Does Employee Quality Affect Corporate Social Responsibility? Evidence from China

Shilu Sun,Nelson Duarte,Hong Ma,Xiao-Guang Yue,Tiantian Li,Kostas Gouliamos,Jianming Zheng,Rita Yi Man Li,Yan Han,Teresa Barros,Otilia Manta,Ubaldo Comite

doi:10.3390/su12072692

Abstract

This paper investigated the impact of employee quality on corporate social responsibility (CSR). Based on data from China A-share-listed companies for the years 2012–2016 and using ordinary least squares, our empirical results show that the educational level of the workforce, as a proxy for employee quality, is positively associated with CSR, which suggests that higher education can promote CSR implementation. Additional analyses found that this positive relationship is more pronounced in non-state-owned enterprises, enterprises in regions with lower marketisation processes, and firms with lower proportions of independent directors. This study extends the literature on human capital at the level of firms’ entire workforce and CSR by elaborating the positive effect of employee quality on CSR in the context of an emerging economy (China). The results suggest that it is necessary to consider the educational level of employees when analysing CSR, which is of strategic significance for corporate sustainable development.

Highlights

Employees are the most valuable assets of an enterprise and the key source of its competitive advantage, a view that has become a consensus in theoretical and business circles
The educational backgrounds of employees are positively related to corporate social responsibility (CSR) (CSR_score, with significance at 1% level; CSR_rating at 5%), which shows that the higher the educational level of employees, the better the CSR performance
Even though the CSR literature seems to suggest that education, in some circumstances, can have an influence on CSR attitudes, perceptions, and expectations, the present study attempts to understand in more detail how CSR is influenced by the educational level of employees

Summary

Introduction

Employees are the most valuable assets of an enterprise and the key source of its competitive advantage, a view that has become a consensus in theoretical and business circles. Corporate social responsibility (CSR) is an important strategy for managing the relationship between an enterprise and its internal and external stakeholders [3]. Enterprises participating in charitable activities and fulfilling environmental responsibilities can help them obtain valuable resources from the government [4]. It has become a trend for enterprises to take the initiative to assume social responsibility in China against the backdrop of advocating sustainable development [5]. It is reasonable to ask, does employee quality as a key element of corporate culture have an impact on CSR?

Methods

Results

Conclusion