The influence of the second-order stakeholder dimension of csr on employee engagement: the mediating role of organizational trust

Abstract

The purpose of this study was to explore the effects of Corporate Social Responsibility (CSR) as a second-order construct on employee engagement with the mediating role of organizational trust. It looked for the connection by using quantitative methods to verify the effects of CSR on employee engagement and the mediating effect of trust. The implication of this study was to guide organizations about the role of CSR and how to design CSR efforts in order to improve employee engagement and trust. Structural equation modelling (SEM) was used to test the hypotheses whether engagement in CSR affected employee engagement and organizational trust. The sample frame was designed from Thailand’s ESG (Environment, Social, and Governance) 100 listed organizations certified by Thai Listed Company Associated and Thaipat Institute. Sixty-seven items, from both existing and new developed questionnaires, were sent to 633 respondents. Findings first supported that perceived CSR in relation to seven dimensions of stakeholders, namely employees, customers, shareholders, suppliers, community, environment, and government, positively related to employee engagement and organizational trust. Results also highlighted that organizational trust was positively and partially mediated the relationship between CSR and employee engagement.