Effect of Corporate Social Responsibility on Employees’ Green Behavior: Moderating Role of Environmental Commitment
Kajol Karmoker1, Anim Ghosh2, Brito Roy3*
1Associate Professor, Human Resource Management Discipline, Khulna University, Khulna-9208, Bangladesh.
2Independent Researcher, Master’s in Business Management (International Business)
Central Queensland University, Australia.
3Independent Researcher, Human Resource Management Discipline,
Khulna University, Khulna-9208, Bangladesh.
*Corresponding Author E-mail: mrbritoroy@gmail.com
ABSTRACT:
Business organizations contribute to the environmental sustainability through the employee participation in green behavioral activities which are somehow shaped by the employee’s perceptions about how their organizations incorporate social, environmental, and legal issues into business operations. While most of the academics are concerned with the effects of corporate social responsibility (CSR) on employee’s green behavior at workplace, few have examined the effects of CSR on employee’s green behavior outside the workplace. That is why this study was designed with an objective of investigating the effects of CSR practices on employee’s green behaviour both inside and outside the organization. We conceptualized employee green behavior displayed within and beyond the organization as “on-the-job” and “off-the-job” green behavior. 270 employees working in the banking sector of Khulna city in Bangladesh participated in the study. A self-administered questionnaire survey was used to gather the data. The study hypotheses were tested using a three-stage moderated regression analysis. The findings showed that CSR initiatives had a favorable and significant impact on the employees' green behavior both on and off the job. Furthermore, the study results showed that employees’ environmental commitment moderated the relationship indicating that CSR effects on employee’s on-the-job and off-the-job green behavior are stronger when the employees have more environmental commitment.
KEYWORDS: Corporate Social Responsibility, Employee Green Behavior, Environmental Commitment.
INTRODUCTION:
It is now universally recognized that heavy industrialization is one of major causes of environmental degradation (Suganthi, 2019). Accelerated deterioration of environment and climate change because of industrial toxic, wastage, and excessive use of natural resources have urged many business organizations to protect the environment through CSR practices (Robertson and Barling 2015; Suganthi, 2019; Omnamasivaya et al., 2021; Rao and Naik, 2022). CSR practices are treated as noncommercial activities or programs that bring both social and environmental benefits (Henderson, 2007; Hemantha, 2023). It is viewed as an organization’s strategic tool of improving both environmental and financial performance (Gond et al., 2009. In another word, CSR is described as corporate behaviours which aim to benefit multiple stakeholders, such as employees, shareholders, government, and natural environment (Turker, 2009). The outcomes of CSR are also beneficial to the organizations when it is found that CSR positively affects corporate image or reputation, consumer trust, employee loyalty, and investors’ confidence (Barkay, 2012). Furthermore, the recent studies advocate that CSR practices contribute to the development of employee’s proenvironmental behaviors and attitudes (Tian and Robertson, 2019; Afsar et al., 2019; Shah et al., 2020). It is now argued that when an organization designs environment-oriented CSR, it triggers pro-environmental behaviors among the employees (Robertson and Barling 2015; Shah et al., 2020; Afsar et al., 2018; Afsar and Umrani, 2020). Once the employees perceive that their organization is socially and environmentally responsible in addition to generating revenue, they also tend to engage themselves in pro-environmental activities in order to support their organizational efforts of protecting environment (Bommer, Miles, and Grover, 2003). In another word, when the employees find that their individual values match with the organizational values, they tend to be engaged in proenvironmental activities more ((Vallaster, 2017).
