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Corporate Social Responsibility and employee behavior: mediating role of organizational commitment Azim, Mohammad Tahlil . Revista Brasileira de Gestão de Negócios ; São Paulo 18.60 (Apr-Jun 2016yf :

207-225.

ProQuest document link ABSTRACT The study investigates the relationship between employees' perception about the external CSR practices of their organizations and employees' organizational commitment (affectiveyf D Q G M R E H Q J D J H P H Q W R U J D Q L ] D W L R n engagement, organizational citizenship behavior related to the individual, and organizational citizenship behavior related to the organization in the context of the Saudi banking industry. The study draws its theoretical groundwork from social identity theory (Tajfel &Turner, 1979yf D Q G V R F L D O H [ F K D Q J H W K H R U \ % O D X \f. Data were collected through survey questionnaire, and the Mediation regression analysis is used for exploring the relationship between independent and dependent variables based on Baron &Kenny's (1986yf P H W K R G 7 K H V W X G y observes a positive relationship between perceived CSR and organizational commitment, employee engagement and organizational citizenship behavior related to organization. However, the organizational citizenship behavior related to the individual is not observed to have linked to perceived CSR. The uniqueness of this study lies on its framework and a particular aspect of CSR measurement. It conceptualizes one integrated model to build a relationship among CSR, organizational commitment, employee engagement and OCB. As the study views CSR as a competitive tool for the organizations, here the CSR activities are measured in relative rather than absolute terms, stand-alone act of an organization. FULL TEXT Headnote Abstract Purpose - The study investigates the relationship between employees' perception about the external CSR practices of their organizations and employees' organizational commitment (affectiveyf D Q G M R E H Q J D J H P H Q W R U J D Q L ] D W L R n engagement, organizational citizenship behavior related to the individual, and organizational citizenship behavior related to the organization in the context of the Saudi banking industry. Design/methodology/approach - The study draws its theoretical groundwork from social identity theory (Tajfel &Turner, 1979yf D Q G V R F L D O H [ F K D Q J H W K H R U \ % O D X \f. Data were collected through survey questionnaire, and the Mediation regression analysis is used for exploring the relationship between independent and dependent variables based on Baron &Kenny's (1986yf P H W K R G Findings - The study observes a positive relationship between perceived CSR and organizational commitment, employee engagement and organizational citizenship behavior related to organization. However, the organizational citizenship behavior related to the individual is not observed to have linked to perceived CSR. Originality/value - The uniqueness of this study lies on its framework and a particular aspect of CSR measurement.

It conceptualizes one integrated model to build a relationship among CSR, organizational commitment, employee PDF GENERATED BY SEARCH.PROQUEST.COM Page 1 of 16 engagement and OCB. As the study views CSR as a competitive tool for the organizations, here the CSR activities are measured in relative rather than absolute terms, stand-alone act of an organization. Keywords - Corporate Social Responsibility; job engagement; organizational commitment; organizational citizenship behavior; organizational engagement. 1 Introduction Corporate social responsibility (CSRyf L V D Q H [ F H O O H Q W L Q G L F D W R U R I W K H O H J L W L P D F \ R I D I L U P $ O R Q J Z L W K Z H V W H U Q Z R U O G , CSR is also gaining currency in the developing world. A recent survey regarding CSR and sustainability programs in GCC countries, including Saudi Arabia, showed that 72yb D Q G \b of companies worldwide and in the region, respectively, indicated that CSR has become more important in the past 2 years, with 78yb F R P S D Q L H V L Q W K H 0 L G G O e East employing a policy for CSR/Sustainability. In the Middle East, 86yb R I F R P S D Q L H V U D W H G L W D V D Y H U \ L P S R U W D Q t or important component of business strategy (Amlôt, 2013yf CSR is studied from different perspectives and dimensions. The relationship between CSR and employee attitude and behavior, perhaps, cannot be considered as an under-researched area. Most of the published studies exploring perceived CSR and attitude of employees focused either on organizational commitment (OCyf $ O L 5 H K P D Q $ O L , Yousaf, &Zia, 2010; Brammer, Millington, &Rayton, 2007; Dhanesh, 2010; Ebeid, 2010; Maignan &Ferrell 2001; Maignan, Ferrell, &Hult 1999; Peterson, 2004; Turker, 2009; You et al., 2013; Zheng 2010yf R U M R E V D W L V I D F W L R n (Riordan, Gatewood, &Bill 1997; Tziner, Bar, Oren, &Kadosh, 2011; Valentine &Fleischman, 2008; You et al., 2013yf .

However, with few exceptions (Ali et al., 2010, Zheng, 2010yf P R V W R I W K H V W X G L H V Y L H Z H G W K H P D V G H S H Q G H Q W U D W K H r than mediating variables (Riordan, Gatewood, &Bill, 1997; Valentine &Fleischman, 2008yf 0 R U H R Y H U D O O W K H V W X G L H s involving external CSR, measured CSR in absolute terms rather than in relative terms, i.e. they take into consideration the magnitude of the philanthropic contribution of a particular organization to the community rather than its CSR contribution in comparison to others in the same industry. As far as employee behavior is concerned, most of the studies focused on organizational citizenship behavior (OCByf D Q G R Q M R E S H U I R U P D Q F H L Q U R O e behavioryf $ J X L O H U D 5 X S S * D Q D S D W K L : L O O L D P V % U D P P H U H W D O = K H Q J \f only. Very few studies considered employee engagement as an outcome of the firm's CSR performance. Albdour and Altarawneh (2012yf conducted a study on internal CSR and employee engagement in the Jordanian context. Nevertheless, in recent years, there has been a great deal of attention on employee engagement. It is claimed that employee engagement is a good predictor of employee outcomes, organizational success, and financial performance (e.g. total shareholder returnyf % D W H V 5 L F K P D Q \f. At the same time, it has been reported that employee engagement is on the decline, and there is a deepening disengagement among employees today (Bates, 2004; Richman, 2006; Saks, 2006yf ( Y L G H Q F H I U R P V X U Y H \ V P D Q D J H P H Q W F R Q V X O W L Q J M R X U Q D O L V W L F D Q G F R U S R U D W H V R X U F H V , show that CSR is an emerging and increasingly important driver of employee engagement (Gross &Holland, 2010yf .

