Implications of CSR initiatives on employee engagement

Abstract

Purpose This paper aims to study the implications of corporate social responsibility (CSR) on employee engagement in selected Indian business giants to which CSR spending is mandatory as per the Companies Act 2013. Researcher also has an intention of preparing working model for increasing employee engagement through CSR. Design/methodology/approach Researcher has collected the primary data from HR officials, CSR officials and employees of 23 organisations belonging to 10 main industrial sectors of India. The organisations selected for the data collection belong to India’s top 100 organisations as per Bombay Stock Exchange fulfilling a particular criterion. The effect of employee participation in CSR on employee engagement is been studied by identifying four parameters of employee engagement on which the employee participation in CSR may have some effect. The data are analysed with the help of Z test for proportion. Findings The major findings of the paper of the study includes that employee participation in CSR positively effects the employee engagement, as it helps in increasing four specifically identified parameters of employee engagement. Research limitations/implications The study is limited to the specific area of the effect of employee participation in CSR on employee engagement that too with respect to selected Indian business giants. Practical implications On the basis of this study, a theoretical model of CSR and employee engagement is proposed at the end of this paper. The model is expected to work as a guideline to the organisations, which want to improve employee engagement through CSR. Originality/value This research is one of its kinds that study the effect of employee participation in CSR on employee engagement. Moreover this research study considers the selected large-scale businesses of India which is the only country having 2% mandatory CSR spending to the organisation fulfilling the specific criteria.