Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 33087
The Relationship between Internal Corporate Social Responsibility and Organizational Commitment within the Banking Sector in Jordan
Authors: Al-bdour, A. Ali., Ellisha Nasruddin., Soh Keng Lin
Abstract:
This study attempts to investigate the relationship between internal CSR practices and organizational commitment based on the social exchange theory (SET). Specifically, we examine the impact of five dimensions of internal CSR practices on organizational commitment: health and safety, human rights, training and education, work life balance and workplace diversity. The proposed model was tested on a sample of 336 frontline employees within the banking sector in Jordan. Results showed that all internal CSR dimensions are significantly and positively related to affective and normative commitment. In addition, the findings of this study indicate that all internal CSR dimensions did not have a significant relationship with continuance commitment. Limitations of the study, directions for future research, and implications of the findings are discussed.Keywords: Internal CSR, organizational commitment, Jordan, banking sector.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1054799
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 9523References:
[1] Greenbaum, S. I., & Thakor, A. V. (2007). Contemporary Financial Intermediation, 2nd Edition (Elsevier, Amsterdam).
[2] Achuam, J. K. (2008). Corporate social responsibility in Nigerian banking system Society and Business Review. Bradford, 3(1), pg. 57.
[3] Mamic, I. (2004). Implementing Codes of Conduct: How Businesses Manage Social Performance in Global Supply Chains. International Labour Office (ILO) in association with Greenleaf Publishing, Geneva.
[4] Smith, C. (1994). The new corporate philanthropy, Harvard Business Review, 105-115.
[5] Kotler, P., & Lee, N. (2005). Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause, John Wiley and Sons Inc., Hoboken, NJ.
[6] Peterson, D. K. (2004). The relationship between perceptions of corporate citizenship and Organisational Commitment. Business and Society, 43:296-319.
[7] Turker, D. (2009). Measuring Corporate Social Responsibility: A Scale Development Study. Journal of Business Ethics. 85, 411-427.
[8] Lee, C.H., & Bruvold, N,T. (2003). Creating value for employees: investment in Training and Education. International Journal of Human Resource Management, 14(6), 981-1000.
[9] Aguilera, R., Ruth, V., Rupp, D., Williams C., & Ganapathi, J. (2007). Putting the S Back in Corporate Social Responsibility: A Multilevel Theory of Social Change in Organizations. Academy of management Review, 32, 836-863.
[10] VanBuren iii, H.J. (2005). An Employee-Centered Model of Corporate Social Performance. Business Ethics Quarterly, 15(4), 687.
[11] Lindgreen, A., Swaen, V., & Johnston, W. J. (2009). Corporate Social Responsibility: An Empirical Investigation of U.S. Organisations. Journal of Business Ethics, 85,303-323.
[12] Leonard, M. (1997). Count on Them in. Corporate America is Eager to Volunteer Help to the Needy. The Reason is the Bottom-Line. The Boston Globe (April 20), F1.
[13] Observatory of European SMEs: 2004, European SMEs and Social and Environmental Responsibility, 2002/ No. 4 (European Commission: Enterprise Publications, 2002) cited in Habisch, A.
[14] Maignan, I., & Ferrell O. (2001). Antecedents and Benefits of Corporate Citizenship: An Investigation of French Businesses. Journal of Business Research, 51(1), 37-51.
[15] Matten, D., Crane, A., & Chapple, W. (2003). Behind the Mask: Revealing the True Face of Corporate Citizenship. Journal of Business Ethics, 45(1/2), 109-120.
[16] Cornelius, N., Todres, M., Janjuha-Jivraj, S., Woods, A., & Wallace, J. (2008). Corporate Social Responsibility and the Social Enterprise. Journal of Business Ethics, 81,355-370.f
[17] McWilliams, A., Siegel D. S., &. Wright, P. M. (2006). Corporate Social Responsibility: Strategic Implications. Journal of Management Studies, 43(1), 1-18.
[18] Vives, A. (2006). Social and Environmental Responsibility in Small and Medium Enterprises in Latin America. The Journal of Corporate Citizenship, 21, 39-50.
[19] European Commission, (2001). Promoting a European Framework for Corporate Social Responsibility, Green Paper. European Commission, Directorate-General for Employment and Social Affairs: Luxembourg.http://ec.europa.eu/education/lifelong-learningpolicy/ doc/mobility/com329_en.pdf.
[20] Carroll, A.B. (1979). A three dimensional model of corporate performance. Academy of Management Review, 4, 497-505.
[21] Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the Moral Management of organisational Stakeholders. Business Horizons, 39-48.
