Do external corporate social responsibility activities related to the local community during COVID-19 increase employees’ job performance? Evidence from hospitality and tourism establishments at Hail city, KSA

Abstract

This paper aims to measure the impact of ECSR activities on employee job performance in the hospitality and tourism industry in the city of Hail, Saudi Arabia. Despite the growing importance of corporate social responsibility (CSR) and employee work performance, little is known about the correlations between socially responsible actions taken by businesses and the job performance of their employees. To overcome this gap, we explore the impact of ECSR on job performance, with an emphasis on chosen tourist and hospitality establishments in Hail, Saudi Arabia. Through structured questionnaires which were distributed during the period (March-May 2021), direct effects of predictors were tested using partial least square–structure equation modeling (PLS-SEM) with data from employees of hospitality and tourism establishments at Hail city, KSA. Overall, 300 questionnaires were distributed, and 242 were returned, resulting in the inclusion of 174 valid survey responses in the final data analysis. The PLS-SEM results show that the direct effects on job performance of initiatives related to awareness, charities, and support of basic projects are significant. This study adds to the CSR literature by demonstrating the sequential mechanism whereby employees’ perceptions of ECSR affect their job performance. This study is conducted for the first time at Hail city, thus rendering it unique.

Keywords:

• ECSR
• organizational performance
• employees
• hospitality and tourism establishments
• community

PUBLIC INTEREST STATEMENT

In the field of business ethics, corporate social responsibility (CSR) is an important research area. Existing CSR theories believe that a company’s survival, continuity, and growth are all dependent on society. If businesses treat societies fairly, then societies are more likely to have a positive impression of businesses. The COVID-19 pandemic has had a significant impact on the hospitality industry’s long-term viability and regular operations. The goal of the paper was to measure the impact of ECSR activities on employee job performance in the hospitality and tourism industry in Hail city, Kingdom of Saudi Arabia, during COVID-19. The results revealed that there is a significant positive relationship between contribution to improving the local community awareness during COVID-19 and work performance; participation in charitable work during COVID-19 and employee performance.

1. Introduction

Corporate social responsibility (CSR) has emerged as a growing field of inquiry, deepening its presence in academic scholarship, blanketing the global business community, and promoting keen interest among corporate leaders and regulators across the globe (Williams & Seaman, 2016). According to Shuli and Suwandee (2017) the concept of CSR has gained new power in the global economy. A growing interest in CSR has been discovered among researchers and practitioners in recent decades (Henderson, 2007). Accordingly, CSR in hotels has gained popularity in hospitality research, and employee perceptions of hotel CSR practices are being increasingly regarded as a basic factor in influencing their attitudes, behaviour, and performance (Wang et al., 2020), although CSR is not a new phenomenon in the hotel industry (Gursoy et al., 2019).

While different approaches have been adopted for analysing the topic of CSR, its impact on various business functions has been of particular interest (Chung et al., 2018). Farrington et al. (2017) highlighted the need for additional research on other potentially positive social-based outcomes associated with CSR in the hospitality industry. In today’s business environment, engaging in CSR has become an important strategic necessity for organisations (Bohdanowicz & Zientara, 2009) and the tourism industry, in particular, has embraced the notion. In addition to accruing business success, many hotels and other tourism-related businesses have sought to showcase their credentials through initiatives intended to impart benefits to societies and environments alike (Kucukusta et al., 2013). Intangible resources are one of the most important drivers of competitive advantage and long-term success (Du et al., 2015). Human capital is a valuable intangible resource that enables businesses to accomplish their goals (Farrukh et al., 2021).

Employees are more and more conscious of the widening responsibilities of firms towards society. This means that they nowadays perceive corporate social responsibility as one of the most important issues to be considered by their employers. If awareness of the issue is enhanced, it may have an influence on employees’ attitudes and behaviours, including their satisfaction with different aspects of their jobs (Tamm et al., 2010). Moreover, in the field of business ethics, corporate social responsibility (CSR) is an important research area; existing CSR theories believe that a company’s survival, continuity, and growth are all dependent on society. If businesses treat societies fairly, then societies are more likely to have a positive impression of businesses (Pedersen, 2010).

Even though numerous scholars have investigated the link between CSR and various employee-related outcomes, there is still a need to investigate it from the perspective of employee performance, especially in light of the Covid-19 crisis. The impact of firm CSR initiatives on job performance has been disregarded in previous study (Shin et al., 2016). Furthermore, many organizations are unaware of the role of corporate social responsibility in enhancing individual performance (Story & Castanheira, 2019). As a result, scholars must investigate the relationship between corporate social responsibility and individual employee performance, which is crucial for organizational success in all sorts of enterprises (Shin et al., 2016).

This study has one main primary objective, which is to measure the impact of ECSR activities on employee job performance in the hospitality and tourism industry in Hail, Saudi Arabia. Despite the growing importance of corporate social responsibility (CSR) and employee job performance, little is known about the relationships between firms’ socially responsible acts and their members’ job performance (Story & Castanheira, 2019). The current study contributes to the corpus of knowledge in several ways. First, the current study examines the impact of ECSR on individual employee performance, notably in the tourist and hotel business in Hail City. Second, it emphasizes the importance of ECSR in retaining employees and motivating them to make substantial contributions to their businesses’ performance throughout the covid-19 crisis.

To build competitive advantages, tourism enterprises must make use of their valuable resources. This study’s findings provide practical guidance on the most significant and influential steps practitioners may take to achieve optimal CSR performance. Managers of tourism and hospitality establishments should focus on adopting CSR practices so that they can improve overall job performance. Owners and managers can develop effective ECSR strategies to maximize the job performance of their staff and improve the reputation of tourism and hospitality establishments.

This study is also important for policymakers because it will allow them to better promote external CSR practices among tourism and hospitality establishments. Furthermore, there is a dearth of empirical studies on hospitality and tourism CSR in times of crisis (Qiu et al., 2021). This study examines the impact of hospitality establishments’ external corporate social responsibility efforts on employee job performance against the background of the COVID-19 pandemic. The global economic impact of Covid-19 is likely to be unprecedented since the great depression of the 1930s. Due to widespread lockdown and social distancing policies around the world, the short-term influence of Covid-19 has been felt immediately, and it is already expected to have long-term economic, social, political and cultural consequences (He & Harris, 2020).

