Literature review

Corporate social obligation is estimated regarding organizations improving conditions for their
representatives, investors, networks, and condition. Successful individuals have a social obligation
to improve the world a spot and not simply take from it .Corporate culture is the main feasible
upper hand that is totally inside the control of the business person. An association's capacity to
learn, and make an interpretation of that learning vigorously quickly, is a definitive upper hand".
Your activities characterize your character, your words characterize your wisdom, yet your
treatment of others characterizes REAL you." To be an ethical head is without a doubt to appear
as something else. (Klaus Schwab, Carrie Underwood, Andrew Leigh, Mayur Ramgir, David
Cummings).

CSR act as a IV and organizational culture act as DV by moderating role of ethical leadership.
The literature review is based on recognized scientific databases, such as Wiley, Springer, Elsevier,
Emerald, and Taylor & Francis. It spans from 2015 to the present to establish the current state of
knowledge. The significant older research is included to present a complete picture of the discussed
subject. There are many research works on the implementation of CSR and its effect on different
aspects such as corporate reputation and image, customer satisfaction, employee engagement,
financial including companies’ value and organizations’ performance in general. Li discussed that
CSR supervision is still weak and the cost of illegal activity is relatively low, which limits the
driving effects of institutional pressures on CSR strategy (Li, 2010). Therefore, it is obviously
insufficient to illustrate how institutional pressures drive CSR strategy without considering other
motivations, even if institutional pressures are the primary drivers of CSR development .CSR
generally refers to a firm’s activities, organizational processes, and status in relation to its
perceived societal or stakeholder obligations

From an economic motivation perspective, CSR is thought to provide benefits and value to a
company in the form of positive corporate and brand reputation, particularly when corporations
exhibit prosocial engagement, such as community‐oriented fundraising and public welfare. Neo‐
institutional theory provides a practical theoretical basis and research paradigm for exploring the
mechanisms that drive CSR strategy; however, prior studies have produced contradictory patterns
of influence. Some studies demonstrated that as institutional pressures increased, firms were more
likely to adopt CSR strategies to gain social legitimacy.

Many authors studied the relationship between CSR and employee engagement and motivation;
the employees’ rights, fair wages and safety at work were the most prevalent dimensions in the
image of a responsible employer .Employees’ positive perception toward organizations’ social
ethics and social services influences their attitudes and performance, which in turn affects
productivity of organizations Company culture shapes social structures and attitudes, morale, and
motivation of employees. Employees' productivity and effectiveness are affected by the culture in
terms of quality of work Culture also significantly influences ethical behavior in the workplace ,as
well as ethical attitudes, ethical orientations, company values, and CSR evaluation. CSR is linked
to business ethics. Business ethics and perception of CSR practice can vary depending on different
cultural perspectives.

Other scholars further indicated that the impacts of institutional pressures on ethical leadership can
be influenced by individual cognition, such as moral motivation. Ethical leadership can effectively
promote CSR strategy may also depend on other intervening influences, such as managers'
autonomy. Corporate governance theory indicates that managerial autonomy is the administrative
ability to control and shape behavior within the organization. . Furthermore, in promoting the
development of corporate strategy, ethical leadership is also influenced by the corporate
governance structure, such as managerial autonomy.

The benefits produced should be sustainable, rather than temporary. In line with the literature,
examples of internal benefits accruing to the firm as a result of its CSR activity could include:
increased sales; differentiated products that can extract a price premium; reduced production costs;
increased employee commitment/morale; good reputation; more qualified personnel; not being
fined or sued. Examples of external benefits (accruing to society outside of the firm as a result of
the firms CSR activity) could include: reduced pollution levels; education and skill acquisition,
increased earning potential, and monetary benefits for stakeholders; and reduction in disease.
Mutual benefit is the combined sustainable internal and external benefit produced. To fulfill the
maximum capacity for benefit generation there must be a strategic match between the firm
competencies and the beneficiary’s needs over the long-term. If the help is not strategically
designed to deploy the firm’s competencies into the avenues for their best use, maximum benefit
will not be produced. In other words there may be more capable/efficient donors in society that
would offer greater benefit for the beneficiary.

Previous research suggests that CSR and ethical leadership are two major pillars for business
organizations to, for example, improve stakeholder partnerships (Arrigo, 2013; Hsu, 2006) and to
increase employees’ commitment and satisfaction (Dirks and Ferrin, 2002; Peterson, 2004). Both
CSR and ethical leadership demonstrate organizational values and related characteristics that
eventually affect turnover intention.

