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MD
55,2 Corporate social responsibility
and employee organizational
citizenship behavior
294 The pivotal roles of ethical leadership
Received 10 May 2016 and organizational justice
Revised 15 July 2016
26 October 2016
Accepted 15 November 2016
Yongqiang Gao and Wei He
School of Management, Huazhong University of Science and Technology,
Wuhan, PR China
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Abstract
Purpose – An increasing number of studies have demonstrated a positive effect of corporate social
responsibility (CSR) on employee organizational citizenship behavior (OCB), but little attention has been paid
to the mechanisms and boundary conditions underlying this effect. The purpose of this paper is to propose a
trickle-down model and examine the mediating role of supervisor ethical leadership and the moderating role
of perceived organizational distributive justice in the CSR-OCB relationship.
Design/methodology/approach – To test the arguments, the authors collected field data in four companies
located in a central city of China. Through a multi-wave data collection design, a total of 187 employees
reported their perceptions toward firms’ CSR and organizational justice at Time 1, and reported their direct
supervisors’ ethical leadership behaviors, and their own OCBs at Time 2 (four weeks later).
Findings – Empirical findings demonstrated that CSR had a positive effect on employee OCB, as mediated
by supervisors’ ethical leadership. In addition, this mediation effect was found to be moderated by perceived
organizational distributive justice such that the mediation relationship was stronger when perceived
organizational distributive justice was lower than when it was higher.
Originality/value – The present study makes three major contributions. First, it contributes to the CSR
literature by revealing the underlying mechanism of ethical leadership through which CSR will lead to
increased employee OCB in the workplace. Second, the moderation findings of the study add a new piece of
empirical evidence suggesting the boundary condition of organizational distributive justice affecting the
positive effect of CSR on employee OCB. Finally, the trickle-down theoretical model demonstrates the pivotal
role of leadership in transforming CSR into positive employee outcomes, providing valuable insights into
future research that examines why CSR motivates in-organization employees at work.
Keywords Corporate social responsibility, Organizational citizenship behaviour, Ethical leadership,
Organizational justice, Work attitudes, Multi-wave data
Paper type Research paper
Introduction
Corporate social responsibility (CSR) has received extensive scholarly attention for the past
four decades, and numerous empirical studies have shown a significant effect of CSR on
corporate financial performance (see Griffin and Mahon, 1997; Peloza, 2009 for reviews).
Organizational researchers have taken a micro perspective and demonstrated that
employees’ work attitudes and behaviors play crucial roles in transforming CSR into
beneficial organizational outcomes (e.g. Kim et al., 2010; Valentine and Fleischman, 2008).
For instance, research suggests that CSR increases employees’ commitment to the firm,
which further enhances firm performance (Ali et al., 2010). Therefore, it is imperative to
examine why and when CSR contributes to employee outcomes in the workplace.
Unraveling this black box may not only contribute to the CSR literature by revealing the
Management Decision micro mechanisms via which CSR benefits the organization, but also have practical
Vol. 55 No. 2, 2017
pp. 294-309
© Emerald Publishing Limited
0025-1747
The authors are grateful to the financial support of the “National Natural Science Foundation of China
DOI 10.1108/MD-05-2016-0284 (NSFC)” (No. 71372131, 71402061).
implications for firm managers as to how to solicit beneficial employee outcomes while the CSR and OCB
organization is engaging in CSR activities.
Following this perspective, organizational researchers have begun to examine the
influences of CSR on employees’ attitudinal and behavioral outcomes within the organization
(e.g. Aguilera et al., 2006; Swaen and Maignan, 2003). In particular, CSR is found to increase
employee job satisfaction (Valentine and Fleischman, 2008), organizational commitment
(Aguilera et al., 2006; Brammer et al., 2007), and identification (e.g. Kim et al., 2010; Rodrigo and 295
Arenas, 2008), and the organizational citizenship behavior (OCB) (e.g. Chun et al., 2013;
Evans et al., 2010; Fu et al., 2014; Lin et al., 2010; Zhang et al., 2014). Despite these empirical
findings, the theoretical mechanisms underlying the effects of CSR on employee behaviors
such as OCB remain unanswered. In other words, knowledge regarding why and when CSR
can motivate employee OCB is nearly in vacuum (Aguilera et al., 2007; Fu et al., 2014).
In the current study, drawing from social information processing (SIP) theory (Salancik
and Pfeffer, 1978; Vlachos et al., 2014), we theorize a trickle-down model and test
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Organizational
distributive
justice
H1
H2 and H3
Corporate social Supervisor Organizational
responsibility ethical citizenship
(CSR) leadership behavior (OCB)
Figure 1.
