Winning the ‘trust’ of the employees, ethically or strategically?

Abstract

Research on corporate social responsibility (CSR) has indicated that even though CSR activities are found to be positively influencing employees’ trust, there is lack of clarity regarding the underlying mechanisms of this relationship. In this empirical study of 210 employees, we have made an attempt to bridge this gap to understand these underlying mechanisms. Different types of CSR are likely to induce different types of attitude among the employees. Our analyses using regression and structural equation modelling showed that CSR activities are positively related to employee trust. Further, ethical CSR but not strategic CSR mediates the relationship between CSR activities and employee trust.