Unpacking a Fuzzy Link Between CSR and Organizational Performance

Although there has been extensive research on the relationship between CSR and organizational performance, the answer is still inconclusive. One of the possible reasons is that there is limited understanding on underlying mechanisms that affect the relationship. Grounded on institutional theory that emphasizes importance of micro-level intermediating processes (i.e., employees’ attitudes or behaviors) in explain a macro-level association (i.e., CSR to organizational performance), we build a moderated mediation model where (i) organization commitment (OC) mediates the influence of CSR on organizational performance, and (ii) leader’s behavioral integrity (BI) moderates the association between CSR and OC. Using 3-wave time-lagged survey data obtained from 312 currently working Korean employees, we found that OC is an important micro-level mechanism in the CSR-organizational performance link and that BI can positively moderate the CSR-OC link. We discuss theoretical and practical implications along with limitations and future research directions.