The influence of corporate social responsibility on employee satisfaction

Abstract

Purpose The purpose of this paper is to examine the association between corporate social responsibility (CSR) and employee satisfaction. The study proposes and empirically tests two hypotheses: that CSR is positively associated with employee satisfaction, and that organizational image mediates the relationship between CSR and employee satisfaction. Design/methodology/approach The hypotheses were tested through regression analyses, using data from 85,167 questionnaires completed by employees at 381 Brazilian companies, as well as data pertaining to the “breadth” of CSR engagement of those same companies. Findings The results of this study provide evidence that CSR-oriented actions undertaken by companies will lead to a better organizational image, and this, in turn, will lead to greater employee satisfaction. Practical implications Because employee behaviour influences organizational outcomes and higher job satisfaction may lead to greater employee commitment to organizational goals and values, understanding the impact of CSR on employee satisfaction is relevant to corporate performance. Originality/value The study contributes to the body of empirical research on CSR by investigating the underlying mechanisms linking CSR with employee behaviour. Scholars in the area of CSR regularly explore the outcomes and impacts of CSR actions on internal and external stakeholders. However, the impacts of CSR for a critical group of stakeholders – namely, employees – and its underlying mechanisms are understudied in the CSR literature.