Employee engagement is an important issue in management theory and practice. However, there are still major differences in the concept, theory, influencing factors and outcomes of employee engagement, and there is still no authoritative standard. This paper attempts to review and summarize previous research results on employee engagement. Two kinds of definitions of employee engagement are identified: employee engagement as a multi-faceted construct (cognition, emotions and behaviors) and as a unitary construct (a positive state of mind, a dedicated willingness, the opposite of burnout). Three theoretical frameworks are used to explain the varying degrees of employee engagement: Needs-Satisfaction framework, Job Demands-Resources model and Social Exchange Theory. The influencing factors of employee engagement are divided into three categories: organizational factors (management style, job rewards, etc.), job factors (work environment, task characteristics, etc.) and individual factors (physical energies, self-consciousness, etc.). Employee engagement is found to have a positive relationship with individual performance (organizational commitment, positive behavior, etc.) and organizational performance (customer satisfaction, financial return, etc.) The research findings show that there are three shortcomings in previous studies: lack of research on demographic variables, personality differences and cross-cultural differences in employee engagement, lack of research on the mediating or moderating role of employee engagement, and lack of intervention mechanism for employee engagement.
Purpose – The purpose of our paper is to empirically examine the conjectures, which prior literature suggests, that employees work more productively in socially responsible companies and employees are willing to work for less when they work for these companies. Design/methodology/approach – This study uses ordinary least squares regression to examine the relationship between corporate social responsibility (CSR) and employee performance and between CSR and employee cost. Further, 2SLS is used to address the endogeneity issue. Findings – The results indicate a positive relation between CSR and employee performance, suggesting that employees in socially responsible companies generate better operating performance than their peers in less socially responsible companies. Findings also reveal that socially responsible companies incur higher labor cost. Research limitations/implications – First, the CSR ratings constructed by KLD Inc. are an approximate measure of CSR performance. Better CSR measures may yield stronger results. Additionally, the sample firms in our study are relatively large firms. Caution needs be exercised when readers generalize these conclusions. Finally, this sample only consists of public firms. Whether these conclusions hold in private firms remains unknown. The above issues can be investigated in future studies. Practical implications – The findings of our study should interest managers who contemplate engaging in socially responsible activities, investors and financial analysts who assess firm performance and policymakers who design and implement guidelines on CSR programs. Originality/value – This is the first paper that directly tests the association between CSR and employee performance and cost. Thus, this study contributes to the CSR literature by offering evidence to show a positive effect of CSR on employee performance. It also contributes to the management accounting literature.
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