Essay: Organisational justice and corporate citizenship

The model in this study suggests that employee’s perception towards organizational justice and corporate citizenship will be reciprocated in employees’ engagement with their work. Furthermore, it proposes that the relationships between organizational justice, corporate citizenship variables and work engagement levels will be mediated by organizational trust in the organization.
The target population for this study comprised of all employees in commercial banks in Malaysia. Due to the geographical scattering of the targeted respondents, questionnaires were distributed by employing the personal-administered survey through personal contact at Human Resource Department for each commercial banks. The total response was 411 respondents.
The Cronbach coefficient alpha of the variables employed in this study has obtained an excellent composite reliability outcome with a ranging from 0.910 to 0.940. PLS-SEM was employed in this study to examine the relationship of the variables and the mediating effects of organizational trust.
This research encapsulates seven research questions. First, does corporate citizenships has an impact on work engagement? Second, does organizational justice has an impact on work engagement? Third, does organizational trust mediate the relationship between corporate citizenship and work engagement? Fourth, does organizational trust mediate the relationship between organizational justice and work engagement? Fifth, does organizational trust has an impact on work engagement? Sixth, does corporate citizenship has an impact on organizational trust? Finally, does organizational trust has an impact on work engagement.
In addressing these questions, seven core objectives were developed as the aims for the research. The first objective is to examine the effect of corporate citizenship (perceived economic, perceived legal, perceived ethical and perceived discretionary) on work engagement.Second is to examine the direct effect of organizational justice (distributional, procedural and interactional) on work engagement. Third objective is to examine the direct effect of organizational trust on work engagement. Fourth objective is to examine the direct effect of corporate citizenship and organizational trust. Fifth objective is to examine the direct effect of organizational justice and organizational trust. Sixth objective is to investigate the mediating effect of organizational trust on the relationship between corporate citizenship and work engagement.Final objective is to investigate the mediating effect of organizational trust on the relationship between organizational justice and work engagement.
In achieving these research objectives, a comprehensive review of related theories and past studies were carried out to understand the magnitude of the problem from psychological, sociological and theoretical standpoint. The knowledge was externalized into a conceptual framework with propositions and hypotheses as starting point for further investigation given the limited evidence.
The conceptual model was then subjected to pre-test, pilot test before doing a full scale test. The analysis and findings were presented in Chapter 4.
As explained in Chapter 4, six main hypotheses (H1, H2, H3, H4, H6 and H7) were supported and one hypothesis, H5 was not.For sub-hypotheses, six hypotheses were supported (H1a,H1c,H2b,H2c,H3a,H4b) and eight hypotheses were not supported (H1b,H1d,H2a,H3b,H3c,H3d,H4a,H4c).
The findings also show thatcorporate citizenship and organizational justice are strong predictors of work engagement.Corporate citizenship and organizational justice are also strong predictors of organizational trust.However, organizational trust has an inverse relation with work engagement.
In brief, elevation of corporate citizenship and organizational justice increases employee’s work engagement. In contrast, increasing organizational trust diminishes employee’s work engagement.
Contrary to prediction, the finding reveals that organizational trust was not significant to work engagement. This is understandable although the company increase the level of organizational trust, this would not affect the level of work engagement among employees. Therefore hypothesis (H5) could not be supported.
5.3 DISCUSSION OF FINDINGS
The main purpose of this study was to examine the effect of organizational trust as a mediator between corporate citizenship, organizational justice and work engagement. Organizational trust intervened in this relationship to further explain this relationship and to resolve the inconsistency in the related past studies. To examine the developed model, the data were collected from all Commercial banks in Malaysia and the PLS-SEM was employed. The statistical findings are as below:
5.3.1 The Relationship between Corporate Citizenship and Work Engagement (H1)
Our first hypothesis postulated a positive relationshipbetween Corporate Citizenship andwork engagementamong bank employees’ in Malaysian commercial banks sector.The research findings in this study indicated that Corporate Citizenship is found to have a significant and positive relationship with Work Engagement, in support of H1. (β=0.233, t= 3.263, p<0.01)
This result is consistent with the prior studies (e.g. Glavas & Perit,2009; Lin,2009 )in which these scholars have reported that Corporate Citizenship has proved to be a powerful instrument for improving work engagement.The result of this study entails that the excellence implementation of corporate citizenship in the commercial banking sector, will allow the higher work engagement of the organization.