[22] Genest, C. M. (2005). Cultures, organisations, and philanthropy. Corporate Communications. An International Journal, 10:4, 315-327.
[23] Friedman, M. (1970). The social responsibility of business to increase its profits. New York Times Magazine, 32, 122-126.
[24] Werbel, J. D., & Carter, S. M. (2002). The CEO-s Influence on Corporate Foundation Giving, Journal of Business Ethics, 40, 47-60.
[25] Haley, U. C. V. (1991).Corporate Contributions as Managerial Masques: Reframing Corporate Contributions as Strategies to Influence Society. Journal of Management Studies, 28, 485-509.
[26] Choi, J., & Wang, H. (2007) .The Promise of a Managerial Values Approach to Corporate Philanthropy. Journal of Business Ethics, 75,345-359.
[27] Stukas, A. A., Snyder, M., & Clary, E. G. (1999). The effects of ÔÇÿmandatory volunteerism- in intentions to volunteer. Educational Horizons, 77(4), 194-201.
[28] Walker, MB. (2007). assessing the influence of corporate social responsibility on consumer attitudes in the sport industry. PhD theses the Florida state University College of education. UMI Number: 3282675.
[29] Wikipedia (2009). Environmental protection definition. http://en.wikipedia.org/wiki/Environmental_protection.
[30] Carroll, A. B., & Buchholtz, A.K. (2006). Business & Society: Ethics & Stakeholder Management."Thompson, 6th Edition, pp. 710.
[31] Rondinelli D.A., & Berry, M.A. (2000) Environmental citizenship in multinational corporations: social responsibility and sustainable developmentÔÇöthe two approaches of sustainability applied on micro level. European Management Journal, 18, 70-84.
[32] Schiebel, W., & Pöchtrager, S. (2003). Corporate ethics as a factor for success - the measurement instrument for the University Of Agriculture Sciences (BOKU), Vienna. Supply Chain Management: An International Journal, 8(2), 116-121.
[33] Fuentes-García, F, J., Núñez-Tabales, J, M., and Veroz-Herradón, R., (2008). Applicability of Corporate Social Responsibility to Human Resources Management: Perspective from Spain. Journal of Business Ethics, 82:27-44.
[34] ISO 26000 (2006). Guidance on Social Responsibility. http://inni.pacinst.org/inni/corporate_social_responsibility/ISO26000Wo rking%20Draft2.pdf.
[35] Bursa Malaysia (2006). CSR Framework http://www.klse.com.my/website/bm/about_us/the_organisation/csr/dow nloads/csr_writeup.pdf.
[36] Dow Jones Sustainability World Indexes Guide (DJSIs) (1999). http://www.sustainabilityndex. com/djsi_pdf/publications/Guidebooks/DJSI_Guidebook_World_8 0.pdf.
[37] SA8000: Corporate Social Accountability Management (2000). A handbook on the implementation of new standard on corporate social accountability initiated. http://www.ellipson.com/files/ebooks/CSAM_handbook.pdf.
[38] Global Report Initiative (GRI) (2000). Sustainability Reporting http://www.globalreporting.org/NR/rdonlyres/ED9E9B36-AB54-4DE1- BFF2-5F735235CA44/0/G3_GuidelinesENU.pdf.
[39] European SMEs- Good Practice (2005). CSR and Competitiveness - European SMEs- Good Practice - Consolidated European Report. http://www.kmuforschung.ac.at/de/Projekte/CSR/European%20Report.p df.
[40] Welford, R. (2005). Corporate Social Responsibility in Europe and Asia: Critical Elements and Best Practice. Corporate Social Review, 13, 31- 47.
[41] Brammer, S., Millington, A., & Rayton, B. (2007). The contribution of corporate social responsibility to organisation commitment. Int. J. of Human Resource Management, 18(10), 1701-1719.
[42] Longo, M., Mura, M., & Bonoli, A. (2005). Corporate Social Responsibility and Corporate Performance: The Case of Italian SMEs. Corporate Governance, 5(4), 28-42.
[43] Spiller, R, (2000). Ethical business and investment: A model for business and society. Journal of Business Ethics; 27(1/2), 149.
[44] Papasolomou-Doukakis, I., Krambia-Kapardis, M., & Katsioloudes, M. (2005). Corporate Social Responsibility: The Way Forward? Maybe Not! European Business Review, 17(3), 263-279.
[45] Castka, P. M., Balzarova, A. & Bamber, C. J. (2004). How can SMEs Effectively Implement the CSR Agenda? A UK Case Study Perspective. Corporate Social Responsibility and Environmental Management, 11(3), 140-149.
