Internal Corporate Social Responsibility as a Microfoundation of Employee Well-Being and Job Performance

Abstract

Very drastic environmental changes require the development of an adaptive performance management framework that supports the strengths of the company’s structure. The position of internal CSR as a resource that can solve performance problems needs to be proved. The purpose of the study was to analyze the effect of internal corporate social responsibility on job performance through employee well-being. To this end, this causal study surveyed 282 non-managerial employees at four strategic industrial state-owned enterprises in Indonesia. The respondents were recruited using the proportional random sampling technique. The collected data were analyzed using SEM with SPSS 26. The results showed that changes in job performance can be predicted by the adequacy of work resources and personal resources. Both resources can be realized by the existence of corporate social responsibility intended for employees. Internal corporate social responsibility was found to encourage increased work engagement and decrease burnout, which ultimately improves job performance. Internal CSR is an important personal and work resource for employees. Internal CSR is the company’s main orientation in an effort to strengthen the company’s performance structure while ensuring the implementation of the company’s ethical responsibility in its environment. From the theoretical perspective, this study implied the need for exploring the concept of internal corporate social responsibility to expand our understanding of the relationship between corporate social responsibility and personal and work resources and employee performance. Meanwhile, the practical implications of this study highlight the importance of microlevel corporate social responsibility programs to meet personal and work resource needs so that companies benefit from high employee engagement and low burnout in order to improve adaptive performance and the structure of the company’s performance.