Corporate Citizenship is an initiatives such as the financing of employees’ education, promoting ethicstraining programs, adopting environment-friendlypolicies, and sponsoring community events of management (Maignanand Ferrell, 2000)that attempts to maximize the work engagement of an organizationthrough involvement of the employees in all the activities organised by the organization. In details, Corporate Citizenship with the specific purpose to show organizational commitment toward social responsibilities will lead to more employees engaged with their work. In other words, corporate citizenship is an initiative by the company, as its implementation is connected with better work engagement levels.
According to a survey by Sirota Survey Intelligence, employees who are satisfied with their organizational social responsibility are likely to be more positive, more engaged, and more productive than those working for less responsible organizations (Amble, 2009). Specifically, when employees are positive about their firm’s corporate citizenship, their
work engagement rises to 86% (Amble, 2009).
5.3.1a The Relationship between Perceived Economic and Work Engagement (H1a)
This study was designed to determine the relationship betweenPerceivedEconomic and Work Engagement. The research findings in this study indicated that Perceived Economic is found to have a significant and positive relationship with Work Engagement, in support of H1a.(β=0.159, t= 2.459, p<0.01)
This result is consistent with the prior studies (e.g. Bowlby (1973),Carroll (1979), Maxfield (2008), Turker (2009) and Weyzig (2009) in which these scholars have reported that Perceived Economic has proved to be a powerful instrument for improving work engagement. The result of this study entails that the excellence implementation of Perceived Economic in the commercial banking sector, will allow the higher work engagement of the organization.
5.3.1b The Relationship between Perceived Legal and Work Engagement (H1b)
In this study, Perceived Legal has been identified to have negative on Work Engagement. The research findings in this study indicated that Perceived Legal is found to have a non- significant and negative relationship with Work Engagement, in support of H1b. ( (β = 0.036, t =0.388, p < 0.05).
This result did not consistent with previous studies that examined work engagement and Perceived Legal.(Carroll, 1979; Sable, 2008). For instance, Sable (2008) had compared between insecure and secured employee. It has been found out that employees who always follow the rules will improve the quality of routine jobs and job satisfaction.
5.3.1c The Relationship between Perceived Ethical and Work Engagement (H1c)
In this study, Perceived Ethic has been identified to have positive on Work Engagement. The research findings in this study indicated that Perceived Ethical is found to have a significant and positive relationship with Work Engagement, in support of H1c. ( (β = 0.216, t =0.2.826, p < 0.05).
This result is consistent with previous studies that examined Perceived Ethical and work engagement.(Caroll, 1979).Ethical corporate responsibilities of a firm represent behaviors and activities that are not necessarily codified into law, but nevertheless are anticipated from a business by society’s members and a firm’s employees (Carroll, 1979).
Employees’ perceptionsabout their firm’s ethics and social responsivenessplay a significant role in motivating employees toengage with their work and foster their organizationaltrust. When employees perceive that theirfirm conducts business in accordance with moralityand ethics beyond the basic legal requirements, theyare positively stimulated by the firm and its assignedwork, leading to a positive relationship betweenethical citizenship and work engagement.
Attachment theory’s basic proposition is that attachment needs (an emotional bond based on care-seeking and care-giving behavior) are primary, and when they are sufficiently met, then an exploration of the environment occurs (Hardy and Barkham,1994). Thus, when employees experience their organization (i.e., caregiver) as being responsive to ethical citizenship, their work engagement is likely stimulated based on the positive attachment with the organization. Accordingly, ethical responsibility taken by firms refers to them being honest in their relationship with their own employees (De los Salmones et al., 2005), and thus the employees are likely to reciprocate with their strong trust toward the organization.