Therefore, employee engagement as a desirable employee behavior as well as its connection to CSR deserves more investigation. As Banks play an active role in CSR field, researchers paid particular attention to the dimensions of CSR in banks.

Since many banks offer similar conditions in the same markets, competition in the banking sector is no longer just about price. Creating uniqueness in the market with the introduction of innovative products through financial engineering is constant, and competitors are very quick to replicate innovations. Therefore, creating a brand image of the bank is an important aspect of the strategic management in a high-competitive environment (Kostyuk, Mozghovyi, Riabichenko, Govorun, &Lapina, 2012yf 7 R W K L V H Q G & 6 5 L V Q R Z F R Q V L G H U H G W R E H D Q D S S U R S U L D W H W R R l (Brown &Dacin, 1997; Sen &Bhattacharya, 2001yf Even though CSR in banks has received a lot of attention from the researchers, surprisingly there has been no particular study conducted in the context of Saudi Arabia. However, in terms of socio-politico-economic reality, Saudi Arabia holds a prominent position in the whole Middle East and North Africa (MENAyf U H J L R Q , Q Y L H Z R I W K L s dearth of research, the present study examines the impact of CSR on employee commitment and employee engagement and organizational citizenship behavior in the context of the Saudi banking industry. Based on social identity theory (Tajfel &Turner 1979yf D Q G V R F L D O H [ F K D Q J H W K H R U \ % O D X \f, the present paper investigates how PDF GENERATED BY SEARCH.PROQUEST.COM Page 2 of 16 CSR influences employee organizational commitment, job engagement, and OCB. The uniqueness of this study lies on its framework and a particular aspect of CSR measurement. It conceptualizes one integrated model to build a relationship among CSR, organizational commitment, employee engagement and OCB. As the study views CSR as a competitive tool for the organizations, here the CSR activities are measured in relative rather than absolute terms, stand-alone act of an organization. 2 Definition of CSR The present study adopts a stakeholderoriented conceptualization of CSR and depends on Barnett's (2007yf definition of CSR initiatives as "a discretionary allocation of corporate resources towards improving social welfare that serves as a means of enhancing relationships with key stakeholders" (Barnett, 2007, p. 801yf 6 W D N H K R O G H U V D U e broadly defined as any individual, group, or entity that can affect, or be affected by, an organization's activity (Freeman, 1984yf $ F F R U G L Q J W R V W D N H K R O G H U W K H R U \ W K H H [ L V W H Q F H R I R U J D Q L ] D W L R Q V G H S H Q G V R Q W K H L U D E L O L W \ W o integrate stakeholders' expectations into their business strategy because stakeholders provide essential resources and returns for the successful functioning and survival of organizations (Donaldson &Preston, 1995; Roeck &Delobbe, 2012yf 3 CSR and employee attitude and behavior: theoretical link Employees are one of the most important stakeholders of any organization. Since they can be affected by and also affect their organizational activities, the employees play a key role in the success or failure of their organization.

This is how employees are likely to be affected by the CSR programs and react differently at work (Koh &Boo, 2001; Peterson, 2004yf 6 R F L D O L G H Q W L W \ W K H R U \ 6 , 7 \f and social exchange theory (SETyf D U H W Z R Z L G H O \ X V H G W K H R U H W L F D l frameworks that underpin the relationship between perception of CSR and employees' attitudinal and behavioral reactions (Ashforth &Mael, 1989; Blau, 1964; Cropanzano &Mitchell, 2005; Hogg &Terry, 2000; Molm &Cook, 1995; Tajfel &Turner, 1986yf SIT was originally proposed by Tajfel and Turner (1979yf D V D Q L Q W H J U D W L Y H W K H R U \ D E R X W W K H S H U F H S W L R Q R f psychological basis of intergroup discrimination. It is concerned with both the psychological and sociological aspects of group behavior. It studies the impact of individual perceptions, social categorization, and group distinctiveness on an individual's attitudes and behaviors (Cinnirella, 1998yf $ F F R U G L Q J W R 6 , 7 V R F L D O L G H Q W L I L F D W L R n corresponds to the psychological process through which individuals classify themselves into various social groups of reference (e.g. nation, organization, political or religious affiliation, and so forthyf L Q R U G H U W R U H L Q I R U F e their self-esteem and overall self-concept (Hogg &Terry, 2001; Tajfel, 1981; Tajfel &Turner, 1986yf , Q G L Y L G X D O V P D y achieve positive self-esteem when they sense an in-group identity that differentiates them from the out-group.

Thus, SIT, with its underlying self-enhancement process, is a good framework for explaining the impact of CSR on employees' attitudes (Brammer et al., 2007; Peterson, 2004; Turker, 2009yf : K H Q W K H H P S O R \ H H V V H H W K H L r organization works for the well-being of the society in the form of CSR which ultimately develops a positive image in the society, they feel a sense of satisfaction and like to identify themselves with the organization as it enhances their self-esteem and pride (Hogg &Terry, 2000; Tajfel, 1978yf Thus, SIT provides a rational explanation of the relationship between perceived CSR and employees' positive attitude. The relationship is likely to be stronger if the employees find that their organizations are involved in CSR activities more rigorously than their competitors are. Thus, the relative CSR is expected to be a better predictor of the CSR-attitude relationship. However, the link between CSR and positive attitude of the employees does not integrate notions of reciprocity, expectations, and mutual obligations, which are needed to understand how attitudes enhanced by identification may contribute to desirable employee behavior within the organization. It is SET that provides a better theoretical understanding of this relationship. SET highlights social behavior as the result of an exchange process (Blau, 1964yf 7 K H H [ F K D Q J H U H I H U V W R D U H F L S U R F D O E H K D Y L R U . R Q R Y V N \ 3 X J K \f.

