How and when CSR shapes employees’ environmental behavior: the role of psychological contract and environmental attitudes

Purpose This study explores the role of psychological contract in the relationship between corporate social responsibility (CSR) and employees’ environmental behavior. It draws on social exchange theory to develop a framework to unravel the underlying mechanism through which CSR impacts employees’ environmental behavior. In doing so, we examine the nature of how and when such effects occur. Design/methodology/approach Data were collected and analyzed from a sample of 200 employees in Turkish small and medium-sized enterprises (SMEs). The analyses were conducted using structural equation modeling with MPlus software. Findings The results showed that CSR has a significant effect on employees’ environmental behavior. Transactional psychological contract and relational psychological contract mediate the relationship between CSR and employees’ environmental behavior. Furthermore, employees’ environmental attitudes moderate the mediated relationship between CSR and employees’ environmental behavior via relational psychological contract. Originality/value This study underscores that employees’ psychological responses (e.g., psychological contract) to organizational CSR initiatives and activities play a crucial role in understanding the relationship between perceived CSR and employees’ environmental behavior. Our findings also highlight the moderating role that employees’ environmental attitudes play in amplifying such an underlying mechanism.