Organisational commitment and organisational cynicism as feedback signals: from zero to substantive CSR
Abstract
Corporate social responsibility (CSR) declared by organisations can be understood as a specific signal sent to stakeholders. However, social responsibility can vary from its complete absence to symbolic or substantive CSR. There is still a lack of knowledge on how employee feedback, manifesting itself by organisational commitment or organisational cynicism, varies depending on the nature of CSR and employee seniority. Therefore, this exploratory study examines how organisational cynicism and organisational commitment manifest themselves in organisations in different situations with regard to CSR. The study was conducted in Lithuania, surveying 981 employees from public and private sector enterprises. Organisations are divided into three groups showing the corresponding level of social responsibility: substantive, symbolic and not CSR. Organisational commitment was tested using two different instruments: Organisational Commitment Questionnaire (OCQ) by Mowday et al. (1979) and an instrument created by Allen and Meyer (1990). Organisational commitment (as in the cases of affective, continuance and normative commitment) was the strongest in the substantive CSR group; and the weakest, in the not CSR group. Employee cynicism showed the opposite result. The same consistency was observed separately in the public and private sectors, with stronger commitment and weaker cynicism found in the public sector. Organisational commitment and cynicism demonstrated by employees emerge as reactions to corporate social responsibility and as a kind of feedback signal sent to persons responsible for organisational management. The results are discussed considering the signalling theory, and their implications for practice are highlighted.
Keyword : employee behaviour, corporate social responsibility, organisational commitment, organisational cynicism, employee seniority, employee feedback, public sector, private sector, signalling theory
How to Cite
Vveinhardt, J. (2024). Organisational commitment and organisational cynicism as feedback signals: from zero to substantive CSR. Business: Theory and Practice, 25(2), 387–396. https://doi.org/10.3846/btp.2024.21057
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Helvaci, M. A., & Başaran, O. (2020). The relationship between workaholism levels of teachers and organisational cynicism. European Journal of Education Studies, 7(5), 94–119.
Huang, D. Z. (2021). Environmental, social and governance factors and assessing firm value: Valuation, signalling and stakeholder perspectives. Accounting & Finance, 62(S1), 1983–2010. https://doi.org/10.1111/acfi.12849
Jamali, D., Samara, G., Zollo, L., & Ciappei, C. (2020). Is internal CSR really less impactful in individualist and masculine Cultures? A multilevel approach. Management Decision, 58(2), 362–375. https://doi.org/10.1108/MD-11-2018-1260
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Lin, Y. T., Liu, N. C., & Lin, J. W. (2022). Firms’ adoption of CSR initiatives and employees’ organisational commitment: Organisational CSR climate and employees’ CSR-induced attributions as mediators. Journal of Business Research, 140, 626–637. https://doi.org/10.1016/j.jbusres.2021.11.028
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Allen, N. J., & Meyer, J. P. (1993). Organisational commitment: evidence of career stage effects? Journal of Business Research, 26(1), 49–61. https://doi.org/10.1016/0148-2963(93)90042-N
Bergh, D. D. Connelly, B. L., Ketchen, D. J., & Shannon, L. M. (2014). Signalling theory and equilibrium in strategic management research: An assessment and a research agenda. Journal of Management Studies, 51(8), 1334–1360. https://doi.org/10.1111/joms.12097
Bergh, D. D., Ketchen, D. J., Orlandi, I., Heugens, P. P. M. A. R., & Boyd, B. K. (2019). Information asymmetry in management research: Past accomplishments and future opportunities. Journal of Management, 45(1), 122–158. https://doi.org/10.1177/0149206318798026
Brown, J. A., Clark, C., & Buono, A. F. (2018). The United Nations global compact: Engaging implicit and explicit CSR for global governance. Journal of Business Ethics, 147, 721–734. https://doi.org/10.1007/s10551-016-3382-5
Brown, L. W., Goll, I., Rasheed, A. A., & Crawford, W. S. (2020). Nonmarket responses to regulation: A signaling theory approach. Group & Organization Management, 45(6), 865–891. https://doi.org/10.1177/1059601120963693
Carlini, J., Grace, D., France, C., & Iacono, J. L. (2019). The corporate social responsibility (CSR) employer brand process: Integrative review and comprehensive model. Journal of Marketing Management, 35(1–2), 182–205. https://doi.org/10.1080/0267257X.2019.1569549
