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Impact of organizational climate on ethical empowerment and engagement with Corporate Social Responsibility (CSR)

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Abstract

Few studies have focused explicitly on the management, involvement and engagement of employees in relation to Corporate Marketing and Corporate Social Responsibility (CSR). Focusing upon two case studies from the oil industry, we investigate the impact of three kinds of ethical climate on employee participation in ethical value setting within a Corporate Marketing and CSR context. We develop a conceptual framework that indicates connections between perceptions of ethical climate in the work place and levels of ethical empowerment on employee commitment, and its effects, in turn, on CSR beliefs and intentions. Managerial implications of our findings relating to CSR include: (i) need for a balance between differing types of internal ethical environments to best support socially responsible intentions; (ii) that there are potentially two differing types of commitment to ethical values within an organization with the greater need for affective commitment; (iii) requirement for an effective monitoring program to understand employee ethical and moral values aiding alignment between employee values and organizational values to ensure maximum strategic impact.

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Notes

  1. Factor analysis is not violated on the combined sample size in our study (107 responses). Although each separate case study for X and Y are below 100, the purpose of our factor analysis was predominantly to confirm factor structure of the underlying dimensions. As the dimensions identified from our factor analysis loaded as expected on the items based on our literature review it is unlikely that the smaller separate case study sample sizes would have violated the structure found in our view.

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Authors and Affiliations

  1. University of Wollongong, Rm234, Building 40, Northfields Avenue, NSW 2522, Australia

    Shaun M Powell

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  1. Shaun M Powell
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  2. Mark A P Davies
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  3. Danielle Norton
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Correspondence to Shaun M Powell.

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Correction

This paper has been amended owing to a typographical error.

Appendix

Appendix

Affective commitment

  1. 1

    I am willing to put in a great deal of effort beyond that is normally expected in order to help this organization be successful.

  2. 2

    I would accept almost any type of job assignment in order to keep working for this organization.

  3. 3

    I find that my values and the organization’s values are very similar.

  4. 4

    I am proud to tell others that I am part of this organization.

  5. 5

    This organization really inspires the very best in me in the way of job performance.

  6. 6

    I really care about the longevity of this organization.

  7. 7

    For me this is the best of all possible organizations for which to work.

  8. 8

    I conform to this organization.

  9. 9

    My degree of conformance is because I truly believe the values of the company match those of my own.

Continuance commitment

  • 10. My degree of conformance is based on my expectation of extra responsibility and freedom in my job.

  • 11. My degree of conformance is based on my expectation of achieving my career ambitions.

  • 12. My degree of conformance is based on my expectation of achieving status and recognition for my job.

  • 13. My degree of conformance is based on my expectation of extrinsic rewards in extra pay and bonuses.

Ethical climate: Egoistic

  • 14. My organization emphasizes the importance of furthering profit-centered interests.

  • 15. All decisions and actions in my organization are expected to contribute to the organization’s profit-centered interests.

Ethical climate: Benevolent

  • 16. Concern for employees is prevalent in my organization.

  • 17. All decisions and actions in my organization are expected to result in what is generally best for everyone.

Ethical climate: Principled

  • 18. Compliance with organization rules and procedures is very important in my organization.

  • 19. Employees who do not follow organization rules and procedures are not viewed favorably in my organization.

  • 20. My organization does not make known the importance of its rules, procedures and policies.

General questions on climate

  • 21. (Open question) An egoistic climate is profit focused; a benevolent climate is employee focused and a principled climate is rule focused. Given the characteristics of each ethical climate, which would you say the company operates under?

  • 22. (Open question) Which ethical climate do you personally prefer? Why do you say that?

Corporate Ethical Empowerment

Perceptions of empowerment (participation)

  • 23. The general principles communicated in the corporate brand feel compatible with my own principles.

  • 24. I feel very competent in my ability to conform to the general principles of the organization.

  • 25. The general principles communicated in the corporate brand are those I personally want to conform to.

Decision-making power

  • 26. I feel I highly influence outcomes in the workplace regarding the way general principles are followed.

  • 27. I am regularly asked to make decisions about personal goal setting.

  • 28. I must regularly decide among alternative choices of individual work.

  • 29. I regularly make decisions on how to solve problems.

  • 30. I regularly make decisions that affect the ethical climate of the company.

Beliefs and feelings

  • 31. I am satisfied with my level of empowerment granted.

  • 32. If I was more satisfied with my job, I will be more committed to my organization.

  • 33. If I was more committed to my organization I predict I would behave in a more socially responsible manner.

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Powell, S., Davies, M. & Norton, D. Impact of organizational climate on ethical empowerment and engagement with Corporate Social Responsibility (CSR). J Brand Manag 20, 815–839 (2013). https://doi.org/10.1057/bm.2013.14

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