The COVID-19 pandemic has had a significant impact on the hospitality industry’s long-term viability and regular operations (Zhang et al., 2021). Lockdowns and the enforcement of worldwide restrictions on travel and gatherings to contain the virus and limit its spread have caused serious financial problems to various corporations in the hospitality industry (Hao et al., 2020). As a result, the Covid-19 epidemic is likely to see one of the most significant environmental changes in recent marketing history, with the potential to have a huge impact on CSR, consumer ethics, and basic marketing philosophy (He & Harris, 2020).

The study is unique not only because it is the first time it has been applied to this city. The CSR was chosen as the lead idea because it was an innovative technique for researching a tourist location, not because it was designed to assess sustainable/responsible governance. Searching for corporate social responsibilities in the context of tourist cities is not sufficient. Therefore, tourist cities must take steps to promote CSR as a reaction to social and environmental challenges. A tourist city’s ability to project a socially responsible brand image is a result of tourist and hospitality initiatives.

Thus, it is critical to investigate and manage hotel ECSR, especially when threats to operations and survival are at the highest levels. As a result, investigating and managing hospitality and tourism ECSR is crucial, especially when hazards to operations and survival are at an all-time high, as they are with the COVID-19 epidemic. The study design and methodology are presented after examining relevant literature and forming hypotheses, followed by the analysis results. The conclusions and implications are presented in the third section. Finally, the limitations of the study are discussed, as well as prospective future research.

2. Literature review and hypotheses development

2.1. Hail city and the need for CSR initiatives

In 2019, Saudi Arabia is ranked number 69 in the Tourism Competitiveness Index (Tourism information and research center, ministry of tourism, 2020). The tourism industry is becoming a primacy in Saudi Arabia’s Vision 2030 for economic diversification. In 2018, international tourist arrivals totalled 23.7 million. In the same year, the tourism sector contributed approximately $65.21 billion to Saudi Arabia’s GDP. In 2019, it contributed 9.5 % to the kingdom’s economy and employed 1.45 million people (Uppink Calderwood et al., 2019).

Hail is the capital of the Emirate of Hail and is located in the north-western part of Saudi Arabia. It serves as the administrative and regional centre for the Hail area. Hail is known for two well-known mounts (Salma and Aga). Hail is in the Aga mount area, west of the valley of Adaira, which is at the centre of the region, and the well-known well of Samah for its supply of water. The city wraps itself around the Black Mountain of Alsamrah, which is bounded on the north and west by Mount Aga (Ibrahim, 2016). Hail has a lengthy history and is strategically located in the Kingdom of Saudi Arabia’s heartland. It is one of the region’s most strategic geographical places. It is the most important city in the region in terms of being the centre of business activity and a transportation and communications hub. The region’s geographical advantages of this city provide a strong foundation for agricultural production and tourist expansion. The Zubaida Path, the Arabian Peninsula’s most historic trail, runs across the region’s eastern section (Ministry of Municipal and Rural Affairs, 2019).

The existence of historic and heritage sites along this old pilgrimage route presents a potential for the region to create a robust tourist economy. Given the region’s population profile, which is dominated by young people under the age of 30, it is important to further develop these industries to provide job opportunities (Ibrahim, 2016). Hail’s tourist potential is highlighted by the presence of two UNESCO World Heritage Sites and other Islamic relics in the Hail Region. By connecting regional heritage sites to historical landmarks like Arif Fort in the city centre and other cultural assets, the city’s total tourist industry will be boosted, and corresponding economic investments will be attracted by the Ministry of Municipal and Rural Affairs (2019). The tourism function is one of the functions of cities. The importance of this job is growing, because cities are increasingly being chosen as tourism destinations for a variety of reasons. Urban (city) tourism is one of the fastest-growing types of tourism, and it is quickly becoming one of the most important factors in determining economic outcomes in many destinations (Bock, 2015).

Studying CSR in the context of cities/destinations has been unique up to this point, given cities are not corporations. Given the importance of tourism to the economic development of countries, regions, and cities, governments and local governments must take steps to promote CSR as a reaction to the social and environmental issues that arise because of corporate behaviour in a globalized economy (Borges et al., 2019). Because the sector relies on local communities, human and natural resources, and the environment, as well as concerns addressing the environment, human rights, and fair trade, CSR practices have become more important (Hadj et al., 2020). CSR initiatives also aim to reduce waste and improve the long-term usage of finite natural resources (Frey & George, 2010). Integration of CSR practices is becoming increasingly vital for both customers and staff. Tourism organizations will need to consistently implement and successfully establish CSR initiatives to function successfully in the future.

2.2. Corporate social responsibility

Since its beginning in the 1990s, when it was dubbed “corporate sustainability & responsibility”, the notion of corporate social responsibility (CSR) has seen significant changes and advances (A. B. Carroll, 1999; J. Yang & Basile, 2019). As previously noted, the concept of corporate social responsibility (CSR) has received increased attention in recent decades (Aminu Hamidu et al., 2014). There are several definitions of corporate social responsibility (Aguinis & Glavas, 2012; Bowen, 1953; A. Carroll, 1979; Dahlsrud, 2008; Hansen et al., 2011; Kitzmueller & Shimshack, 2012; Rupp, 2011), which take different perspectives in finding the form of this responsibility. Most definitions characterize it as a notion in which businesses incorporate social and environmental issues into their business practices and interactions with shareholders on a voluntary basis (Hamid & Zubair, 2016). CSR, in general, refers to an organization’s attempts to support society, directly or indirectly, by engaging in a social good or social welfare (Su & Swanson, 2019). For the purposes of this study, we shall focus on external corporate social responsibility to society (the external dimension), which covers socio-economic stability, social wellness and the quality of life for the nation’s citizens, all of which are dependent on efficient company performance. External corporate social responsibility refers to socially responsible measures taken by a company outside its own boundaries(Claxton et al., 2014; Obeidat, 2016). External CSR activities, according to the European Commission (2011), involve external stakeholders such as customers, business partners, and local communities (Obeidat, 2016). Carroll (1979) suggested that external CSR activities include charitable involvements, employee volunteer programs, community participation, ecological and sustainability programs, and other outside projects that develop the company’s social investment.

These projects and activities benefit the corporation, as well as the community (Kassem et al., 2021; Obeidat, 2016). We focus in our study on the following activities during COVID-19: participation in charitable work; contributions to improving local community awareness; supporting the local culture; supporting basic projects; employment-related procedures; values, concepts and rules; involving the local community in decision-making; and employees’ organizational performance.

