It is well-established that corporate social responsibility (CSR) is an asset that companies can leverage to improve relationships with customers. So far, most research has concentrated on consumer responses to a company's CSR initiatives. Yet, extant research on internal marketing reveals that a second way that CSR may improve customer relationships is by motivating its workforce to identify and fulfill customer needs. This research asks whether and how a company's CSR activity is related to its employees' customer orientation, that is, the degree to which an employee seeks to satisfy long-term customer needs. Based on insights from internal marketing and social identity theory, it is posited that the effect of CSR activity on customer orientation is mediated by two distinct processes whereby employees: (1) identify, or develop a sense of oneness with customers, and (2) derive psychological job benefits related to the CSR initiatives. The research contributes to the literature by showing that marketing a company's CSR initiatives to internal customers (i.e., frontline employees) can improve its ability to satisfy external customers. Support for the model is found in a field study of 475 frontline employees in the retail and hospitality industries. The results suggest that managers who wish to leverage CSR activity in order to enhance customer orientation need to implement initiatives that both employees and customers find compelling, encourage participation in CSR activity whenever possible, and communicate in straightforward terms how the company's CSR initiatives have a positive impact on society and the environment.
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