Specifically, if employees feel happy when they are working in their organization, they are likely to support their organization as a mutual exchange. Sometimes employees may engage in voluntary behavior to reciprocate the treatment they receive from their organization (Organ, 1990yf 6 D N V \f argues that SET offers a stronger theoretical rationale for explaining employee engagement in the organization. Robinson, Perryman and Hayday PDF GENERATED BY SEARCH.PROQUEST.COM Page 3 of 16 (2004yf G H V F U L E H H Q J D J H P H Q W D V D W Z R Z D \ U H O D W L R Q V K L S E H W Z H H Q W K H H P S O R \ H U D Q G H P S O R \ H H , Q G L Y L G X D O V U H S D y their organization through their level of engagement. That is, the amount of cognitive, emotional, and physical resources that an individual is prepared to devote in the performance of work roles is contingent upon the economic and socio-emotional resources received from the organization. In his seminal book on social exchange, Blau (1964yf D U J X H V W K D W S K L O D Q W K U R S L F G R Q D W L R Q V D U H O L N H O \ W R D I I H F W W K e dynamics of social exchange, not only with the recipients of this action but also within the donor's own social group. Men make charitable donations, not to earn the gratitude of the recipients, whom they never see, but to earn the approval of their peers who participate in the philanthropic campaign. Donations are exchanged for social approval, though the recipients of the donations and the suppliers of the approval are not identical, and the clarification of the connection between the two requires an analysis of the complex structures of indirect exchange (Blau, 1964, p. 92yf Based on SET, when the CSR program fulfills the expectations of the employees, they are likely to have a positive attitude, which, in turn, leads to more enthusiastic behavior from the employees in the form of OCB, employee engagement, and other desirable behaviors (Organ &Lingl, 1995yf 4 Research framework In view of the research gap mentioned in the introduction, the present study has envisioned a study that offers a holistic framework, incorporating CSR, employee attitude, and employee behavior (Figure 1yf 7 K H P R G H l demonstrates how employees' perception of the CSR practices of their organization affects their attitude toward organizational commitment, which ultimately affects their behavioral reaction in the form of job engagement, organizational engagement, and organizational citizenship behavior. The theoretical basis of the framework lies with SIT (Tajfel &Turner, 1979yf D Q G 6 ( 7 % O D X \f. 5 Hypotheses development 5.1 Perceived CSR and organizational commitment (OCyf Employee perception of the work environment has drawn a lot of attention from researchers in organizational literature. It is a psychological interpretation of an organization's activities that has been seen as a predictor of individual performance, such as OCB (Moorman, 1991yf D Q G M R E S H U I R U P D Q F H 3 U L F K D U G . D U D V L F N \f. Employee CSR perception refers to employees' personal evaluations and interpretations of an organization's CSR activities, which may differ from the actual CSR practices of the organization. Employee perception is subjective; it represents the employees' interpretation of an organization's activities and sense-making process (Weick, 1995yf .

