Corporate social responsibility and employee well-being: the mediating role of organizational purpose

Purpose While the relevance of corporate social responsibility (CSR) is increasingly recognized by organizations, the literature still lacks a clear understanding of the mechanisms through which an organization’s CSR initiatives impact its employees. This study aims to examine whether perceived organizational purpose mediates the relationship between CSR and employee well-being. Design/methodology/approach An online questionnaire gathered participants’ perceptions of CSR activities (clients, employees, environment and government) in their organization, perceptions of organizational purpose and distinct facets of well-being (psychological, subjective and work). With a sample of 170 employees, data were analyzed with structural equations modeling. Findings The results show that perceived organizational purpose mediates between two dimensions of CSR – employees and environment – and work well-being. The model explains 60.6% of the variance for organizational purpose, 23.9% for psychological well-being, 22.1% for subjective well-being and 34.9% for work well-being. Practical implications By analyzing diverse types of CSR activities and distinct facets of well-being, the results may help managers identify CSR priority actions to act upon. Originality/value This study examines perceived organizational purpose as a potential link between CSR practices and facets of employee well-being.