In relation to CSR and its effects on employee’s proenvironmental behavior, academics and practitioners have paid more attention either on workplace proenvironmental behavior (Shah et al., 2021; Maldonado Astudillo et al., 2021; Gkorezis and Petridou, 2017; Suganthi, 2019; Afsar and Umrani, 2020; Ahmed et al., 2020), voluntary proenvironmental behavior (Tian et al., 2019; Afsar et al., 2020; Raza et al., 2021) or organizational citizenship behaviors towards the environment (Hammed et al., 2019; Das and Dash, 2023). Nevertheless, no study has been found to investigate the effects of CSR practices on employee’s green behavior outside the workplace. But it is essential to know what value the organizations are creating for the society as a whole because of their engagement in CSR practices. Furthermore, given that many green behaviors displayed outside of the workplace, such as in personal lives, are similar to those displayed inside the workplace, it is assumed that employees' proenvironmental behavior displayed outside the organization may be a result of workplace learning and experiences (Paillé et al., 2017). Consequently, this study fills the research gap by investigating the effects of CSR practices on employee’s green behavior both inside and outside the organization.
The study makes several contributions. Firstly, the study contributes to the existing literature of CSR by addressing the question of how employees’ perception of CSR activities can influence their green behaviors displayed both on-the-job settings and off-the-job settings. Secondly, the study incorporates moderating role of employee’s environmental commitment on the relationship between CSR and employee’s green behavior since it is assumed that environmentally committed employees are more likely to display an emotional attachment towards the natural environment and participate in proenvironmental activities. Prior studies examined the moderating role of empathy (Raza, 2021; Islam, 2018), CSR authenticity and CSR skepticism (Latif, 2022), environmentally specific servant leadership (Afsar, 2018). Henceforth, the current study is first one to explore the moderating role of employee’s environmental commitment in examining the association between CSR and employee’s green behavior. Thirdly, the study selects the employees of banking sector which is understudied in the arena of CSR and employee’s green behavior. Previously, most of the studies relating CSR to employee’s proenvironmental behavior have been conducted either in hospitality industry (Islam et al., 2019; Hameed et al., 2019; Ahmed et al., 2020; Raza et al., 2021) or manufacturing industry (Suganthi, 2019; Ahamd et al., 2021; Latif et al., 2022). Few studies considered banking industry to explore the role of CSR practices in shaping employee’s green behavior. Finally, the current study enhances CSR literature by adding new insights from a developing country like Bangladesh since the past studies relating CSR to employee’s proenvironmental behavior have been explored within the context of developed countries. Even in Bangladesh, the previous scholars mainly explored the effects of CSR on brand equity (Hafez, 2018), financial performance (Mahbuba and Farzana, 2013; Rahman et al., 2014), job satisfaction, and organizational commitment (Rahman, 2016; Tripathy, 2022). Consequently, this study is the attempt to measure the impact of CSR on employee’s green behavior in the banking industry of Bangladesh.
HYPOTHESES DEVELOPMENT:
Corporate Social Responsibility
Corporate social responsibility (CSR) refers to those organizational policies and actions which incorporate environmental, social, ethical, and legal concerns into business operations (Crifo and Forget, 2015). In another word, CSR is one kind of company’s responsibility to protect the environment and the society in which it operates in addition to earning profit (Jeon et al., 2020). Consequently, CSR is the combination of triple bottom line performances; economic, environmental, and societal performance (Aguinis and Glavas 2012; Supriya and Sudharani, 2023). Moreover, there is an expectation of the business stakeholders that organizations operate in a responsible way which ultimately enhances organizational reputation, employee satisfaction, and customer loyalty (Afsar and Umrani, 2020; Asrar-ul-Haq et al., 2017; Narayanan and Chandrasekaran, 2023). According to the stakeholders’ viewpoint, CSR has been defined as those corporate behaviors which aim to affect stakeholders positively in addition to protecting its economic interests (Turker, 2009). Stakeholders approached CSR practices primarily focus on four groups of stakeholders: CSR towards environment which includes protecting and preserving natural environment; CSR towards employees, such as ensuring good working environment, participation in decision making process, and fair promotion system; CSR towards customers where customer satisfaction, respecting for customer rights, and providing accurate product information get priority; and CSR towards government which covers complying with government rules and regulations, supporting government to achieve sustainable goals or paying taxes (Turker, 2009; Debnath and Chellasamy, 2022). The outcomes of CSR practices are numerous. CSR initiatives, such as donation to a charity organization or support to the community development programs (Sen and Bhattacharya, 2001, and Jeon et al., 2020) not only create a positive image to its stakeholders but also increases employee engagement in proenvironmental activities (Afsar and Umrani, 2020; Montgomery and Ramus, 2003). Furthermore, organizational capability for achieving competitive advantage increases once the organizations get engaged in CSR practices aiming to reduce environment pollution and carbon emission (Yu and Huo, 2019; Sprinkle and Maines, 2010; Gorski, 2017).
