The Role of Social Responsibility and Ethics in Employees’ Wellbeing

Abstract

Social responsibility (SR) is a concept or practice by which organizations take into account the interest of society by taking responsibility for the impact of their activities on all stakeholders. The SR of organizations implies ethical behavior concerning all stakeholders and a company’s commitment to the sustainable economic development of society. Organizational ethics is a set of written and unwritten codes of principles and values that govern decisions and actions within an organization. Ethics has a rather internal perspective, while social responsibility has a rather external perspective. This study examines the impact of social responsibility and organizational ethics on employees’ wellbeing. To perform the empirical analysis, we conducted a survey among 423 employees from Romanian organizations. Using the structural equation modeling, we analyzed the relationships between social responsibility, organizational ethics, and employees’ wellbeing, emphasizing the positive impact of ethical and responsible behavior of the organization on the employees’ wellbeing. The organization’s employees play a dual role: firstly, they are all internal stakeholders, and secondly, they are constituents of an external stakeholder essential for the organization—the community. The results show a significant positive influence of social responsibility and organizational ethics on employees’ wellbeing as a result of a responsible and ethical behavior in relation to the organizational stakeholders.

ESG performance and corporate value: Analysis from the stakeholders’ perspective

“…For employees, the positive ESG practice of enterprises can first directly improve the wages and benefits of employees, focus on employee skills training and health security problems, and provide a better working environment, which can largely avoid negative behaviors and turnover intentions of employees, improve work enthusiasm and attract better employees (Hui, 2021). Moreover, the corporate image shaped by good ESG performance can stimulate employees' pride in their work and identification with enterprises, and increase their happiness (Li et al, 2020;Bocean et al, 2022), while higher employee identification and satisfaction contribute to the improvement of work efficiency and performance, which indirectly increases corporate value (Wang and Luo., 2013). For management, high-quality corporate ESG performance can also affect managers' own reputation and salary levels.…”

Significance of the Work Environment and Personal Resources for Employees’ Well-Being at Work in the Hospitality Sector

“…The work environment has an important impact on employees’ well-being since employees spend considerable amounts of time at work during their lives. Previous studies indicated that elements of the work environment such as job demands, job control, and social support significantly impacted employees’ well-being and other work-related outcomes [ 21 , 22 , 23 ]. Karasek Jr. [ 24 ] developed a model where these three elements were integrated into the so-called job demand-control-support (JDCS) model.…”