The Effect of CSR on Employees' Turnover Intention: Comparative Study on Harmful and Non-Harmful Industry

Abstract

The study examines the effect of CSR on employees' turnover intention. Specifically, it compares the effect of CSR between harmful and non-harmful industry. Harmful industries include tobacco, gambling, alcohol and other controversial industries engaged with social or ethical issues. Employees' turnover is more serious concern for harmful industries than other non-harmful industries. According to the social identity theory, employees in harmful industries tend to differentiate themselves from their organization to protect self-esteem and avoid being criticized by social norms. High level of misidentification from their organizations leads to a high level of turnover. CSR can build a good reputation of organization and a strong relationship with employees, which can, accordingly, alleviate employees' turnover intention. This paper presents that CSR can mitigate employees' turnover intention moreover, the mitigating effect of CSR is greater in harmful industries than non-harmful industries.