Linkage between Perceived Corporate Social Responsibility and Employee Engagement: Mediation Effect of Organizational Identification

Abstract

This study employs structural equation modelling technique to examine the direct effect of perceived external corporate social responsibility and perceived internal corporate social responsibility on employee engagement as well as the mediated link through organizational identification. Social exchange theory and social identity theory used to explain the relationships between the variables in this study. It was conducted among 1080 employees of four selected organizations in Iran which are among the main pioneers in performing corporate social activities. The test of research model shows the positive effect of perceived external corporate social responsibility and perceived internal corporate social responsibility on employee engagement. In addition, it confirms that organizational identification has a mediating role in above relationships. The results have also contributed to a better understanding of corporate social responsibility in Iran as a developing country in which corporate social responsibility has recently gained attention and thus there is still a lack of understanding about it. The findings would be useful for managers to have a better insight towards applying corporate social responsibility in line with increasing employees’ identification and engagement.