2.3. Job performance

Job Performance is an important variable in work organization, according to (Suliman, 2001) it has become a major indicator in measuring organizational performance in various studies (Wall et al., 2004). It is vital to learn about the connections between job performance, people and situational factors to better understand job effectiveness (Bevan, 2012). Employee performance is valued by employers because it contributes to corporate success while individuals place a high value on performance because it gives them a sense of accomplishment when they complete tasks (Muchhal, 2014). It may be defined as the actions or behaviours taken to achieve the goals of the company (Motowidlo et al., 1997). More specifically, Motowidlo’s later work states that job performance is “an individual’s total expected value in the organization of discrete behavioural activities over a specific period” (Motowidlo et al., 1997).

2.4. Employees` performance and its relationship with corporate social responsibility

Research related to CSR and employee performance is scarce (Story & Castanheira, 2019) and the impact of CSR on employee attitudes and behaviours is a point of contention. CSR, according to academics, is a positive predictor of employee job performance (Wang et al., 2020). Some experts, however, argue that while CSR efforts make frontline employees “feel good,” these feelings are intangible and have no real impact on employee behaviour. It has been suggested, for example, that corporate philanthropy is unlikely to cause noticeable changes in employee behaviour and performance beyond what can be achieved through monetary incentives (Dewhurst et al., 2009; Zhang et al., 2021). Although CSR has been linked to many positive employee outcomes, its impact on employee performance has received far less attention. J. Story and Neves (2015) discovered that the interaction between extrinsic and intrinsic CSR attitudes affected employee performance.

According to existing research, when employees perceive that corporate acts are respectable and desirable, they are more likely to learn and mimic these behaviours at work, hence contributing to positive organizational commitment behaviour (Evans et al., 2011). When hotels actively adopt CSR, their staff imitate these socially responsible acts and build their own role obligations, helping them to generate extra-role behaviour and organizational commitment, both of which are beneficial to organizational performance (Zhang et al., 2021). Employee perceptions of CSR initiatives in the hotel business, according to (Kim, 2014), have a beneficial impact on their attitudes toward their workplace and job performance. Employees are more likely to develop a favourable attitude toward and be strongly interested in, their organization and their employment if they believe it is involved in socially responsible activities (Ilkhanizadeh & Karatepe, 2017; Wang et al., 2020). According to Story and Castanheira (2019), good organizational activities related to external and internal CSR will boost employee work satisfaction, which will have an impact on employee performance.

We also believe that people are naturally inclined toward ethical and socially responsible behaviour; they want to work ethically and responsibly. As a result, when individuals see that the beliefs of their business align with their personal values, they are more motivated to work (Aminu Hamidu et al., 2014). Employees’ desire to leave the company may fade away if human resources departments provide opportunities for personal development, reward them, evaluate their individual performance, and provide an environment in which they can express themselves. They feel more connected to the organization and want to help it achieve its objectives (Suher et al., 2017). Adopting CSR-driven policies and practices, may improve their attitude toward the company (Peloza & Hassay, 2006). This may also have a positive impact on their job performance (Aminu Hamidu et al., 2014). Most businesses, however, do not engage in CSR efforts to help their employees perform better (e.g., human resource management practices and leadership styles). As a result, it is intuitively difficult to expect that employees’ perceptions of CSR will have a direct impact on their job performance. It is more likely that employees’ perceptions of CSR may influence their psychological states or work attitudes, which in turn will influence their job performance (Shin et al., 2016; Wang et al., 2020). In line with SIT, CSR activities will have a favourable impact on employee performance. Researchers provide empirical evidence of the importance of CSR programs in influencing people’s outcomes (Fang et al., 2021). Furthermore, Aguinis and Glavas (2012) found that working for a socially responsible corporation improves organizational identity, employee engagement, organizational citizenship behaviour, employee commitment, in-role performance, and employee relations (Wang et al., 2020). Sun and Yu (2015) found a link between CSR and employee performance, implying that employees in socially responsible businesses perform better than their counterparts in less socially responsible businesses. Socially responsible businesses also have greater labour costs, according to the findings. According to (J. Story & Neves, 2015), employee performance was predicted by the interaction of intrinsic and extrinsic CSR. Obeidat (2016) found that employee engagement and corporate social responsibility have a strong positive link with organizational performance. Several studies have looked at various combinations of factors related to job performance (Edwards & Kudret, 2017; J. S. P. Story & Castanheira, 2019; Shin et al., 2016). Newman et al. (2015) added to the body of knowledge about CSR and employee behaviour by looking at its impact on both extra-role and in-role behaviour (employee performance). Shin et al. (2016) discovered that perceived CSR was linked to job performance indirectly and positively, mediated first by organizational identity and then by job satisfaction. CSR, according to Kim (2014) predicts employee quality of work, life, affective commitment, organizational citizenship behaviour, and job performance.

Edwards and Kudret (2017) investigated the impact of multifocal CSR perceptions through affective commitment and organizational pride on in-role work performance. Furthermore, according to a recent study, external CSR initiatives can boost employee work performance, while both external and internal CSR initiatives can boost job performance indirectly through job satisfaction (Story & Castanheira, 2019). H. C. Yang and Kim (2018) showed that corporate social responsibility activities not only improved members’ performance but also reinforced the necessity of true leadership by the CEO. Furthermore, according to Chaudhary and Akhouri (2018), CSR has a significant impact on the performance of only those employees who value it. Internal and external CSR has an impact on employee performance (Story & Castanheira, 2019). Fang et al. (2021) revealed that CSR was positively associated with employee job performance, using a multilevel approach.

Based on the studies outlined above, this study posits the following hypotheses.

2.4.1. Hypotheses

Hypothesis 1: Participation in charitable work during COVID-19 positively affects employee performance.

Hypothesis 2: Contribution to improving local community awareness during COVID-19 positively affects employee performance.

Hypothesis 3: Supporting the local culture during COVID-19 positively affects employee performance.

Hypothesis 4: Supporting basic projects during COVID-19 positively affects employee performance.

Hypothesis 5: Employment-related procedures during COVID-19 positively affect employee performance.

Hypothesis 6: Values, concepts and rules during COVID-19 positively affect employee performance.

Hypothesis 7: Involving the local community in decision-making during COVID-19 positively affects employee performance.