Employee’s Green Behavior (on-the-job and off-the-job):
Green behavior denotes an individual’s behavior that contributes to the sustainability of the environment (Ones and Dilchert, 2012). Green behavior theory developed by Steg and Vlek (2009) states that green behavior of any individual can protect the environment since the environment is affected by every individual’s actions. Accordingly, employee’s green behavior has been defined as those behaviors which increase environmental performance of the organization rather than producing any harmful effects on environment (Unsworth et al., 2013; Stern, 2000). Norton et al. (2015) has divided employees’ green behavior into two segments: task related green behavior and voluntary green behavior. Task related green behavior refers to those behaviors that the employees need to perform according to the requirement of job descriptions, such as saving energy, turning off light while out of office, printing double side etc. Voluntary employee green behavior refers to actions that employees voluntarily take that go above and beyond what is required of them by their employer. Examples include avoiding resource waste, recycling, and assisting other firms in putting green policies into practice. (Norton et al., 2015; Blok et al., 2015). Employee green behavior has also been divided into in-role and extra-role categories by Dumont et al. (2017). Similar to task-related green behavior, in-role green behavior is regarded as a component of the job description, whereas extra-role green behavior is the behavior that is not anticipated by the organization but is generated by the individual initiatives of the employee (Dumont et al., 2017).
In the current study, we have classified employee’s green behavior into on-the-job and off-the-job green behavior. On-the-job green behavior has been conceptualized as those behaviors that happen inside the organization, such as switching off office equipment after office hour, conserving water or electricity, reducing use of papers in office, bringing new ideas to address the environmental issues, and sharing environmental knowledge with co-workers (Dumont et al., 2017; Safari et al., 2018; Chaudhary, 2019; Saeed et al., 2019). Conversely, off-the-job Green behavior has been conceptualized as environmentally friendly behaviors that are displayed outside of the organization, such as purchasing organic fruits and vegetables, avoiding plastic-wrapped products, reusing or recycling the products, avoiding unnecessary energy, water, or gas use at home, and promoting others to adopt such behaviors (Paillé et al., 2017).
CSR and Employee’s Green Behavior (on-the-job and off-the-job)
CSR is gaining more attention to the organizations because of its effects on employee's green attitudes and behaviors, such as recycling, efficient use of water, electricity or energy, reducing unnecessary consumption of natural resources, purchasing green products, and avoiding environmentally harmful products and practices (Blok, et al., 2015; Wesselink et al., 2017; Vallaster, 2017). According to theory of stakeholder and social contract, this has been proved that perceived CSR practices upsurge proenvironmental behaviors of the employees (Norton, et al., 2015; Pfarrer, 2010; Mordi et al., 2012). It is claimed that when an organization engages in CSR activities in order to address the environmental issues, positive behaviors trigger among the employees of that organization (Afsar et al., 2018). Employees who find their organization as socially responsible are more likely to be involved in organizational citizenship behavior at the workplace (Gkorezis and Petridou, 2017). Moreover, CSR not only encompasses environmental and social responsibilities but also incorporates a high concern for the employees and their needs (McWilliams et al., 2006; Rupp et al., 2006). Consequently, employees are expected to reciprocate this favorable attitude by supporting and participating in their organization’s environmental management practices since it is claimed that individuals who receive benefits from other individuals indirectly feel obliged to them (Blau, 1964; Gouldner, 1960).