Carroll, A. B. & Brown, J. A. (2018). Corporate social responsibility: A review of current concepts, research, and issues. In Corporate social responsibility (pp. 39–69). Emerald Publishing Limited. https://doi.org/10.1108/S2514-175920180000002002
Carroll, A. B. (2016). Carroll’s pyramid of CSR: Taking another look. International Journal of Corporate Social Responsibility, 1, Article 3. https://doi.org/10.1186/s40991-016-0004-6
CEIC Data, an ISI Emerging Markets Group Company. (n.d.). Lithuania employed persons. https://www.ceicdata.com/en/indicator/lithuania/employed-persons
Chatzopoulou, E. C., Manolopoulos, D., & Agapitou, V. (2022). Corporate social responsibility and employee outcomes: Interrelations of external and internal orientations with job satisfaction and organisational commitment. Journal of Business Ethics, 179(3), 795–817. https://doi.org/10.1007/s10551-021-04872-7
Chiaburu, D. S., Peng, A. C., Oh, I. S., Banks, G. C., & Lomeli, L. C. (2013). Antecedents and consequences of employee organisational cynicism: A meta-analysis. Journal of Vocational Behavior, 83(2), 181–197. https://doi.org/10.1016/j.jvb.2013.03.007
Cohen, A. (2007). Commitment before and after: An evaluation and reconceptualization of organisational commitment. Human Resource Management Review, 17(3), 336–354. https://doi.org/10.1016/j.hrmr.2007.05.001
Connelly, B., Certo, T., Ireland, D., & Reutzel, C. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67. https://doi.org/10.1177/0149206310388419
Dahlin, P., Ekman, P., Röndell, J., & Pesämaa, O. (2020). Exploring the business logic behind CSR certifications. Journal of Business Research, 112, 521–530. https://doi.org/10.1016/j.jbusres.2019.11.046
Dean Jr, J. W., Brandes, P., & Dharwadkar, R. (1998). Organisational cynicism. Academy of Management Review, 23(2), 341–352. https://doi.org/10.5465/amr.1998.533230
Donia, M. B., Ronen, S., Tetrault Sirsly, C. A., & Bonaccio, S. (2019). CSR by any other name? The differential impact of substantive and symbolic CSR attributions on employee outcomes. Journal of Business Ethics, 157, 503–523. https://doi.org/10.1007/s10551-017-3673-5
Grego-Planer, D. (2019). The relationship between organisational commitment and organisational citizenship behaviors in the public and private sectors. Sustainability, 11(22), Article 6395. https://doi.org/10.3390/su11226395
Guest, D. E., Sanders, K., Rodrigues, R., & Oliveira, T. (2021). Signalling theory as a framework for analysing human resource management processes and integrating human resource attribution theories: A conceptual analysis and empirical exploration. Human Resource Management Journal, 31(3), 796–818. https://doi.org/10.1111/1748-8583.12326
Helvaci, M. A., & Başaran, O. (2020). The relationship between workaholism levels of teachers and organisational cynicism. European Journal of Education Studies, 7(5), 94–119.
Huang, D. Z. (2021). Environmental, social and governance factors and assessing firm value: Valuation, signalling and stakeholder perspectives. Accounting & Finance, 62(S1), 1983–2010. https://doi.org/10.1111/acfi.12849
Jamali, D., Samara, G., Zollo, L., & Ciappei, C. (2020). Is internal CSR really less impactful in individualist and masculine Cultures? A multilevel approach. Management Decision, 58(2), 362–375. https://doi.org/10.1108/MD-11-2018-1260
Ji, S., & Jan, I. U. (2019). The impact of perceived corporate social responsibility on frontline employee’s emotional labor strategies. Sustainability, 11(6), Article 1780. https://doi.org/10.3390/su11061780
Johnson, R. E., & Chang, C. H. (2006). “I” is to continuance as “we” is to affective: The relevance of the self‐concept for organisational commitment. Journal of Organisational Behavior, 27(5), 549–570. https://doi.org/10.1002/job.364
Kim, T.-Y., Bateman, T. S., Gilbreath, B., & Andersson, L. M. (2009). Top management credibility and employee cynicism: A comprehensive model. Human Relations, 62(10), 1435–1458. https://doi.org/10.1177/0018726709340822
Klimchak, M., Ward Bartlett, A. K., & MacKenzie, W. (2020). Building trust and commitment through transparency and HR competence: A signaling perspective. Personnel Review, 49(9), 1897–1917. https://doi.org/10.1108/PR-03-2019-0096
Ko, J. W., Price, J. L., & Mueller, C. W. (1997). Assessment of Meyer and Allen’s three-component model of organisational commitment in South Korea. Journal of Applied Psychology, 82(6), 961–973. https://doi.org/10.1037/0021-9010.82.6.961
Lin, Y. T., Liu, N. C., & Lin, J. W. (2022). Firms’ adoption of CSR initiatives and employees’ organisational commitment: Organisational CSR climate and employees’ CSR-induced attributions as mediators. Journal of Business Research, 140, 626–637. https://doi.org/10.1016/j.jbusres.2021.11.028
