scholarly journals Ethical climate as foundation for internal corporate social responsibility and employee performance in Indonesian context during COVID-19 pandemic

2021 ◽  
Vol 14 (2) ◽  
pp. 213
Author(s):  
Rudy M. Ramdhan ◽  
Daniel Kisahwan ◽  
Alex Winarno ◽  
Deni Hermana

<p>The research objective was to analyze the role of ethical climate as a foundation for internal Corporate Social Responsibility (CSR) and employee performance. The methodology used is a causal study to test the effect by using a survey of 400 employees Holding of state-owned defense, industry randomly selected nonmanagers. The results showed that ethical climate directs internal CSR activities as a realization of ethical awareness in the environment. Employees have an ethical responsibility to restore the goodness of the company to employees in real terms according to the company's demands in the form of optimal performance. The values, beliefs, and ethical atmosphere felt by employees are the reasons for implementing CSR. Internal CSR raises employees' awareness of the company's care and attention, which in turn increases the moral obligation to work optimally for the common good. Ethical climate is guidance for companies and individuals to be involved in collective efforts that can ensure sustainability. In conclusion, ethical climate has an influence on employee performance through CSR. The practical implication is to develop an ethical climate in the company to strengthen the company's internal CSR orientation. Its value contribution can explain the ethical climate function as a foundation for internal CSR concerning employee’s performance.</p>

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martin Yongho Hyun ◽  
Lisa Gao ◽  
Seoki Lee

Purpose This study aims to develop a theoretical framework that specifies how corporate social responsibility (CSR) and ethical climate (ETHIC) affect pride in membership (PRIDE), and in turn, attitudinal responses (i.e. job satisfaction and turnover intention) among employees, solely focusing on dealers in the casino industry. In addition, the moderating role of customer orientation is examined for internally motivated enjoyment (ENJOY) and externally motivated needs (NEED). Design/methodology/approach This study uses a non-probability convenience-sampling method by distributing 400 individual questionnaires to respondents. A total of 358 responses are used for data analysis using exploratory and confirmatory factor analyses. Furthermore, this study tests the proposed hypotheses using structural equation modeling. Findings This study finds the effect of CSR on ETHIC and the effect of ETHIC on PRIDE along with the subsequent effect on attitudinal responses. Findings also reveal a significant moderating role of ENJOY (NEED) on the relationship between ETHIC (CSR) and PRIDE (PRIDE). Research limitations/implications This study provides meaningful contributions to extant casino CSR literature, as well as opportunities for future research. The topic may be further explored from cross-cultural perspectives and adapt a methodology to enhance the generalizability and applicability of the findings. Originality/value This study attempts to explore the CSR effectiveness on casino dealers, in whom past empirical examination has found little interest. Moreover, according to the multi-experience model, this study investigates the relationships among CSR, ethical climate and pride in membership that have been rarely verified in the past literature. Finally, this study reveals a significant moderating role of ENJOY and NEED that has not been explored, particularly among casino dealers.


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