How and When Will Work-life Balance (WLB) Practices Increase Employee Support for CSR: the Roles of Employee Gratitude, Perceived Usefulness of WLB Practices, and Person–CSR Fit

Abstract

Understanding Corporate Social Responsibility (CSR) from the micro perspective is critical, as the success of CSR initiatives squarely relies on employees’ support. However, the existing research on CSR at the micro level has been insufficient. To address this limitation, this thesis contributes to the micro-foundations of CSR by investigating the effect of work-life balance (WLB) practices on employee support for CSR. Drawing on social exchange theory, I predicted that companies implementing WLB practices would be more likely to receive employees’ support for their CSR initiatives because employees would feel more grateful for the generous support provided by their companies. In addition, I anticipated that some important contextual factors would intensify this positive relationship. In particular, I expected that the perceived usefulness of WLB practices and person–CSR fit would moderate the relationship between companies’ WLB practices and employees’ support for CSR. This is because the provision of WLB practices should match the needs of employees. Even when the same WLB practices are provided, employees who perceive these WLB practices as more useful may be more grateful and, therefore, provide more support for the organization’s CSR initiatives. Furthermore, employees, when reciprocating the favor provided by the organization, will also consider the congruence between the organization’s CSR initiatives and their personal values and interests. If the congruence exists, they will be more likely to support organizational CSR out of gratitude.

I conducted four studies to test these hypotheses. In Study 1, I collected second-hand data from several sources, including the Thomson Reuters ASSET4 database, Wharton Research Data Services (WRDS) database, Factiva database, financial reports, and nonfinancial annual reports of the firms, to build a unique database of 753 US-listed companies with 2708 firm-year observations spanning from 2003 to 2021. The results showed that one type of WLB practice (flexible working hours) was positively related to one measurement of employee support for CSR (average employee volunteering hours). Study 2 was based on survey data collected from a sample of 343 full-time nurses from two hospitals in China. Its results showed that WLB practices (children’s development program) had a positive effect on employee support for CSR due to employee gratitude. Study 3 was based on survey data from 366 full-time employees recruited through Prolific Inc. I administered the survey at two time points, with a one-week interval between the two time points. The respondents’ nationalities included 12 diverse countries, with more than 95% of them coming from the United Kingdom or the United States. Its results replicated the previous findings, revealing a positive effect of WLB practices (flexible work arrangements) on employee support for CSR through employee gratitude. In addition, employees’ perceived usefulness of WLB practices (flexible work arrangements) had a positive moderation effect on the relationship between WLB practices and employee support for CSR. Study 4 recruited 1534 United Kingdom participants via Prolific Inc. to participate in an online experiment. Its results replicated the previous results and demonstrated that both employees’ perceived usefulness of WLB practices and person–CSR fit moderated the relationship between WLB practices and employee support for CSR. Taken together, the findings from these four studies consistently showed a positive effect of WLB practices on employee support for CSR through employee gratitude. Moreover, Study 3 and Study 4 unveiled that employees’ perceived usefulness of WLB practices and person–CSR fit moderated the indirect effect of WLB practices on employee support for CSR.

This thesis makes the following contributions to the social exchange theory and CSR literature. First, it enhances the understanding of CSR at the employee level. Second, it incorporates social exchange theory as a theoretical framework to explain CSR phenomena, bridging the gap left by previous studies that either lacked clear theoretical foundations or overwhelmingly relied on social identity theory. In particular, although social identity theory provides one important reason behind employee support for CSR, identification with the organization alone does not provide a comprehensive answer to how and why employees can be more supportive of CSR practices beyond organizational identification. By underscoring the role of gratitude and the benefits received by employees, my thesis expands on previous research and offers a new theoretical perspective on why employees engage in CSR. Third, my thesis identifies two important boundary conditions (employee perceived usefulness of WLB practices and person–CSR fit) that strengthen the relationship between WLB practices and employee support for CSR. By investigating employees’ perceived needs and the congruence between CSR initiatives and employees’ personal values and interests, my findings highlight the contextual factors that enhance the impact of WLB practices on employee support for CSR.

On the practitioners’ side, this research offers valuable insights for managers and organizations. By highlighting the significance of WLB practices in increasing employee support for CSR, my thesis suggests that organizations should prioritize and invest in WLB initiatives to increase employee genuine support for CSR.

Date of Award	2 May 2024
Original language	English
Awarding Institution	City University of Hong Kong
Supervisor	Long WANG (Supervisor), Ziguang CHEN (Supervisor) & Melody Jun ZHANG (Co-supervisor)