3. Methodology

3.1. Research method

This section of the paper discusses the research’s demographic and sample, as well as the tools and methods used to collect data and the statistical techniques utilized to analyse the data. The study used a descriptive survey design, as the research aimed to examine the impact of ECSR activities on employee`s performance in the hospitality and tourism industry at Hail city, Kingdom of Saudi Arabia. Because of the nature of the data, a quantitative method was used.

3.2. Research design

A conceptual model is developed to find a mechanism through external corporate social responsibility impact on employees` performance (see Figure 1). The proposed model is developed from previous studies that focus on the impact of external corporate social responsibility on job performance (H. C. Yang & Kim, 2018; Evans et al., 2011; Shin et al., 2016; Shuli & Suwandee, 2017; J. Story & Neves, 2015; Sun & Yu, 2015; Wang et al., 2020).

Figure 1. The conceptual model.

3.3. Sample

All employees in Hail city’s tourism and hospitality establishments make up the study population. The sample of the present study consists of employees working in the hospitality and tourism industry at Hail city, KSA. Because of the unavailability of data about number of Tourism and hospitality establishments working in Hail region, the authors conducted an interview with Abeer Alamri, the general manager .human capital quality and evaluation at the Ministry of Tourism explain that till (May, 2022) the total employees in tourism and hospitality establishments at Hail region are (11,700 males and 905 females. The number of hotel establishments that were previously licensed in the Hail region are 79 and 17 travel and tourism companies.

A random technique was used to obtain the sample of employees from various tourism and hospitality establishments in Hail, KSA via field surveys and an online survey. The researchers chose the most accessible respondents from a sample of employees to collect data from those who agreed to participate in the survey. The employees were asked to fill the survey containing questions regarding ECSR practices of their organization, and employees` performance. The authors get the permission of the deanship of scientific research of Hail University to distribute the survey among employees. Following its approval, a structured questionnaire was used as the primary data collection instrument. Questionnaires were distributed via field surveys and an online survey. Data was collected from those employees working at any (first, middle, and top) level of management. A cover letter was attached to each questionnaire to make respondents aware of the purpose, scope, and confidentiality of the study. The employees were asked to rate their perceptions of the organization ECSR practices, and employee performance. Participation in the survey was voluntary. Random sampling was used in this study to select units of analysis at the individual level that would let the researchers make realistic judgments in keeping with the research aims rather than for statistical generalization. Overall, 300 questionnaires were distributed, and 242 were returned, resulting in 174 valid survey data being included in the final data analysis after processing the information. The data was collected between March-May 2021. Partial least squares structural equation modelling was used to analyse the data, using a multi-analytical methodology (PLS-ESM). There are two stages to the analysis. Validation of the measurement model and structural model hypotheses-testing make up the first stage. The second stage entails using PLS-SEM analysis to see how the independent factors influence the dependent component.

3.4. Measures

The variables of the present study were measured through validated and verified scales, which are widely used in literature. All measurement scales were in Arabic and English. The items and responses in this study were measured on a three-point Likert scale ranging from 1 to 3, with 1 meaning “disagree” and 3 meaning “agree”. First-order reflective constructions are used to create all scales. The scale of external corporate social responsibility and job performance used in this study is taken from the literature (H. C. Yang & Kim, 2018; Evans et al., 2011; Shin et al., 2016; Shuli & Suwandee, 2017; J. Story & Neves, 2015; Sun & Yu, 2015; Wang et al., 2020).

3.4.1. Corporate social responsibility

This scale consisted of seven dimensions:

• Participation in charitable work during COVID-19 (3 questions which include “my establishment performs voluntary activities to support the local community in coping with COVID-19”, “my establishment cooperates with the responsible authorities and charities to cope with COVID-19”, and “my establishment encourages staff to join charities to cope with COVID-19”).

• Contribution to improve the Local Community Awareness during COVID-19 (3 questions) which include “My establishment organizes community awareness campaigns to avoid the infection with COVID-19”, “my establishment organizes events and activities to protect the environment and restrict the spread of COVID-19”, “my establishment uses different means of communication to improve the local community awareness of COVID-19 and how to avoid the infection: “social media, brochures, the official website … ”).

• -Supporting the local culture during COVID-19 (3 questions which include “My establishment helps bodies that hold cultural activities, in order to highlight the importance of social distancing and how to restrict the spread of Covid-19”, “My establishment arranges free cultural awareness activities for local community”, “My establishment is interested to reach different cultural segments of the local community to be aware of incorrect practices that cause the infection with COVID-19”, “supporting basic projects during COVID-9”).

• -Supporting basic Projects during COVID- 19 (3 questions which include “My establishment provides health and educational institutions with the necessary needs to avoid Covid-19 infection: “disinfectants, masks, respirators … ”, “My establishment supports infrastructure projects in poor areas to improve the environment quality and to restrict the spread of COVID-19”, “My establishment participates in street cleaning and disinfection in the most crowded areas”).

• -Employment-related procedures during COVID-19 (4 questions which include: “My establishment keeps its employees, in spite of the financial crisis resulting from Covid-19”, My establishment is committed to employee rights during Covid-19: “salaries, annual increase, incentives, and leafs”, “My establishment bears the health care costs of infected employees with Covid-19”, and “my organization provides social solidarity for the families of infected or died employees because of COVID-19”).

• -Values, concepts and rules during COVID-19 (3 questions which include “My establishment abides to the decisions taken by official authorities concerned with facing Covid-19 to avoid the infection of its staff and stakeholders: “social distancing, precautionary measures”., “my establishment abides to carry out laws and regulations issued by the responsible authorities to cope with Covid-19” and “My establishment is concerned with issues related to environment protection to restrict the spread of COVID-19”).

• -Involving the local community in decision-making during COVID-19 (3 questions which include “my establishment is committed to involve the local community in making decisions related to minimizing the spread of Covid-19”, “my establishment participates with the local community to set emergency plan to cope with Covid-19”, and “My establishment adopts creative ideas proposed by the local community representatives to cope with Covid-19”).

3.4.2. Employee performance

This scale includes 4 questions “the social activities that have been implemented to cope with Covid-19 may positively affect the motivation and enthusiasm of the establishment employees”, “The social activities that have been implemented to cope with Covid-19 may positively affect the employees’ commitment to work hours”, “the social activities that have been implemented to face Covid-19 may positively contribute to decrease employees’ complaints”, and “the social activities that have been implemented to face Covid-19 may positively contribute to decrease employees’ violations of establishment work systems”.

