The Influence of 2nd Order Stakeholder Dimension of CSR on Employee Engagement: The Mediating Role of Organizational Trust

Abstract

The study aims to explore the second-order construct of Corporate Social Responsibility (CSR) towards seven groups of stakeholders, namely employee, customers, shareholders, suppliers, community, environment and government, and its impact on employee engagement. Also this study investigates the mediating role of organizational trust on the relationship between CSR and employee engagement. Survey data were collected from 633 employees working in 100 companies with outstanding CSR performance. Empirical testing using Structural Equation Modeling (SEM) showed a direct and relationship between CSR and employee engagement. Findings also suggested that organizational trust is a partial mediator between CSR and employee engagement. The goodness-of-fit indices indicate that the research model is congruent to empirical data: χ2 = 3072, df = 1364, χ2 /df = 2.25, p < 0.001, NFI = 0.92, TLI = 0.95, CFI = 0.96, and RMSEA = 0.05