Corporate Social Responsibility Excites ‘Exponential’ Positive Employee Engagement: The Matthew Effect in CSR and Sustainable Policy

Abstract Corporate social responsibility (CSR) captures an organization's commitment to and engagement with multiple stakeholders; integrates economic, social, and environmental concerns into sustainable policies; and enhances employee perceptions, emotions, long‐term value creation, and financial success. Most researchers have reported linear relationships between CSR and employee attitudes. Here, we test a new theory: After surpassing an upper bar, employee‐perceived CSR exponentially stimulates their organizational pride. Organizational pride has a positive and linear direct impact on job satisfaction and affective commitment, respectively. Perceived CSR exponentially excites job satisfaction and affective commitment indirectly through organizational pride. Data collected from 296 managers and employees in 12 diverse companies in China support our theory. Policymakers must develop a sustainable policy, nourish a conducive environment, and pursue CSR as a competitive advantage because at a high level, perceived CSR exponentially reaps intangible rewards, creating the positive Matthew Effect in CSR and sustainable policy. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment