Does the Practice of Employee Volunteerism Affect Workforce Reduction and Defective Product Issues? Evidence from India

Abstract

This study examines employee volunteerism’s effect in preventing workforce reduction and reducing product quality issues in India. The study used the social identity theory to explore the relationship between employee volunteerism and workforce reduction and product quality issues. A sample size of 800 firm-year observations between 2010 and 2019 was utilised. Descriptive analysis, probit regression and panel probit regression were employed for data interpretation. The study shows that employee volunteerism does not prevent but instead increases workforce reduction of listed firms in an emerging economy. The research also shows that employee volunteerism is insignificant in reducing product quality issues.