5.3.1d The Relationship between Perceived Discretionary and Work Engagement (H1d)
In this study, Perceived Discretionary has been identified to have negative on Work Engagement. The research findings in this study indicated that Perceived Discretionary is found to have a non- significant and negative relationship with Work Engagement, did not support of H1d. (H1d: β=0.042, t= 0.570, p<0.05)
This result was not consistent with previous studies that examined work engagement and Perceived Discretionary. (Lin.C.P, 2010)
Discretionary corporate responsibilities are those about which society has no clear-cut message for business, and such discretionary corporate responsibilities are left to individual judgment and choice (Carroll, 1979). When employees observe that their firm takes such responsibilities and reveals good voluntary citizenship in a society, their psychological confidence about the organization is likely boosted (e.g., Maerki, 2008), leading to a positive relationship between perceived discretionary citizenship and organizational trust. Examples of discretionary actions by firms can be making philanthropic donations, establishingpartnerships with non-profit organizations,preserving environmental resources, or caringfor social welfare. These actions when presented by anorganization help increase its credits and reliabilitythat uplift its employees’ organizational trust.Research evidence shows that employees arehighly concerned about the values of the firm andinter alia its socially responsible behavior beyond therequirement by law (Brammer and Millington,2003).
A survey finds that more than half of the UKemployees care very much about the social andenvironmental responsibilities of their work organization(Dawkins, 2004). Indeed, attachment theoryhelps explain the self-fulfilling nature of employees’expectations on leadership or their organization(Keller and Cacioppe, 2001), and so employees’ workengagement and organizational trust likely increasewith the realization of their expected discretionarycitizenship. More specifically, given that workengagement is seen as managing discretionary effort inwhich employees will act in a way that furthers theirorganization’s interests, when the discretionary citizenshippresented by the organization is perceived tobe good, employees naturally obtain full engagementwith their work.
5.3.2 The Relationship between Organizational Justice and Work Engagement (H2)
In this study, Organizational Justice has been identified to have positive on Work Engagement. The research findings in this study indicated that Organizational Justiceis found to have a significant and positive relationship with Work Engagement, in support of H2.( (β = 0.475, t =6.898, p < 0.01).
This result is consistent with previous studies that examined Organizational Justice and work engagement (Alvi, A. K., & Abbasi, A. S. ,2012; Ghosh, P., Rai, A., & Sinha, A. .2014 and Khuong, M. N.,2015) in which the implementation of Organizational justice also improves the work engagement of employees in Malaysian commercial banks sector.
In this regard, this finding concurred with the emphasizes of (Dirks &Ferrin ,2002) and Yilmaz, K., & Tasdan, M (2009)that organizational justice could contribute towards the high level of work engagement. Employees will contribute more to the company when their perception on organizational justice will make them engaged in their work (Moliner et al.,2008)
The level of work engagement can be enhance when the leaders in banking commercial sectors employs organizational systems which will strengthen justice in and around organizational practices. When justice has been implemented in all procedures and systems of the organization, this shall guarantee the loyal and committed employees to attach with the company in longer time. As a result, this will reduce turn over ratio and indirectly will improve organizational productivity and efficiency.
5.3.2a The Relationship between DistributionalJustice and Work Engagement (H2a)
In this study, Distributional Justice has been identified to have negative on Work Engagement. The research findings in this study indicated that Distributional Justice proved to be insignificant.(β = 0.031, t =0.412, p < 0.05).
This result did not consistent with previous studies that examined Distributional Justice andwork engagement. (Saks, 2006 and Alvi, A. K., & Abbasi, A. S. ,2012).
When distributions of organizational outcomes are considered to be fair, higher employee levels of trust are likely to develop and positive perception of organizational justice assists employees to feel as members of the organization which influences their organizational commitment.
Moreover, organizational justice has been identified as a critical factor for employee commitment to the objectives of the organization and positive perception of organizational justice assists employees to feel as members of the organization which influences their organizational commitment . The more employees commit with their job, the more increasing the level of engagement of employees.
5.3.2b The Relationship between ProceduralJustice and Work Engagement (H2b)
In this study, Procedural Justice has been identified to have positive on Work Engagement. The research findings in this study indicated that Procedural Justice is found to have a significant and positive relationship with Work Engagement, in support of H2b. ( (β = 0.185, t =2.200, p < 0.01).
This result is consistent with previous studies that examined Procedural Justice and work engagement (Saks, 2006, Moliner et. al (2008), Karatepe O.M (2011) and Alvi, A. K., & Abbasi, A. S. ,2012). Saks (2006) demonstrated that frontline staff with higher perceptions of procedural justice will reimburse the company through high level of work engagement.
