How CSR serves as a preventive mechanism for coping with dysfunctional customer behavior

Based on empirical results involving 237 frontline service employees (FSEs) of a South Korean insurance company, this study reveals how FSEs’ views of their company’s corporate social responsibility (CSR) performance impact both their customer orientation and self-efficacy of their work. This marks the first study to demonstrate how the psychological mechanisms of CSR vary by stakeholder perspectives. CSR initiatives aimed at internal stakeholders (i.e., employees) made a stronger impact on FSEs’ beliefs to successfully perform their jobs. CSR initiatives directed at helping charitable organizations and other groups of external stakeholders were shown to strengthen FSEs’ customer orientation. Strengthening FSEs’ levels of empathy and self-efficacy diminish their revenge intentions in response to dysfunctional customer behavior.