Relationship between Corporate Social Responsibility, Organizational Trust, and Corporate Reputation for Sustainable Performance

Abstract

In the current study, the authors looked at how companies’ corporate social responsibility (CSR) initiatives affect their reputation in the community using the stakeholder theory. More specifically, it is claimed that CSR initiatives with a particular focus on employees help firms create employee trust, which is an essential component of organizational long-term sustainable performance. Administrative fairness as a boundary condition bolsters the relationship between corporate reputation and trust. A non-probability convenience sampling technique was used to poll Chinese restaurant managers and non-managers on a 5-point Likert scale. Structural equation modeling was used to conduct structural analyses. CSR is a significant predictor of business reputation in the Chinese restaurant industry. It has also been discovered that trust in the organization is a partial mediator between the two. Furthermore, the data show that organizational justice moderates trust in the organization and the company’s reputation. This research examines the relationship between internal stakeholders’ perceptions of CSR activities and the company’s reputation, i.e., employees, for the first time. The findings provide vital information for restaurant management to boost their reputation in the market by engaging in E-CSR activities to strengthen their internal stakeholders.