Employees can know about how their organizations are contributing to save the natural environment when the organizations share their CSR practices with the employees through e-mails, newsletters, seminars, and so on (Arnuad and Sekerka, 2010). This awareness and knowledge encourage the employees to participate in green behavioral activities which ultimately help implement eco-friendly initiatives taken by their organizations (Afsar and Umrani, 2020). Consequently, CSR develops an organizational climate in which organizations share their proenvironmental values with the employees and employees also try to match their won environmental values with that of the organizations; which eventually enhances organization’s environmental performance (Vallaster, 2017; Zientara and Zamojska (2018). Rupp et al., (2006) and Bhatia and Satija (2022) also argued that since employees’ perceptions of CSR policies and practices describe an organization’s social, environmental, moral and ethical standards, CSR can develop pertinent values among the employees which in the long run promote them to exhibit green behaviors at the workplace. So, the more an organization engage in socially responsible activities, the more the employees are likely to be engaged in green behaviors at the workplace (Cantor et al., 2012; Gkorezis and Petridou, 2017). Furthermore, it has been found that many pro-environmental behavior displayed at the workplace or inside the organization are analogous to green behaviors demonstrated outside the organization (Lewin, et al., 2020; Paillé et al., 2017). The daily habits of employees, such as eating organic foods, avoiding plastic packaging, recycling, and conserving energy and water, may be influenced by their experiences at work. As a result, CSR is anticipated to influence employees' green behaviors both on and off the workplace. Thus, the authors propose the following:
H1: CSR has a significant influence on employee’s on-the-job green behavior.
H2: CSR has a significant influence on employee’s off-the-job green behavior.
Employee’s Environmental Commitment as a Moderator:
Employee attitudes and behaviors toward the environment are thought to be significantly influenced by environmental commitment (Steg and Vlek, 2009; Ajzen, 2002). Environmental commitment refers to a person's devotion to the environment, including their desire to use ecologically friendly products, reduce waste, and abide by environmental laws (Yu et al., 2019). Furthermore, it is defined as a person's emotional attachment, affiliation, and involvement with environmental practices (Perez et al., 2009). Raineri and Paillé (2016) described environmental commitment in the context of an organization as an employee’s sense of obligation and attachment to environmental issues.
Environmentally committed employees are more likely to display an emotional attachment towards the natural environment. Their participation in proenvironmental activities at the workplace increases when they perceive that their organization is socially responsible (Afsar and Umrani, 2020; Cantor et al., 2012). Afsar et al. (2018) also reported that voluntary green behaviors inside the organization largely depends on employee’s emotional attachment to the environment and employee’s awareness about environmental issues and environmental management systems. Employees who are highly concerned for the environment contribute in a better way to the environmental performance (Tariq et al., 2020). An employee with a positive mindset towards the environment voluntarily manages the environmental problems, does not break the environmental rules and regulations during job performance, and encourages his /her co-workers to display green behavior at the workplace (Paillé and Meija-Morelos, 2019; Islam et al., 2022). Conversely, in the absence of internal attachment to environmental concern, employees are less likely to be engaged in proenvironmental initiatives outside of formal assignments (Paillé, et al., 2014). Accordingly, it can be concluded that organizational and environmental sustainability can be achieved if the employees are committed to the environment (Mesmer-Magnus, 2012). Thus, the study hypothesizes the following statements.
H3: Environmental commitment moderates the impact of CSR on employees' on-the-job green behavior, making it stronger when employees have more environmental commitment and weaker when they have less.
H4: Environmental commitment moderates the impact of CSR on employees' off-the-job green behavior, making it stronger when employees have more environmental commitment and weaker when they have less.
Figure 1: Conceptual Research Model.
