Abstract
Purpose – This paper investigates the relationship between corporate social responsibility practices geared towards stakeholder employees and the competitiveness and productivity of Brazilian banks. Design/methodology/approach – We carried out two association statistical analyses between the proxies of competitiveness and the variables that indicated of internal social responsibility: the Jonckheere- Terpstra test and regression analysis with Feasible Generalized Least Squares (FGLS) modeling. The sample is made up of 21 banks listed in BM&FBovespa over the 2010-2014 period. Findings – The survey shows that corporate social responsibility practices geared towards employees impact the financial performance of banks. Employees’ salaries positively affected financial performance, and the latter was negatively affected by the rate of outsourcing, both explained by greater employee productivity. Employee turnover and female participation in management and governance bodies are directly related to competitiveness indicators, in a negative and positive way, respectively, with no regard to employee productivity. Originality/value – Banks that offer better CSR practices to their employees present greater financial gains and increased employee productivity. There are specific items that have the potential to lead to a competitive status, adding value to businesses and employees. This research argues that managers should identify the CSR practices that add value to their companies and the benefits derived from value allocation to employees.
Highlights
There is a multiple dependence relationship between companies and interested parties in the process of raising funds and supplying goods and services
The variables the banks’ websites. Outsourcing (TERC), TURN, PFGG, Benefits provided (BENEF), CRESC_REC, and Return on assets (ROA) are expressed in percentage
The results found through models 1, 3 and 5, given in Table 4, show that outsourcing has a negative effect on both ROA and competitive performance
Summary
There is a multiple dependence relationship between companies and interested parties (stakeholders) in the process of raising funds and supplying goods and services In this context, corporate social responsibility (CSR) is approached as a company’s moral obligation to society, and as a means of aligning the company’s interests with those of its stakeholders so as to reduce hazards and ensure business continuity. CSR practices can be internal (i.e., geared towards employees), external (i.e., towards the external public – such as customers, government, and suppliers) – and environmental (i.e. towards environmental preservation) (Crisóstomo, Freire, & Vasconcelos, 2011). Amongst these dimensions, internal CSR is a primary vector for financial performance, since employees supply the workforce necessary to productive activities. Internal CSR is even more relevant to financial performance, and it may be a source of competitive advantages. Bartel (2004) suggests that direct contact between customers and employees in the service sector requires the extensive adoption of socially responsible practices
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