Understanding CSR consequences on employees’ awareness of corporate reputation and organizational commitment in local airlines in the Philippines
List of Authors
  • Mary Caroline N. Castaño , Tennesse Y. Soriano

Keyword
  • airline employees, airline industry, corporate reputation, corporate social responsibility and organizational commitment

Abstract
  • Corporate Social Responsibility is considered an effective business strategy to gain competitive advantage and business sustainability (Chaudhary and Akhouri, 2018). With the many negative impacts of the airline industry on the environment and society, airline companies worldwide have adopted Corporate Social Responsibility (CSR) practices as a counter-measure. The researcher aims to investigate Corporate Social Responsibility practices, namely economic, legal, ethical and philanthropic responsibilities and their effect on Corporate Reputation and Employees’ Organizational Commitment in the context of the airline industry in the Philippines. The study points to examining Corporate Reputation as not just a direct outcome from CSR practices, but as a mediating mechanism as well between CSR and Organizational Commitment of employees of local airlines in the Philippines, particularly Philippine Airlines, Air Philippines Corporation, and Cebu Pacific Air. Both quantitative and qualitative data were used via a survey questionnaire and an in-depth interview. A total of 427 full-time regular airline employees were chosen to participate in the survey questionnaire, while 9 key employees were selected for an in-depth interview. A purposive sampling method was used to select the target participants and the structural equation modeling was employed to test the research hypotheses in the proposed model. The results showed that there is a significant effect of CSR on the Corporate Reputation of an airline company (Beta= 0.864, p<0.05); that CSR has a significant effect on Organizational Commitment (Beta= 0.113, p<0.05) and that there is a mediating effect of Corporate Reputation to the direct effect of CSR on Organizational Commitment (Beta= 0.821, p<0.05). Hence, airline companies can use the findings of the study to continuously improve and assess their CSR strategies and use these four CSR dimensions as part of their business operations. An adherence to CSR initiatives helps project a better reputation and provides a deeper sense of commitment among the employees and eventually contributes to achieving improved performance and organizational success.

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