The firm is irresponsible, so what?

Hericher, Corentin;Bridoux, Flore
(2021) Academy of Management Annual Meeting — Location: Online (29.July.2021)

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While the body of literature on employees’ reactions to their employer’s corporate social responsibility (CSR) has grown fast over the last decade, we know little about employees’ reactions to corporate social irresponsibility (CSiR). Yet, employees are unlikely to respond to irresponsibility as they do to low CSR because CSiR is a specific action, rather than a set of policies and practices, that involves the intentional violation of a moral standard, while low CSR does not. Building on the literature about people’s reactions to moral transgressions and using a multimethod, multisample design (two experiments and one field study), we provide evidence that other-condemning and other-suffering moral emotions are important mechanisms explaining employees’ response to CSiR towards other stakeholders, which can take the form of punishing, as often discussed in the organization-centric research, but also of compensating the victim of the CSiR, a behavior rarely studied in the management literature. We also show that CSR towards other stakeholders and gratitude towards the organization weaken the relationships between CSiR and employees’ responses, providing an explanation for why employees seem to often fail to react to CSiR.
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Hericher, C., & Bridoux, F. (2021). The firm is irresponsible, so what? Academy of Management Annual Meeting, Online.