Accounting the Moderation Effects on the Relationship between Social Responsibility and Business Ethics

  • Anca Antoaneta Bocean Vărzaru University of Craiova, Craiova, Romania
  • Claudiu George Bocean University of Craiova, Craiova, Romania
  • Mădălina Giorgiana Mangra University of Craiova, Craiova, Romania
  • Michael Marian Nicolescu University of Craiova, Craiova, Romania
Keywords: social responsibility, organizational communication, organizational ethics, employee engagement, organizational culture, corporate reputation

Abstract

Organizations do not function in isolation in society. On the part of society, it is expected that organizations will work in the interest of society and have a sense of obligation to it, to be concerned with solving the problems they have caused. Therefore, the organization should have ethical standards and practice a solid organizational culture and social responsibility to ensure the sustainability and success of the business. The paper aims to address social responsibility and business ethics concerns by building the framework of relationships between social responsibility (SR) and organizational ethics (OE) and determining the moderating effects of organization's reputation (OR), organizational communication (OCm), employee engagement (EE), and organizational culture (OCt). Following structural equation modeling, the paper determines the relationships between the variables and the moderators between these variables. The research results show that CR and OCt strongly moderate the relationship between SR and BE, while OCm and OCm slightly moderate the relationship between SR and OE.

Author Biographies

Anca Antoaneta Bocean Vărzaru, University of Craiova, Craiova, Romania

University of Craiova, Craiova, Romania

Claudiu George Bocean, University of Craiova, Craiova, Romania

University of Craiova, Craiova, Romania

Mădălina Giorgiana Mangra, University of Craiova, Craiova, Romania

University of Craiova, Craiova, Romania

Michael Marian Nicolescu, University of Craiova, Craiova, Romania

University of Craiova, Craiova, Romania

References

Agarwal, J., Osiyevskyy, O., & Feldman, P. M. (2015). Corporate reputation measurement: Alternative factor structures, nomological validity, and organizational outcomes. Journal Business Ethics, 130(2), 485-506. https://doi.org/10.1007/s10551-014-2232-6

Ali, S. S. (2013). A study on employee engagement in Cochin International Airport Limited. A Management Journal, 4(1), 24-17. http://www.publishingindia.com/GetBrochure.aspx?query=UERGQnJvY2h1cmVzfC8xNDM5LnBkZnwvMTQzOS5wZGY=

Almeida, M. G. C., & Coelho, A. F. M. (2019). The Antecedents of Corporate Reputation and Image and Their Impacts on Employee Commitment and Performance: The Moderating Role of CSR. Corporate Reputation Review, 22, 10-25. https://doi.org/10.1057/s41299-018-0053-8

Avram, D. O., & Kuhne, S. (2008). Implementing responsible business behavior from a strategic management perspective: Developing a framework for Austrian SMEs. Journal of Business Ethics, 82(2), 463-475. https://doi.org/10.1007/s10551-008-9897-7

Bauman, C. W., & Skitka, L. J. (2012). Corporate social responsibility as a source of employee satisfaction. Research in Organizational Behavior, 32, 63-86. https://doi.org/10.1016/j.riob.2012.11.002

Chen, C. F., & Cheng, L.T. (2012). A study on mobile phone service loyalty in Taiwan. Total Quality Management and Business Excellence, 23(s7/8), 807-819. https://doi.org/10.1080/14783363.2012.661129

Cravens, K. S., & Oliver, E. G. (2006). Employees: The key link to corporate reputation management. Business Horizons, 49(4), 293-302. https://doi.org/10.1016/j.bushor.2005.10.006

Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65-91. https://doi.org/10.2307/258887

Dowling, G. (2006). How good corporate reputations create corporate value. Corporate Reputation Review, 9(2),134-143. https://doi.org/10.1057/palgrave.crr.1550017

Flatt, S. J., & Kowalczyk, S. J. (2008). Creating competitive advantage through intangible assets: The direct and indirect effects of corporate culture and reputation. Advances in Competitiveness Research, 16(1/2), 13-30.

Fombrun, C. J., Ponzi, L. J., & Newburry, W. (2015). Stakeholder tracking and analysis: The RepTrak system for measuring corporate reputation. Corporate Reputation Review, 18(1), 3-24. https://doi.org/10.1057/crr.2014.21

Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.

Gill, R. (2015). Why the PR strategy of storytelling improves employee engagement and adds value to CSR: An integrated literature review. Public Relations Review, 41(5), 662-674. https://doi.org/10.1016/j.pubrev.2014.02.012

Goldring, D. (2015). Reputation orientation: Improving marketing performance through corporate reputation building. Marketing intelligence & planning, 33(5), 784-803. https://doi.org/10.1108/MIP-11-2013-0183

Golgeli, K. (2014). Corporate reputation management: The sample of Erciyes University. Procedia-Social and Behavioral Sciences, 122, 312-318. https://doi.org/10.1016/j.sbspro.2014.01.1346

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. A. (2017). Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage.

Lee, E. M., Park, S. Y., & Lee, H. J. (2013). Employee perception of CSR activities: Its antecedents and consequences. Journal of Business Research, 66(10), 1716-1724. https://doi.org/10.1016/j.jbusres.2012.11.008

Lee, M., & Kim, H. (2017). Exploring the Organizational Culture's Moderating Role of Effects of Corporate Social Responsibility (CSR) on Firm Performance: Focused on Corporate Contributions in Korea. Sustainability, 9, 1883. https://doi.org/10.3390/su9101883

Lindgreen, A., & Swaen, V. (2005). Corporate citizenship: Let not relationship marketing escape the management toolbox. Corpo¬rate Reputation Review, 7(4), 346-363. https://doi.org/10.1057/palgrave.crr.1540231

Lopez, V. A. (2006). An alternative methodology for testing a resource-based view linking intangible resources and long-term perfor¬mance. Irish Journal of Management, 27(2), 49-66.

