The Relationships between Financial Fairness (FF) and Organisational Commitment (OC): Does it Impact on the Bottom Line?
Posted: 22 Jul 2014
Date Written: July 20, 2014
Abstract
Firms face increasing pressure to understand and manage their obligations to stakeholders (Parmar et al, 2010), and maximise their social performance (Hull & Rothenberg, 2008). Corporate financial behaviour in the wake of recent corporate financial scandals (Al BDour et al, 2011; Guiling, 2013), and the Global Financial Crisis (Parma et al, 2010; Guiling, 2013), have heightened stakeholder awareness of Corporate Social Responsibility (CSR), one such initiative is the level of employee Organisational Commitment (OC).
This research aims to test what impacts Financial Fairness (FF) initiatives have on the level of Organisational Commitment (OC) of professionals and managers in Australia. To align with the strategic purpose, an authentic view of CSR is adopted in this thesis, based on McWilliams and Siegel’s (2001) definition of CSR: as characterised by ‘Social good’ actions that go beyond legal requirements, and are embedded in day-to-day operations (Suprawan, 2011). This study found that financial fairness had a positive impact on OC but the importance of CSR did not moderate the relationship between FF and OC.
Keywords: Financial Fitness, Organisational Commitment
JEL Classification: J21
Suggested Citation: Suggested Citation