Mediating Role of Internal Corporate Social Responsibility in the Relationship of Human Resource Management and Organizational Commitment

Date

5-2026

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Melodee Marciana E. De Castro

Committee Member

Jeanette Angeline B. Madamba Ma. Teresa A. Acda Nanette A. Aquino

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Abstract

This study examined the mediating role of internal Corporate Social Responsibility (CSR) in the relationship between Human Resource Management (HRM) and the three dimensions of organizational commitment—affective, continuance, and normative commitment—among merchandisers of the Fresh Fruit Distribution Company. The study was anchored on the role of merchandisers as frontline employees in fresh produce distribution, particularly because they handle product display, inventory monitoring, stock replenishment, quality control, store coordination, and branch-level sales support.

The study focuses on a fresh produce distributor, which operates mainly in Luzon. The company supplies imported and local fresh fruits to major grocery chains, particularly the SM Group, along with selected MerryMart groceries, a Pioneer Center grocery, and walk-in clients. Given this business model, the company depends heavily on field-based merchandisers to sustain daily operations and sales performance. From a Strategic Human Resource Management Perspective, people management becomes important because the growth objectives of the company require reliable, trained, motivated, and committed merchandisers who can maintain consistent store-level performance. If merchandisers’ organizational commitment is not sustained, this may lead to workplace grievances, weak motivation, absenteeism, turnover intentions, and inconsistent performance, which may weaken product quality control, disrupt retail partner coordination, and limit its capacity to support product-line expansion and wider market reach.

Methodologically, the study used an embedded case research design with explanatory sequential mixed-methods. Data collection was composed of three phases. The preliminary key informant interviews with key company representatives were first conducted to establish the organizational context. The quantitative phase followed through a survey administered to merchandisers, with 151 valid responses out of the target population of 176 merchandisers, equivalent to an 85.80% response rate. The survey measured perceived HRM implementation, internal CSR initiatives, and organizational commitment using adapted instruments. Quantitative data were analyzed through descriptive statistics, cross-tabulation, and PLS-SEM using a Type II Reflective-Formative Higher-Order Model. Afterwards, the qualitative phase involved interviews with six merchandisers selected across age groups to explain the quantitative findings. Their responses were analyzed through directed content analysis and integrated with the quantitative results through a joint display matrix.

The company profile showed that, at its current state, the HRM system of the business lacks detailed, formalized structure and guidelines, relying on its Code of Conduct. HR functions are distributed across payroll, HR, and admin support, hiring personnel, supervisors, and management. Its HRM practices include referral-based and social media recruitment, on-the-job training, branch-based monitoring, concern-triggered performance evaluation, minimum wage compensation, and a sales incentive system. Meanwhile, its internal CSR initiatives are reflected in communication channels, rest days, approved absences, vitamins, fruits, grocery packs, rice assistance, and informal career mobility opportunities. On the other hand, the merchandiser profile showed that the workforce was mostly composed of working-age adults, with the largest group belonging to the 30-34 age bracket. Male respondents slightly outnumbered female respondents, and more than half of the merchandisers had no more than three years of experience. Furthermore, the majority of the respondents were high school graduates, reflecting a workforce with a basic educational background.

The findings showed that HRM implementation was generally perceived positively, with an overall aggregate mean of x̄ = 3.96, interpreted as Agree. This means that merchandisers generally agreed that HRM practices existed and were implemented in the company. Among the HRM dimensions, Involvement received the highest rating (x̄ = 4.30), interpreted as merchandisers strongly agreeing that they experienced involvement practices such as respectful treatment, mutual trust, management consistency, and participation in work-related matters. This was followed by Recruitment and Selection (x̄ = 4.15), Work Conditions (x̄ = 3.99), and Training, Development, and Education (x̄ = 3.97), all interpreted as Agree. These results show that the respondents generally agreed that the company practices fair hiring, provides acceptable work conditions, and offers task-related learning. However, Competency-Based Performance Appraisal was lower (x̄ = 3.78), though still interpreted as Agree, while Compensation and Rewards was the weakest HRM dimension (x̄ = 3.33), interpreted as Neutral. This suggests that merchandisers were less certain that appraisal and rewards were consistently linked to performance, skills, or clear criteria. The qualitative findings supported these results by showing that training remains largely informal and peer-led, appraisal is not yet regularly systematized, and compensation is mostly minimum-wage-based with branch quota incentives that do not always reflect individual effort.