Such perception, in turn, leads to employees' attitudinal and behavioral reactions. Organization Commitment (OCyf D V G H I L Q H G E \ 3 R U W H U 6 W H H U V 0 R Z G D \ D Q G % R X O L D Q \f is 'the relative strength of an individual's identification with and involvement in a particular organization'. They argue that an employee with this attitude believes in the goals and values of the organization, possesses willingness to exert considerable effort on behalf of the organization and holds a strong desire to retain membership in the organization. Meyer and Allen (1984yf L G H Q W L I L H G W K U H H W \ S H V R I F R P P L W P H Q W D I I H F W L Y H Q R U P D W L Y H D Q G F R Q W L Q X D Q F H F R P P L W P H Q W + R Z H Y H U L t is argued that affective commitment expresses a more holistic approach to conceptualizing about the nature of the employee relationship as it rests on the individuals' 'psychological bond' and 'loyalty to the organization' (Haque &Azim, 2009; O'Reilly, 2008yf 6 , 7 R I I H U V D S O D X V L E O H O L Q N E H W Z H H Q S H U F H L Y H G & 6 5 D Q G R U J D Q L ] D W L R Q D l commitment. When the employees find that their organization is working in a socially responsible way, they feel proud of their organization and like to associate themselves with it, which, in turn, leads to a higher level of commitment to the organization. Previous research examining perceived CSR and organizational commitment (Ali et al., 2010; Brammer et al., 2007; Dhanesh, 2010; Ebeid, 2010; Maignan &Ferrell, 2001; Maignan, Ferrell, &Hult, 1999; Peterson, 2004; Turker, 2009; You et al., 2013; Zheng, 2010yf I R X Q G D S R V L W L Y H U H O D W L R Q V K L S E H W Z H H Q W K H W Z R ; i.e., employee organizational commitment is found to be higher in organizations that are perceived to be socially responsible. H1: Employees' perception of CSR activities of their organization is positively and directly related to their PDF GENERATED BY SEARCH.PROQUEST.COM Page 4 of 16 organizational commitment. 5.2 Organizational commitment between perceived CSR and OCB Organizational Citizenship Behavior (OCByf L V G H I L Q H G D V D Q H P S O R \ H H V Z L O O L Q J Q H V V W R J R D E R Y H D Q G E H \ R Q G W K e prescribed roles which he/she has been assigned (Organ, 1990yf , W L V W K H Z L O O L Q J Q H V V W R J L Y H W L P H W R K H O S L Q J R W K H U s who have work-related problems, taking steps to prevent problems with other workers, and obeying an organization's rules, regulations, and procedures, even when no one is watching. These behaviors are perceived to be derived from employees' positive work attitude, such as organizational commitment. SET provides a plausible theoretical link between organizational commitment and OCB. Previous empirical studies investigating the relationship between Organizational commitment (particularly affective commitmentyf D Q G 2 & % R E V H U Y H G a significant correlation between the two (Fu, 2013; O'Reilly &Chatman, 1986; Shore &Wayne, 1993yf OB literature suggests a distinction between two dimensions of OCB: OCB directed to individuals (hereafter referred to as OCBIyf D Q G 2 & % G L U H F W H G W R W K H R U J D Q L ] D W L R Q K H U H D I W H U U H I H U U H G W R D V 2 & % 2 \f (McNeely &Meglino, 1994yf 7 K L V G L V W L Q F W L R Q K D V L P S O L F D W L R Q V I R U W K H S U H V H Q W U H V H D U F K S D U W L F X O D U O \ L Q W K D W W K H U H O D W L Y H L P S R U W D Q F H R f affect and cognition might depend on whether OCBI or OCBO is more relevant. If we assume that OCB is a deliberate attempt to maintain the balance in a social exchange between employees and the organization (i.e., a cognitionoriented explanationyf L W L V V H Q V L E O H W R V X J J H V W W K D W W K L V E H K D Y L R U L V P R U H G L U H F W O \ L Q W H Q G H G W R E H Q H I L W W K e organization. Hence, OCBO is more likely to be a direct function of what employees perceive about the CSR activities of their organization. In contrast, OCBI, primarily involving helping individuals at work, seems to have only indirect implications, at best, for maintaining balance in the organization - employee transaction. Such behaviors might indeed reflect a natural expression of employees' affect at work, as many social psychological studies have suggested (e.g., Isen &Levin, 1972yf U D W K H U W K D Q U H I O H F W L Q J H P S O R \ H H V G H O L E H U D W H D W W H P S W W R U H V W R U H W K H E D O D Q F H Z L W h the organization (Lee &Allen, 2002yf As mentioned earlier, employees' organizational commitment has a positive relationship with their perception of CSR activities of their organization. Again, organizational commitment has a positive influence on OCB. An emotionally attached employee is logically perceived to devote his/her abilities and power to perform activities that go beyond his/her formal job description. Consequently, when the organization performs CSR, the employees become committed because of enhanced selfimage or greater sense of fairness, and they, in return, perform voluntary behavior within the workplace. Thus the study hypothesizes the mediating relationship of organizational commitment in between perceived CSR and both OCBI and OCBO. H2: The relationship between employee perception of CSR and OCBI is mediated by organizational commitment. H3: The relationship between employee perception of CSR and OCBO is mediated by organizational commitment 5.3 Organizational commitment between perceived CSR and employee engagement Schaufeli, Salanova, Gonzalez-Rom and Bakker (2002, p. 74yf G H I L Q H H P S O R \ H H H Q J D J H P H Q W D V D S R V L W L Y H I X O I L O O L Q J , work-related state of mind that is characterized by vigor, dedication, and absorption." They also maintain that it is not a momentary and specific state but, rather, "a more persistent and pervasive affective-cognitive state that is not focused on any particular object, event, individual, or behavior" (p. 74yf $ F F R U G L Q J W R 6 D N V S \f, "engagement is not an attitude; it is the degree to which an individual is attentive and absorbed in the performance of their roles." The focus of engagement is one's formal role performance rather than extra-role and voluntary behaviors (Saks, 2006yf , Q O L Q H Z L W K U R O H V H P S O R \ H H V S H U I R U P L Q D Q R U J D Q L ] D W L R Q W Z R W \ S H V R I H Q J D J H P H Q W V D U e identified: job engagement (JEyf D Q G R U J D Q L ] D W L R Q H Q J D J H P H Q W 2 ( \f. Job engagement refers to the psychological presence of an individual in his/her job related role and organization engagement represents the engagement of an employee in performing his/ her role as a member of the organization (Kahn, 1990yf According to the tenet of the SET, one can argue that when an employee develops psychological bondage with the organization, he/she will engage him/herself more passionately in his/her job role and organizational role. Saks (2006yf R E V H U Y H V D V L J Q L I L F D Q W S R V L W L Y H U H O D W L R Q V K L S E H W Z H H Q H P S O R \ H H E R W K M R E D Q G R U J D Q L ] D W L R Q D O \f engagement and job satisfaction, organizational commitment, and organizational citizenship behavior as well as a significant negative relationship to intention to quit. The empirical study of May, Gilson and Harter (2004yf I R X Q G W K D t PDF GENERATED BY SEARCH.PROQUEST.COM Page 5 of 16 meaningfulness along with safety and availability was significant antecedents of employee engagement.

