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Boğan & Dedeoğlu 2019
Boğan & Dedeoğlu 2019
Boğan & Dedeoğlu 2019
www.emeraldinsight.com/2514-9792.htm
CSR
The effects of hotel employees’ perceptions
CSR perceptions on trust on trust in
organization
in organization
Moderating role of employees’ 391
self-experienced CSR perceptions Received 28 December 2018
Revised 30 May 2019
Erhan Boğan Accepted 10 June 2019
Abstract
Purpose – The purpose of this paper is to investigate the moderating role of employees’ self-experienced
social responsibility perceptions in the relationship between employees’ community- and environment-
oriented social responsibility perceptions and trust in an organization.
Design/methodology/approach – The corporate social responsibility (CSR) construct is examined in the
context of stakeholders including the community, environment and employees. The study was carried out
with 438 questionnaires gathered from four- and five-star hotels operating in Alanya, Turkey. The proposed
model was tested with the partial least squares method of structural equation modeling. Multiple group
analysis was performed to test the moderating effect.
Findings – Findings reveal that employees’ community- and environment-oriented social responsibility
perceptions have a positive effect on trust in the organization. Based on the results of multigroup analysis, the
effect of employees’ community-oriented social responsibility perceptions on trust in the organization was
determined to be more prominent in the group of employees with high self-experienced social responsibility
perceptions. However, the same moderating effect could not be determined in relation to environment-oriented
social responsibility perceptions and trust in the organization.
Originality/value – Studies focusing on CSR activities were mainly examined at the macro level. Internal
stakeholders’ returns to these activities were not sufficiently considered. Contrary to previous studies that
examine the link between CSR perceptions measured with Carroll’s pyramid dimensions and organizational
trust, the current study examined CSR perceptions with the stakeholder approach. Moreover, the study
discovered one of the variables defined as the black box that differentiates the returns that employees provide
to CSR activities.
Keywords Corporate social responsibility, Turkey, Self-experience social responsibility perceptions,
Trust in organization
Paper type Research paper
Introduction
The concept of corporate social responsibility (CSR) is often examined in the research
carried out in the field of tourism and hospitality. This concept was associated in the early
periods with the financial performance of enterprises but was later associated with
stakeholders’ positive or negative reactions toward the organization. Aguinis and Glavas
(2012) describe the studies that examine the relationship between CSR and financial
performance as macro-level studies and those that examine stakeholders’ returns on CSR
activities as micro-level studies. Empirical studies were mainly addressed at the macro level
Journal of Hospitality and Tourism
(Rupp and Mallory, 2015). By contrast, the CSR perceptions of employees who are one of the Insights
parties in a stakeholder group were examined in the present study. Vol. 2 No. 4, 2019
pp. 391-408
In recent years, employees’ returns on CSR activities have been frequently examined in the © Emerald Publishing Limited
2514-9792
literature of the tourism and hospitality industry (Wong and Gao, 2014; Park and Levy, 2014; DOI 10.1108/JHTI-12-2018-0089
JHTI Ilkhanizadeh and Karatepe, 2017; Kim et al., 2017; Boğan, Türkay and Dedeoğlu, 2018).
2,4 However, studies nowadays include relatively more complex models than those in the past.
For example, while in the early periods the direct effect of employees’ CSR perceptions on
organizational citizenship behavior is investigated, nowadays the variables that play a
mediating or moderating role in this relationship are being discovered (see Rupp et al., 2013;
Kim et al., 2017). In other words, looking at the bigger picture from a wider perspective is being
392 attempted (Boğan and Dedeoğlu, 2017a). Although considerable research has been devoted
to hospitality employees’ returns on CSR practices, rather less attention has been paid to
discover moderators that amplify or mitigate the effects of CSR on employees’ attitudes and
behaviors. The research question is:
RQ1. What is the moderating role of employees’ self-experienced CSR perceptions on the
relationship between community- and environment-oriented CSR perceptions and
trust in organization?
