The Role of Client and Employee Concern in the Relationship between Organizational Governance and Corporate Social Responsibility (CSR) Adoption

This paper explores the strategic consideration of organizational governance for CSR adoption. Specifically, it develops a conceptual framework that outlines how an organization’s concern for its clients and employees influences the relationship between organizational governance and various domains of CSR behaviors. Based on survey data from organizations that are actively engaged in CSR in Hong Kong, there is evidence that adoption of client-oriented CSR practices complementarily mediates the positive relationship between organizational governance and CSR practices in all areas except those related to community involvement and development. On the other hand, adoption of employees-oriented CSR practices is a complementary mediator for the positive relationship between organizational governance and CSR practices related to the environment and the community.