Performance of CSR by the organization may provide a higher sense of meaningfulness in the job in the sense that the employees may feel they are not working for the organization simply for their bread and butter; rather, they are part of an institution that serves the community to make the world a better place to live in. Albdour and Altarawneh (2012yf R E V H U Y H G D V L J Q L I L F D Q W S R V L W L Y H U H O D W L R Q V K L S E H W Z H H Q S H U F H L Y H G L Q W H U Q D O & 6 5 R I W K H H P S O R \ H H V D Q G W K H L U M R b and organization engagement but their study did not consider any mediating factors. However, in consonance with the mediating role of organizational commitment in between perceived CSR activities and OCB, the present study envisions a similar role of organizational commitment between perceived CSR and both types of employee engagement. H4: The relationship between employee perception of CSR and job engagement is mediated by organizational commitment. H5: The relationship between employee perception of CSR and organization engagement is mediated by organizational commitment. 6 Overview of Saudi banking industry and CSR Saudi Arabia is the largest economy of the MENA region, with 2798.43 billion Riyal (equivalent to around $745 billionyf * ' 3 D W S U L F H V \f. There are 23 commercial banks operating in Saudi Arabia, including 12 domestic and 11 foreign banks. According to the Saudi Arabia Monetary Agency (SAMAyf W K H U H Z H U H E U D Q F K H V E \ W K H H Q d of 2014. Commercial banks' net profits stood at 40.2 billion Riyal (equivalent to around $10.7 billionyf L Q , denoting a rise of 6.5yb R Y H U W K H S U H F H G L Q J \ H D U 6 D X G L $ U D E L D 0 R Q H W D U \ $ J H Q F \ > 6 $ 0 $ @ \f As Saudi Arabia is predominately a Muslim country governed under the principles of Quranic law, a reflection of Islamic beliefs and views is observed in the life of its citizens. According to Shari'a (the Islamic code of lawyf , charging and collecting interest is strictly prohibited. However, the conventional banking system is essentially based on interest. Consequently, there is a natural tendency among the Saudis to bank with Shari'a compliant banks. Therefore, all the banks operating in Saudi Arabia consider the issue and act accordingly. Amongst the domestic banks, five are completely Shari'a compliant banks and the rest maintain a Shari'a - banking window along with their conventional banking practices. The avoidance of interest by the clients, even in Shari'a compliant banks, is reflected in the bank's deposit structure. A review of bank deposits in 2014 shows that demand deposits, which are no interest-bearing, comprise 57.2yb R I W K H W R W D O G H S R V L W V I R O O R Z H G E \ W L P H D Q G V D Y L Q J G H S R V L W V \byf and other quasi-monetary deposits (10.9yb \f. It simply implies that the cost of capital in Saudi banks is relatively cheaper than that of their counterparts in many other countries. Therefore, it is expected that the Saudi banks can afford a greater involvement in discretionary CSR activities. A review of the annual reports of the Saudi domestic banks indicates that all the banks maintain external CSR programs in one way or the other. The most common CSR initiatives include investment in education, training, and health care, addressing the problems of the underprivileged segment of the society, and creating job opportunities for the unemployed (SAMA, 2015yf 7 Methodology 7.1 Participants Participants included 266 employees working in different branches of the 12 domestic banks of Saudi Arabia, of which 73.7yb D U H P D O H D Q G \b are female. The lower level of female participants corresponds to the lower level of female participation in the workforce. In Saudi banks, female employees work in branches dedicated to serving female clients only. The average age group of the participants is 30-40 years and the average work experience with the existing bank is 5-10 years. 7.2 Procedures The data for this study was collected by graduate and undergraduate students of a large public university in Saudi Arabia. A total of 500 questionnaires were distributed to the employees of different banks located in Jeddah, Ryiad, Hail, and Makka. The survey included a cover letter that informed participants about the purpose of the study.

Participation was voluntary and participants were informed that their responses would remain anonymous and confidential. The questionnaire was originally prepared in English; however, to make it comprehensible to the PDF GENERATED BY SEARCH.PROQUEST.COM Page 6 of 16 respondents, each question was translated into Arabic and both the English and Arabic version of the questions were included in the questionnaire. A total of 266 usable questionnaires were returned, representing a response rate of 53.2 percent. The data were then analyzed using SPSS version 16.0. 7.3 Scales All the scales used for the study were adopted from previous studies. Participants indicated their response on a five-point Likerttype scale with anchors (1yf V W U R Q J O \ G L V D J U H H W R \f strongly agree. The reliability of the scale was measured with the estimate of Cornbach's Alpha (yf ) D F W R U O R D G L Q J Z D V F D O F X O D W H G W R V H H Z K H W K H U D O O T X H V W L R Q s used for predicting the relevant variables contributed adequately. Perceived CSR: As the study measures relative rather than absolute CSR of the banks involved in the study, we employed the two-item scale used by Valentine and Fleishman (2008yf Z L W K V O L J K W P R G L I L F D W L R Q , Q I D F W W K H I R F X s was to measure the relative external CSR of the banks. The item includes, 'In comparison to other banks in Saudi Arabia, my bank is more socially responsible organization that serves the greater community ' (factor loading .832yf , and 'In comparison to other banks in Saudi Arabia, my bank gives more time, money and other resources to socially responsible causes ' (factor loading .832yf 7 K H F R P S R V L W H U H O L D E L O L W \ F R H I I L F L H Q W & R U Q E D F K V $ O S K D \f, is calculated and found to be 0.83, which is satisfactory according to Nunnally's (1978yf J X L G H O L Q H V Organizational Commitment: The sixitem scale used by Saks (2006yf Z D V H P S O R \ H G W R P H D V X U H $ I I H F W L Y e commitment. A sample item for commitment includes, 'I feel a strong sense of belongingness to my organization' or 'I would be happy to work at my organization until I retire'. Here all the items except one, receive factor loading above .724. The item, 'Working at my organization has a great deal of personal meaning to me' receives factor loading of .198 only. Therefore, we excluded the item from the scale and found the overall factor loading .844. Job and organization engagement: A five-item scale for job engagement and a sixitem scale for organizational engagement used by Saks (2006yf Z H U H X V H G I R U W K L V V W X G \ 7 K H L W H P V D V V H V V W K H S D U W L F L S D Q W V S V \ F K R O R J L F D l presence in their job and organization. A sample item for job engagement is, 'Sometimes I am so into my job that I lose track of time' and for organization engagement, 'One of the most exciting things for me is getting involved with things happening in this organization.' All of the job engagement items loaded 0.70 or higher (=.747yf $ O O V L [ R f the organization engagement items loaded 0.70 or higher (=.892yf OCBI and OCBO: Two four-item scales adopted by Saks (2006yf Z H U H X V H G I R U 2 & % , D Q G 2 & % 2 $ V D P S O H L W H P I R r OCBI is, 'I willingly give my time to help others who have work-related problems'; and for OCBO, 'I take action to protect the organization from potential problems.' All of the OCBI items loaded 0.70 or higher (=.859yf + R Z H Y H U I R r OCBO, two items loaded above 0.80 and two items loaded below 0.3. The two items with poor factor loading were, 'I attend functions that are not required but that help the organizational image' and 'I offer ideas to improve the functioning of the organization.' Initially including all four items, came out to be .187; this was unacceptable so we dropped the above-mentioned two items with poor factor loading and observed a momentous increase in value that turned out to be .761. 7.4 Mediation regression analysis Mediation regression analysis is used for exploring the relationship between independent and dependent variables (Baron &Kenny, 1986yf 7 R W H V W P H G L D W L R Q W K L V V W X G \ H V W L P D W H G W K U H H U H J U H V V L R Q H T X D W L R Q V ayf 5 H J U H V V L R Q R I P H G L D W R U R Q L Q G H S H Q G H Q W Y D U L D E O H L H R U J D Q L ] D W L R Q D O F R P P L W P H Q W R Q S H U F H L Y H G 5 & 6 5 5 H O D W L Y e Corporate Social Responsibilityyf byf 5 H J U H V V L R Q R I G H S H Q G H Q W Y D U L D E O H R Q L Q G H S H Q G H Q W Y D U L D E O H L H - ( 2 ( 2 & % , D Q G 2 & % 2 R Q S H U F H L Y H G 5 & 6 5 cyf 5 H J U H V V L R Q R I G H S H Q G H Q W Y D U L D E O H R Q E R W K L Q G H S H Q G H Q W Y D U L D E O H D Q G R Q W K H P H G L D W R U L H - ( 2 ( 2 & % , D Q G 2 & % O on both perceived RCSR and organizational commitment. In order to establish the mediating effect, the results of the three steps must fulfill the following criteria: ayf 7 K H L Q G H S H Q G H Q W Y D U L D E O H P X V W K D Y H D V L J Q L I L F D Q W H I I H F W R Q W K H P H G L D W R U L Q W K H I L U V W V W H S byf 7 K H L Q G H S H Q G H Q W Y D U L D E O H P X V W K D Y H D V L J Q L I L F D Q W H I I H F W R Q W K H G H S H Q G H Q W Y D U L D E O H L Q W K H V H F R Q G V W H S D Q G cyf 0 H G L D W R U P X V W K D Y H D V L J Q L I L F D Q W H I I H F W R Q W K H G H S H Q G H Q W Y D U L D E O H L Q W K H W K L U G V W H S When all three criteria are achieved, the effect of the independent variable on the dependent variable must be less PDF GENERATED BY SEARCH.PROQUEST.COM Page 7 of 16 in step (3yf W K D Q L Q V W H S \f. In addition, after controlling for the mediator, the full mediating effect is achieved if the independent variable has no effect on the dependent variable, while partial mediation is achieved if the independent variable has a significant effect on the dependent variable (Zheng, 2010yf 8 Result Table 1 represents the mean and standard deviations of different variables used in the study. The scores of means for all the variables are above 3, which indicates that the respondents demonstrate above-average feeling for different variables included in the study, as 3 is the midpoint. Table 2 shows whether independent variable 'perceived RCSR' is capable of influencing organizational commitment. The computed value of F [F = 85.53., df = (1, 266yf @ V K R Z V W K D W W K H P R G H O L V V W D W L V W L F D O O \ V L J Q L I L F D Q W .

The influence of perceived RCSR is found to be statistically significant (t = 7.187, p = 0.000yf D Q G S R V L W L Y H \f.

Thereby it supports H1. It is also visible that 'perceived Relative CSR' explains as much as 54.3yb R I W K H Y D U L D W L R Q R f 'organizational commitment.' In order to check the common method biases resulting from raters, item characteristics and context, Harman's single factor test was conducted. The result of the test is presented in table 3. The 33yb Y D U L D Q F H H [ S O D L Q H G E \ a single factor shows that the common method bias is not a major concern in this study (less than 50yb F X W R I f pointyf 3 R G D V D N R I I 0 D F . H Q ] L H / H H 3 R G V D N R I I \f. Table 4 shows the mediation regression analysis based on Baron and Kenny's (1986yf U H F R P P H Q G D W L R Q + H U H Z e run three regressions for each dependent variable. In the case of OCBI, we observe in steps 2 and 3 that the coefficient turns out to be insignificant and thus we can conclude that there is no significant relationship between perceived RCSR and OCBI; hence, the mediating role of organizational commitment is beyond question. Therefore, we reject H2. As regards OCBO, it is observed that in step 2, perceived RCSR has a significant influence on OCBO, but in step 3, the relationship turns out to be insignificant whereas the relationship between OCBO and OC remains significant. This means the influence of RCSR on OCBO is fully mediated by OC. Thus, it supports our H3.

