PERSONNEL PSYCHOLOGY

1975, 28, 377-387.

PERCEPTIONS OF CORPORATE
SOCIAL RESPONSIBILlTY

JAMES F. GAVIN
Colorado State University

WILLIAM S. MAYNARD
Battelle Human Affairs Research Centers

ALFRED Marrow (1972) noted somewhat optimistically in his book,

The Failure of Success, that the 1970’s may be remembered as the years
when solving social problems became the paramount responsibility
“. . . not of the impractical theorists and do-gooders, but of the tough
minded heads of business organizations” [p. 131. Judging from the
proliferating literature on the topic of corporate social responsibility
(CSR), one might conclude that corporations are indeed beginning to
take more seriously the societal implications of their actions (Commit-
tee for Economic Development, 1971; Manne, 1972; Sethi and
Prakash, 1974).
The concept of corporate social responsibility is quite broad, en-
compassing such concerns as world poverty, consumerism, ecology,
civil rights, as well as the physical and psychological well-being of
workers (Luthans and Hodgett, 1972). The substance of corporate
social responsibility, according to Davis and Blomstrom (197 l), arises
from the institution’s ethical “obligation” to evaluate the effects of its
decisions and actions on the whole social system.
While awareness of CSR can be found in the remarks of such barons
of industry as John D. Rockefeller, Jr., and Henry Ford (cf., Heald,
1970), it was not until a decade or so ago that concern for socially
responsible corporate behavior began to emerge as a potential threat
to the capitalist ideology (Davis, 1960). The growth of this concern has
been attributed to a number of changes in society, including the in-
The authors wish toexpress their appreciation to Messrs. Jack Hamilton, Jack Singer,
Richard Hodapp, and Paul Russell for their assistance in various phases of this research.
Requests for reprints should be addressed to: James F. Gavin, Department of
Psychology, Colorado State University, Fort Collins, Colorado 80523.
Copyright 0 1975. by PERSONNEL
PSYCHOLOGY,
INC

311
378 PERSONNEL PSYCHOLOGY
creasing awareness of society’s interdependent functions, the growing
power of government to sanction business should it become lax in
some area of responsibility, society’s desire t o conserve its wealth and
culture, and public pressures for more ethical conduct in both govern-
ment and industry (Davis and Blomstrom, 1971).
The apparent conflict between social responsibility and the profit
motive would seem to pose a peculiar dilemma for the American
businessman. To illustrate, in a survey of Fortune’s 750 largest com-
panies, 83% of the executives sampled thought that private industry
should be doing more in the area of social responsibility (Goeke and
Weymar, 1969). In another survey involving over 1:500 business ex-
ecutives (Fulmer, 1971), 94% of the respondents agreed with the idea
that business exists for only one purpose, “. . . to create and deliver
satisfactions at a proBt to himself. . . The spiritual and moral conse-
quences of the businessman’s actions are none of his concern [Italics
added].”
T o reconcile these seemingly paradoxical attitudes, Drucker ( 1969)
has pointed out that socially-responsible behavior actually serves the
self-interest of business. In support of this argument, a study by
Dawson (1970) indicated that job performance can be adversely
affected by an employee’s negative outlook on business’ ethical norms
and acceptance of social responsibility. Dawson’s contention, which
was supported by his survey findings, was that jobs may be performed
in a rather perfunctory manner by the “new generation” of workers
who are disenchanted with the hard-line profit motive of business.
The major concern of the present study had to do with the possible
implications of CSR for employee expectations and satisfactions.
More specifically, interest centered on the question of how perceptions
of the organization’s involvement in the resolution of current societal
problems might relate to members’ expectations of equitable job
rewards and satisfactions of Maslow-type needs (cf., Maslow, 1943,
1965; Porter, 1961, 1962). Should such relationships exist, organiza-
tions might have a more substantive basis for supporting social action
programs. A further question concerned the extent to which
characteristics of the employee, viz., sex, age, and salary level, affect
these CSR perceptions and their relationships to expectancies and
need satisfactions.

