organization very much removed from its surroundings. Though the reality is the opposite, the outer community has often criticized the IAA for being not well connected or empathetic.
The present study examined the positive impact of CSR activities on organizational citizenship behavior, turnover intentions, productivity, I hope this paper can make some contributions to this field and encourage more research on employees' perceptions.
Given the above point, IAA needs to reconsider its marketing strategy by effectively communicating their implemented CSR activities. All future communications need to include the wider community to reflect a better image of IAA and its social contributions.
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