METHODOLOGY: Participants and Procedure:
A quantitative research approach has been used in the current study in order to examine the connection between CSR practices and employees' green behavior both within and outside of the workplace. Moderation effects of employees’ environmental commitment on the aforesaid relationship has been also studied. Data were collected through a questionnaire survey which took place in Khulna city of Bangladesh. Employees working at the managerial level of banking sector in Khulna city took part in the survey. The questionnaire used in the survey had two parts. First part was designed with 30 close ended items over CSR, employees’ on-the job green behavior, employees’ off-the job behavior and employee’s environmental commitment. Second part of the questionnaire was designed with the demographic information of the respondents, such as name, age, gender, income, working experience and designation. A total of 300 questionnaires were distributed to the bank employees. Out of 300 questionnaires, 270 were found completely fulfilled, flawless and thus used in the data analysis process. Approximately, 72% of the respondents were male and 28% were female. In terms of age, a maximum number of respondents (53%) were aged between 31 and 40 years. As to the job experience, 37% of the respondents worked less than 5 years, around 32% worked 6 to 10 years, 20% worked 11 to 15 years and the rest had the job experience of more than 15 years. The details of the demographic information of the respondents are presented in Table 1.
Table 1. Demographic Characteristics of the Respondents (n = 270)
|
Characteristics |
Classification |
Frequency |
Percentage |
|
Gender |
Male |
194 |
71.9 |
|
Female |
76 |
28.1 |
|
|
Age |
21-30 |
46 |
17.0 |
|
31-40 |
143 |
53.0 |
|
|
41-50 |
66 |
24.4 |
|
|
Above 50 |
15 |
5.6 |
|
|
Income |
21000-30000 |
47 |
17.4 |
|
31000-40000 |
63 |
23.3 |
|
|
41000-50000 |
47 |
17.4 |
|
|
50000-above |
112 |
41.5 |
|
|
Job experience |
less-5 |
100 |
37.0 |
|
6-10 |
87 |
32.2 |
|
|
11-15 |
54 |
20.0 |
|
|
15-More |
29 |
10.7 |
Measures:
Practices of Corporate Social Responsibility (CSR) were measured by a ten-item index developed by Turker (2009). The items were somewhat modified as per the research context and focused on the practices, such as minimizing negative impacts on the environment, protecting well-being of the employees, designing voluntary activities to promote the well-being of the society, respecting consumer rights, providing full and accurate information to the customers, emphasizing on customer satisfaction, and complying with legal rules and regulations. A typical scale item was “Our organization takes part in actions designed to safeguard and enhance the quality of the environment”. Employee’s on-the-job green behavior was assessed by a seven-item scale adapted from Safari et al., (2018). Employee behaviors, such as turning off lights, avoiding wasting water and electricity, sharing environmentally friendly information with co-worker, taking stairs instead of elevators were treated as employee’s on-the-job green behavior. A typical scale item was “I print double sided whenever possible”. Employee’s off-the-job green behaviors - the behaviors that the employees show outside the organization, but in their personal lives, such as buying organic food, avoiding buying a plastic package, buying products that can be recycled, reducing the use of cars etc. were measured using a seven-item index developed by Paillé et al. (2019). A sample item was “I avoid unnecessary consumption of energy like electricity, gas or water at my home”. For measuring environmental commitment of the employees, a six-item scale was used. This scale adopted from Afsar and Umrani (2020) primarily focused on employees’ commitment towards the environment and typical item was “I feel obligated to assist my organization's environmental efforts”. Respondents were asked to express their opinions on corporate social responsibility, employees’ on-the-job green behavior, off-the-job green behaviors, and environmental commitment on a 5-point Likert scale (1 = Strongly Disagree to 5 = Strongly Agree).