Concerning JE, a significant positive relationship between JE and RCSR is observed in step 2. In step 3, the relationship between RCSR and JE becomes weaker and significant at the 5yb O H Y H O Z K L O H L W U H P D L Q V V L J Q L I L F D Q W D W a 1yb O H Y H O I R U W K H U H O D W L R Q V K L S E H W Z H H Q - ( D Q G 2 & 7 K L V D O V R L Q G L F D W H V W K H L Q I O X H Q F H R I 5 & 6 5 R Q - ( L V I X O O \ P H G L D W H d by OC and, consequently, supports H4. As for OE, it is found that OE is significantly influenced by employee RCSR perception in step 2. Step 3 also indicates a significant influence of RCSR and OC on OE. However, the effect of RCSR on OE is less in step 3 (.152yf W K D Q L Q V W H S \f. Thus, we observe that OC has a partial mediating role in relationship between perceived RCSR and OE. Therefore, the study partially supports H5. 9 Discussion The study envisions a model incorporating employees' perceived CSR to the larger community as the independent variable, organizational commitment as the mediating variable, and employee job engagement, employee organizational engagement, organizational citizenship behavior related to the individual and organizational citizenship behavior related to the organization as the dependent variable. It finds a significant positive correlation between employees' perceived CSR and organizational commitment. A similar result was also found in the studies of Maignan, Ferrell and Hult (1999yf 0 D L J Q D Q D Q G ) H U U H O O \f, Peterson (2004yf % U D P P H U H W D O \f, Turker (2009yf ( E H L G \f, Ali et al. (2010yf ' K D Q H V K \f, Zheng (2010yf < R X H W D O \f. Such a relationship is grounded on the basic tenet of the Social Identity Theory that explains an individual's attachment and attraction to a group. Valentine and Fleischman (2008yf V X J J H V W W K D W L Q G L Y L G X D O V S U H I H r organizations that promote business ethics (Jose &Thibodeaux, 1999; Trevino, Butterfield, &McCabe 1998; Trevino &Nelson, 2004yf D Q G & 6 5 L V D Q D W X U D O H [ W H Q V L R Q R I R U J D Q L ] D W L R Q D O H W K L F V Z K L F K L Q Y R O Y H V D Q V Z H U L Q J W K H U H T X L U H P H Q W s of stakeholders, with particular focus on societal issues and challenges. Thus, when an individual finds his/ her organization is involved in CSR, he/she feels good about his/her organization because of an enhanced self-image and delight, which ultimately leads to a higher sense of emotional attachment to the organization. The study does not find any significant relationship between OCBI and perceived CSR or OCBI and organizational commitment. This finding is contrary to the findings of most of the studies seeking a relationship between PDF GENERATED BY SEARCH.PROQUEST.COM Page 8 of 16 organizational commitment and OCB (Fu, 2013; O'Reilly &Chatman 1986; Shore &Wayne 1993yf R U & 6 5 D Q G 2 & B (Bozkurta &Balb, 2012; Zheng, 2010yf 7 K H U H P D \ E H V H Y H U D O H [ S O D Q D W L R Q V I R U W K H U H V X O W ) L U V W P R V W R I W K H S U H Y L R X s studies consider OCB as an integrated concept and did not bifurcate it into OCBI and OCBO. Therefore, their findings did not reflect the exact relationship between OCBI and organizational commitment. Second, the employees may perform OCBI out of their own sense of responsibility or interpersonal relationship that has nothing to do with the commitment to the organization. Third, the study is based on external CSR only, not based on internal CSR, such as organizational justice, training etc. Internal CSR is considered to be more comprehensible predictor of relationship between commitment and OCBI. This study finds a significant relationship between OCBO and perceived CSR fully mediated by Organizational commitment. A similar result was found by Zheng (2010yf L n the Chinese context. This relationship makes sense. It validates the argument of Lee and Allen (2002, p. 135yf D s they suggest, "If we assume that OCB is a deliberate attempt to maintain the balance in a social exchange between employees and the organization, it is sensible to suggest that this behavior is more directly intended to benefit the organization. Hence, OCBO is more likely to be a direct function of what employees perceive about the CSR activities of their organization." The study observes a significant positive relationship between employee perception of CSR and employee job engagement and organizational engagement. The relationship between CSR perception and job engagement is fully mediated by organizational commitment while it is partially mediated in the case of organizational engagement. This is in line with the proposed hypothesis of Rupp, Ganapathi, Aguilera and Williams (2006yf 6 L P L O D r results were also found by Zheng (2010yf D Q G $ O E G R X U D Q G $ O W D U D Z Q H K \f. Corresponding to the Social Exchange Theory, an employee having strong psychological bondage with the organization is more likely to reciprocate by performing his required duties more seriously in the workplace. Moreover, meaningfulness of the job, which is an antecedent of employee engagement, is inserted in the organization's external CSR (May et al., 2004yf , W J L Y H V D V H Q V H R I E H Q H Y R O H Q F H S H U W D L Q L Q J W R W K H L U M R E 7 K H \ I H H O W K H \ D U H Z R U N L Q J I R U W K H E H W W H U P H Q W R f humankind, not just for narrow economic gain. Consequently, it boosts their engagement towards their job as well as organization. 10 Conclusion Being responsible for the needs of the society and conducting ethical business practices are now the standard expectation of the employees. Employees are not only concerned about the paycheck, they also look for meaning in their job. Involvement in CSR activities by the organization offers such a link for the employees. They like to identify themselves with a sociallyresponsible organization since it heightens their self-image and, in turn, they reciprocate through positive attitudes and behaviors such as greater job satisfaction, a higher sense of organizational commitment, intense engagement within the job and organization, a greater level of organizational citizenship behavior, and so on. The present study explores the relationship between perception of employees about the external CSR practices of their organizations in relative terms and employees' organizational commitment and job engagement, organization engagement, organizational citizenship behavior related to the individual and organizational citizenship behavior related to organization in the context of the Saudi banking industry. It is observed that, like most of the previous studies, there is a positive relationship between perceived relative CSR and employee organizational commitment, employee engagement, and organizational citizenship behavior related to the organization. It implies that the management of the banks in Saudi Arabia should consider the involvement in external CSR as one of the key determinants of maintaining a motivated and enthusiastic workforce. Contributing money to philanthropy is not a one-way approach; it also pays off in terms of more dedicated employees. 11 Limitations and direction for further studies The study is based on external CSR that focuses on corporate philanthropy or discretionary behavior only.

However, CSR encompasses a wider range of issues. Carroll (1979, 1991yf L G H Q W L I L H G I R X U W \ S H V R I & 6 5 D F W L Y L W L H V :

economic, legal, ethical and philanthropic. Schwartz and Carroll (2003yf G L V F D U G S K L O D Q W K U R S \ D V D V H S D U D W H & 6 R activity and consider it to be a part of either economic or ethical activities. Because of this, the results of the study PDF GENERATED BY SEARCH.PROQUEST.COM Page 9 of 16 may lack comparability to the studies that cover all aspects of CSR. The study combines different variables in a new framework and only the theoretical explanations were used to validate the Model. However, it would have been better if further validation has been sought by the experts in the field. Further studies may focus on wider ranges of CSR, cover more industries rather than just one single industry like banks only. To have greater insight about the view of Saudi organizations regarding CSR, in-depth qualitative studies are also worth exploring. References References Aguilera, R., Rupp, D. E., Ganapathi, J., &Williams, C. A. (2006yf - X V W L F H D Q G V R F L D O U H V S R Q V L E L O L W \ $ V R F L D O H [ F K D Q J e model. Paper presented at the Society for Industrial/Organizational Psycholog y Annual Meeting, Berlin. Albdour, A. A., &Altarawneh I. I. (2012yf & R U S R U D W H V R F L D O U H V S R Q V L E L O L W \ D Q G H P S O R \ H H H Q J D J H P H Q W L Q - R U G D Q .