[46] Kok, P., VanDer W, T., McKenna, R., & Brown, A. (2001). A corporate social responsibility audit within a quality management framework. Journal of Business Ethics, 31(4), 285-97.
[47] Vuontisjärvi's, T. (2006). Corporate social reporting in the European context and human resource disclosures: an analysis of Finnish companies. Journal of Business Ethics, 69, 4, 331-54.
[48] Maignan, I,. & Ferrell O. (2004). Corporate Social Responsibility and Marketing: An Integrative Framework, Academy of Marketing Science, 32, 3-19.
[49] Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis (6th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
[50] HSBC (2008). Corporate Social Responsibility Annual Report http://www.chinacsr.com/en/2009/01/16/4218-hsbc-china-publishessocial- responsibility-report/.
[51] Shinhan Bank (2008) Corporate Social Responsibility Annual Report http://www.beautifulshinhan.co.kr/act/download.asp?FN=2008_eng_s.p df.
[52] Scotia Bank (2008). Corporate Social Responsibility Annual Report http://www.scotiabank.com/images/en/filesaboutscotia/20534.pdf.
[53] Bank of New York Mellon (2008). Corporate Social Responsibility Annual Report http://www.bnymellon.com/about/csr/2008/index.html.
[54] Bank-BPH. (2008). Corporate Social Responsibility Annual Report http://www.bph.pl/res/docs/ir/dobre_praktyki/bank_bph_2008_csr_repor t.pdf
[55] Bank of China (2008). Corporate Social Responsibility Annual Report http://pic.bankofchina.com/bocappd/report/200905/P0200905064202497 85107.pdf.
[56] Bank of America (2005). Sustainability Report http://www.socialfunds.com/csr/reports/Bank_of_America_2005_Sustai nability_Report.pdf.
[57] Deutsche Bank (2008). Corporate Social Responsibility Annual Report http://db.com/csr/en/download/DBF_CSR08_EN_72dpi.pdf.
[58] Piraeus Bank's (2008). Corporate Social Responsibility Annual Report http://www.piraeusbank.gr/Documents/internet/Enimerosi_Ependiton/Et isies_Ekthesis/2009/EEKE_en.pdf.
[59] Irish bank federation (2009) Corporate Social Responsibility Annual Report http://www.bankofireland.com/includes/about_us_new/pdfs/ibf_csr_rep ort_sep_2009.pdf.
[60] Fortis Bank (2008). Corporate Social Responsibility Annual Report http://www.fortisbank.com/en/CorporateResponsibility/csr_reports.asp.
[61] Danske Bank (2007) Corporate Social Responsibility Annual Report http://www.danskebank.com/enk/ CSR/Documents/CSR_report_2007_WEB.pdf
[62] Suwaidan, M. S., Al-omari, M.A., & Haddad, R. H. (2004). Social responsibility disclosure and corporate characteristics: the case of Jordanian industrial companies. Int. J. Accounting, Auditing and Performance Evaluation, 1(4).
[63] Abu-Baker, N., & Nasser, K. (2000). Empirical evidence on corporate social disclosure (CSD) practices in Jordan. International Journal of Commerce and Management, 10(3/4), 20-35.
[64] Al-Basteki, H. (1997). Voluntary disclosure of socially relevant information: the case of Bahraini corporations. Abhath Al-Yarmouk, 13(4),41-53.
[65] Jahmani, Y. (1996) Social responsibility accounting and public shareholding companies in Jordan. Abhath Al-Yarmouk, 12(4), 45-85.
[66] Carroll, A.B. (1999). Corporate social responsibility: evolution of a definitional construct. Business and Society Review, 38 (3), 268-95.
[67] Rettab, B., Brik, A, B., & Mellahi, K. (2009). A Study of Management Perceptions of the Impact of Corporate Social Responsibility on Organisational Performance in Emerging Economies: The Case of Dubai. Journal of Business Ethics, 89, 371-390.
[68] Rego, A., Leal, S., Cunha M., P., & Faria. J., (2008). How the employees- Perceptions of corporate citizenship predict their organizational commitment. international Conference on Business And Information. JW Marriott Hotel, Seoul, South Korea July 7-9, 2008 Volume 5, ISSN 1729-9322, 2008. http://academicpapers. org/ocs2/session/Papers/A8/355-460-1-RV.doc.
[69] Branco, M.C., & Rodrigues, L.L. (2006). Corporate Social Responsibility and Resource-Based Perspectives. Journal of Business Ethics, 69,111-132.