Although self-ratings may provide a skewed view of reality (Van Woerkom & De Reuver, 2009), many authors have used self-reported measures to measure performance (Motowidlo et al., 1997; Tyagi, 1985), and the fact that we are creating a self-reported measure is not expected to bias the results in our case because the data is being collected for research purposes.

Self-evaluations are more positive than other types of evaluations (DeNisi & Murphy, 2017), hence they are less often in applied settings. However, there are several advantages to self-reporting that should be noted (Koopmans et al., 2013).): (1) they allow measuring job performance in occupations where other measures are difficult to obtain (e.g., high complexity jobs); (2) unlike the remaining stakeholders, employees have the ability to observe all of their own behaviors; (3) peers and managers rate performance based on their overall impression of the employee (i.e., halo effect); and (4) they are simple to collect and reduce issues with missing data and confidentiality. As a result, self-report performance assessments are still meaningful.

3.4.3. Data analysis

The hypotheses were tested using Partial Least Squares—Structural Equation Modelling (PLS-SEM; Ringle et al., 2014). In this context, the PLS-SEM technique is seen to be ideal for research. PLS has been proposed as the approach of choice due to characteristics such as sample size, lack of normalcy, and the ability to work with interval-scaled components in the absence of distributional presumptions (Joe F. Hair et al., 2014).

To analyze and understand the outcomes of the PLS-SEM model, this study used a two-step structural equation modelling (SEM) approach: (1) measurement model assessment, and (2) structural model testing (Anderson & Gerbing, 1988; Joe F. Joe F. Hair et al., 2014). PLS-SEM is an asymmetrical analysis that decides whether the predictors have a significant net influence on the model outcome. Second, this research looks for evidence of a relationship between external CSR and work performance. The PLS-SEM results provide managers with a roadmap for combining predictors (e.g., ECSR) to anticipate situations that lead to high and low job performance scores.

4. Results

4.1. Respondents’ profile

242 participants responded to the survey. After removing incomplete responses, 174 (75%) were used for analysis. Table 1 shows that 86.8% were males and 13.2% were females. Furthermore, a majority of respondents were (From 31-40 years) old (35.1%), followed by respondents who were from 20- 30 years (31.0%) and 41-50 years (20.1%). The majority reported a university degree (52.9%). The majority were married (63.8%) and 82.8% were Saudi nationals. More than one-third has 4-7 years of experience.

Table 1. Respondents ‘profiles

Attribute	Frequency	Percentage
Gender
Male	151	86.8
Female	23	13.2
Total	174	100.0
Age
From 20–30 years	54	31.0
From 31–40 years	61	35.1
From 41–50 years	35	20.1
More than 50 years	24	13.8
Total	174	100.0
Education
High school	21	12.1
University	92	52.9
Post graduate	51	29.3
Other	10	5.7
Total	174	100.0
Marital Status
Single	58	33.3
Married	111	63.8
Other	5	2.9
Total	174	100.0
Nationality
Saudi	144	82.8
Other	30	17.2
Total	174	100.0
Experience
Less than 4 years	41	23.6
From 4–7 year	61	35.1
11 years	28	16.1
From 12–15 years	12	6.9
From 16–19 years	10	5.7
20 years and over	22	12.6
Total	174	100%

In analyzing, the respondents’ profiles, we, could say that the low representation of foreign employees (17.2 %) is for two reasons. First, the Minister of Labour and Social Development issued 6 Dhu al-Qa’dah 1440, Ministerial Resolution No. 198500, which stipulates the nationalizations of several specialized professions in the tourism and accommodation sector starting from 1/5/1441 (The Ministry of Labour and Social Development, 1440). Second, because of the Covid-19 crisis, authors could deduce that owners of tourism and hospitality establishments sought to scarify with a significant number of foreign employees to reduce costs and losses.

We observe that there is a bias in gender. In reviewing the data provided by the General Authority for statistics (2020), the number of males employed in the accommodation sector is 83,076 compared to 10,644 females. The number of males employed in the food and beverage sector is 408686 compared to 43,313 females. The number of males employed in travel agencies sector is 12996 compared to 1475 females. In addition, according to Abeer Alamri (2022) about 11700 males and 905 females are employed in the tourism and hospitality establishments at Hail region. Therefore, the percent of representation of males and females at hospitality and tourism establishments in the Hail region is compatible with official records all over the kingdom of Saudi Arabia.

4.2. Means and standard deviations of scale items

Table 2 shows descriptive statistics. The mean value for participation in charitable work during COVID-19 is 2.3889; the mean value for contribution to improve the local community awareness during COVID—19 is 2.5019, and; supporting the local culture during COVID-19 is 2.4483. The mean value for supporting basic projects during COVID-19 is 2.1609. Further, the mean value for employment-related procedures during COVID-19 is 2.32. The mean value for values, concepts and rules during COVID-19 is 2.6360. The mean value for involving the local community in decision-making during COVID-19 is2.3659. The mean value of employees’ job performance during COVID-19 is 2.07615.

Table 2. Means and standard deviations of scale items

Factors	NO of items	Mean Statistic	Std. deviation Statistic
Contribution to improve the Local Community Awareness during COVID-19(AWAR).	3	2.5019	0.64276
Participation in charitable work during COVID-19(CHRT).	3	2.3889	00.6419
Supporting the local culture during COVID-19(CULT).	3	2.4483	0.64
Involving the local community in decision-making during COVID-19 (DECI).	3	2.3659	0.71414
Supporting basic projects during COVID-19(INFRA)	3	2.1609	0.81801
Employment-related procedures during COVID-19 (REC)	4	2.32	0.7336125
Values, concepts and rules during COVID-19(VALUE)	3	2.6360	0.55231
Employees’ performance during COVID-19 (PER).	4	2.07615	0.7994675

4.3. Construct reliability

Partial Least Square—Structural Equation Modelling (PLS- EM) was used to assess the instrument’s reliability and validity, as well as to examine the research framework. Partial-least-squares-based structural equation modelling, the first step in assessing PLS-SEM results, include exploring the measurement model. This study includes ECSR and job performance as reflective constructs. Table 3 confirms that the first-order measurement model is accurate and dependable. Joe F. Hair et al. (2014) used the convergent validity criterion, where all item loadings are >0.7, suggesting that the variable explains more than 50% of the variance of the items, and the average variance extracted (AVE) is also >0.5, meaning that the construct converges to explain the variance of its items. The internal consistency or dependability of a construct is intended to measure how well the indicators (observable variables) are measuring the constructs (latent variables). Cronbach’s alpha and composite reliability are two regularly used measures for this examination. The distinction between the two measures is that Cronbach’s alpha assumes a priori that all indicators of a construct contribute equally, whereas the composite reliability indicator considers that indicators have various loadings. Fornell and Larcker (1981) suggest that composite reliability is preferable to Cronbach’s alpha. Only three indicators (CULT3, RECR1, and PERF4) from the initial list of 26 had loadings below 0.7 and have thus been omitted from the CSR first-order constructs.