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(2013yf 7 K H U H O D W L R Q V K L S E H W Z H H Q F R U S R U D W e social responsibility, job satisfaction and organizational commitment. International Journal of Organizational Innovation, 5(4yf Zheng, D. (2010yf 7 K H , P S D F W R I H P S O R \ H H V S H U F H S W L R Q R I F R U S R U D W H V R F L D O U H V S R Q V L E L O L W \ R Q M R E D W W L W X G H V D Q d behaviors: A study in China (Master thesisyf 6 L Q J D S R U H 0 D Q D J H P H Q W 8 Q L Y H U V L W \ 9 L F W R U L D 6 W & L Q J D S X U D 5 H W U L H Y H d from http://ink.library.smu.edu. sg/etd_coll/72 AuthorAffiliation Mohammad Tahlil Azim King Abdulaziz University, Faculty of Economics and Administration, Department of Business Administration, Jeddah, Saudi Arabia Received on 01/14/2015 Approved on 06/02/2016 Responsible editor: Profa. Dra. Leire San- Jose Evaluation process: Double Blind Review About the authors: 1. Mohammad Tahlil Azim, PhD in Entrepreneurship, King Abdulaziz University, Saudi Arabia. Email:

[email protected]. Appendix Appendix - Questionnaire Relative Corporate Social Responsibility (RCSRyf G H Y H O R S H G E \ 6 9 D O H Q W L Q H * ) O H L V K P D Q \f (Used with slight modification to fit for Comparative measureyf 1. In comparison to other banks, my bank is a more socially responsible organization that serves the greater community 2. In comparison to other banks, my bank gives more time, money and other resources to socially responsible causes. Job Engagement ( JEyf G H Y H O R S H G E \ $ O D Q 0 6 D N V \f 1. I really "throw" myself into my job. 2. Sometimes I am so into my job that I lose track of time. 3. This job is all consuming; I am totally into it. 4. My mind often wanders and I think of other things when doing my job (Ryf 5. I am highly engaged in this job. Organizational Engagement (OEyf G H Y H O R S H G E \ $ O D Q 0 6 D N V \f PDF GENERATED BY SEARCH.PROQUEST.COM Page 13 of 16 1. Being a member of this organization is very attractive. 2. One of the most exciting things for me is to getting involved with things happening in this organization. 3. I am really not into the "goings-on" in this organization (Ryf 4. Being a member of this organization make me come "alive." 5. Being a member of this organization is exciting for me. 6. I am highly engaged in this organization. Organizational Citizenship Behavior related to individual (OCBIyf G H Y H O R S H G E \ $ O D Q 0 6 D N V \f 1. I willingly give my time to help others who have work-related problems. 2. I adjust my work schedule to accommodate other employees' requests for time off. 3. I give up time to help others who have work or non-work problems. 4. I assist others with their duties. Organizational Citizenship Behavior related to Organization (OCBOyf G H Y H O R S H G E \ $ O D Q 0 6 D N V \f 1. I attend functions that are not required but that help the organizational image. 2. I offer ideas to improve the functioning of the organization. 3. I take action to protect the organization from potential problems. 4. I defend the organization when other employees criticize it. Organizational Commitment (OCyf E \ $ O D Q 0 6 D N V \f 1. I would be happy to work at my organization until I retire 2. Working at my organization has a great deal of personal meaning to me. 3. I really feel that problems faced by my organization are also my problems. 4. I feel personally attached to my work organization. 5. I am proud to tell others I work at my organization. 6. I feel a strong sense of belongingness to my organization. DETAILS Subject: Studies; Social responsibility; Commitments; Perceptions; Correlation analysis; Organizational behavior; Banking industry; Regression analysis Location: Saudi Arabia Classification: 2500: Organizational behavior; 8100: Financial services industry; 2410: Social responsibility; 9178: Middle East; 9130: Experiment/theoretical treatment Publication title: Revista Brasileira de Gestão de Negócios; São Paulo Volume: 18 Issue: 60 Pages: 207-225 Number of pages: 19 Publication year: 2016 Publication date: Apr-Jun 2016 PDF GENERATED BY SEARCH.PROQUEST.COM Page 14 of 16 Publisher: Centro Universitário FECAP, mantido pela Fundação Escola de Comericio Álvares Penteado (FECAPyf Place of publication: São Paulo Publication subject: Business And Economics ISSN: 19830807 Source type: Scholarly Journals Language of publication: Portuguese Document type: Feature Document feature: Diagrams Tables References DOI: http://dx.doi.org/10.7819/rbgn.v18i60.2319 ProQuest document ID: 1804903044 Document URL: https://libraryresources.columbiasouthern.edu/login?url=https://search.proquest.co m/docview/1804903044?accountid=33337 Copyright: Copyright Centro Universitário FECAP, mantido pela Fundação Escola de Comericio Álvares Penteado (FECAPyf $ S U - X Q 6 Last updated: 2017-05-01 Database: ABI/INFORM Collection PDF GENERATED BY SEARCH.PROQUEST.COM Page 15 of 16 Bibliography Citation style: APA 6th - American Psychological Association, 6th Edition Mohammad, T. A. (2016yf & R U S R U D W H V R F L D O U H V S R Q V L E L O L W \ D Q G H P S O R \ H H E H K D Y L R U 0 H G L D W L Q J U R O H R I R U J D Q L ] D W L R Q D l commitment. Revista Brasileira De Gestão De Negócios, 18(60yf .

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