The research model was developed on the basis of deontic justice theory and signaling
theory. According to deontic justice theory (Folger, 2001), individuals are sensitive about
behaviors that harm moral and ethical values, and they react against those behaviors. The
person itself is not necessarily being exposed to this behavior. People expect fair treatment
for those in their close vicinity and even for every single member of society. From a
humanitarian point of view, individuals are clearly concerned about their social
environment. They find pleasure in their happiness and feel sad about the pain or
disasters they experience. Therefore, they want those in their social environment and
society at large not to face any unfair treatment that they themselves avoid (Skarlicki and
Kulik, 2005). This will be a consequence of their desire to make moral sense of their lives
(Cropanzano et al., 2001). In recent years, CSR activities have been prominent as an indicator
of the fair behavior of an organization to its stakeholders (Rupp et al., 2006). According to
signaling theory (Spence, 1973; Connelly et al., 2011), enterprises send signals to their
stakeholders about their sensitivities through the activities they conduct in both internal
and external environments (e.g. CSR activities). When stakeholders perceive those signals,
they become aware of the identity and values of the enterprise. This information is effective
in shaping stakeholders’ returns toward the organization.
Investigating the impact of CSR activities on the behaviors and attitudes of employees
who are the most valuable components in an enterprise would be beneficial (Aguilera et al.,
2007; Lee et al., 2012). The most important role in the fulfillment of CSR activities is
undertaken by employees. Thus, employees must be involved in CSR activities and
internalize these activities. Employees communicate these activities to the business
stakeholders of the enterprise as if they were ambassadors of the enterprise against
customers and external stakeholders. The majority of customers who visit Turkey’s coastal
destinations are composed of European tourists with high social and environmental
awareness (Fairweather et al., 2005). The enterprise may take strategic advantage of
employees to communicate CSR activities to customers. The critical element here is that
employees are encouraged to cooperate and implement such voluntary activities (Collier and
Esteban, 2007).
Employees who work in a labor-intensive sector play the most important role in
achieving the goals and objectives set by organizations. Establishing a high level of trust
between the enterprise and the employees ensures that these goals and objectives would
be achieved in a shorter time and more effectively. One of the most effective ways to
increase and sustain organizational and individual productivity is to build trust in an
organizational environment (McAllister, 1995). Trust in an organization is defined as a
person’s willingness to be vulnerable to the activities of the organization (Zand, 1972).
This willingness can be achieved by communicating the activities carried out by the
organization with formal or informal communication tools (Tan and Lim, 2009). Therefore, CSR
the information obtained from colleagues in the organization and the social responsibility perceptions
activities of the enterprise outside the organization can contribute to employees’ on trust in
trust in the organization. According to Thompson (1967), the fact that the complex
structure of today’s enterprises requires division of workload and teamwork has rendered organization
compulsory to ensure the mutual trust in an organization (McAllister, 1995).
Organizational trust is an important antecedent for hotel employees in Turkey to 393
display positive behaviors in favor of the business (Ozturk and Karatepe, 2019; Tekeli and
Buyruk, 2018). At this point, it can be expected that discovering the elements to increase
the sense of organizational trust in hotel businesses would contribute to these businesses
yielding positive outputs. Considering the theoretical gap in the literature, the purpose of
the present study is to investigate the moderating role of employees’ self-experienced
CSR perceptions on the relationship between community- and environment-oriented CSR
perceptions and trust in an organization. The findings will contribute to the theoretical
background. Some suggestions will be proposed for the enterprises operating in the
hospitality industry.
