Employee perceptions of corporate social responsibility activities: the case of family firms

Abstract

Purpose Corporate social responsibility (CSR) is becoming a standard for family firms as the challenges facing organizations today are pervasive. In this context, employees’ perceptions of CSR are a novel research field. This study aims to address human components of business operations as it aims to understand how employees perceive CSR activities and determine their role for employees’ identification and commitment in family firms. Design/methodology/approach This study uses a mixed-method design combining samples of employees of family firms in a quantitative (N = 168) and qualitative phase (N = 18). Findings In summary, the findings show that employee-directed CSR is most effective to influence employees’ identification and commitment. Detailed mediation analyses further support the path from community-oriented CSR toward identification-commitment and performance. Findings from employee interviews show that identification is particularly pronounced in CSR perceptions and that mechanisms of identification occur across three interfaces: the firm, the firm in the region and the firm in a globalized world impacting commitment and performance. Originality/value Family firms engage in various CSR activities. The authors show that existing efforts can be empirically supported but that there is room for improving the strategic selection and engagement of activities. In a nutshell, the findings emphasize the importance of human components for businesses. In this context, understanding how CSR activities build identification and affect organizational commitment has important implications for family firms boosting CSR activities. In particular, the contribution emphasizes family firms’ need to stay engaged in community-directed CSR while increasing awareness for environment-related activities and diversifying employee-related activities to enable identification.