DATA ANALYSIS AND RESULTS:
Descriptive Analysis:
Table 2 of descriptive statistics represents means, standard deviations, and inter-correlations of all the constructs used in the study. As illustrated in the table, it is found that CSR is positively related to employee’s on-the-job green behavior (r = 0.479, p < 0.01), off-the-job green behavior (r = 0.465, p < 0.01), and environmental commitment (r = 0.553, p < 0.01). Findings of the correlation analysis partially support our hypotheses indicating that CSR practices positively correlate with the employee’s on-the-job and off-the-job green behavior. Moreover, moderated regression analysis was used to test the study hypotheses.
Table 2. Means, SD, and Inter-correlations
|
Variables |
Mean |
SD |
1 |
2 |
3 |
4 |
|
Corporate Social Responsibility |
4.22 |
0.6 |
1 |
|
|
|
|
Employee’s on-the-job Green Behavior |
4.29 |
0.4 |
0.479** |
1 |
|
|
|
Employee’s off-the-job Green Behavior |
4.29 |
0.42 |
0.465** |
0.655** |
1 |
|
|
Environmental Commitment |
4.21 |
0.45 |
0.553** |
0.522** |
576** |
1 |
Notes: *P <0.05, **P<0.01.
Hypothesis Testing:
First, the study hypothesized that CSR has a considerable impact on employees' on-the-job green behavior (H1) and that this link is modulated by employees' environmental commitment, with the effect being higher when employees have more environmental commitment and weaker when they have less (H3). A three-stage moderated regression analysis was used to examine H1 and H3. After controlling the respondents' gender, age, income, and experience, it is demonstrated in Table 3 that CSR is positively and significantly associated to employees' on-the-job green behavior (β = 0.274, P < 0.001). The results of the investigation therefore support H1. The table shows that the interaction term between environmental commitment and corporate social responsibility has a favorable and significant impact on employees' on-the-job green behavior (β = 1.850, P <0.001). Additionally, the R2 change (0.053) and F change (22.491) linked to the interaction term have increased the independent variable's explanatory power by 5.3%, suggesting that employee environmental commitment considerably modifies the association between CSR and employee on-the-job green behavior. H3 is thus strongly supported by the study's findings.
The study's second hypothesis was that CSR has a significant impact on employees' off-the-job green behavior (H2) and that this relationship is positively moderated by the employees' commitment to the environment, such that the effect will be stronger when the employees have more environmental commitment and weaker when they have less (H4). After adjusting for respondent gender, age, income, and experience, Table 4 shows that CSR is positively and significantly associated to employees' off-the-job green behavior (β = 0.208, P < 0.001). H2 is thus supported. The interaction term (Corporate Social Responsibility x Environmental Commitment) in Table 4 is also discovered to be significant (β = 1.386, P < 0.001). The interaction term's R2 change (.030) and F change (12.893) also increase CSR's predictive ability by 3.0%. As a result, H4 is supported by the study's findings, which show that when employees are genuinely concerned about the environment, the effects of CSR on their off-the-job green behavior are higher.