The conceptual model
MD In other words, it suggests that individual work attitudes and behaviors are, to a large
55,2 extent, a result of individual enactment of the processed information from the social
environment rather than individual predispositions (Goldman, 2001). Based on this
argument, research drawn from SIP theory has demonstrated a “trickle-down” effect
(Vlachos et al., 2014), which means that subordinates view their direct superiors as
important social referents and will learn from or be influenced by their supervisors’ words
296 and behaviors, and will emulate them through their everyday interactions (e.g. Mayer et al.,
2009; Thomas and Griffin, 1989).
The theoretical explanations for this trickle-down effect involve three major
psychological mechanisms: compliance, identification, and internalization (Kelman, 1958).
Specifically, the compliance mechanism suggests that subordinates want to follow their
supervisors because they expect to be rewarded or to avoid punishment. The identification
mechanism suggests that subordinates want to satisfy their self-defining relationships with
supervisors within the organizations. Finally, the internalization mechanism suggests that
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subordinates strongly believe in the content of the social influence and find this content is
congruent with their value system (Vlachos et al., 2014). Drawing from the above theorizing,
researchers have validated this trickle-down effect in different research contexts.
For instance, Mayer et al. (2009) demonstrated that group leaders’ ethical leadership
mediated the effect of top mangers’ ethical leadership on group-level employee citizenship
and deviant behaviors. Similarly, Ruiz et al. (2011) found that top mangers’ ethical
leadership has a significant effect on employees’ positive job attitudes as mediated by their
direct supervisors’ ethical leadership behaviors. In the CSR literature, moreover, Vlachos
et al. (2014) observed a trickle-down effect that leaders’ perceptions of CSR significantly
increase employees’ perceptions of CSR, which in turn increase their affective organizational
commitment and in-role CSR-specific performance.
Extending the above findings, we suggest that CSR demonstrates top managers’ pro-
social values and high moral standards, and this information will profoundly affect middle
mangers’ attitudes and behaviors within the organization. In turn, middle or line managers
who are deeply influenced by CSR will demonstrate their pro-social values and moral
considerations by displaying ethical leadership, which refers to “the demonstration of
normatively appropriate conduct through personal actions and interpersonal relationships,
and the promotion of such conduct to followers through two-way communication,
reinforcement, and decision-making” (Brown et al., 2005, p. 120). Further, we argue that
supervisors’ ethical leadership will motivate employees to engage in more OCBs in the
workplace. Therefore, we theorize a mediating role of supervisor ethical leadership in the
CSR-OCB relationship.
illustrated by CSR (Kelman, 1958; Vlachos et al., 2014). Indeed, identification literature
suggests that individuals are self-esteem seekers, and they tend to identify with
organizations or the authority in the organizations to enhance their self-esteem (e.g. Dutton
and Dukerich, 1991; Hogg and Terry, 2001). CSR is socially desirable, reflecting the decision
makers’ (top managers) pro-social values. It increases the attractiveness of the firm and the
top managers in the eyes of middle- or low-level mangers. Managers are likely to admire
such top managers since their visions may be based on pro-social values such as altruism
and justice (Bass and Steidlmeier, 1999). As a result, mangers are likely to identify with or
strongly believe in organizations and top managers who support CSR (Hogg and Terry,
2001; Turner et al., 1987). In sum, CSR made by top managers will induce ethical leadership
behaviors from middle- or low-level managers.
On the other hand, we argue that supervisors’ ethical leadership is a significant
predictor of subordinate OCB. Although various leadership styles are associated
with employees’ attitudinal and behavioral outcomes, ethical leadership is regarded to be
more relevant to employee OCB because it enhances employees’ caring toward their
coworkers or organizations (Wang and Sung, 2016). Different from other types of
leadership, ethical leaders emphasize exclusively on moral management, affect their
followers’ ethical conduct by setting ethical standards, and use reward and punishment
to hold the followers accountable for the standards (Brown and Treviño, 2006;
Mayer et al., 2009). The caring for others’ well-being demonstrated by ethical leaders
will be emulated by the followers, motivating them to care about their coworkers
and organizations by performing more OCB (Demirtas and Akdogan, 2015; Treviño
et al., 2003). Prior studies have provided empirical evidence for the positive effect of ethical
leadership on employees’ OCBs (e.g. De Hoogh and Den Hartog, 2008; Kacmar et al., 2011;
Mayer et al., 2009).