Table 3. Construct reliability

	Cronbach’s Alpha	rho_A	Composite Reliability	Average Variance Extracted (AVE)
Contribution to improve the Local Community Awareness (AWAR).	0.801	0.892	0.871	0.696
Participation in charitable work during COVID-19 (CHRT).	0.701	0.823	0.810	0.605
Supporting the local culture during COVID-19 (CULT).	0.737	5.357	0.820	0.704
Involving the local community in decision-making during COVID-19 (DECI).	0.782	0.890	0.865	0.682
Supporting basic projects during COVID-19 (INFRA)	0.875	0.939	0.908	0.769
Employment-related procedures during COVID-19 (REC)	0.770	0.770	0.897	0.813
Values, concepts and rules during COVID-19 (VALUE)	0.805	0.833	0.884	0.718
Employees’ performance during COVID-19 (PER).	0.818	0.851	0.890	0.731

The findings revealed that the measuring model meets all the general criteria. First, the standardized factor loadings of all of the first-order and second-order constructs’ are more than 0.7 (Fornell & Larcker, 1981). Second, Cronbach’s alpha scores ranged from 0.701 to 0.875, with composite reliability scores ranging from 0.810 to 0.908, all of which are higher than the suggested value of 0.70, showing sufficient construct validity. Furthermore, all of the constructs have an AVE value greater than 0.50, implying that the latent variables have convergent validity.

4.4. Discriminant validity

The discriminant validity is “the extent to which one construct is empirically different from the other construct” (Fornell & Larcker, 1981). The Heterotrait-Monotrait Ratio (HTMT) is the average of a multitrait-multimethod (MTMM) matrix’s heterotrait-heteromethod correlations. The confidence intervals for the HTMT computed by bootstrapping were used in the statistical discriminant validity test (HTMTinference). It indicates good discriminant validity when the confidence interval does not contain the unit (Henseler et al., 2015). In Table 4, all of the heterotrait–monotrait (HTMT) values are less than 0.85. The discriminant validity of the study constructs is established if these criteria are met.

Table 4. Discriminant validity: Heterotrait-monotrait ratio statistics (HTMT)

	AWAR	(CHRT).	CULT	(DECI).	(INFRA)	(REC)	VALUE	(PER).
Contribution to improve the Local Community Awareness (AWAR).
Participation in charitable work during COVID-19(CHRT).	0.355
Supporting the local culture during COVID-19(CULT).	0.613	0.329
Involving the local community in decision-making during COVID-19(DECI).	0.387	0.329	0.668
Supporting basic projects during COVID-19(INFRA)	0.312	0.240	0.448	0.603
Employment-related procedures during COVID-19(REC)	0.337	0.243	0.482	0.563	0.568
Values, concepts and rules during COVID-19(VALUE)	0.255	0.368	0.124	0.188	0.198	0.095
Employees’ performance during COVID-19(PER).	0.186	0.308	0.100	0.107	0.209	0.180	0.208

4.5. Structural model evaluation

4.5.1. Collinearity in the structural model

The procedure outlined by (J. F. Hair et al., 2010) was followed to estimate the structural model in this study. First, the structural model shows minimal collinearity, as all VIF values are well below the commonly used cut-off criterion of 3 (J. F. Hair et al., 2010): see, Table 5. Second, the $R{}^2$ value of ECSR (0.199) exceeds the minimal value of 0.10 specified by (Falk & Miller, 1992), which is a desirable level (see, Table 6).

Table 5. Collinearity statistics (VIF)

	VIF
Contribution to improve the Local Community Awareness	1.236
Participation in charitable work during COVID-19	1.157
Supporting the local culture during COVID-19	1.300
Involving the local community in decision-making during COVID-19	1.499
Supporting basic projects during COVID-19	1.559
Employment-related procedures during COVID-19	1.430
Values, concepts and rules during COVID-19	1.204

Table 6. R squared

	R Squared	R Squared Adjusted
Employees’ performance during COVID-19	0.199	0.165

(Cohen, 1988)’s $f{}^2$ can be used to calculate the effect size for each effect in the path model. It tells you if an exogenous latent variable has a significant impact on an endogenous latent variable. The increase in $R{}^2$ relative to the proportion of variance of the endogenous latent variable that remains unexplained yields the impact size $f{}^2$. Cohen (1988) defined minor, medium, and large effects as $f{}^2$ values greater than 0.02, 0.15 and 0.35, respectively. Table 7 shows the $f{}^2$ values for the AWAR, CHRT, CULT, DECI, INFRA, REC, and VALUE in our model are 0.029, 0.050, and 0.228. 0.000, 0.039, 0.076, 0.014, 0.000, respectively, meaning poor and modest impacts.

Table 7. F squared

	PER
Contribution to improve the Local Community Awareness	0.029
Participation in charitable work during COVID-19	0.050
Supporting the local culture during COVID-19	0.000
Involving the local community in decision-making during COVID-19	0.039
Supporting basic projects during COVID-19	0.076
Employment-related procedures during COVID-19	0.014
Values, concepts and rules during COVID-19	0.000

4.6. Path analysis

The next stage in the PLS-SEM is to analyse the structural model, after analysing the measurement model and finding it satisfactory. This entails a statistical test, as well as hypothesized construct-to-construct relationships. The predicted values of path coefficients empirically supported two direct paths and rejected one path at a significance level of 0.05. Third, the significant levels of the path coefficients were measured using the bootstrapping approach (with 5000 bootstrap samples and 174 bootstrap cases), as shown in Table 8 (Joseph F Hair et al., 2010).