For internal CSR, the overall mean was x̄ = 3.89, also interpreted as Agree, which shows that merchandisers generally agreed that the company has employee-oriented initiatives. Labor Relations received the highest rating (x̄ = 4.22), interpreted as Strongly Agree, suggesting that the respondents strongly agreed that positive workplace relationships, cooperation, and a sense of belonging were present. This was followed by Social Dialogue (x̄ = 4.12), interpreted as the respondents generally agreeing that they had communication channels and opportunities to raise concerns. For Work-Life Balance (x̄ = 3.81), it also indicated that merchandisers generally recognized some flexibility through rest days, approved absences, and consideration for personal needs. However, Career and Employability Support (x̄ = 3.67) and Health and Safety (x̄ = 3.63) were lower, but still interpreted as Agree. This means that while employees recognized some support in career development and welfare, these areas were not perceived as strongly implemented. Interview findings supported this by showing that employees can communicate through group chats and calls, but health assistance remains basic, and career advancement is still mostly informal.

Organizational commitment was weaker, with an overall mean of x̄ = 3.39, interpreted as Neutral. This means that merchandisers were generally uncertain in their level of commitment to the company. Among the three dimensions, Normative Commitment was highest (x̄ = 3.47), interpreted as Agree, suggesting that merchandisers generally felt some sense of loyalty, obligation, or moral responsibility to remain with the company. This was followed by Affective Commitment (x̄ = 3.41), also interpreted as Agree, indicating some emotional attachment and positive feelings towards the organization. Meanwhile, the Continuance Commitment was lowest (x̄ = 3.32), interpreted as Neutral, meaning that the respondents were uncertain whether staying was mainly due to the costs, risks, or lack of alternatives associated with leaving. Although the quantitative results showed only moderate commitment, the qualitative findings revealed that continuance commitment was the most prominent in employees’ actual explanations for staying. Many merchandisers stayed because of financial need, family responsibilities, job stability, and limited alternatives, rather than a strong emotional attachment to the company. This indicates that commitment is present, but it is conditional and practical rather than deeply rooted.

The age-based findings showed that merchandisers aged 25–29 consistently reported the highest levels of HRM, internal CSR, and organizational commitment. For HRM, this group recorded the highest overall mean of x̄ = 4.16; for internal CSR, x̄ = 4.21; and for organizational commitment, x̄ = 3.73. In contrast, merchandisers aged 45 and above consistently reported the lowest ratings, especially in work conditions, training, health and safety, career support, and overall commitment. These findings indicate that the company’s current practices are more positively experienced by early-to-mid career merchandisers, while older merchandisers may need stronger support in health, welfare, career development, and long-term retention.

The PLS-SEM results provided the central conclusion of the study. HRM did not have a significant direct effect on affective, continuance, or normative commitment. However, internal CSR had significant effects on all three commitment dimensions, with strong effects on affective and normative commitment and a modest effect on continuance commitment. HRM also had a very strong influence on internal CSR (β = 0.910), showing that HRM serves as the foundation through which internal CSR is experienced. The mediation results confirmed that internal CSR explains how HRM influences organizational commitment. Internal CSR fully mediated the relationship between HRM and affective commitment (VAF = 86.40%) and partially mediated the relationships with continuance commitment (VAF = 61.42%) and normative commitment (VAF = 76.97%). These results show that HRM practices become more meaningful to employees when they are experienced through fairness, support, welfare, and care.

Based on the findings, the study recommends that the Fresh Fruit Distribution Company develop a formal Strategic HR Handbook or Employee Manual to consolidate its fragmented HRM and internal CSR practices and align them with the company’s business objectives. The company should also revise its sales incentive system by retaining branch-based quotas but adding individual performance criteria, given that Compensation and Rewards was the weakest HRM dimension (x̄ = 3.33). In addition, it should standardize its performance appraisal system through a simple KPI-based form linked to coaching, incentives, and promotion readiness, as appraisal remains informal despite a moderate rating (x̄ = 3.78). The Code of Conduct should also be revised, particularly the PRIMER section on the effects of disciplinary action on career improvement, by adding corrective coaching for minor or first-time offenses, clearer NTE and hearing procedures, and improved whistleblower feedback timelines to make discipline more developmental and fair. Lastly, the company should strengthen internal CSR by creating a basic health and safety support package, implementing structured onboarding and pre-deployment training, and formalizing a career pathway from merchandiser to senior merchandiser, team leader, and area manager, since health and safety (x̄ = 3.63) and career and employability support (x̄ = 3.67) were among the weaker internal CSR areas.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2026 M17 E84

Notes

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Award: Best SP Award (Management Track)

Document Type

Thesis

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