Tuesday, April 7, 2015

Taking a Hit to Save the World: Employee Participation in a Corporate Social Initiative

BODE Christiane, SINGH Jasjit
Read the working paper
INSEAD Working Paper 2015/27/STR

This study examines drivers of employee participation in a corporate social initiative, where getting staffed on consulting projects with an explicit social impact mandate requires a financial sacrifice. Using a combination of survey and project participation data, we analyze employee willingness to accept a salary cut to participate in the initiative. Two underlying constructs — the lure of making a social impact and that of deriving personal career benefits — are found to equally drive the stated interest of employees in the initiative. However, the lure of social impact is the dominant driver of actual participation, and employee willingness to accept a salary cut mediates this effect. By combining an investigation of stated preferences with that of revealed preferences, our study extends typical survey-based research.