Method
Participants
As part of a larger study (cf., Gavin, 1975; Maynard, 1974),
employees of a medium-sized bank ( N = 972) located in a large mid-
 GAVIN A N D MAYNARD 379

western city (approximate population, 1 million) completed a com-

prehensive organizational attitude survey during Summer, 1972. Both
management and nonmanagement employees were represented in the
survey, with a total number of 660. Employees had a mean tenure in
the organization of 55.3 months and a mean age of 33.6 years. There
were 417 females and 243 males in the sample.
Instruments
The four instruments of concern in this study were as follows:
1. Perceptions of Corporate Social Responsibility-A 15-item ques-
tionnaire entitled “Current Issues” was constructed especially for
this study, since no comparable type of instrument could be found
in the literature. The items covered a variety of issues, including pro-
motional opportunities for minorities as well as others, hair and dress
codes in the bank, social activism of bank members, bank-sponsored
environmental programs, etc. A factor analysis (principal-axis with
R2 as communality estimates and varimax rotation) revealed two
orthogonal dimensions described as follows:’
a. Concern for the Environment (CE): This factor was measured by
eight items having to do with the extent to which the organization
manifests concern for social and environmental problems by either in-
itiating programs of its own (e.g., loans for minority businesses) or en-
couraging employees to involve themselves in social action programs.2
An example is: “[My bank] has demonstrated its concern for the
problems of our diminishing natural resources, pollution, and other
ecological matters.” Responses were made on a 5-point scale, ranging
from “strongly agree” to “strongly disagree.” The internal consistency
estimate (coefficient alpha) for this factor scale was found to be .86.
b. Equal Work Opportunity (EWO): Four items tapped this factor.
The predominant theme of the items appeared to be the equitable
treatment of employees regardless of age, race, sex, or life style. An ex-
ample is: “From what I have seen [at this bank], advancement is never
limited because of a person’s rack, sex, religion, or ethnic origin.” The
response format was the same as for the CE items. An internal con-
sistency estimate of .78 was found for this scale.
Three items failed to load above the .40 cut-off level on either factor,
and were excluded from further analyses.
2. General Satisfaction with the Job-The “Faces” Scale is a single
item measure of general job satisfaction (Kunin, 1955) which has been
Additional details regarding the “Current Issues” items and item statistics will be
provided upon request.
Factor scores for the CE factor, as well as for the EWO factor, were computed by
unit-weighting the items and summing for a total score.
380 PERSONNEL PSYCHOLOGY

shown to correlate highly with such established measures of job

satisfaction as the Job Descriptive Index (Smith, Kendall, and H u h ,
1969).
3. Porter Need Deficiency Scales-Based on Maslow’s need
hierarchy (1943)’ five scales designed by Porter (1961, 1962) to tap
need deficiencies were administered. The needs investigated were:
Security, Social, Esteem, Autonomy, and Self-Actualization.
Characteristics of the five scales are adequately presented in Porter’s
works, and will not be repeated here.
4. Work-Reward Expectancies-A 12-item questionnaire based on
Porter and Lawler’s (1968) expectancy model was included in this
study. Respondents were asked t o assess the extent to which they
believed that certain work-related rewards (e.g., increased pay, receiv-
ing a promotion, greater job security) were contingent upon effective
performance. The following is an item sample: “How does out-
standing job performance affect your chances of receiving a
promotion?” Responses were made on a 5-point scale, ranging from
“Will definitely improve my chances” to ‘‘Will definitely hurt my
chances.” All 12 items were summed for a total expectancies index.
The internal consistency estimate for this scale was .88.
Analyses
information on employees’ age, sex, and salary level was used in as-
signing participants to one of six cells in a 2 X 2 X 2 Analysis of
Variance design so as t o evaluate the extent to which CE and EWO
perceptions could be accounted for by respondent characteristics.
In addition, zero-order correlations between the CSR factors (i.e.,
CE and EWO) and the satisfaction and expectancy measures were
computed. Finally, correlations between these same sets of variables
were calculated for subgroups of employees based on age, sex, and
salary level. These last analyses were primarily for heuristic purposes.
Results
Age, Sex, and Salary Level Differences in Perceptions of CSR
Participants were assigned to one of six cells, contingent upon sex,
age (33-’/2 years or younger vs. older than 33% years), and salary level
(less than $8,00O/annual vs. $8,000 or m ~ r e / a n n u a l ) ~
and
, an analysis