5.3.2c The Relationship between Interactional Justice and Work Engagement (H2c)
In this study, Interactional Justice has been identified to have positive on Work Engagement. The research findings in this study indicated that Interactional Justice is found to have a significant and positive relationship with Work Engagement, in support of H2c. ( (β = 0.301, t =3.347, p < 0.01).
This result is consistent with previous studies that examined Interactional Justice and work engagement ((Saks, 2006, Inoue Akiomi ,et.al ,2010, Agarwal, 2014and Alvi, A. K., & Abbasi, A. S. ,2012). This result is same as the result of Saks, 2006 that interactional justice has value of = 0.115 with p valueless than 0.1 which shows that interactional justice haspositive influence on employee engagement.
5.3.3 The Relationship between Corporate Citizenship and Organizational Trust (H3)
In this study, Corporate Citizenship has been identified to have positive on Organizational Trust.The research findings in this study indicated that Corporate Citizenship is found to have a significant and positive relationship with Organizational Trust, in support of H3. (β = 0.396, t =7.110, p < 0.01).
This result is consistent with previous studies that examined Corporate Citizenship and Organizational Trust ( Lin C.P,2010,Lamberti &Lettieri, 2009and Zarkada-Fraser (2004)). Brown and Dacin (1997) stated that company’s socially responsible initiatives provide information about its character and values that helps in building trust amongst employees in the company.
5.3.3a The Relationship between Perceived Economic and Organizational Trust (H3a)
In this study, Perceived Economic has been identified to have positive on Organizational Trust.The research findings in this study indicated that Perceived Economic is found to have a significant and positive relationship with Organizational Trust, in support of H3.( (β = 0.396, t =7.110, p < 0.01).
The basic work engagement and organizationaltrust of employees can be initially driven when theirfirm is able to demonstrate economic citizenship byproviding their basic work and life quality. First,employees will be more absorbed in their work afterthey perceive their organization is performing socialresponsibility economically for the good of theemployees. Second, employees’ trust toward theirorganization is likely boosted when their satisfactionabout economic offers in the job context (e.g.,payoff or promotion) is obtained (e.g., Williams,2005).
5.3.3b The Relationship between Perceived Legal and Organizational Trust (H3b)
Hypothesis H3b proposed that there is a relationship between Perceived Legaland work engagement. However, Perceived Legal (H3b: β=0.072, t= 1.076) has a non-significant effect on Organizational Trust. Therefore, H3b is not supported by the data.
This result is consistent with previous studies that examined Perceived Legal and Organizational Trust ( LinC.P,2010).
Employees’ perceptions about their firm’s legal responsibility play a significant role in motivating employees to engage with their work and foster their organizational trust.When employees perceive that their firm conducts a business in accordance with legal frameworks, they are positively stimulated by the firm and its assigned work, leading to a positive relationship between Perceived Legal citizenship and Organizational trust.
The insignificant relationship betweenperceived legal citizenship and organizational trust indicates that the influence of other perceivedcitizenship (e.g., economic and ethical citizenship)potentially surpasses that of perceived legal citizenshipon organizational trust. It may occur, because,for example, the economic issues (e.g., job career development) that are always a main concern byindividuals are likely to make other factors less significantin terms of their organizational trust.
5.3.3c The Relationship between Perceived Ethical and Organizational Trust (H3c)
Hypothesis H3c proposed that there is a relationship between Perceived Ethical and Organizational Trust.. However, Perceived Ethical (H3c: β=0.104, t= 1.635) has a non-significant effect on Organizational Trust. Therefore, H3c is not supported by the data.
This result is inconsistent with previous studies that examined Perceived Ethical and Organizational Trust ( Lin C.P,2010).
Employees’ perceptions about their firm’s ethical responsibility play a significant role in motivating employees to engage with their work and foster their organizational trust.When employees perceive that their firm conducts a business in accordance with moral rules by having appropriate behaviors, they are positively stimulated by the firm and its assigned work, leading to a positive relationship between Perceived ethical citizenship and Organizational trust.
The insignificant relationship betweenperceived ethical citizenship and organizational trust indicates that the influence of other perceivedcitizenship (e.g., economic and legal citizenship)potentially surpasses that of perceived ethical citizenshipon organizational trust. It may occur, because,for example, the economic issues (e.g., job career development) that are always a main concern byindividuals are likely to make other factors less significantin terms of their organizational trust.
