Do Good Reap Good: Implications of CSR for Organizational Performance

  • Ayesha Muhammad
  • Vicky Khokhar
  • Owais Ahmed Iqbal

Abstract

Corporate social responsibility is a significant factor that has the power to either make or break the organizations. We cannot negate its importance in the light of increasing focus on addressing environmental concerns and giving back to the society. The goal of this paper is to determine the influence of corporate social responsibility on organizational performance in the business world. We have reviewed corporate social responsibility by looking at its dimensions and conceptual background, as well as its strategic types. Furthermore, we have explored organizational performance by dividing it into financial and non-financial measures, as well as focusing on two interrelated constructs, organizational commitment, and organizational citizenship behavior. This paper proposes that engaging in CSR activities may lead to improved organizational performance, because of a good social standing in the society and excellent shareholder management. Similarly, both organizational commitment and organizational citizenship behavior enhance organizational performance because they correspond to employees’ high level of identification with the organizational goals and interests. We have summarized this linkage by using a theoretical model of CSR, Organizational Commitment, and Organizational Performance. In addition, we have also looked at the aspect of business sustainability by going through some effective CSR tactics. A widely popular measurement tool called the CSR RepTrak Model has been analyzed in detail, in order to give the true feel of what it takes to be a CSR champion in the corporate world. The paper also gives direction for future research by identifying gaps, which correspond to the downside of engaging in numerous CSR activities and the impact this can have on organizational performance.

Published
2018-01-27
How to Cite
MUHAMMAD, Ayesha; KHOKHAR, Vicky; IQBAL, Owais Ahmed. Do Good Reap Good: Implications of CSR for Organizational Performance. GSTF Journal on Business Review (GBR), [S.l.], v. 5, n. 2, jan. 2018. ISSN 2251-2888. Available at: <http://dl6.globalstf.org/index.php/gbr/article/view/1275>. Date accessed: 20 aug. 2018.