Entry of new organizations, including multinational enterprises from emerging markets, raises the ethical question of will they benefit society. The concept of legitimacy answers this question because it is the overall assessment of the appropriateness of organizational ends and means. Moreover, gaining legitimacy enables EMNEs to succeed in new host countries. Past work examined collective level indicators of the legitimacy of MNEs, but recent research recognizes the importance of individuals’ perceptions as the micro-foundation of legitimacy. This study first uses new (...) pragmatism, deontology, and utilitarianism to demonstrate that legitimacy is fundamentally an ethical concept—a perspective that has been overlooked in management research. Second, this study uses a seven-step procedure to develop and validate a measure of individuals’ perceptions of the legitimacy of Chinese EMNEs operating in The Netherlands, a developed country. Six dimensions of legitimacy were identified. The study also finds support for this legitimacy judgment process linking the dimensions: validating knowledge → propriety judgments → generalized judgment. This work provides additional micro-foundations to research on legitimacy and contributes to the ongoing process of construct validation. Future research could use the validated measure in other settings and use specific ethical theories in depth to refine the concept of legitimacy. (shrink)

An important issue for successful recruitment is to increase the pursuit intention of job seekers. This study discusses such issue by proposing a research model based on the signaling theory and the expectancy theory. In the model, this study hypothesizes that the perceived corporate social performance of job seekers positively affects their job pursuit intention and recommendation intention indirectly via the mediation of corporate reputation and job advancement prospects. The proposed hypotheses of this research are empirically tested using the data (...) from people seeking a job. The empirical findings of this study complement previous literature by discussing how corporate social performance benefits business organizations from a perspective of human resources and recruitment. Last, managerial implications for business leaders and managers are provided. (shrink)

Many scholars have suggested the relationship between corporate social performance and its ability to attract a large number of high-quality job applicants, because previous literature indicates that employees with strong social awareness help create a high-performance organization. For that reason, an important issue for successful business recruitment is how to boost the pursuit intention of job seekers. This study discusses such issue by proposing a model based on signaling theory and cognitive dissonance theory. In the proposed model of this study, (...) the positive relationships between four dimensions of corporate social performance and job pursuit intention are hypothetically moderated by socio-environmental consciousness. The proposed hypotheses of this research were empirically tested using the data from graduating students seeking a job. The empirical findings of this study complement previous literature by discussing how corporate social performance benefits business firms from a perspective of strengthened human resources and recruitment. Finally, managerial implications for business managers based on the findings herein are provided. (shrink)

Corporate citizenship represents various organizational activities and status related to the organization's societal and stakeholder obligations. This study develops five different dimensions of corporate citizenship and examines the relationship between the five dimensions and purchase intention by including two key mediators. In the proposed model of this study, purchase intention is indirectly affected by economic, legal, ethical, general philanthropic, and strategic philanthropic citizenship via the mediation of corporate identification and brand trust. Empirical testing using a survey of 353 consumers from (...) various industries confirms most of our hypothesized effects. Last, managerial implications for corporate leaders and limitations of our findings are discussed in depth. (shrink)

This research merges literature from organizational behavior and marketing to garner insight into how organizations can maximize the benefits of Corporate Social Responsibility for enhanced CSR and organizational engagement of employees. Across two field experiments, the authors demonstrate that the effectiveness of employee co-creation activities in increasing employees’ positive CSR perceptions is moderated by self-construal. In particular, the positive effect of co-creation on CSR perceptions emerges only for employees with a salient interdependent self-construal. Moreover, the results demonstrate that increased positive (...) CSR perceptions then predict increased CSR engagement and organizational engagement. The research thus highlights the need to consider self-construal when trying to utilize co-creation to predict CSR engagement and organizational engagement, via CSR perceptions. (shrink)

The value of a company’s ethical reputation has become a focal point for management researchers. We seek to join this conversation and extend the research centered on a firm’s ethical reputation. We accomplish this by shifting our focus away from its impact on external stakeholders to its impact on internal stakeholders. To this end, we rely on signaling theory to explain why a firm’s ethical reputation matters to its employees in an effort to bridge the macro–micro research gap. Across two (...) studies, we propose and demonstrate that a firm’s ethical reputation impacts employee subjective career success in form of career opportunities and work–life balance. Given our signaling theory framework, we also identify and explain when two industry-level characteristics operate as boundary conditions that distort a firm’s ethical reputation signaling properties. Specifically, the results demonstrate that a firm’s ethical reputation is positively related to employees’ perceptions of career opportunities and work–life balance. The results of our studies also demonstrate that the relatively high levels of industry competition and industry regulation weaken the positive impact of a firm’s ethical reputation on career opportunities and work–life balance. Theoretical and practical implications are discussed. (shrink)