5.3.3d The Relationship between Perceived Discretionary and Organizational Trust (H3d)
Hypothesis H3d proposed that there is a relationship between Perceived Discretionary and Organizational Trust.. However, Perceived Discretionary (H3d: β=0.033, t= 0.620) has a non-significant effect on Organizational Trust. Therefore, H3d is not supported by the data.
This result is inconsistent with previous studies that examined Perceived Discretionary and Organizational Trust ( LinC.P,2010).
Employees’ perceptions about their firm’s discretionary responsibility play a significant role in motivating employees to engage with their work and foster their organizational trust.When employees perceive that their firm had fulfilled further duties that are not mandated by law or other ethical codes, they are positively stimulated by the firm and its assigned work, leading to a positive relationship between Perceived discretionary citizenship and Organizational trust.
The insignificant relationship betweenperceived discretionary citizenship and organizational trust indicates that the influence of other perceivedcitizenship (e.g., economic and legal citizenship)potentially surpasses that of perceived discretionary citizenshipon organizational trust. It may occur, because,for example, the economic issues (e.g., job career development) that are always a main concern byindividuals are likely to make other factors less significantin terms of their organizational trust.
5.3.4 The Relationship between Organizational Justice and Organizational Trust (H4)
In this study, Organizational Justice has been identified to have positive on Organizational Trust.. The research findings in this study indicated that Organizational Justice is found to have a significant and positive relationship with Organizational Trust, in support of H4.( (β = 0.322, t =5.415, p < 0.01).
This result is consistent with previous studies that examined Organizational Justiceand Organizational Trust (Barkhuizen and Rothmann, 2006; Konovsky and Pugh, 1994; Aryeeet al., 2002, AL-Abrrow, H. A, 2013).
Therefore according to all results of this study, it can be concluded that when employees perceive any kind of justice in the organization- in rewards and outcomes, in procedures and communication, and in interaction- and they consider its symptoms and signs directly or indirectly, trust and silence sense will be stimulated in employees and managers; and they transfer their sense of trust and silence to others and consequently the atmosphere of organization become silence and far from any distrust.
Trust in that the outcomes, rewards, and procedures are fair and people and employees do not have any false and hidden purposes in their interaction. Therefore, this trust of employees to each other transfer to supervisor and their managers and principals develop organizational trust among employees by trustful feedback.
Consequently, when employees trust to coworkers and their managers, they feel sense of ownership and commitment and they will be involved in job and organization; that ultimately, the employees identify with their job and organization and it will cause desirable organizational outcomes such as increased motivation, job satisfaction, productivity, and work engagement .
5.3.4a The Relationship between Distributional Justice and Organizational Trust (H4a)
Hypothesis H4a proposed that there is a relationship between Distributional Justice and Organizational Trust.. However, Distributional Justice (H4a: β=0.053, t= 0.831) has a non-significant effect on Organizational Trust. Therefore, H4a is not supported by the data.
This result is consistent with previous studies that examined Distributional Justice and Organizational Trust (Gupta, M., & Kumar, Y. (2015), Aryee al.,2002, Khuong, M. N. (2015). In another research findings by Gupta and Kumar (2012), it was shown that distributional justice does not significantly effect the organizational trust. However, another findings by Alexander and Ruderman (1987), and Tyler and Lind (1992) shown that distributional justice was significant to the organizational trust.In another findings, distributional and procedural justice have been empirically shown to be related to trust in organization(Pearce, Branyiczki, & Bakacsi, 1994).
5.3.4b The Relationship between Procedural Justice and Organizational Trust (H4b)
In this study, Procedural Justice has been identified to have positive on Organizational Trust.The research findings in this study indicated that Procedural Justiceis found to have a significant and positive relationship with Organizational Trust, in support of H4b. ( (β = 0.230, t =3.261, p < 0.01).
This result is consistent with previous studies that examined Procedural Justice and Organizational Trust (Agarwal, 2014,Barkhuizen and Rothmann, 2006; Konovsky and Pugh, 1994).In another findings, distributional and procedural justice have been empirically shown to be related to trust in organization(Pearce, Branyiczki, & Bakacsi, 1994).
