The Influence of Corporate Social Responsibility on Job Seekers and Employees: A Lodging Industry Perspective

Organizations have been proactively seeking to address not only shareholders' value but also broader societal challenges. Still, owners and leaders often engage in corporate social responsibility (CSR) without knowing how they can affect stakeholder’s perceptions and behaviors (De Roeck & Maon, 2018). There is an increasing interest in CSR in hospitality, and although employees are vital stakeholders in services industries and play critical roles in implementing CSR activities, questions regarding under which circumstances CSR affects employees remain (Rhou & Singal, 2020). Specifically, research on how, when, or why CSR influences prospective and current employees, is limited (Jones, Willness, & Heller, 2016; Rhou & Singal, 2020). Therefore, the purpose of this study is to investigate the mechanisms that influence the relationship between CSR and employees’ (prospective and current) individual and work outcomes.
Study 1 draws from signaling theory to investigate the causal effect of CSR on job seekers’ intentions to apply for a hotel position. A between-subjects design experiment was conducted to test the hypotheses. The findings revealed that CSR messages in a job offer had a positive effect on pursuit intentions through perceived value fit (PVF) and the sequential mediation effect of PVF and anticipated organizational support (AOS). Also, when job seekers’ community values were high, the influence of CSR on pursuit intentions through PVF was significantly stronger only when financial values were low. When job seekers financial values were low, independent of their community values, the effect of CSR on pursuit intentions through PVF was always significant.
Study 2 draws from social identity theory and affect theory of social exchange, aiming to understand how employees’ CSR participation promotes well-being and positive extra-role behaviors. A survey was conducted to test the theoretical model, and PLS-SEM was used to test the hypotheses. Findings revealed that hotel employees’ CSR perceptions had a significant effect on their CSR participation. Employees’ CSR participation, in turn positively influenced their hedonic and eudaimonic well-being. Only eudaimonic well-being influenced loyalty boosterism. The mediation effect of eudaimonic well-being between CSR participation and loyal boosterism was also significant.
This study offers several theoretical and practical contributions. Knowing that very few studies can be found related to CSR and recruitment in hospitality (Rhou & Singal, 2020), this study expands the literature by investigating important signaling mechanisms and by evaluating personal values. Besides, most studies in hospitality test the effects of CSR perceptions and omit the actual behavioral aspect of engagement in CSR activities (Supanti & Butcher, 2019). Aiming to address this gap, Study 2 provided empirical evidence of the effects of CSR participation as an antecedent of individual and work-outcomes. Moreover, study 2 is among the first attempts to empirically demonstrate the impact of CSR on both hedonic and eudaimonic well-being in hospitality. This research might be of particular relevance for corporate leaders and managers who want to create and develop a CSR culture that helps in attracting, developing, and retaining employees.