Loor-Zambrano, H. Y., Santos-Roldán, L., & Palacios-Florencio, B. (2022). Relationship CSR and employee commitment: Mediating effects of internal motivation and trust. European Research on Management and Business Economics, 28(2), Article 100185. https://doi.org/10.1016/j.iedeen.2021.100185
Margelytė-Pleskienė, A., & Vveinhardt, J. (2018). The quintessence of organisational commitment and organisational cynicism. Organizacijų Vadyba: Sisteminiai Tyrimai-Management of Organisations: Systematic Research, 80(1), 67–88. https://doi.org/10.1515/mosr-2018-0014
McGuire, S. T., Omer, T. C., & Sharp, N. Y. (2012). The impact of religion on financial reporting irregularities. The Accounting Review, 87(2), 645–673. https://doi.org/10.2308/accr-10206
Meyer, J. P., Stanley, D. J., Jackson, T. A., McInnis, K. J., Maltin, E. R., & Sheppard, L. (2012). Affective, normative, and continuance commitment levels across cultures: A meta-analysis. Journal of Vocational Behavior, 80(2), 225–245. https://doi.org/10.1016/j.jvb.2011.09.005
Moratis, L. (2018). Signalling responsibility? Applying signalling theory to the ISO 26000 Standard for social responsibility. Sustainability, 10(11), Article 4172. https://doi.org/10.3390/su10114172
Mousa, M. (2017). Organisational cynicism and organisational Commitment in Egyptian public primary education: When spring yields black flowers. Kuwait Chapter of the Arabian Journal of Business and Management Review, 6(9), 4–19. https://doi.org/10.12816/0037798
Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of organisational commitment. Journal of Vocational Behavior, 14(2), 224–247. https://doi.org/10.1016/0001-8791(79)90072-1
Nejati, M., & Shafaei, A. (2023). Why do employees respond differently to corporate social responsibility? A study of substantive and symbolic corporate social responsibility. Corporate Social Responsibility and Environmental Management, 30(4), 2066–2080. https://doi.org/10.1002/csr.2474
Ogunfowora, B., Stackhouse, M., & Oh, W. Y. (2018). Media depictions of CEO ethics and stakeholder support of CSR initiatives: The mediating roles of CSR motive attributions and cynicism. Journal of Business Ethics, 150, 525–540. https://doi.org/10.1007/s10551-016-3173-z
Orzes, G., Moretto, A. M., Moro, M., Rossi, M., Sartor, M., Caniato, F., & Nassimbeni, G. (2020). The impact of the United Nations global compact on firm performance: A longitudinal analysis. International Journal of Production Economics, 227, Article 107664. https://doi.org/10.1016/j.ijpe.2020.107664
Ozdem, G. & Sezer, S. (2019). The relationship between solution-focused school leadership and organisational cynicism, organisational commitment and teachers’ job satisfaction. International Journal of Progressive Education, 15(1), 167–183. https://doi.org/10.29329/ijpe.2019.184.11
Peterson, D. K. & Xing, Y. (2007). Correlates and predictors to organisational commitment in China. Journal of Asia Business Studies, 1(2), 27–36. https://doi.org/10.1108/15587890780001293
Saxton, G. D., Gomez, L., Ngoh, Z., Lin, Y.-P., & Dietrich, S. (2019). Do CSR messages resonate? Examining public reactions to firms’ CSR efforts on social media. Journal of Business Ethics, 155, 359–377. https://doi.org/10.1007/s10551-017-3464-z
Schaefer, S. D., Terlutter, R., & Diehl, S. (2020). Talking about CSR matters: Employees’ perception of and reaction to their company’s CSR communication in four different CSR domains. International Journal of Advertising, 39(2), 191–212. https://doi.org/10.1080/02650487.2019.1593736
Shahzadi, G., John, A., Qadeer, F., Jia, F., & Yan, J. (2024). CSR beyond symbolism: The importance of substantive attributions for employee CSR engagement. Journal of Cleaner Production, 436, Article 140440. https://doi.org/10.1016/j.jclepro.2023.140440
Sheel, R. C., & Vohra, N. (2016). Relationship between perceptions of corporate social responsibility and organisational cynicism: The role of employee volunteering. The International Journal of Human Resource Management, 27(13), 1373–1392. https://doi.org/10.1080/09585192.2015.1072102
Spence, M. (1974). Competitive and optimal responses to signals: An analysis of efficiency and distribution. Journal of Economic Theory, 7(3), 296–332. https://doi.org/10.1016/0022-0531(74)90098-2
Stankevičienė, A., Grincevičienė, N., Diskienė, D., & Drūteikienė, G. (2023). The Influence of personal skills for telework on organisational commitment: The mediating effect of the perceived intensity of telework. JEEMS: Journal of East European Management Studies, 28(4), 606–629. https://doi.org/10.5771/0949-6181-2023-4-606
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