Methodology
Instrument
In this study, the questionnaire was used as a data collection tool. The questionnaire
consists of three parts. In the first part, hotel employees’ perceptions of CSR activities are
presented. Employees’ CSR perceptions are examined under three dimensions: social
responsibility toward the community, employees and environment. An in-depth literature
review was carried out for the CSR scale, and a pool of statements was formed based on
different studies (Clarkson, 1995; Carroll, 1999; Şimşek, 1999; Jamali, 2008; Avcıkurt, 2009;
Turker, 2009; Lee, Song, Lee, Lee and Bernhard, 2013; Türker and Uçar, 2013). These
statements were discussed with one professor and two assistant professors in a business
school who are experts in their fields, and some statements were eliminated. All remaining
statements were then brought together, and 30 undergraduate students were asked for their
feedback on the statements. Thereafter, a pilot test was conducted with 50 undergraduate
CSR
perceptions
Community-
oriented CSR on trust in
H2 organization
Trust in
H3 organization
397
H1
Environment-
H4
oriented CSR
Self-
experienced
CSR Figure 1.
Research model
students who had work experience in the hotels of the region. The results were found to be
satisfactory. Employees’ social responsibility perceptions toward the community, the
natural environment, and the employees were measured by three, four and seven
statements, respectively. In the second part of the survey, trust in the organizational scale
consisting of four statements was included. To develop this scale, the studies of Lee et al.
(2012) and Aktuna (2007) were taken as bases. All statements in the scales were measured
via a five-point Likert scale. In the third part, questions on the demographic characteristics
of the participants and their workplaces were included.
Data analysis
The research data were subject to an elimination process first, where the existence of
missing values was checked. Steps recommended by Hair, Hult, Ringle and Sarstedt (2017)
were followed to determine the missing values and to select the appropriate method.
Accordingly, the mean substitution method was preferred, and the missing values were
designated. Thereafter, the Mahalanobis distance was checked for possible extreme values.
JHTI No extreme value was found (Mahalanobis D [18] 78.5226, p o0.001) (Hair et al., 2013). As a
2,4 last step, skewness and kurtosis values were checked for the normal distribution. Since
skewness and kurtosis values did not violate the recommended values, the normal
distribution assumption was achieved (Kline, 2011).
The research model in the present study was checked via the partial least squares
method of structural equation modeling (PLS–SEM). PLS–SEM is a repetitive method that
398 does not impose distributional assumptions on data for the estimation of SEM (Fornell et al.,
1996). Besides being a suitable method to analyze the data collected through ordinal scales
like Likert, PLS–SEM yields more effective and fruitful results in the explanation
and estimation-oriented models (Hair, Matthews, Matthews and Sarstedt, 2017). Thus,
PLS–SEM was preferred in this study. It was examined with the help of SmartPLS 3.2.8
(Ringle et al., 2017).
To examine, within the scope of the relationships in the research model, the moderating
effect of employees’ perceptions of employee-oriented social responsibility activities,
PLS-multiple group analysis (PLS–MGA) was applied. Before applying PLS–MGA, the
measurement invariances should be checked. Therefore, the method of the measurement
invariance of the composite models (MICOM) recommended by Henseler et al. (2016) was
used. In this regard, employees’ perceptions of employee-oriented social responsibility
activities were classified by the K-mean cluster test as high and low groups.
Findings
Demographical findings
The demographical characteristics of the respondents are briefly presented in Table I.
The table shows that most of the respondents are male and are aged 18–30. In addition,
81.3 percent of the respondents are working in five-star hotels. Among all departments, the
highest number of respondents is from the department of food and beverage. The second
highest number of respondents works in the department of housekeeping. The majority of
the respondents have more than three years of work experience in hotels. The respondents
are mainly composed of high school graduates (38.3 percent), primary school graduates
(35.9 percent) and university graduates (25.6 percent).
