Mitigating CSR Tensions Through Decision-Making Involvement and Work Autonomy: Development and Validation of CSR Tensions Scale

Abstract

Corporate Social Responsibility (CSR) is increasingly embedded in organizational strategies, yet its implementation often generates CSR tensions, where employees perceive discrepancies between their expectations and their organization's CSR initiatives. These tensions can significantly impact employees' contextual performance, affecting their willingness to contribute to sustainability goals beyond formal job requirements. This study examines how CSR tensions influence psychological ownership and CSR engagement, and how decision making involvement, and work autonomy moderate the CSR Tensions on psychological ownership and CSR Engagement. Additionally, a CSR Tensions Scale is validated and developed in this study to measure employee-CSR misalignment. The study employs a quantitative survey-based methodology, collecting data from 825 employees in the Pakistani manufacturing sector. Structural equation modelling was used to analyse the relationships. Results indicate that CSR tensions negatively affect CSR engagement; however, psychological ownership partially mediates this relationship and decision-making involvement and work criteria autonomy significantly mitigate these effects. Theoretically, this study extends micro CSR literature by understanding how CSR tensions influence employee behaviour. Given Pakistan's regulatory landscape, where the Securities and Exchange Commission of Pakistan (SECP) mandates CSR spending and third-party validation, organizations must consider internal mechanisms that foster employee engagement in CSR. Liberty in CSR-related activities, execution methods, and involvement of employees in CSR decision-making can improve alignment between corporate sustainability efforts and workforce expectations, ultimately strengthening organizational commitment to CSR.