Impact of CSR on Job Performance of Employee: Mediating Role of Organizational Identification and Perceived External Prestige

Abstract

This study investigates the impact of corporate social responsibility (CSR) on employee job performance, with a focus on the mediating roles of organizational identification and perceived external prestige. Drawing on social identity theory, the research proposes that CSR activities enhance employees' sense of belonging and their perception of how outsiders view the organization, which in turn improves their job performance. Data were collected from 250 employees working across multiple industries in Pakistan, including education, banking, insurance, technology, and manufacturing. Using structural equation modelling (AMOS) and SPSS for analysis, the results indicate that CSR positively influences employee job performance. Furthermore, organizational identification and perceived external prestige serve as significant partial mediators in this relationship. The findings highlight that when employees perceive their organization as socially responsible, through community involvement, ethical conduct, and employee welfare, their sense of belonging and external image of the organization improve, leading to enhanced job performance. This study contributes to the micro-level CSR literature, particularly in a non-Western context like Pakistan, where such research remains limited. It also offers practical implications for managers and organizations, suggesting that strategic investment in CSR initiatives can serve as an effective tool to boost employee motivation, commitment, and overall performance, thereby creating a competitive advantage in the marketplace.

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