In addition to the self-concept theory from which CSR and ethical leadership are derived, the
conservation of resources theory is a connecting and overarching theory in human resource
management literature which is very useful for finding potential mediators in turnover intention.
Previous literature has supported the equally important roles of burnout and work engagement that
are both built upon the strong theoretical foundation of conservation of resources. Collectively,
this study analyzes how turnover intention takes shape from ethical perspectives and through
which work-related state of mind (such as burnout, work engagement) can turnover intention be
eventually affected.
The main limitation of this study was the nonrandom sample distributed electronically without
having control over the company choice. Another limitation was the self‐report questionnaire
used for gathering the data. However, given that most previous studies were based on secondary
data reported by CEO or CSR managers; as it is commonly applied.

The main value of this study is creating a complete picture of the influence of company culture
on CSR practice from the employee's perspective, which stresses the importance of long‐term
orientation for CSR implementation and proves the mediating function of company reputation
for the relationship between CSR practice and company performance. This outcome is crucial for
those who still doubt the efficacy of CSR strategy. The results showed that the implementation of
CSR positively influences performance because performance is supported by reputation. Based
on our findings, to build a good reputation, companies need to create a long‐term orientation
culture that analyzes how each business decision affects their employees. For the common better
future, the implementation of long‐term orientation culture is vital not only in large
companies whose impact on the society is easily visible but also in SMEs which comprise a
majority of all existing enterprises. Short‐term orientation cultures show irresponsibility. It
may be the case that this is a general rule solely for the construction industry, which seems to be
affected by long‐term orientation and responsibility more than other industries. However, this
industry provides the best illustration of how CSR, culture, performance, and reputation support
one another in the business reality observed by employees.

Theoretical Framework

Ethical Leadership

Culture Corporate Social

Hypotheses
H1 CSR practice has a positive influence on corporate reputation.
H2 Long‐term orientation in a culture has a positive influence on CSR practice.
 H3 A high‐power distance culture, based on a high degree of hierarchy and vertical distance between
managrial levels, has a negative influence on CSR practice.

H4 Ethical leadership will have a positive effect on CSR strategies related to employees.

H5 Ethical leadership will have a positive effect on CSR strategies related to participation in and
development of the community

Methodology
To accomplish the aim of the study—which focused on CSR, ethical leadership and company
culture from the employee's perspective in the industry. This research follows a quantitative
descriptive design to describe the CSR implementation and its effect on business performance.
Two sources of data are used in this research: secondary and primary data. Secondary data are
collected from literature review such as previous researches, thesis, dissertations, articles, books,
annual reports and the internet. Whereas, primary data are collected through the questionnaire that
is built on the basis of previous research works

The questionnaire contains three sections: demographic, independent variables and dependent
variables. Independent variables are CSR whereas dependent variable is company’s culture and
moderated ethical leadership .Questionnaire used five-point Likert scale (rated from 1 = strongly
disagree and 5 = strongly agree) to test the perception of employee’s regarding each item. While
carrying out this research, DRAP Ministry of Health are targeted. The data are collected from 60
employees working at, DRAP Ministry of Health. After verification of the filled questionnaires,
they were coded against SPSS 20, and then validity and reliability tests were carried out. Content
validity is insured by using previous research works, thesis, dissertations, articles, books, annual
reports and internet, and the referee committee (panel of judge) confirmed face validity. Construct
validity is tested by factor analysis (principal component correlation analysis). Cronbach’s alpha
is used to test the reliability. As all variables rated more than 60 per cent, reliability is confirmed.

ITEMS
Code Corporate Social Responsibility (Roeck,2017)

Csr1. My company gives adequate contributions to charities .

Csr2. My company supports non-governmental organizations action working in the problematic areas.

Csr3. My company contributes to the campaigns and projects that promote the well-being of populations in the areas
where it operates
Csr4. My company participates in activities which aim to protect and improve the quality of the natural environment .

Csr5. My company makes investments to create a better life for the future generations

Csr6. My company implements special programs to minimize its negative impact on the natural environment

2. Organizational Culture (Roeck,2017)

Oc1. When someone criticizes my company, it feels like a personal insult .

Oc2. I am very interested in what others think about my company

Oc3. When I talk about my company, I usually say ‘‘we’’ rather than :they’’

Oc4. When someone praises my company, it feels like a personal compliment

Oc5. I take a chance to get actively involved in environmental protection at work.

Oc6. I am involved in social and volunteer work that benefits my community.

3. Ethical Leadership(Li, Zeller, Rizzuto, Yang,2018 )

El1. Improve the involvement of socially vulnerable groups in corporate management.

El2. Communicate corporate ethical values to employees.

El3. Encourage employees to participate in CSR initiatives.

El4. Listen to the voice of employees.

El5. Consider the best interests of the employees.

El6. Ensure the commitment and liability of CSR.