Matten, D., & Crane, A. (2005). Corporate citizenship: Toward an extended theoretical conceptualization. Academy of Management Review, 30(1), 166-179.

Melewar, T. C. (2008). Facets of corporate identity, communica¬tion, and reputation. Routledge.

Moura-Leite, R., & Padgett, R. (2014). The effect of corporate social actions on organizational reputation. Management Research Review, 37(2), 167-185. https://doi.org/10.1108/MRR-10-2012-0215

Munteanu, I., Grigorescu, A., Condrea, E., & Pelinescu, E. (2020). Convergent Insights for Sustainable Development and Ethical Cohesion: An Empirical Study on Corporate Governance in Romanian Public Entities. Sustainability, 12(7), 2990. https://doi.org/10.3390/su12072990

Nazari, J. A., Herrmans, I. M., Isaac, R. G., Manassian, A., & Kline, T. J. B. (2011). Organizational culture, climate, and IC: An interaction analysis. Journal of Intellectual Capital, 12(2), 224-248. https://doi.org/10.1108/14691931111123403

Obeng-Odoom, F. (2015). Oil boom, human capital, and economic development: Some recent evidence. Economic and Labour Relations Review, 26(1), 100-116. https://doi.org/10.1177/1035304615571046

Odriozola, M. D., Martin, A., & Luna, L. (2015). The relationship between labour social responsibility practices and reputation. International Journal of Manpower, 36(2), 236-251. https://doi.org/10.1108/IJM-03-2013-0039

Olmedo-Cifuentes, I., & Martinez-Leon, I. M. (2014). Influence of management style on employee views of corporate reputation. Application to audit firms. Business Research Quarterly, 17(4), 223-241. https://doi.org/10.1016/j.brq.2013.08.001

Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903. https://doi.org/10.1037/0021-9010.88.5.879

Ponzi, L. J., Fombrun, C. J., & Gardberg, N. A. (2011). RepTrak pulse: Conceptualizing and validating a short-form measure of corporate reputation. Corporate Reputation Review, 14(1), 15-35. https://doi.org/10.1057/crr.2011.5

Roberts, P. W., & Dowling, G. R. (2002). Corporate reputation and sustainable superior financial performance. Strategic Management Journal, 23(12), 1077-1093. https://doi.org/10.1002/smj.274

Romenti, S. (2010). Reputation and stakeholder engagement: an Italian case study. Journal of Communication Management, 14(4), 306-318. https://doi.org/10.1108/13632541011090428

Rupp, D. E., Gananpathy, J., Aguilera, R. V., & Williams, C. A. (2006). Employees' reactions to corporate social responsibility: An organizational justice framework. Journal of Organizational Behaviour, 27(4), 537-543. https://doi.org/10.1002/job.380

Selvaraj, P., & Joseph, J. (2014). Impact of compensation practices on organizational reputation. South Asian Journal of Management, 21(2), 22-43. https://doi.org/10.1016/B978-0-323-85844-1.00004-0

Shamma, H. M. (2012). Toward a comprehensive understanding of corporate reputation: Concept, measurement, and implications. International Journal of Business and Management, 7(16), 151-169. https://doi.org/10.5539/ijbm.v7n16p151

Shamma, H. M., & Hassan, S. S. (2009). Customer and non-customer perspectives for examining corporate reputation. Journal Pro¬ducer Brand Management, 18(5), 326-337. https://doi.org/10.1108/10610420910981800

Thomaz, J. C., & Brito, E. P. Z. (2010). Corporate reputation: formative constructs and implications for management. Revista de Administragao Contemporaanea, 14(2), 229-250. https://doi.org/10.1590/S1415-65552010000200004

Turker, D. (2009). How corporate social responsibility influences organizational commitment. Journal of Business Ethics, 89(2), 189-204. https://doi.org/10.1007/s10551-008-9993-8

Van Der Merwe, A. W., & Puth, G. (2014). Towards a conceptual model of the relationship between corporate trust and corporate reputation. Corporate Reputation Review, 17(2), 138-156. https://doi.org/10.1057/crr.2014.4

Walsh, G., Beatty, S. E., & Shiu, E. M. K. (2009). The customer-based corporate reputation scale: Replication and short form. Journal of Business Research, 62(10), 924-930. https://doi.org/10.1016/j.jbusres.2007.11.018

Worcester, R. (2009). Reflections on corporate reputations. Manage¬ment Decision, 474(4), 573-589. https://doi.org/10.1108/00251740910959422

Yang, Y., & Drifield, N. (2012). Multinationality - performance relationship. Management International Review, 52(1), 23-47. https://publications.aston.ac.uk/id/eprint/18820/1/Multinationality_performance_relationship.pdf

Yousef, D. A. (2013). Validating the dimensionality of Porter et al. measurement of organizational commitment in a non-Western culture setting. Journal of Human Resource Management, 14(6), 1067-1069. https://doi.org/10.1080/0958519032000106218

Published
2023-01-26
How to Cite
Bocean Vărzaru, A. A., Bocean, C. G., Mangra, M. G., & Nicolescu, M. M. (2023). Accounting the Moderation Effects on the Relationship between Social Responsibility and Business Ethics. LUMEN Proceedings, 19, 48-62. https://doi.org/10.18662/lumproc/gekos2022/05