Corporate Social Responsibility (CSR) Impact on the Employee Green Behaviour and Environmental Sustainability : the Mediating Role of Organisational Trust and Organisational Identity

Gan, Soong Hao (2021) Corporate Social Responsibility (CSR) Impact on the Employee Green Behaviour and Environmental Sustainability : the Mediating Role of Organisational Trust and Organisational Identity. Masters thesis, Tunku Abdul Rahman University College.

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Abstract

Today, environmental sustainability issues can have an impact on organisations and communities, such as energy costs, climate change, and regulatory risk. In the corporate world, there is a rising trend among organisations on reporting their performance of environmental sustainability and maintain its corporate social responsibility (CSR). This study intends to examine the perception, intention, and behaviour of employees related to environmental sustainability as well as the corporate social responsibility of their organisations. A survey involving 213 employees who are currently employed in socially responsible companies with CSR and sustainability reports are publicly accessible in Malaysia. The data obtained are analysed through Structural Equation Modelling (SEM). Subsequently, the interlinkage between CSR, employee green behaviour, and environmental sustainability of this study is building on social exchange theory (organisational trust) and social identity theory (organisational identification). Both theories (i.e. social exchange and social identity) were tested as a mediating effect between CSR and employee green behaviour. Subsequently, the relationship between employee green behaviour and environmental sustainability was further assessed. Findings show that both organisational identification and trust partly mediate the relationship of CSR with employees’ green behaviour and the behaviour positively affects environmental sustainability. The results verify the theoretical framework and have implications for both research and practice. In addition, limitations and directions for future research are discussed.