Table 3 Results of moderated regression analysis
|
Dependent Variable: Employee On-the-Job Green Behavior |
||||||
|
|
βeta |
t-value |
p-value |
F-value Change |
R2 |
Change in R2 |
|
Control Variables |
|
|
|
|
|
|
|
Gender of the Employee |
-0.011 |
-0.177 |
0.860 |
0.786 |
0.012 |
0.012 |
|
Age of the employee |
0.079 |
0.957 |
0.339 |
|
|
|
|
Income of the employee |
0.078 |
1.122 |
0.263 |
|
|
|
|
Years in Job experience |
-0.037 |
-0.430 |
0.668 |
|
|
|
|
Main Effects |
|
|
|
|
|
|
|
Corporate Social Responsibility |
0.274 |
4.511 |
0.000 |
62.348 |
0.330 |
0.318 |
|
Environmental Commitment |
0.375 |
6.093 |
0.000 |
|
|
|
|
Interaction Effects |
|
|
|
|
|
|
|
Corporate Social Responsibility x Environmental Commitment |
1.850 |
4.743 |
0.000 |
22.491 |
0.383 |
0.053 |
Table 4 Results of moderated regression analysis
|
Dependent Variable: Employee Off-the-Job Green Behavior |
||||||
|
|
βeta |
t-value |
p-value |
F-valueChange |
R2 |
Change in R2 |
|
Control Variables |
|
|
|
|
|
|
|
Gender of the Employee |
-0.061 |
-0.996 |
0.320 |
0.728 |
0.011 |
0.011 |
|
Age of the employee |
0.066 |
0.796 |
0.427 |
|
|
|
|
Income of the employee |
0.069 |
0.994 |
0.321 |
|
|
|
|
Years in Job experience |
-0.045 |
-0.516 |
0.606 |
|
|
|
|
Main Effects |
|
|
|
|
|
|
|
Corporate Social Responsibility |
0.208 |
3.526 |
0.000 |
73.459 |
0.365 |
0.355 |
|
Environmental Commitment |
0.466 |
7.788 |
0.000 |
|
|
|
|
Interaction Effects |
|
|
|
|
|
|
|
Corporate Social Responsibility x Environmental Commitment |
1.386 |
3.591 |
0.000 |
12.893 |
0.395 |
0.030 |
RESULT DISCUSSION:
This research endeavor aims to explore the relationship between CSR practices and employee’s green behavior both inside and outside the organization.
In line with the hypothesized relationships, the current study supported the direct influence of CSR practices on employee’s on-the-job green behavior. This can be attributed to the fact that when an organization becomes engaged in CSR practices in addition to profit-generating activities, its employee perceives that the organization is contributing to society and its environment; as they also live in the society and through CSR organizations is indirectly improving their life, therefore, they also support their organization’s social and environmental efforts by participating in green behavioral activities at the workplace. This finding is in line with the findings of Tian and Robertson (2019) and according to Afsar et al. (2018), employees' task-related green behaviors are triggered when companies develop and implement socially responsible policies because employees' personal values are aligned with the company's values of protecting the environment. And having values that are aligned with each other motivates and encourages employees to act in a way that is good for the environment. Because of this, CSR activities in organizations improve employees' green behavior on the job.
Similarly, the direct influence of CSR practices on employee’s off-the-job green behavior is also supported by the study findings. This can be put down to the fact that CSR initiatives shared with employees through e-mails, newsletters, conferences, and seminars increase employees’ knowledge about the social and environmental situation which ultimately stimulates positive environmental behaviors outside the organization. It indicates that learnings and experiences from an environmentally responsible organization create a sense of duty among the employees to give back to society. Being aware of how to behave in an environmentally friendly manner and knowing its positive outcomes; as members of society, they would like to bring those positive changes to their society as well as to their personal lives. As a result, they participate in pro-environmental activities in their personal lives also. This significant influence of CSR practices on employee’s off-the-job green behavior is consistent with the study of Lewin, et al. (2020) who suggested that employer’s CSR activities affect employee citizenship behavior outside of work.
In order to get a better understanding in relation to CSR and employee’s green behavior, we also examined the moderating role of employee’s environmental commitment. Our results revealed that environmental commitment moderates the relationship between CSR and employee’s green behavior indicating that environmentally committed employees have a higher tendency to participate in pro-environmental activities within and beyond the workplace. Aligned values help and motivate individuals to take more actions for environmental development. Environmentally committed employees who are already motivated and encouraged, take extra initiative beyond their job-related tasks in organizations that already support and are flexible to their employees' environmentally friendly activities. Emotional attachment to the environment influences employees to get involved in activities, such as minimizing waste, generating new ideas to solve environmental problems, teaching and encouraging others to save the environment. Thus, environmentally committed employees utilize their organization's CSR activities through their green behavior. Similar type of findings is found in the study of Arsar and Umrani (2018) who reported that environmentally committed employees are more likely to show pro-environmental behaviors.
