Corporate Social Responsibility and Organisational Attractiveness: Doing Good While Being Bad? Attracting Employees with CSR in Controversial Industries

Abstract

This study sought to test whether the proposed relationship between corporate social responsibility (CSR) and organisational attractiveness is moderated by industry type, specifically the organisation operating within a controversial industry. In doing so, this study also tested for the fundamental relationship between CSR and organisational attractiveness, as well as the relationship between industry type and organisational attractiveness. Further, this study assessed the applicability of three theoretical frameworks for explaining the underlying mechanisms of the proposed relationship between CSR and organisational attractiveness, and whether the applicability changed when the organisation operated within a controversial industry. In order to test these hypotheses, this study implemented a mixed-method research design. Questionnaires was used to quantifiably test for the proposed relationships while semi-structured interviews were utilised in order to further explore the proposed relationships in order to assess the applicability of the explanatory frameworks. This quantitative data provided support for a strong, statistically significant relationship industry type and organisational attractiveness. However, the quantitative findings of this did not find support for the organisation engaging in CSR leading to higher organisational attractiveness ratings. Further, the quantitative data analysis did not find that the organisation operating within a controversial industry significantly moderated the proposed relationship between CSR and organisational attractiveness. The qualitative data provided support for the applicability of social identity theory (SIT) and person-organisation (P-O) fit as possible explanatory models for the proposed relationship between CSR and organisational attractiveness, across industries. The qualitative data did not provide support for the applicability of signalling theory as a possible explanatory model for the proposed relationship. These findings do not support the current consensus of the body of literature investigating the proposed relationship between CSR and organisational attractiveness. The findings do suggest that organisations operating within controversial industries are less attractive as place of employment but do not support the industry type moderating the proposed relationship. As such, these results would indicate that organisations, regardless of operating in a non-controversial or controversial industry, do not become more attractive as place of employment from engaging in CSR. It is recommended that further studies are conducted to provide more comprehensive conclusions about the effect of CSR on organisational attractiveness and the degree to which industry type moderates this proposed relationship.