Internal Corporate Social Responsibility Practices Research Articles

Social reputation, loan contracting and governance mechanisms

PurposeThis study aims to investigate whether social reputation via corporate social responsibility (CSR) awarding facilitates access to debt and decreases the cost of debt and whether governance mechanisms moderate this relationship.Design/methodology/approachThe sample covers the period between 2002 and 2021, during which CSR award data were available in the Thomson Reuters Eikon/Refinitiv database. The empirical models are based on country, industry and year fixed-effects regression.FindingsWhile the main findings produced an insignificant result for access to debt, they indicated strong evidence for the positive relationship between CSR awarding and the cost of debt. Moreover, the moderating effect highlights that while the sustainability committee helps CSR-awarded companies access debt more easily, independent directors help firms decrease the cost of debt via CSR awarding. Furthermore, the results differ between the US and the non-US samples, earlier and recent periods, high- and low-leverage firms and large and small firms.Originality/valueFor the first time, to the best of the authors’ knowledge, the authors assess whether social reputation via CSR awarding facilitates access to debt and decreases the cost of debt in an international and cross-industry sample. Little is known about the effect of social reputation on loan contracting, although social reputation conveys broader information that goes beyond the firm’s internal (performance) and external (reporting) CSR practices. The authors also draw attention to the differing roles of distinct governance mechanisms in leveraging social reputation for loan contracting.

The Effect of Corporate Social Responsibility and Sustainable Development Practices on Employer Branding—A Case Study of an International Corporation Operating in Poland

Corporate social responsibility (CSR) and sustainable development practices and employer branding (EB) significantly influence the effectiveness of recruitment processes, human resource management (HRM), and an employer’s image. The main aim of this study was to assess the effectiveness of internal and external CSR practices in an international corporation operating in Poland. The empirical study consisted of two stages. In the first stage, an in-depth interview was conducted with a group of managers in the examined company. In the second stage, the company’s employees and local residents (non-employees) were surveyed with the use of questionnaires. The study demonstrated that CSR activities addressing environmental issues were most effective. External CSR practices received greater recognition among white-collar (office) employees, whereas blue-collar (manual) employees were more appreciative of internal CSR measures—in particular, financial support schemes. The effectiveness of internal and external CSR practices has been rarely compared in the literature, and the present study was undertaken to fill in this knowledge gap.

Doing well by doing right: heterogeneous effects of tourism firms’ social responsibility on service productivity and profitability

ABSTRACT This paper seeks to explore the heterogeneous effects of corporate social responsibility (CSR) practices on the service productivity and profitability of tourism firms, applying the perspectives of stakeholder theory and the resource-based view. We employ data envelopment analysis to gauge service productivity and to conduct an analysis of inefficiencies and benchmarks for underperforming firms. Additionally, we employ a two-way fixed-effects regression model using unbalanced panel data to discern the heterogeneous effects of CSR practices on firm performance. Our findings indicate that internal CSR practices (involving managers and employees) are positively correlated with both service productivity and profitability. Conversely, external CSR practices (involving suppliers, customers, environmental and societal factors) exhibit a negative impact on profitability but do not significantly affect service productivity. Further analysis reveals that service productivity and profitability are less likely to be the primary drivers of CSR practices, mitigating concerns regarding a potential bidirectional relationship.

Linking Perceived Corporate Social Responsibility and Employee Well-Being—A Eudaimonia Perspective

In recent decades, there has been a shift at the organizational and individual level from merely pursuing financial goals to bearing corporate social responsibility (CSR) and towards finding meaning in one’s work. In light of this, there is a need for a comprehensive understanding of the influence of CSR on employees’ eudaimonic well-being. Firstly, a conceptualization of job-related eudaimonic well-being was proposed. The data provided evidence that job-related eudaimonic well-being comprises aspects such as job self-efficacy, meaningful work, job autonomy, job-related aspiration, job involvement, and positive relationships with others. Second, based on the literature and qualitative data, this study examined and shed light on the relationship between employee perceptions of CSR and eudaimonic well-being in the work context. A theoretical framework was established to illustrate this relationship. I find that companies’ CSR commitment to stakeholders as perceived by employees positively affects employees’ eudaimonic well-being at work. Specifically, employees perceive internal CSR practices to positively influence work meaningfulness, job autonomy, job involvement, and job aspiration. Additionally, the results show that employees seem to experience closer job involvement when they perceive their business as engaging in CSR for customers, community stakeholders, and the environment. The influence of perceived CSR on the eudaimonic well-being of employees can be affected by boundary conditions, namely leadership’s role and companies’ motives for engaging in CSR. I propose avenues for future research and offer practical guidelines for managers.

Authentic Corporate Social Responsibility Pays: Organizational Practices and Salary Requirements

Corporate social responsibility (CSR) programs can be a source of societal aid (external CSR) or employee benefit (internal CSR). Yet, not all CSR practices are created equally, with many organizations decoupling their formally stated goals from their behavior. Thus, the extent to which organizations truly implement these programs varies, with some acting in line with their socially responsible claims (authentic CSR), while others fail to take concrete action (inauthentic CSR). Drawing from a multi-motive theoretical framework, we propose that these macro-level CSR practices will yield different micro-level results due to the particular needs they each fulfill (or fail to fulfill) for prospective employees; authentic external CSR practices fulfill morality-based needs, authentic internal CSR practices fulfill self-interest-based needs, and inauthentic CSR practices fail to fulfill either of these needs. Furthermore, in contrast to self-interest-based models, we draw from moral psychological theory to predict that authentic external CSR practices will have the strongest impact on employee outcomes because they fulfill morality-based needs, which often supersede self-interest-based needs. To test our theorizing, we explored the impact these different CSR practices have on prospective employees’ required annual salaries, allowing us to monetarily quantify the value of each type of CSR. Across two experiments (Study 1a, 1b) and a field study (Study 2), we find that authentic CSR practices lead to lower required salaries among prospective employees and active job seekers than organizations without CSR practices or with inauthentic CSR practices. Furthermore, we find that authentic external CSR practices lead to the lowest required salaries – an effect mediated by moral-need fulfillment. Our results suggest that when implemented authentically, CSR practices can lead to both positive social change and quantifiable organizational benefits.