5.3.4c The Relationship between Interactional Justice and Organizational Trust (H4c)
HypothesisH4c proposed that there is a relationship between Interactional Justice and Organizational Trust. However, Interactional Justice (H4c: β=0.069, t= 0.949) has a non-significant effect on Organizational Trust. Therefore, H4c is not supported by the data.
This result is inconsistent with previous studies that examined interactional Justice and Organizational Trust (Agarwal, 2014 and S. Aryee,et al.,2002).
5.3.5 The Relationship between Organizational Trust and Work Engagement (H5)
The hypothesis proposed that there is relationship between organizational trust on work engagement. Unfortunately, the result shows that H5is not supported. Organizational Trust is found to have insignificant and negative relationship with work engagement.
This result is inconsistent with previous studies that examined organizational trust and work engagement (Agarwal, 2014 and Ugwu et al. 2014).Furthermore, the result did not corroborate with Robinson’s definition on engagement whereby there must be two way connection between employee and the organization. Most employees are engaged with the organization at different level of engagement in reflect of what they receives in term of benefits from the company.
Employees who are shown high level of engagement towards the company had attached with the company over certain period of times (Cropanzano and Mitchell, 2005). Another past studies have identified organizational trust had the impact on job variables including organizational commitment, turn over intention and work engagement which had impacted the entire company (Chughtai and Buckley, 2007; Tan and Tan, 2000).
When the company could make an important decision for the betterment of the company, employees’ level of trust will increase and will result the lower intention to leave of the employees (Spreitzer andMishra, 2002). Thus will increase the level of engagement with their work (Chughtai and Buckley,2007)
According to Gill (2008), employees would attach to the company when they are still up hold the trust relationship with the company. Furthermore, employees also would observe their employer to practice important core values which would help the employees to harness the skills(Simmons, 1990).
Based on present findings, there seems to be some of the employees in commercial banks did not attach to their employer as a result from the trust relationship with their employer had deteriorated. It was common that certain commercial banks had adopted certain policy which had affected their employees. For example, there are few banks are holding the bonus payment and paying their employees in staggered basis. This act from employer had affected trust relationship with the employees. In worst scenario, the employer had failed to deliver their promise in term of rewarding the employees.Therefore,if employees realize that their organization has failedto fulfill its promised inducements (or policies), thenit results in a loss of organizational trust (Robinson,1996), perhaps leading to work disengagement. Under the pre text of social exchange theory, the perception of trust by employees in the organization will shape the relationship between the organization and the employees.
Employees will reciprocate the rewards they receive from employer as long as employees would think that the treatment are fair (Blau,1964). According to Blau, exchange of relationship between the employees and employer could be in the form of social or economic principles. Therefore, social exchange is similar to economic exchange which the expectation to generate some future contribution and employees will establish a common belief which concerning employers will value their well-being.
Hence, trust, istherefore necessary for maintaining social exchange, since trust create obligationswithin individuals to repay the organization, and employees can do this by exhibitingseveral positive job attitudes including being more engaged in their work.
For instance,in the case of a bank employee that perceives he/she may tell to his/her supervisorthings are going wrong, or feel connected with the organization, in other words an
employee that trusts his/her organization, will be more willing to work harder duringdifficult times, and also to “go the extra mile” at work than other who does not feel thistrust. Therefore, this engagement appears as a way of exchanging or “refund” the trustthe organization “offers” to the employees.
5.3.6.Organizational trust is a mediator between Corporate Citizenship and Work
Engagement(H6)
As postulated in the hypothesis H6, Organizational trust is a mediator between Corporate Citizenship and work engagement (H6) at the 0.001 level of significance (β=0.474, t= 10.128, p<0.001). The findings indicated that organizational trust mediated the relationship between corporate citizenship and work engagement.This finding was in line with previous study by Lin C.P, (2010) and Chughtai & Buckley (2008).
To assess the mediating effects of organizational trust on the relationship between corporate citizenship to work engagement, the Hayes A. F (2009) procedures were followed. The findings indicatedthat organizational trust mediated the relationship between corporate citizenship and work engagement.This findings suggested that corporate citizenship including the dimensions i.e economic, ethic, legal and discretionary may have influence work engagement through organizational trust.