Taken together, we propose a trickle-down effect suggesting that supervisors’ ethical
leadership will mediate the positive relationship between CSR and employee OCB:
H1. Supervisors’ ethical leadership will mediate the positive relationship between CSR
and their followers’ OCB.
vulnerable to the leaders’ opinions and behaviors. On the contrary, when employees
perceive high distributive justice, they trust in, identify with, and commit to the
organization’s policies more than their immediate supervisors. In such a situation, they
pay less attention to the supervisors’ ethical behaviors and are less sensitive to those
moral conducts. As a result, employees may be less likely to use OCB to cater or to keep a
good relationship with their supervisors (Kelman, 1958; Vlachos et al., 2014). Furthermore,
within firms where the resource allocation policies are equitable, managers are expected to
make decisions and allocate resources fairly, so employees may take their supervisors’
ethical leadership for granted. Accordingly, employees are less motivated to engage in
OCB to reciprocate. Taking together, we theorize a compensating effect of ethical
leadership and individual distributive justice perception on employee OCB. We argue that
the effect of ethical leadership on employee OCB will be mitigated by high distributive
justice perception:
H2. Employee perception of distributive justice will moderate the relationship between
supervisor’s ethical leadership behavior and employee OCB such that the
relationship will be more positive when employee distributive justice perception is
low rather than high.
When we consider H1 and H2 together, a moderated mediation effect can be expected.
Specifically, the mediation relationship between CSR and employee OCB via the supervisor’s
ethical leadership behavior will be moderated by individual perception of distributive
justice. We therefore propose the following moderated mediation prediction:
H3. Employee perception of distributive justice will moderate the indirect relationship
between CSR and employee OCB via the supervisor’s ethical leadership behavior
such that the indirect relationship will be more positive when employee distributive
justice perception is low rather than high.
Method
Data collection
To test our arguments, we collected data of bottom-level employees’ perceptions toward
their firms, their supervisors, as well as their own attitudinal or behavioral intentions
across four companies located in the city of Wuhan, China. Because the scales were
originally developed in English, to make sure the equivalency of meaning to our Chinese
edition scales, three independent bilingual researchers were invited to translate English to
Chinese first and then back-translate to English (Brislin, 1980). Small revisions were made
in this process.
A two-wave questionnaire survey was conducted to 220 employees. At the first wave of CSR and OCB
survey, we used questionnaires to collect respondents’ perception toward their firms’ CSR
and demographic information. About four weeks later, we conducted the second wave of
questionnaire survey to the same respondents, collecting data on the remaining variables.
A total of 209 two-wave paired questionnaires were collected, resulting in a response rate of
95.0 percent. Two questionnaires were dropped because of significant missing data.
In addition, another 20 questionnaires were dropped because of significant unreliable 299
responses (i.e. more than 50 percent of items in the questionnaire were rated the same).
Thus, we get a final sample of 187 questionnaires, with a valid response rate of 85 percent.
The demographic characteristics of respondents are reported in Table I.
Measurement of variables
In this study, all the variables are measured on a Likert-type scale ranging from 1 (“strongly
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Gender
Male 101 54.0
Female 86 46.0
Age
Less than 30 95 50.8
30-39 77 41.2
40-49 14 7.5
50 or above 1 0.5
Education
High school or below 5 2.7
Junior college 47 25.1
Bachelor 116 62
Master degree or above 19 10.2
Salary (monthly)
Less than RMB3,000 34 18.2
RMB3,000-4,999 63 33.7
RMB5,000-6,999 57 30.5
RMB7,000-8,999 15 8.0
RMB9,000 or above 18 9.6
Years with the company
Less than 1 year 42 22.5
1-3 years 82 43.9
4-6 years 36 19.3 Table I.
7-9 years 22 11.8 Demographic
10 years or above 5 2.7 characteristics of
Note: n ¼ 187 respondents
MD CSR pyramid and the stakeholder view (Freeman, 1984) of CSR[1]. Sample items include
55,2 “our business gives adequate contributions to charities,” “the salaries offered by our
company are higher than industry averages,” and “we continually improve the quality of
our products.” The reliability of these items was 0.880 in this study.
Mediator: supervisor ethical leadership. Supervisor’s ethical leadership is measured by
using Brown et al. (2005) ten-item scale (ELS). Sample items include “listens to what employees
300 have to say,” “disciplines employees who violate ethical standards,” and “has the best interests
of employees in mind.” The reliability of these ten items was 0.932 in this study.
Moderator: perceived organizational distributive justice. Perceived organizational
distributive justice is measured by using the five-item scale developed by Ramamoorthy
and Flood (2002). Sample items include “Promotion in this company is based on ability
and how well you do your work,” “Salary increases in this company are based on ability and
how well you do your work,” and “There is a good chance of promotion in this company.”
The reliability of these five items was 0.843 in this study.
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Descriptive statistics
The descriptive statistics and correlation matrix of the variables are reported in Table II. 301
Results show that perceived CSR and supervisor ethical leadership are significantly
correlated with employee OCB. In addition, perceived organizational distributive justice,
affective commitment, and organizational identification are also significantly correlated
with employee OCB.
Similar significant correlations could be found among independent variables. To mitigate
the potential multicollinearity problem, we followed Aiken and West (1991) and mean-centered
the variables included in the interaction terms and then computed the interaction terms by
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multiplying the mean-centered variables. We also computed the variance inflation factor (VIF)
in the following regressions to further check the multicollinearity problem. Among the
regressions, the largest VIF was 2.894, fall below the cutoff point of 10, suggesting that
multicollinearity is not a serious concern in this study.
MD
55,2
302
Table II.
Descriptive statistics
and correlation matrix
No. Variables Mean SD 1 2 3 4 5 6 7 8 9 10
Gender −0.015 (0.059) 1.043/0.959 0.066 (0.059) 0.077 (0.048) 0.081 (0.047) 1.045/0.957
Age −0.056 (0.050) 1.303/0.767 0.020 (0.050) 0.063 (0.041) 0.062 (0.041) 1.325/0.755
Education 0.043 (0.050) 1.289/0.776 0.002 (0.050) −0.006 (0.042) 0.006 (0.042) 1.356/0.737
Salary 0.053 (0.029) 1.385/0.722 0.037 (0.029) −0.016 (0.024) −0.018 (0.024) 1.454/0.688
303
Years with the firm −0.047 (0.032) 1.282/0.780 0.023 (0.032) 0.071 (0.027) 0.071 (0.026) 1.347/0.742
Affective commitment 0.329 (0.072)** 2.136/0.468 0.370 (0.072)** 0.137 (0.065) 0.140 (0.063)* 2.540/0.394
Organizational
identification 0.176 (0.074)** 1.820/0.549 0.248 (0.074)** 0.134 (0.062)* 0.144 (0.061)* 1.902/0.526
Perceived CSR 0.332 (0.096)** 1.963/0.509 0.174 (0.095)* −0.050 (0.084) 0.005 (0.087) 2.504/0.399
Perceived
organizational
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positive effect of supervisor ethical leadership on employee OCB. To better present the
moderation effect, we graphed the interaction effect between supervisor ethical leadership
and perceived organizational distributive justice on employee OCB (see Figure 2). It can be
seen from this figure that the relationship between supervisor ethical leadership and
employee OCB is more positive when perceived organizational justice is lower. Thus, H2
was demonstrated.
5
4.5
4
3.5
Employee OCB
3
2.5
2 Figure 2.
1.5
Interaction effect
between ethical
1 leadership and
Low perceived distributive justice perceived
0.5
High perceived distributive justice organizational
0 distributive justice on
Mean – 1 SD Mean + 1 SD employee OCB
Supervisor ethical leadership
MD Moderated mediation analysis
55,2 H3 proposes a moderated mediation effect such that the mediation relationship between
CSR and employee OCB via supervisor ethical leadership will be moderated by employee
perception of organizational justice such that the mediation relationship being more
significant when perceived organizational justice is lower. To test this moderated mediation
effect, we followed Preacher et al.’s (2007) recommendation and used the PROCESS
304 procedure for SPSS as the statistic tool. Tests of significance for parameters were based on
95 percent bias-corrected confidence intervals (CIs) with 5,000 bootstrap estimates.
We followed the Model 14 as suggested in Hayes’s (2013) templates to conduct the
PROCESS analysis. We used the mean as well as one standard deviation above and below
the mean to represent moderate, high, and low values of perceived organizational
distributive justice, respectively. The results are reported in Table IV.
We can see from Table IV that the indirect effect of perceived CSR on employee OCB
through supervisors’ ethical leadership is positive in all three conditions. Despite the
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generally significant mediation relationship between CSR and employee OCB via supervisor
ethical leadership, the magnitude of this mediation effect varies across different levels of
organizational justice. Specifically, when perceived organizational distributive justice is low,
the point estimate for this mediation effect is 0.254 (95 percent CI: 0.140-0.408).
