EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY ON EMPLOYEE LOYALTY: A STUDY ON MULTINATIONAL COMPANIES (MNCS) IN BANGLADESH

Abstract

Corporate social responsibility (CSR) is considered as a strategic marketing tool since it brings benefits to the society and environment. It has significant influence on employee loyalty too. This study was conducted with the objective of examining the relationship between CSR and employee loyalty within the context of multinational companies (MNCs) operating in Bangladesh. Three dimensions of CSR (CSR towards employees, CSR towards community, and CSR towards customers) were incorporated to investigate the relationship between CSR and employee loyalty. A total of 100 employees working in MNCs operating in Bangladesh participated in the study. Data were collected through a self-administered questionnaire survey. The study hypotheses were tested using correlation and multiple regression analysis tools. The study findings confirm that CSR towards employees and CSR towards community have a significant positive influence on employee loyalty. However, the study findings fail to prove significant relationship between CSR towards customers and employee loyalty though the relationship is found significant in many other studies. The study findings have substantial importance to the HR professionals and organizational decision makers who are actively seeking for developing loyal employees in order to gain competitive advantages and improve organizational performances.