Table 8. Path analysis

Hypothesis	Path	f 2	T Statistics (|O/STDEV|)	P Values	Remarks
H1	AWAR -> PER	0.029	2.123	0.034	Supported
H2	CHRT -> PER	0.050	3.023	0.003	Supported
H3	CULT -> PER	0.000	0.154	0.878	Not Supported
H4	DECI -> PER	0.039	1.721	0.085	Not Supported
H5	INFRA -> PER	0.076	−3.268	0.001	Supported
H6	REC -> PER	0.014	−1.503	0.133	Not Supported
H7	VALUE -> PER	0.000	0.111	0.911	Not Supported

As illustrated in Table 8, hypotheses were tested using p-values and t-values. Joseph F Hair et al. (2014) stated that if the t-values are less than 1.65 and the p-values are more than 0.05, the hypothesis is unsupported at the 0.05 percent level of significance in a one-tail test. The results of the PLS estimation are shown in Table 8 and Figure 2. There is a significant positive relationship between contribution to improving the local community awareness during COVID-19 and work performance (path Coeff. = 2.123, p-value = 0.034,); participation in charitable work during COVID-19 and performance (path Coeff. = 3.023, p-value = 0.003). It was found that there is a significant negative relationship between supporting basic projects during COVID-19 and performance (path Coeff. = −3.268, p-value = 0.001). It was also found that there is no significant positive relationship between involving the local community in decision-making during COVID-19 and job performance (path Coeff. = 1.721, p-value = 0.085).

Figure 2. The results of PLS.

On the other hand, there is no significant positive relationship between supporting the local culture during COVID-19 and job performance (path Coeff. = 0.154, p-value = 0.878); employment-related procedures during COVID-19 and job performance (path coeff. = −1.503, p-value = 0.133); or values, concepts and rules during COVID-19 and job performance (path Coeff. = 0.111, p-value = 0.911).

5. Discussion

This study aimed to investigate the impact of external corporate social responsibility on job performance during COVID-19, using a sample of 174 employees in the tourism and hospitality industry. The authors used the city of Hail in the kingdom of Saudi Arabia as a case study. This study adds to the existing conversation by identifying, screening, and categorizing ECSR activities and their consequences on employees` performance. Given that most of the empirical research in this field has concentrated solely on environmental practices, this study takes a comprehensive look at the current state of ECSR in the tourism and hospitality business.

CSR may be seen as an important intangible asset for an organization that contributes much to job performance. Our findings suggest that participation in charitable work during COVID-19, contribution to improving the local community awareness and supporting basic projects during COVID-19 are associated with job performance. Our findings are similar to the findings obtained by (Evans et al., 2011; Kim, 2014; Story & Castanheira, 2019). The probable reason for the significant relationship between these specific actions and job performance could be attributed to the staff`s perception that these actions are better than in other establishments. Thus, these employees might feel motivated to do their best to perform better. This is an indication that the presence of these specific initiatives in an establishment can translate into high job performance. Consequently, these initiatives may persuade many employees to be committed ethically to their organization, which in turn is reflected in their performance. Employees are more inclined toward organizations that honestly and sincerely embrace CSR activities and have a positive reputation for socially responsible behaviour, according to the SIT theory (Sen et al., 2006). Employees believe that firms with a high reputation in society require them to perform successfully. Furthermore, employees respond to organizations that satisfy all stakeholders with increased productivity and performance. As a result, CSR policies can be inferred to change employee behaviour and have a substantial impact on their performance. The outcomes of this study may also motivate managers to participate in initiatives designed to improve CSR activities in order to improve their employees ` performance. For example, the HR department could inform employees about the company’s CSR initiatives and share this information with new employees during their orientation sessions. as

In fact, local community development initiatives undertaken by tourist establishments at Hail city are critical not only from the viewpoints of employees but also for the potential tourists to this city. In this context, several researches were conducted to evaluate the perceptions of tourists about CSR practices in certain cities. For instance, Borges et al. (2019) found that confirmed that the CSR image, community, environment, and consumer domains all have a significant influence in understanding the city of Porto’s social responsibility initiatives. Tran (2018) show that all dimensions of destination social responsibility, such as economic, environmental, legal–ethical, and philanthropic responsibilities, significantly improve tourists’ emotions, while only legal–ethical and philanthropic responsibilities have a direct impact on tourists’ satisfaction. Amanda and Agfianto (2021) concluded that CSR in tourism will meet its goal and be sustainable if it is backed up by community involvement, and the development of tourist destinations with CSR programs must be tailored to the qualities and resources available in the Jambangan tourism village’s residential area. Yudha et al. (2019) conducted a study taken place in Jodipan, Malang City’s Kampung Warna Warni (Colourful Village). The findings of this study show that social capital is a key factor in the growth of urban tourism. The collaborative governance strategy is effective in developing tourism destinations by building social capital in a long-term manner.

On the other hand, our findings suggest that supporting the local culture during COVID-19, employment-related procedures during COVID-19, and values, concepts and rules during COVID-19 are not associated with job performance. These results are similar to Chaudhary’s (2018) findings, which revealed that the importance of CSR has little bearing on how CSR influences employee behaviour.

This contradictory finding adds to the value of our research in terms of the model’s explanatory power, indicating that there are other paths that link ECSR to job performance. If these activities were lacking, then ECSR initiatives would fail to improve job performance. This insignificant link could also be due to Saudis’ cultural homogeneity.

In addition, it seems that employees are against recruiting new staff because their professional future is threatened because of the COVID-19 crisis, which contributes negatively by reducing wages and laying off employees under the pressure of financial losses for their establishments. These findings are similar to the findings obtained by (Dewhurst et al., 2009; Zhang et al., 2021), who showed that corporate philanthropy is unlikely to cause noticeable changes in employee behaviour and performance.