Whilst previous studies indicate perceived company ethicality as a driver of job seekers’ job-pursuit intentions, it is poorly understood how and why ethical market signals actually affect their application decisions. Perceptions of company ethicality result from market signals that are either within the control of the company and from market signals that are beyond the company’s control. Building on communication and information processing theories, this study therefore considers both types of ethical market signals, and examines the psychological mechanisms through which (...) they affect job seekers’ intention to apply for a job. The results from a controlled online experiment show that both types of ethical market signals increase job seekers’ job-pursuit intentions. These relationships are mediated by applicants’ attitude towards the job advertisement, their perceptions of corporate employment image and self-referencing. Consequently, the present study alerts practitioners to consider the effects of company-controlled and non-company-controlled ethical market signals, particularly when aiming to recruit highly-qualified millennial candidates. (shrink)

Whereas extant literature has examined the overall effect of corporate social responsibility (CSR) on innovation, it is argued that CSR is a multidimensional concept encompassing both progressive activities concerning a firm’s engagement in the social domain, as well as rational aspects pertaining to corporate governance practices and the protection of shareholder rights. This study integrates organizational hypocrisy with the knowledge-based view literatures to examine how different forms of CSR engagement affect the rate of new product introductions (NPI). Results suggest that (...) the mechanisms by which progressive and rational CSR are associated to increases in the rate of NPI differ. Specifically, while progressive CSR positively affects the rate of NPI and such effect is deemed stronger for firms that are more vertically integrated, the effect of rational CSR on the rate of NPI is conditional on a firm’s level of absorptive capacity. (shrink)

The purpose of this study is to investigate the relationships among corporate social responsibility (CSR), corporate brand credibility, corporate brand equity, and corporate reputation. Structural equation modeling analysis provided support for the hypotheses from a sample of 867 consumers in South Korea. The results showed that CSR has a direct positive effect on corporate brand credibility and corporate reputation. In addition, the results indicate that corporate brand credibility mediates the relationship between CSR and corporate reputation. Moreover, corporate brand credibility mediates (...) the relationship between CSR and corporate reputation. Finally, the relationship between CSR and corporate brand equity is sequentially and fully mediated by corporate brand credibility and corporate reputation. The theoretical and managerial implications of the results and limitations are discussed, and future research directions are suggested. (shrink)

Employing a time-lagged sample of 371 North American individuals working full time in a wide range of industries, occupations, and levels, we contribute to research on employee outcomes of corporate social responsibility attributions as substantive or symbolic. Utilizing a mediated moderation model, our study extends previous findings by explaining how and why CSR attributions are related with work-related attitudes and subsequent individual performance. In support of our hypotheses, our findings indicate that the relationships between CSR attributions and individual performance are (...) mediated through person–organization fit and work-related attitudes. Additionally, when CSR is perceived as important, substantive CSR is positively related to, and symbolic CSR is negatively related to, perception of fit with the organization. These findings contribute toward our understanding of the complex effect CSR has on employees’ work outcomes. Practical implications and future research directions are discussed. (shrink)

Both the organization and recruiter provide signals to candidates that ultimately affect organizational attraction. Ethics is an important area that communicates vital information to candidates. Drawing on social identity theory, signaling theory, and person–organization fit, this study finds that ethical signals during the recruitment process do affect applicant attraction. Additionally, two important moderators, self-importance of moral identity and firm performance were examined. Using a robust laboratory study (n = 665), this research found results generally consistent with the hypothesized relationships.

Both the organization and recruiter provide signals to candidates that ultimately affect organizational attraction. Ethics is an important area that communicates vital information to candidates. Drawing on social identity theory, signaling theory, and person–organization fit, this study finds that ethical signals during the recruitment process do affect applicant attraction. Additionally, two important moderators, self-importance of moral identity and firm performance were examined. Using a robust laboratory study, this research found results generally consistent with the hypothesized relationships.

Purpose: Empirical studies suggest that corporate social responsibility impacts young job seekers’ choices of an employer. Values seem to affect CSR preferences, influencing the felt fit between the person and the organization and hereby the valence of working for that company. This article aims to research in more detail the preference structure of young graduate job seekers. In particular, it seeks to understand whether CSR is important when there is a trade-off between CSR and non-CSR attributes and whether basic value (...) orientations of job seekers have a moderating effect on their employer preferences. Design/methodology/approach: This article used a quantitative approach with a survey sample of 577 German students who were in their last year of study. To gain information on the relative impact of CSR- and non-CSR-related employer characteristics on employer attractiveness, an adaptive conjoint analysis was applied. Correlation analysis and a two-step hierarchical regression were conducted to detect the effects of individual value orientations. Findings: Only a few CSR attributes are relevant for young job seekers compared with other traditional employer attributes. Specific value orientations can be identified as having a moderating effect on CSR preferences. This is particularly the case for value orientations indicating a concern for the welfare of others and the environment positively affect the importance of most CSR attributes while more selfish value orientations have a negative effect. Originality/value: This study sheds light on the relative importance of CSR attributes when compared with non-CSR attributes. Moreover, it relates employee-related preferences to individual value orientations and shows that selected values have a modifying effect on the importance of CSR for job choice. (shrink)