Our study contributed to the existing literature of CSR in several ways. First, the study contributed by exploring the effects of CSR practices on employee’s on-the-job green behavior that is the behavior inside the organization. E.g., Green initiative side by side their job-related tasks. Second, the study contributed whether the CSR practices influences employee’s off-the-job green behavior that is the behavior displayed outside the organization. E.g., green behavior in their social and personal life. Third, our study contributed by examining the moderating role of employee’s environmental commitment in relationship between CSR and employee’s on-the-job and off-the-job green behavior which added a new direction to the literature; enhancing employee's environmental commitment organizations can improve employees on the job and of the job green behavior. Finally, the study made additional contribution by selecting sample employees from banking industry which is understudied in relation to CSR and its effects on employee’s green behavior.
CONCLUSION AND MANAGERIAL IMPLICATIONS:
This study findings carry significant implications for managers, practitioners, and policymakers in the banking industry. Firstly, the study found that CSR has a positive and significant influence on employee’s on-the-job green behavior. Therefore, the top management in the banking sector who is concerned with the enhancement of environmental performance through the employee engagement in proenvironmental activities can consider CSR initiatives of the current study for promoting employee green behavior within the organization. CSR practices aiming to protect the environment or reducing negative impacts on the environment create a sense of accountability in the minds of employees. Such type of accountability towards the environment enables the employees to display green behavior at the workplace. Similarly, CSR activities like respecting customers’ rights, avoiding deceptive advertisements, complying with legal rules and regulations help the organizations achieve trust of customers and employees who ultimately support the organizational efforts of being a socially and environmentally responsible organizations. Therefore, top managers and policy makers working in the banking sector may initiate such type CSR initiatives in order to encourage employee participation in the green behavioral activities within the organization.
Secondly, the study proved that an organization’s CSR practices affects employee’s off-the-job green behavior which is meant by the green behavior demonstrated outside of work. This finding of the study suggests that organizational learnings and experiences inspire the employees to display proenvironmental behavior in their personal lives, such as purchasing green products, avoiding unnecessary consumption of natural resources, sharing green knowledge with others etc. So, the proenvironmental behaviors of employees benefit not only the employer but also the society in which the employer operates. Consequently, the policymakers can view the current study framework as a strategic tool of improving the environmental performance of the entire society.
Thirdly, in order to be environmentally responsible organization, employees must be committed to the environment since environmentally committed employees are more likely to be involved in the green behavioral activities. It is evident that employees’ participation in proenvironmental activities within and beyond the organization essentially depends on their emotional attachment to the environment. Given that our study advances the knowledge of policymakers, practitioners, and managers in understanding how the environmentally committed employees moderate the relationship between CSR practices and green behavioral activities. Accordingly, managers of banking industry need to give emphasize on hiring environmentally committed employees so that they can contribute more on achieving environmental performance through their engagement in green behavioral activities.
LIMITATIONS AND FUTURE RESEARCH:
Though the study contributed to the relationship between CSR and employee’s green behavior, there are some limitations in this study that can create new room for future research. Firstly, only 270 employees working in the banking sector of Khulna city, Bangladesh participated in the current study. So, in future, it is suggested to conduct the same research over large number of employees in other industries, such as automobiles industry, telecommunication industry, tobacco industry etc. in order to increase the generalizability of the study findings. Secondly, although the study explored the moderation effects of environmental commitment to understand the contingencies of the relationship between CSR and employee green behavior, it is important to explore the moderation effects of variables like employee personality, gender, organizational support, organizational green climate etc. Finally, no mediation effects have been shown in this study. So, mediating effects of other variables must be explored with a view to enhancing the explanatory power of the current research model.
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Received on 21.02.2024 Revised on 23.08.2024 Accepted on 24.01.2025 Published on 29.07.2025 Available online from August 05, 2025 Asian Journal of Management. 2025;16(3):203-212. DOI: 10.52711/2321-5763.2025.00031 ©AandV Publications All right reserved
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