Does corporate social responsibility impact on employee engagement?

Abstract

Purpose-Despite the claim that internal corporate social responsibility plays an important role, the understanding of this phenomenon has been neglected. This paper intends to contribute to fill this gap by looking into the relation between CSR and employee engagement. Design/methodology/approach-A survey research was conducted and three different groups of respondents were faced with three different CSR scenarios (general, internal, external) and respondents' employee engagement was measured. Findings-The results show that there are no statistically significant differences in levels of engagement between employees exposed to external and internal CSR practices. Nevertheless, employees exposed to internal CSR are more engaged than those exposed only to external CSR practices. Research limitations/implications-The use of scenarios, although a grounded approach, involves risks, including the difficulty of participants to put themselves in a fictional situation. Also, the scale used to measure employee engagement puts the emphasis on work rather than on the organisation. Practical implications-Although this study is not conclusive it raises the need for companies to look at their CSR strategy in a holistic approach, i.e. internal and external. Originality/value-This paper represents a contribution to understand CSR strategic status and the need to enlighten the impact that social responsible practices can have on employees' engagement.

Exploring the Relationship between Corporate Social Responsibility, Employee Engagement, and Organizational Performance: The Case of Jordanian Mobile Telecommunication Companies

“…Corporate social responsibility can be defined as an ongoing commitment made by organizations to act in an ethical manner and enhance economic development while improving the quality of life of employees and their families, local community, and society as a whole [7] [30] [31]. Corporate social responsibility can also be seen as "the firm's considerations of, and responses to, issues beyond the narrow economics, technical, and legal requirements of the firm to accomplish social [and environmental] benefits along with the traditional economic gains which the firm seeks" ( [32], p. 234). The idea behind corporate social responsibility is that organizations should try to achieve a balance between profits achieved and expenses made by maximizing the positive influence and minimising the negative effects in achieving the contribution for society [33].…”

“…According to [43], internal CSR focuses on what can be done inside in the organization to improve the well-being of employees, their lives, and productivity, which in turn affects the organization's profitability and bottom line. Internal CSR practices refer to "CSR practices which are directly related with the physical and psychological working environment of employees" ( [32], p. 234). This focus on employees is due to the fact that they are considered very important internal stakeholders to the organization [44].…”

“…External corporate social responsibility refers to corporate socially responsible actions directed outside the boundaries of the organization [32]. [43] reported that external CSR promotes positive impacts of activities and operations on society and the natural environment.…”

“…These three facets will be basis for measuring employee engagement in this study based on the study conducted by [32].…”

“…According to [32], dedication is all about the mental and emotional state that reflects a sense of significance, enthusiasm, inspiration, and pride on experience. A person cannot be labelled as dedicated without the presence of such factors.…”