Based on the findings, it was shown that organizational trust has given a significant influence of corporate citizenship on work engagement. This empirical study indicated that organizational trust could be use as important marker for evaluating work engagement in corporate citizenship. If the organizational trust are weaken among employees, management should know that employees will get confuse on the corporate social activities. For example, when employees’ trust on organization very low, management has to take immediate action to strengthen corporate citizenship by transcribing business activities as organizational core values to the employees in order to win the trust.
This seems to suggest that companies which consistently promote the corporate social activities will boost the employees’ work engagement in the long run (Cartwright and Cooper, 2009; Grayson andHodges, 2004).Therefore,Management should emphasized to champion the corporate citizenship and put an effort to share the company’s vision on corporate citizenship either through newsletter or company website in order to reach to all staff. This effort will significantly increase the level of work engagement. However, there are a small percentage of the company who are really executed the corporate citizenship which had affected the trust and work engagement (Knapp, 2007; Mathews, 2007).
Research by Amble (2009) stated that employees who are satisfied with their organizationalsocial responsibility are likely to be morepositive, more engaged, and more productive thanthose working for less responsible organizations. Specifically, when employees arepositive about their firm’s corporate citizenship, theirwork engagement rises to 86%.Whenemployees are negative about their firm’s corporatecitizenship, only 37% are highly engaged.
Thus, with the paucity and inconsistency in the findings which may due to the context of the study, it is hoped that this study will provide sufficient support and insights into the mediating variables of organizational trust on the relationship between corporate citizenship and work engagement in Malaysian commercial banks.
In summary, every business will depend on corporate citizenship for the success of their business. Firms who executed the corporate citizenship consistently most likely will boost their corporate citizenship and work engagement.
5.3.7 .Organizational trust is a mediator between organizational justice and work
EngagementOrganizational Justice(H7)
As postulated in the hypothesis H7, organizational trust is a mediator between organizational justice and work engagement (H7) at the 0.001 level of significance (β=0.474, t= 10.128, p<0.001). The findings indicated that organizational trust mediated the relationship between organizational justice and work engagement. This finding was in line with previous study by Gupta, M. & Kumar, Y (2015), Agarwal, U (2014)and Aryee et. al (2002).
To assess the mediating effects of organizational trust on the relationship between organizational justice to work engagement, the Hayes A. F (2009) procedures were followed.
The findings indicated that organizational trust mediated the relationship between organizational justice and work engagement. This seems to suggest that organizational justice including the dimensions i.e distributional, procedural and interactional may have influence work engagement through organizational trust.
Based on the findings, it was shown that organizational trust has given a significant influence of organizational justice on work engagement. This empirical study indicated that organizational trust could be use as important marker for evaluating work engagement in organizational justice. If organizational trust is weak among employees, the immediate action should be taken by management is to establish organizational justice into the organizational system. For example in commercial bank in Malaysia, justice should be start at recruitment process and selection of the candidates should be equal and the talented candidate should be given a chance to work in the bank. The banks must avoid to recruit the new employee based on the relation with the manager or the officer.
In another aspect, the commercial banks also need to practice equal opportunity for promotion amongst employees. Employees will display more enthusiasm when performing their jobs. The bank alsomust consistently encourage the managers to create a reward program for good employees. Therefore, creating the organizational justice in commercial bank will play important role in creating work engagement amongst employees. As a result, when employees are fully engaged with their work in commercial bank, they will produce a lot of excellent result for their employers.
5.4 IMPLICATION OF STUDY
This study provides the empirical evidence for supportingthe proposed model which explained the factors affecting the work engagement of employees in Malaysian Commercial banks. Basedon the statistical results, corporate citizenship and organizational justice had effected on organizationaltrust. Moreover, these both factors also impacted onemployee work engagement through organizational trust.
When employees believe that they work with the company which emphasizes on balance between corporate achievements and social obligations to the communityincluding the way how their employer treated them in ethical manner, the level of work engagement of the employees will be high.
5.4.1 Theoretical Implications
The purpose of the study is to examine the relationship between corporate citizenship, organizational justice on work engagement and mediated by organizational trust.Information on the mediating effects of organizational trust would further assist in the understanding of the employees’ attitude on their work engagement.
