Does doing good help employees perform well? Understanding the consequences of CSR on industrial sales employees

Abstract

The pandemic, growing environmental crisis, and social inequalities have increased the attention on the relationship between companies and stakeholders. Corporate social responsibility (CSR) is a critical component of dialogue between companies and their stakeholders. Yet, companies lack guidance on CSR implementation, which is all the more important in the Indian context owing to the implementation of the new CSR law. This study aims to develop a scale for CSR measurement for emerging markets and to use stakeholder perspective to provide a more holistic approach to it. The study employs a multistage method to develop a robust scale, and the items are generated via qualitative research and literature review. The work combines qualitative and quantitative methods to understand how CSR is perceived among sales professionals in the Indian manufacturing sector and develops a six-dimensional scale to measure it. The research also provides a framework to examine the role of CSR on sales professionals' performance and commitment to the job. The impact of a company's CSR performance on employee behavior highlights the significance of doing good. This study prescribes CSR as an additional lever to enhance adherence to organizational values and boost employee morale. This research is important for emerging markets in which CSR is a growing phenomenon.