6. Conclusion

Highly competitive organizations are often intentionally blending CSR initiatives into their organizational core principles to achieve maximum effects. Despite significant efforts to undertake critical research into tourism CSR, this subject of study is at a critical juncture in its development. The relationships between ECSR and employee performance have been disregarded in academic research on tourist CSR. Tourism is becoming one of the world’s most important industries. As a result, this research developed an assessment ECSR-EP model for the tourism industry to aid practitioners in deploying ECSR practice in an industry-specific manner and evaluating employee performance during the Covid-19 crisis for long-term competitive advantage. We used a quantitative technique, which included a structured questionnaire to investigate appropriate factors such as external corporate social responsibility initiatives and employee performance. Then we looked at the casual relationships. This study is an attempt to propose several external corporate social responsibility actions that have an impact on employee performance. Specifically, the establishment of a measurement scale within the recent context of COVID-19 at Hail city is the study’s unique contribution. To construct relevant items, the scale creation process started with a thorough assessment of the literature in the broad context of social responsibility and social responsibility and job performance. Hypothesis one predicted significant and positive effects of participation in charitable work during COVID-19 on employee performance. Hypothesis two predicted significant and positive effects of contribution to improving the local community awareness during COVID-19 on employee performance. Hypothesis three predicted significant and positive effects of supporting the local culture during COVID-19 on employee performance. Hypothesis four predicted significant and positive effects of supporting basic projects during COVID-19 on employee performance. Hypothesis five predicted significant and positive effects of employment-related procedures during COVID-19 on employee performance. Hypothesis six predicted significant and positive effects of Values, concepts and rules during COVID-19 on employee performance. Hypothesis seven predicted significant and positive effects of involving the local community in decision-making during COVID-19 on employee performance. This study increases our understanding of the effect of ECSR on employees’ performance. Items relating to employees` performance and ECSR are all retained in the analysis, suggesting that items of the two constructs are significantly related. The path analysis confirms a positive relationship between participation in charitable work during COVID-19, contribution to improving the local community awareness and supporting basic projects during COVID-19 and employees` performance. Furthermore, the results also show that supporting the local culture during COVID-19, employment-related procedures during COVID-19, and values, concepts and rules during COVID-19 are not associated with job performance. The authors hope that this study will contribute to the academic debate on external CSR and its effect on employees` performance. The value of CSR for the local community is also tested and supported in this paper. Companies must integrate CSR programs and policies into their business strategic missions, making it easy for employees to engage in and assess programs so that businesses may benefit from a motivated, knowledgeable, and well-organized workforce. Even though that many of the cases in the literature came from enterprises outside of the tourist and hospitality industry, tourism businesses should be able to adapt and integrate these techniques with their programs. The benefits of CSR activities exist within a business, according to this study. Employees become connected with their business and content with their employment when they believe their company attempts to develop and implement socially responsible activities, and as a result, they perform better at work. Employee perceptions of CSR behaviors have been demonstrated to raise the returns on such behaviours indirectly, even though the primary goal of an organization’s CSR initiatives is not to improve internal performance.

7. Limitations & future research

There are certain limitations to this study that could be explored further in the future. The study sample was limited to Saudi Arabia. However, the results are consistent with non- Saudi Arabian studies, although the study findings cannot be generalized to other geographical backgrounds. This study also reviewed limited literature concerning the impact of ECSR on job performance. Escalating and intensifying the research model by including more variables (such as work experience, and administrative level) may be useful for future study. A cross-sectional and a longitudinal study might be needed to update and strengthen the relationships established by this study model. Finally, such research might be carried out in other nations and the data cross-analysed to broaden the scope of the findings.

8. Implications

Our findings had several theoretical and practical consequences. In terms of theoretical implications, first, our research extended the limited understanding of corporate social responsibility and job performance. We drew attention to corporate social responsibility in the tourism and hospitality industry. Most of the past studies about tourism and hospitality industry performance have discussed operating and financial performance, but job performance is rarely researched in tourism and hospitality industry. The present study has several implications for CSR and job performance literature. From a theoretical perspective, the current study is the first that simultaneously investigates the association between CSR and job performance during COVID-19 in Saudi Arabia. The results of our study can help managers to direct their attention toward understanding the importance of practicing corporate social responsibility and job performance. To build competitive advantages, tourism enterprises must make use of their valuable resources. This study’s findings provide practical guidance on the most significant and influential steps practitioners may take to achieve optimal CSR performance. The results revealed that corporate social responsibility practices could enhance the job performance of employees. Therefore, managers of tourism and hospitality establishments should focus on adopting CSR practices so that they can improve overall job performance. Owners and managers can develop effective ECSR strategies to maximize the job performance of their staff and improve the reputation of tourism and hospitality establishments’.

Managers should be mindful that whatever rules or actions they make will generate a reciprocal response from their staff since people notice and care about socially acceptable approaches. We also feel that if managers want to improve their employees’ job performance, they should more regularly demonstrate and communicate their ethical contributions to them. Participation of employees in such activities may also be a good idea.

To succeed in the future, tourism and hospitality businesses in Hail City will need to continually develop and implement CSR activities. They must make economic growth in the Hail region a priority by creating jobs, promoting local products and services, honouring values and culture, and speaking honestly with residents. Cooperating with the local community may aid in the preservation of close bonds. The ability of these businesses to meet the needs of persons affected by their operations is crucial to their long-term survival. They must also take the necessary steps to decrease energy consumption, prevent waste, promote recycling, and demonstrate that corporate environmental protection standards are critical in making Hail City a sustainable destination. Furthermore, officials from the city of Hail must work cooperatively with various tourism investors to promote social responsibility initiatives. Increased investments in socially responsible conduct are expected to bring long-term economic benefits.

Acknowledgements

This research (RG-20135) was supported by the deanship of scientific research, Hail, University, Kingdom of Saudi Arabia. Therefore, we would like to extend my sincere gratitude to all staff of the deanship of scientific research for their great efforts and for their continuous assistance.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Tarek Sayed Abdel Azim Ahmed

Alomran holds a Ph.D. degree in Tourism management. His research interests include tourism marketing and e-tourism. Tarek Abdelazim Ahmed is a professor at the faculty of Tourism and Hotels, Minia University, and the Department of Tourism and Archaeology, Hail University. He holds a Ph. D. degree in Economics from La Rochelle University, France. His research interests include tourism economics, cultural heritage, tourism marketing, human resources in tourism, and e-tourism. Abdallah Al-Ajloni was awarded a Ph.D. degree from Sains Malaysia University and received a master’s degree in tourism geography from the Aligarh Muslim University (AMU) in India. His research interests include tourism Geography. As a precedent dean of the Higher Institute of Tourism and Hotels in Ismailia, Egypt. Prof. Ayman Kassem is an expert in Tourism satellite accounts. Professor Manal Elkholy is the dean of the Higher Institute of Tourism and Hotels in Ismailia “EGOTH”. She holds a Ph.D. degree in Food Technology from Cairo University. Eman Shaker is a lecturer at King Marriot institute. She Hold A Ph.D. degree in tourism studies. Her research interests include tourism management and human resources.