Furthermore, this study contributes to the existing theory of work engagement in few important ways. Although previous studies such as C.P Lin (2010),Chughtai & Buckley (2008),Gupta, M. & Kumar, Y (2015), Agarwal, U (2014) and Aryee et. al (2002) had supported organizational trust as a mediator in the relationship between corporate citizenship, organizational justice and work engagement, the results of the current study suggest that it may not necessarily be true in the context of Malaysian commercial banks. It could be because organizational trusts among employees are different if we compare it among commercial banks due to many factors such as internal culture of the individual bank.
Based on the current study, this research has theoretical implicationin the literature of corporate citizenship and organizational justice to work engagement and the methodologyin contribution.This study represents the efforts made to develop a conceptual framework of the bank’s employees in terms of relationship between corporate citizenship and organizational justice to work engagement and mediated by organizational trust.
Basically, it provides the early basis for integrating two disciplines which are organizational behavior and work engagement in commercial bank’s sector in Malaysia. There is no prior study in Malaysia particularly in commercial banks which integrates the two disciplines.
Based on the fact that previous studies on corporate citizenship and organizational justice to work engagement are based on other countries such as India, Pakistan and China. This study presents a further insight into the commercial banks sector in Malaysia. By accepting the facts that different countries practicing different culture and with different economic background, the findings on this research in Malaysian commercial banks will contribute new empirical knowledge as commercial banks in Malaysia representmultiracial people in a developing country.
Based on literature review, the empirical findings had proven the mediating role of organizational trust. However, little is known about employing this mediating role of organizational trust into relationship between corporate citizenship, organizational justice on employees of commercial banks towards work engagement. The results from present study had revealed that the outcome was further improved by the mediating factor of organizational trust. Hence this research provides more support theoretically of its importance in commercial banks industry. Furthermore, this finding providesa better understanding on the effects of employees work engagement in commercial bank in Malaysia. Employees in commercial banks with high work engagement will perform extremely well in their areas which will contribute to the growth and profit of the company.
This research also contributes to a relatively new knowledge to the body of literaturewhere it incorporates both the dimensions of corporate citizenship and organizational justiceand organizational trust that would affect employees’ work engagement. The dimensions of corporate citizenship are perceived economic, perceived legal, perceived ethic and perceived discretionary. On the other hand, dimension of organizational justice consists of procedural, distributional and interactional.
Based on significant findings, future studies may include other mediators which have never been tested such as job satisfaction. Although, there are many alternatives on activities which could be carried out under corporate citizenship, these findings suggest that corporate citizenship and the dimensions, would be ideal to influence employees’ work engagement in Malaysian commercial banks in Malaysia. Similarlyin organizational justice, employees of commercial banks would expect fair treatment from their employers and this would be an ideal factor to influence employees’ work engagement in Malaysian commercial bank in Malaysia.
This research also presents a significant methodology contribution in directing the focus of the study differently. Past studies linking corporate citizenship to trust or work engagement do not examine the various dimensions of such citizenship such as perceived economic, perceived legal, perceived ethical and perceived discretionary (Brammer et al., 2007). Therefore, this study evaluates corporate citizenship based on four dimensions, which is related to how employees obtain further understanding about the influence of the four dimensions on work engagement. Previous study had failed to consider multi- dimensional nature into account (De los Salmoneset al,. 2005).
This study is the pioneer in examining the mediating role of organizational trust in the relationship between corporate citizenship and organizational justice towards work engagement. Corporate citizenship and organizational justice are expected to have direct effects on work engagement and indirect effects on work engagement through the mediation organizational trust.
Although organizational trust as a mediating role across different organizational issues has been somewhat discussed in previous research, none of the research has considered organizational trust as a mediator in relationship between corporate citizenship and organizational justice towards work engagement.
This study also examines empirically the role of bank employees in commercial banks towards organizational trust in enhancing work engagement that has not been studied in the past especially in commercial banks in Malaysia. If this study has not been carried out, management in commercial banks might not be aware of the impact of bank employees towards organizational trust in commercial banks towards work engagement. The roles of bank employees towards organizational trust is very important in enhancing work engagement in commercial banks. From the empirical results, the policy makers at management level would be ask to plan and adopting certain policies with the objective to bring the highest level of work engagement of the employees in their respective commercial banks.