[70] Collier, J., & Esteban, R. (2007). Corporate social responsibility and employee commitment. Business Ethics: A European Review, 16(1).
[71] Earl, T. B.W. (2004). Exploring the effects of corporate social performance on employees. Master dissertation, University of Alberta (Canada), 129 pages.
[72] Kao, S-Chen., Ho, M-Hong., Wu, C-Hsing., & Lee, T-Zang. (2009). relationships between employees- perception of corporate social responsibility, personality, job satisfaction, and Organisational Commitment. (http://bai2009.org/file/Papers/1224.doc ).
[73] Lo, C.WH, Egri C. P., & Ralston D. A. (2008). Commitment to corporate, social, and environmental responsibilities: an insight into contrasting perspectives in China and the US. Organisation Management Journal 5, 83-98.
[74] Settoon, R. P., Bennett, N., & Liden, R. L. (1996). Social exchange in organisation: Perceived organisational support, leader-member exchange, and employee reciprocity. Journal of Applied Psychology, 81, 219-227.
[75] Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D., & Rhoades, L. (2001). Reciprocation of perceived organizational support. Journal of Applied Psychology, 86,42-51.
[76] Sekaran, U. (2000). Research methods for business. New York: John Wiley & Sons, Inc.
[77] Creswell, J. W. (2002). Educational research: Planning, conducting, and evaluating quantitative and qualitative research. Upper Saddle River, NJ: Merrill Prentice Hall.
[78] Byrne, D. (2002). Interpreting Quantitative Data. London: Sage.
[79] Sekaran, U. (2003). Research Methods for Business - A skill Building Approach. (4th ed.). USA: John Wiley and Sons, Inc.
[80] Tsui, A.S., Pearce, J.L., Porter, L.W., & Tripoli, A.M. (1997). Alternative Approaches to the Employee-Organization Relationship: Does Investment in Employees Pay Off? Academy of Management Journal, 40, 1089-121.
[81] International Labour Organisation-s Declaration on the Fundamental Principles and Rights at Work. http://www.ilo.org/declaration/lang-- en/index.htm.
[82] Dillman, D. A. (2007). Mail and Internet Survey: The Tailored Design Method. John Wiley & Sons, Inc.
[83] Smith, J., & Gardner, D. (2007). Factors affecting employee use of work-life balance initiatives. New Zealand Journal of Psychology, 36(1), 3-12.
[84] Wong, S., & KO, A. (2009). Exploratory study of understanding hotel employees- perception on work-life balance issues. International Journal of Hospitality Management, 28,195-203.
[85] Magoshi, E., & Chang, E. (2009). Diversity management and the effects on employees- organizational commitment: Evidence from Japan and Korea. Journal of World Business, 44, 31-40.
[86] The Hashemite Kingdom of Jordan, Labour law (1996). http://www.hammourilaw.com/Hammouri_Resorces/Articals/labor_law __2.pdf.
[87] Allen, N. J., & Meyer, J. P. (1990b). The measurement and antecedents of affective, continuance and normative commitment to the organisation. Journal of Occupational Psychology, 63, 1-18.
[88] Yamkovenko, B.V., Holton III, E. and Bates, R.A. (2007). The Learning Transfer System Inventory (LTSI) in Ukraine: The cross-cultural validation of the instrument Journal of European Industrial Training, 31(5), 377-401.
[89] Chen, H., & Bates, R.A. (2005). Instrument translation and development strategies for cross-cultural studies. In 2005 Academy of human resource development proceedings, ed. M.L. Morris and F.M. Nafukho, 693-700. Bowling Green, OH: Academy of Human Resource Development.
[90] Roscoe, J.T. (1975). Fundamental Research Statistics for the Behavioural Sciences, 2nd edition. New York: Holt Rinehart & Winston.
[91] Daft, R.L. (2003). Management, 6th ed., Thomson South-Western, Mason, OH.
[92] Vakola, M., & Nikolaou, I. (2005). Attitudes towards organizational change: What is the role of employees- stress and commitment? Employee Relations, 27, 160-174.
[93] Daily, B F., Bishop, J W., & Govindarajulu, N. (2009). A Conceptual Model for Organizational Citizenship Behaviour Directed Toward the Environment. Bsiness & Society, 48(2), 243-256.
[94] Schoenberg, B. (2007). How Has Employee Morale Improved Due to Corporate Social Responsibility? Journal of the Communication, Speech & Theatre Association of North Dakota. 20.
[95] Bartlett, K. R. (2001). The relationship between training and organizational commitment: A study in the health care field. Human Resource Development Quarterly, 12(4), 335-352.