The basis on which age and salary level were dichotomized was as follows: For age,
the sample was split at the mean. Since salary level had been pre-coded on the question-
naire into eight categories, the split was made on the basis of an arbitrarily defined
salary level suggested by local salary standards, resulting in an under $8,ooO us. $8,000
and over dichotomy.
 GAVIN AND MAYNARD 38 I
TABLE 1
Summary of Results: Analysis of Variance for the Concern for the Environmenr ( C E )
Factor Scores
Source ss df MS F
Sex 16.2 1 16.2 0.7
Age 356.1 1 356. I 15.3**
Salary 64.8 1 64.8 2.8
Age X Sex 129.5 1 129.5 5.6*
Sex X Salary 16.2 1 16.2 0.7
Age X Salary 16.2 I 16.2 0.7
Age X Sex X Salary 16.2 I 16.2 0.7
Error 15150.5 652 23.3
Total 15765.7 659
‘ p < .05.
**p < .Do1

of variance for each of the two CSR factors was then performed.
Results of the analysis of variance are provided in Table 1 for the CE
factor and Table 2 for the EWO factor.
CE had a possible range of scores of 8 to 40 (i.e., 8 items on a scale
of 1-5), with an expected “neutral” point of 24. Since the mean for the
entire sample was 22.5, CE perceptions appeared to be only slightly
unfavorable. As indicated by the analysis of variance (Table l ) , age
was the only employee characteristic which had a significant effect on
CE perceptions ( F = 15.3, p < .001), such that older workers believed
the organization to be more highly invested in the resolution of social
and environmental problems than younger workers. Table 1 also
evidences a significant interaction between age and sex ( F = 5.6, p <
.05), such that older males have more favorable perceptions of CE
than younger males, while for females the difference in perceptions
between age groups is minor.

TABLE 2
Summary of Results: Analysis of Variance for Equal Work Opportunity ( E W O )
Factor Scores

Source ss df MS F
Sex 44.5 1 44.5 6.7*
Age 8.9 1 8.9 I .3
Salary 0.0 I 0.0 0.0
Age X Sex 22.3 I 22.3 3.4
Sex X Salary 0 .o 1 0.0 0.0
Age X Salary 0.0 1 0.0 0.0
Age X Sex X Salary 4.5 1 4.5 0.7
Error 4332.3 652 6.7
Total 4412.5 659
*p < .oi.
382 PERSONNEL PSYCHOLOGY

Considering the EWO factor, again employee perceptions were

found to be somewhat unfavorable with a mean for the entire sample
of 8.9 as contrasted with the expected “neutral” point of 12 (i.e., four
items on a scale of 1-5). When age, sex, and salary level differences
were examined by analysis of variance (Table 2), only sex had a signifi-
cant bearing on EWO perceptions (F = 6.7, p < .01). Females
reported less favorable perceptions of the equality of work oppor-
tunities in this organization. It was further noted by the near-
significant interaction of sex and age in Table 2 (F = 3 . 4 , <
~ .09) that
older males tended to be more favorable than younger males, while
females in both age groups appeared quite similar in their perceptions.
Correlations between CSR. Expectancies, and Satisfactions
Perceptions of CSR tended to correlate significantly with measures
of employee expectancies and satisfactions. As indicated in Table 3 ,
the more favorably the employee viewed the organization’s internal
(i.e., EWO) and external (i.e., CE) commitments to social respon-
sibilities, the more general satisfaction he or she reported. In examin-
ing the CE and EWO correlations with need deficiency scores, signifi-
cant values were found in all ten instances. It might also be pointed out
that, in general, higher correlations were found between CSR factors
and the higher-order needs, particularly Self-Actualization.
Finally, the data indicated that the more favorable the employee’s
perceptions of CSR, the more likely that person was to believe that
work rewards are contingent upon effective job performance.
Correlational Analysis for Employee Subgroups
A comparison of correlational values between CSR factors and the
remaining measures was made for males and females (top of Table 4).