Comparatively, when perceived organizational distributive justice is high, point estimate
for this mediation effect is 0.168 (95 percent CI: 0.081-0.332). Moreover, the difference
between these two conditional indirect effects is significant (difference ¼ −0.079, 95 percent
CI: −0.246 to −0.004).
Discussion
In this study, we explored the effect of employees’ perceived CSR on their OCB, as well as
the mediating role of supervisors’ ethical leadership and the moderating effect of perceived
organizational distributive justice. Empirical findings suggest that perceived CSR has a
positive main effect on employee OCB, and this effect is mediated by supervisors’ ethical
leadership. In addition, we find that the effect of supervisors’ ethical leadership on employee
OCB is attenuated by high distributive justice perception. The indirect effect of perceived
CSR on employee OCB through supervisor ethical leadership depends also on perceived
distributive justice, such that high distributive justice weakens the mediating relationship
between CSR and employee OCB via supervisor ethical leadership.
Theoretical implications
This study contributes to the CSR and OCB literatures in the following aspects. At first,
prior studies have generally found a positive effect of perceived CSR on employee OCB
(e.g. Chun et al., 2013; Lin et al., 2010). However, the underlying mechanisms linking
perceived CSR to employee OCB remain unknown (Fu et al., 2014). This study fills this void
by identifying supervisor ethical leadership as one of the possible mechanisms underlying
the CSR-employee OCB relationship.
Table IV.
Conditional indirect Employee OCB
effects of perceived 95% bias-corrected
CSR on employee OCB Perceived organizational distributive justice Point estimate bootstrap confidence interval
through supervisor
ethical leadership at Low (−0.547; 2.939 before centering) 0.254 0.140-0.408
levels of perceived Moderate (0; 3.486 before centering) 0.211 0.125-0.337
organizational High (0.547; 4.032 before centering) 0.168 0.081-0.332
distributive justice Note: n ¼ 187
Second, this study identifies organizational justice as an important boundary condition for the CSR and OCB
effect of supervisor ethical leadership on employee OCB, as well as for the mediation effect of
ethical leadership on the relationship between perceived CSR and employee OCB. Prior studies
have suggested that ethical leadership may have different effects on employee OCB, depending
on the contexts such as the organizational politics (Kacmar et al., 2011). Consistent with prior
observations, we find that employees’ perceptions of high distributive justice can attenuate the
effect of ethical leadership on employee OCB, as well as the mediating relationship between 305
perceived CSR and employee OCB via supervisor ethical leadership.
Finally, this study supports an implicit “trickle-down” effect in human resource
management literature (Vlachos et al., 2014). Trickle-down effect suggests that top
managers may affect employees’ behavior by first shaping supervisors’ attitude and
behavior. For instance, prior research has demonstrated an ethics trickle-down effect such
that executive managers’ display of ethical conducts increase front-line employees’
pro-social or ethical behaviors through their direct supervisors’ increased ethical behaviors
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(e.g. Mayer et al., 2009; Ruiz et al., 2011). We demonstrate and extend this ethics trickle-down
effect by showing that top managers affect supervisors’ ethical leadership by using CSR to
signal their ethical attitude and value, while supervisors’ ethical leadership further affects
employee OCB.
Practical implications
This study also has important practical implications. At first, our study finds that CSR has a
positive effect on subordinates’ (here supervisors’) ethical leadership, which further
increases employee OCB. Motivating middle managers or supervisors to adopt ethical
leadership is very important because they have a direct impact on employees. Prior studies
have suggested that top managers in particular chief executive officer could shape the
ethical climate which further affects employee behavior (Shin, 2012). Our study provides
some viable way for top managers to achieve that. Specifically, top managers may use CSR
to signal their ethical values to subordinates, motivating them to adopt ethical leadership.
Supervisors’ ethical leadership further positively affects employees’ extra-role behavior
such as OCB. In addition, our study also suggests that organizational equity or justice and
supervisor ethical leadership may to some extent substitute each other in affecting
employee OCB. Thus, firms with low level of justice or equity, at least from the viewpoint of
employees, should be in a better position to conduct CSR to build ethical leadership.
Note
306 1. We have used Zhang et al.’s (2014) nine-item scale of CSP to measure perceived CSR and conducted
a robustness check. The results are consistent with our original results.
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Corresponding author
Yongqiang Gao can be contacted at: yqgao@hust.edu.cn
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