[96] Sutherland, V.J., & Cooper, C. (1990), Psychology & Health Series 5, Understanding Stress: A Psychological Perspective for Health Professionals, Chapman and Hall, London.
[97] Edgar, F., & Geare, A. (2005). HRM practice and employee attitudes: Different measures different results. Personnel Review, 34(5), 534-549.
[98] Parkes L. P., & Langford P.H., (2008). Work-life balance or work-life alignment? A test of the importance of work-life balance for employee engagement and intention to stay in organisations. Journal of Management & Organization, 14,267-284.
[99] Rhoades, L., & Eisenberger, R. (2002), "Perceived organizational support: a review of the literature. Journal of Applied Psychology, 87(4), 698-714.
[100] Blau, P.M. (1964). Exchange and power in social life. New York: John Wiley and Sons.
[101] Bolino, M. C., & Turnley, W. H. (2003). Going the extra mile: Cultivating and managing employee citizenship behaviour. Academy of Management Executive, 17(3), 60-71.
[102] Kossek & Block, (2000). New employment relations. In: E. Kossek and R. Block, Editors, Managing human resources in the 21st century, South-Western College Publishing, Cincinnati (2000) Module 1.
[103] Becker, H.S. (1960). Notes on the concept of commitment. The American Journal of Sociology, 66, 32-42.
[104] Meyer, J. P., & Allen, N. J. (1984). Testing the "side bet theory" of organizational commitment: Some methodological considerations. Journal of Applied Psychology, 69, 372-378.
[105] Kacmar, K.M., Carlson, D.S., & Brymer, R.A. (1999). Antecedents and consequences of organizational commitment: a comparison of two scales. Educational and Psychological Measurement, 59(6), 976-994.
[106] Cohen, A. (1999). The Relation between Commitment Forms and Work Outcomes in Jewish and Arab Culture. Journal of Vocational Behaviour, 54, 371-391.
[107] Ali, A. J. (1993). Decision-Making Style, Individualism, and Attitudes toward Risk of Arab Executives. International Studies of Management & Organization, 23(3), 53-73.
[108] Zayour, A. (1977). Psychological Analysis of the Arab Self. (Dar- Attaliah, Beirut, Lebanon).
[109] Mathieu, J. E., & Zajac, D. M. (1990). A review and meta-analysis of the antecedents, correlates, and consequences of Organisational Commitment. Psychological Bulletin, 108, 171-194.
[110] Namasivayam, K., & Zhao X., (2007). An investigation of the moderating effects of organizational commitment on the relationships between work-family conflict and job satisfaction among hospitality employees in India. Tourism Management, 28(5), 1212-1223.
[111] Meyer, J.P., Stanley, D.J., Herscovitch, L., & Topolnytsky, L. (2002). Affective, continuance and normative commitment to the organisation: A meta- analysis of antecedent, correlates, and consequences. Journal of Vocational Behavior, 61,20-52.
[112] Allen, N. J., & Meyer, J. P. (1996). Affective, continuance and normative commitment to the organization: An examination of construct validity. Journal of Vocational Behaviour, 49, 252-276.
[113] Luthans, F. (1998). Organisational Behaviour. 8th ed. Boston: Irwin McGraw-Hill.
[114] Folger, R., & Konovsky, M. A. (1989). Effects of procedural and distributive justice on reactions to pay raise decisions. Academy of Management Journal, 32, 115-130.
[115] Williams, J. (2004). Job satisfaction and organizational commitment, a Sloan Work and Family Encyclopaedia website. Retrieved July 7, 2010, from the Sloan Work and Family Research Network website: http://wfnetwork.bc.edu/encyclopedia_entry.php?id=244&area=academi cs.
[116] Guchait, P. (2007). Human Resource Management Practices and Organizational Commitment and Intention to Leave: The Mediating Role of Perceived Organizational Support and Psychological Contracts. Unpublished PhD Theses, University of Missouri-Columbia.
[117] Lauren, D. McGuire. (2009).The impact of physical environment on employee commitment in call centres; the mediating role of employee well-being. McLaren. Team Performance Management, 1(1/2), 35.
[118] Loi, R., Hang-yue, N., & Foley, S., (2006). Linking employees' justice perceptions to Organisational Commitment and intention to leave: The mediating role of perceived organisational support. Journal of Occupational and organisational Psychology, 79(1),101, 20.
[119] Cropanzano, R., & Mitchell, M.S. (2005), Social exchange theory: an interdisciplinary review. Journal of Management, 31, 874-900.