Path
Dimension Statements coefficients t-value CR AVE Cronbach’s α
Community- My hotel is sensitive to social problems 0.81 32.142 0.84 0.64 0.72
oriented CSR My hotel frequently donates to charities 0.82 34.697
My hotel supplies local products and services 0.77 26.456
Environment- My hotel takes steps to save water 0.74 22.703 0.84 0.56 0.74
oriented CSR My hotel investigates the environmental 0.80 34.785
impacts that may occur during its activities
My hotel hangs informative posters to the 0.72 18.912
general areas of the hotel in terms of
environmental cleanliness
My hotel takes steps to save energy 0.73 21.500
Trust in My hotel is committed to understand 0.85 39.871 0.91 0.72 0.87
organization employees
The communication channels of my hotel are 0.83 39.563
always open
Everything is open in my hotel, there are no 0.87 51.451
hidden practices Table II.
I trust my hotel 0.84 45.275 Results of
Notes: CR, construct reliability; AVE, average variance extracted measurement model
Path
Hypothesis Relation coefficients t-value p VIF R2 f2 Q2 Supported
H1 Environment- 0.398 7.393 0.000 1.768 0.495 0.178 SSO ¼ 1.752,000 Yes
oriented SSE ¼ 1.158,709
CSR → Trust Q2 ¼ 0.339
Table IV. H2 Community- 0.377 6.942 0.000 1.768 0.160 Yes
Results of oriented
structural model CSR → Trust
f 2 = 0.160
Community- R 2 = 0.495
oriented CSR = 0.3
77; t =
6.942
Trust in
organization
.393
98; t =7
= 0.3
Environment-
Figure 2.
oriented CSR
Result of the f 2 = 0.178
structural model
community-oriented social responsibility activities have a larger and more determinative CSR
impact on trust in an organization for the employees with high perceptions of perceptions
self-experienced CSR (Figure 3). on trust in
organization
Conclusions
The purpose of this study is to examine the relationship between employees’ community- and
environment-oriented CSR perceptions and trust in an organization in the hotel context. This 401
study extends the previous studies by empirically testing the moderating role of employees’
self-experienced CSR perceptions on the links between community- and environment-oriented
CSR perceptions and trust in an organization. The findings suggested that the employees’
community- and environment-oriented CSR perceptions positively affect trust in the
organization. In addition, the impact of hotel employees’ community-oriented CSR perceptions
on trust in the organization was more determinative for those with high self-experienced CSR
perceptions. Contrary to our expectation, the findings do not provide evidence to support
self-experienced CSR perceptions as a moderator on the link between environment-oriented
CSR perceptions and trust in the organization. Accordingly, theoretical and managerial
implications are provided below.
Theoretical implications
This study offers several theoretical implications. Studies focusing on CSR activities were
mainly examined at the macro level (Aguinis and Glavas, 2012), and internal stakeholders’
feedback was not sufficiently considered. Studies focusing on CSR have mostly been carried
Path Welch–
Hypothesis Relation Group coefficient t PLS–MGA Parametric Satterthwait Supported
Environment-
oriented CSR = 0.345; t = 4.474
Figure 3.
Result of PLS–MGA
Notes: Bold for high; italics for low
JHTI out in America and Europe and have started to become more common in Far Eastern
2,4 countries (Chapple and Moon, 2005; Aguilera and Crespi-Cladera, 2016). Nevertheless,
this concept has not yet been examined in detail in Turkey as a developing country.
Boğan, Çalışkan and Dedeoğlu (2018) suggested that this concept should be further studied
in developing countries, such as Turkey, to generalize the findings of previous studies that
employees mostly show positive reactions to social responsibility practices. Therefore,
402 the present study is one of the leading studies in Turkey within the scope of employees’
returns on CSR.