TABLE 3
Correlations of CSR Factor Scores with Measures o f Work-Reward Exoecrancies
. and Satisfactions for the Total Sample ( N = 660)
Concern for Equal Work
Environment Opportunity
General satisfaction .32** .34**
Need deficiencies“:
Security -.17** -.20**
Social -.16** -.lo*
Esteem -.23** -.25**
Autonomy -.26** -.26**
Self-actualization -.30** -.33**
Work-reward expectancies .40** .33**
’ Hlgh scores on the need deficiency scales indicate greater deficiencies
*p < .05.
.‘P < ,001
 GAVIN AND MAYNARD 383
TABLE 4
Summary of Significant Differences between Subgroups (Based on Sex, Age, and
Salary Level) in Correlations of CSR Factor Scores with Expectancy
and Satisfaction Measures"

Male Female
( N = 243) ( N = 417)
SEX
Variables
CE and Gen. Sat. .23*** .43***
CE and Self-Act. -.25*** -.42***
AGE 16 - 25 26 - 39 40 +
(N = 232) ( N = 228) ( N = 200)
Variables
CE and Gen. Sat. .34*** ,41*** .I5*
SALARY $3-6.000 $6-10,000 $1o,ooo+
( N = 349) ( N = 185) ( N = 126)
Variables
EWO and Gen. Sat. .43*** .26*** .22**
EWO and Esteem -.33*** - .08 -.21**
CE and Esteem -.29*** -.12* - .06
* All sets of correldtions reported were tested for significance of difference(s) at or beyond the 05 level using
either Fisher's exact test for differences between pairs of correlations or the V statistsc for differences bctween
two or more correlations (cf , Hays. 1963)
* p < 05, **p < 01, * * * p < 001

Only those correlations which were significantly different from each

other (cf., Humphreys, 1973) are reported in Table 4. For the two pairs
of values reported, there appeared to be a closer correspondence
between satisfactions and CSR perceptions for females than for males.
In analyzing age differences in correlations (middle of Table 4),
three groups were formed: 16-25 years, 26-39 years, and 40+ years.'
The only comparison which yielded significant differences among the
correlations was that involving CE and the general satisfaction
measure. This finding indicated that younger employees (i.e., less than
40) tended to show more satisfaction, the greater the perceived en-
vironmental concern from the organization.
The bottom of Table 4 is based on significant differences among cor-
relations for three salary groupings of employees: ,$3-6,000/annual;
$6- I0,000/annual; and $10,00O+/ann~aI.~The correlations for the
EW 0 and general satisfaction measures indicate a higher correspond-
ence between satisfaction and perceptions of equality within the

' This analysis differs from the subgrouping reported in Tables 1-3 for two major
reasons: First, in the ANOVA it was impossible to trichotomize the sample on the basis
of age and salary level due to the resultant near-zero frequencies in some cells. Second,
the analyses reported in Table 4 were more for exploratory purposes, and more "ex-
treme" groups based on a trichotomized sample seemed appropriate.
Ibid.
384 PERSONNEL PSYCHOLOGY

