Corporate social responsibility (CSR) is no longer a legal obligation but discretionary aimed at fulfilling the needs of stakeholders. The failed leadership in Africa has made discretionary CSR initiatives very important in the life of employees and local community. The chapter reports a micro-level study that considered the effect of CSR initiatives directed to employees and local communities on employee organizational identification (OID) and employee creativity (ECR). The results obtained show that CSR directed to employees has both direct and indirect relationships with ECR through OID, while CSR directed at local community has only indirect relationship with ECR through OID. The results position CSR initiatives as strategic to the performance of business instead of just being philanthropic. This means that managers must take special interest in developing and implementing CSR initiatives since their outcome has an effect on employee behavior. The study also demonstrates the need to factor the importance of each CSR initiatives directed at various stakeholders in future study.
TopIntroduction
Since the adoption of the United Nations Sustainability Development Goals in 2015, there have been calls for organizations in Africa to consider the triple bottom-line criteria in measuring effectiveness (Amah, 2018; Amah & Oyetunde, 2019). Amah (2018) advocated two mindset changes for leaders in Africa, which are, a redefinition of the constituents of responsible leadership, and the measure of organizational efficiency. COVID-19 has reinforced these calls and revealed the need for organizations to look beyond the emphasis on economic performance to evaluating performance using the economic, social, and environmental triple bottom-line (Bhalla et al., 2011; Dang, Dang, & Danladi, 2014). A redefinition of responsible leadership will ensure that organizations operate in sustainable ways that cater for all stakeholders through the provision of corporate social responsibility (CSR) initiatives.
CSR is defined as a range of activities provided by organizations and aimed at “ensuring community health and safety; sponsorship; enabling employees to do voluntary work in the community” (World Business Council for Sustainable Development, 1998, p.8). It is a way for organizations to transcend the legal obligations they owe stakeholders and do what is morally and ethically necessary for stakeholders even if these are outside the operational demands of organizations. The leadership challenges in Africa, for instance, have resulted in situations of poor infrastructural development, and so organizations are being called upon to go beyond the legal obligations and take part in the provision of infrastructures needed for the comfort of their stakeholders. CSR has moved from organizations providing only legally obligated benefits to the undertaking of discretionary initiatives that can enhance the life of stakeholders. This implies a shift of emphasis from shareholders to stakeholders. Evidence exists that in considering CSR as a worthwhile project with strategic implications, the reputation and relationship between the organization and its stakeholders are affected. The situation in Ogoni land in Nigeria, for instance, is a widely recognized case. The negative effects of oil exploration and exploitation led to the degradation of the environment and destruction of the community’s means of livelihood. This action damaged the reputation and relationship of the oil companies with the community. More so, the existence of militants in the region demanding ethical behavior from the oil companies remains an offshoot of this neglect over time. To reposition CSR initiatives therefore, organizations will have to determine how these initiatives affect behavior, organizations’ reputation, and positive productive environment.
The book chapter contains the result of a study on the effects of CSR initiatives on employee organizational identification (OID) and creativity, both of which are behaviors found to be important during COVID-19 as well as post-COVID-19. Organizations require employees who can identify with their struggles and who are creative enough to drive decisions in an everchanging business environment. The social exchange theory alludes to the fact that employees consider CSR initiatives as a social currency which must be reciprocated through positive behaviors to the organization.