Showing parallelism with prior research (Lin, 2010; Vlachos et al., 2010; Hansen et al.,
2011; Lee et al., 2012; Lee, Song, Lee, Lee and Bernhard, 2013), this study provides
empirical evidence of a link between employees’ CSR perceptions and trust in an
organization. Lin (2010) surveyed employees in 20 large firms in Taiwan to investigate the
impact of employees’ citizenship perceptions (economic, legal, ethical and philanthropic)
on organizational trust. He found that all dimensions except legal had a positive impact on
organizational trust. Vlachos et al. (2010) examined the link between sales force
perceptions of CSR motives and organizational trust. They found that stakeholder- and
values-driven CSR motives positively influence organizational trust. Lee et al. (2012)
surveyed employees of franchised food service enterprises located in South Korea to
examine the impact of CSR on organizational trust. They found that enterprises’ economic
and philanthropic social responsibility activities made a significant contribution to
organizational trust. In another study conducted with casino employees in South Korea,
Lee, Song, Lee, Lee and Bernhard (2013) found that only the legal dimension of CSR
perceptions had a positive effect on organizational trust. Hansen et al. (2011) examined
employees’ CSR perceptions and found its positive impact on organizational trust in two
studies. Although most of these previous studies measured CSR using Carroll’s (1979)
economic, legal, ethical and philanthropic dimensions, the current study extends the
previous work by measuring CSR with stakeholder approach as employees’ community-
and environment-oriented CSR.
The results suggested that employees’ self-experienced CSR perceptions play a
moderating role on the link between community-oriented CSR and trust in an
organization. In other words, the impact of employees’ community-oriented CSR
perceptions on trust in an organization had a more determinative impact on the group
with higher self-experienced CSR perceptions. This finding supports “deontic justice
theory” that emphasizes that individuals expect fair treatment toward not only
themselves but also other individuals in society (Folger, 2001). Nevertheless, this
moderating effect could not be found in the relationship between environment-oriented
social responsibility and trust in an organization. One of the main reasons could be that
employees might not have considered hotels’ environmental initiatives such as energy
saving and recycling as voluntary activities. This kind of initiatives could be associated
with the economic survival of the enterprise because they would provide financial savings
to the organization or satisfy customers’ expectations in general (Sprinkle and Maines,
2010). In other words, environment-oriented social responsibility activities might not be a
social responsibility area that employees consider while assessing the external fairness of
the enterprise. Thus, social responsibility activities that target different stakeholders
could change employees’ reactions. A similar pattern of results was found by Erdogan
et al. (2015) and De Roeck et al. (2016). Erdogan et al. (2015) found that the impact of
commitment to environmental practices on organizational commitment and
organizational justice was more determinative for employees with high perceptions of
organizational support. De Roeck et al. (2016) found that the effect of employees’ CSR
perceptions on organizational identification through organizational pride is stronger
among the employees who hold high levels of overall justice.
Practical implications CSR
Besides its contribution to the current body of knowledge, this study provides useful perceptions
information to the hotel industry. In hotel businesses where the personnel turnover rate is on trust in
high, further focus should be placed on activities to establish trust between the organization
and the employees. Hotels are supposed to act in a fair way. One way to mirror the organization
organizational justice for external partners is to carry out social responsibility activities that
target environmental protection and benefit society (Rupp et al., 2006). Hotel enterprises can 403
gain employees’ trust by cooperating with non-governmental or charitable organizations
with the purpose of improving individuals’ quality of life. Providing financial support for
the construction of schools, hospitals, etc., which are needed by society, and giving
employment opportunities to local people can be taken as examples in this regard. Due to its
stronger impact on trust in an organization, hotels should also consider their employees and
act in a fair way toward them while carrying out social responsibility activities for the
benefit of society. If an enterprise ignores its employees while focusing on beneficial
activities for society, it might cause confusion and distrust among employees, which could
result in several negative attitudes and behaviors such as cynicism and absenteeism
(Kılıçoğlu, 2017). Another critical point is that employees should be aware of social
initiatives taken for the benefit of society at large. As mentioned by Du et al. (2010), one of
the prerequisites of stakeholders’ positive feedback on social and environmental initiatives
is that they should be adequately informed about those initiatives. Hotel management
should communicate those initiatives to its employees through various internal
communication channels.
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Corresponding author
Erhan Boğan can be contacted at: ebogan@adiyaman.edu.tr
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