organization, the lower the employee’s salary level. In examining the

EWO-esteem correlations, it seems that both high- and low-salaried
employees show significant associations between the variables, while
the correlation for the middle-income group is nonsignificant. Finally,
to the extent that the employee earned a lower salary, a higher cor-
respondence between C E and Esteem was in evidence.
Overall, the subgroup findings must be viewed cautiously. Of the 21
tests for differences among correlations (i.e., seven for each subgroup-
ing), only six (or 28.6%) yielded significant values at or beyond the .05
level.
Discussion
At this juncture in time, many of the ramifications of corporate
social responsibility are not well understood. Also, as was evident in a
recent report of an American Psychological Association symposium
(Purcell, Albright, Grant, Lockwood, Schein, and Friedlander, 1974),
there appears to be considerable disagreement among in-
dustrial/organizationaI psychologists concerning the kind of role that
psychologists should take in aiding organizations to achieve socially
responsible behaviors. One role recommended by a symposium pan-
elist (Schein, 1974) was that of researcher. In this vein, the present
study may be seen as an attempt to enhance our appreciation of how
employees might be affected by their organization’s involvements in
resolving social problems. While, of course, generalizations from data
gathered in one corporate setting are necessarily limited, the findings
suggest some possible impacts of CSR and provide a few guidelines for
future research.
This study of CSR perceptions was made possible by the bank
management’s keen interest in their employees’ views, particularly
since the organization had made significant strides in some of the areas
tapped by the CSR questionnaire. In spite of this, employee percep-
tions on both the CE and EWO factors were slightly negative, in-
dicating perhaps that the organization had failed to meet employee ex-
pectations for equitable treatment and environmental concern. Also,
in explaining these perceptions an interaction on both CSR factors
between age and sex (significant at the .05 level for CE and near-
significant for EWO) was noted such that older males responded most
favorably to the CSR questions, while the remaining employees
seemed to share a similarly unfavorable set of perceptions. Possibly
these data reflect .a “vested interest” perception of the organization in
that the more established incumbents (i.e., older males) tend to believe
that the organization is doing its fair share, while less favored
employees perceive the organization as not having gone far enough.
It was also interesting to note that employee perceptions on the CE
 GAVIN AND MAYNARD 385

factor appeared somewhat more favorable than those on the EWO

factor. (This is, of course, a highly tentative remark based on the
relative differences between the actual means and the expected
“neutral” points on the two scales.) A possible implication of this
might be that the organization’s concern with more “distal” variables,
such as the environment, is less threatening and, therefore, perceived
more favorably than organizational involvements with “fair employ-
ment practices” which might affect the security of white, middle-class
workers.
An inference which might be drawn from the correlational findings
(Table 3) is that the satisfactions which the modern work force derives
from the job may be influenced by the degree to which the organiza-
tion fulfills its societal “obligations.” This is further highlighted by the
association between work-reward expectancies and CSR perceptions:
Employees who view the organization as being “fair” in its handling of
societal issues also see it as being equitable in its reward systems, that
is, rewards are described as being contingent upon performance levels.
It must be remembered, however, .that this kind of correlational
analysis disallows causal influences, so it is just as likely that expectan-
cies and satisfactions influence CSR perceptions. Further, the pos-
sibility of common method variance accounting for the positive cor-
relations among variables should also be considered.
The finding that CSR perceptions covaried to a greater extent with
higher-order needs (Self-Actualization, Autonomy, and Esteem) than
with lower-order needs (Security, Social) might have been derived
from some of Maslow’s (1943, 1965) postulates. That is, concern for
equity and the environment would be more characteristic of, as well as
more fulfilling to, the self-actualizing person than it might be for
someone centered primarily on security or social needs.
While the subgroup analyses (Table 4) failed to reveal a strong pat-
tern of results, they did suggest some hypotheses for future research.
For instance, is it possible that females and younger workers derive
more of their job satisfaction from the ethical and moral conduct of
business than do males and older workers? Is it also possible that the
higher one’s income level, the less issues of corporate social respon-
sibility play into the individual’s sense of self-worth? Finally, do the
implications of fair employment practices become more threatening
the more vested one is in the organization (e.g., as indexed by salary
level)? Again, these remarks should be treated as speculations, rather
than as data-based conclusions.
Since this study was not intended as a formal test of hypotheses, but
more as an heuristic investigation, it might be fitting to conclude with
some further speculations regarding corporate social responsibility. It
was noted, for example, that age played a significant part in CSR
386 PERSONNEL PSYCHOLOGY
perceptions. Is it likely that in the next few decades an increasing
proportion of workers will demand corporate accountability to
society’s needs? Or will the next generation of business leaders largely
reflect the values of its predecessors? With the growth of “con-
sumerism,” can organizations expect adverse impacts from customers
should they fail to meet their social “obligations”? In a similar vein, to
what extent will future applicants choose organizations on the basis of
something akin to a “CSR profile”? Clearly, the present and projected
state of society implied by these ideas requires extensive research; and,
hopefully, more organizations will open their doors to independent
researchers as this one did.

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