The Impact of Corporate Social Responsibility on Employee Retention in an Apparel Industry in Puttalam District

The purpose of this study is to see how corporate social responsibility impacts on employee retention in an Apparel industry in Puttalam district. In recent years, the concept of corporate social responsibility (CSR) has gotten a lot of attention. It provides businesses with a valuable strategy for retaining employees and is viewed as a source of competitive advantage. Data was collected using a research method, questionnaire survey. This research found that, the majority Garment Industries consider their CSR to society and CSR to their working environment undertaking various measures to conserve resources as well as retain their employees within the organization. Garment Industries provided little support to most internal CSR practices identified in this study. The conceptualization of the study demonstrated independent variables (Corporate Social Responsibility) of Economic responsibility, Ethical responsibility, Legal responsibility and Philanthropic responsibility how to effect on dependent variable of Employee retention.
 A quantitative analysis was conducted with 100 of sample. The data was collected though distributing questionnaire among respondent. Further, univariate analysis and bivariate analysis were carried out through SPSS (21.0). The findings revealed that CSR and Employee Retention are in high level and Corporate Social Responsibility moderately and positively influence on Employee Retention. Furthermore, study found that there was positive and significant relationship between Corporate Social Responsibility and Employee Retention in an Apparel Industry in Puttalam district. The recommendations were provided, in order to further improvement in highest returns to their stakeholders, comply with all state laws and regulations, be compromise ethical norms of the society to achieve corporate goals, Strive to provide community betterment. This study will be more beneficial both existing apparel industries and newly joint who will be doing the business in apparel sector in Sri Lanka.

Drafting Out the Association Shared by CSR and Innovative Performance of the Firms:- The Intervening Role of Employee Collaboration

Introduction: Corporate social responsibility (CSR) has gained momentum for its ability to predict firm performance and achieve long-term growth. However, to cope up with rapidly developing global economic situation, significant changes in internal CSR implementation and management along with employee collaboration is required. Background: For being more productive and goal-oriented internal CSR practices, organizations should include employees. It will improve people’s impulse and invoke a responsible response for knowledge sharing for the innovative performance of the firm.Purpose: The current study aims at outlining the intervening role of employee collaboration for enhancing the interaction between CSR and innovative performance of the firms. Findings: Affective commitment and knowledge sharing are two variables that are directly proportional to each other. Training and development are directly contributing to the innovative performance of firms and for that affective commitment and knowledge sharing must be done.

Maintaining a sustainable workplace: Internal Corporate Social Responsibility practices in Dialog Semiconductor during the COVID-19 pandemic

The COVID-19 pandemic has presented the vast majority of companies with many difficulties in remaining efficient and profitable, especially whilst keeping their Staff employed. In this article, we focus on the internal aspects of CSR – corporate social responsibility directed toward employees – and show that actions taken in this area at the Dialog Semiconductor company have significantly contributed to providing a sustainable workplace during the COVID-19 pandemic. Based on the theoretical fundamentals of the concept, this article illustrates the case study containing the activities taken and employee feedback. The results show that the company has successfully managed to maintain sustainable workplaces through actions coherent with the recommendations on HR (Human Resources) management in COVID-19 pandemic.

Examining the impetus for internal CSR Practices with digitalization strategy in the service industry during COVID‐19 pandemic

AbstractThe year 2020 began with a glimpse into the darkness with the onset of the worldwide COVID‐19 pandemic. An invisible, threatening virus has forced many countries to practice restricted movement and impose lockdowns for the sake of their citizens’ safety and well‐being. In response, many business organizations have implemented various remote‐work arrangements. These arrangements have spurred the use of digitalization strategies and have landed many employees in the vulnerable virtual workplace. With employees facing all these uncertainties and vulnerabilities, their commitment to their workplace could come into question. At the same time, organizations facing tremendous challenges are searching for committed employees to navigate through this turbulent time. From a strategic management perspective, organizations could revisit their internal core competencies to prevail through internal corporate social responsibility (CSR) practices. Meanwhile, the rapidly growing pace of digitalization could further augment organizations’ survival and resilience. This research paper showcases the empirical outcomes of the promising match between internal CSR practices and digitalization strategy; and employees’ organizational commitment during times of crisis. The results reveal that internal CSR practices positively stimulate employees’ organizational commitment, while digitalization strategy intercedes in the nexus between internal CSR practices and affective commitment. The empirical outcomes shed light on business organizations and their ability to take a frugal approach in turbulent times.

The effect of international intrapreneurship on firm export performance with driving force of organizational factors

PurposeThis study aims to reveal the effect of the two international intrapreneurship activities of employee strategic renewal behaviour and new business venture behaviour on small and medium enterprises (SMEs)’s export performance with the direct and indirect effects of transformational leadership, international entrepreneurial orientation and internal corporate social responsibility (CSR) practices.Design/methodology/approachThe study sample consists of 461 employees at 168 Vietnamese import and export SMEs in the Ho Chi Minh City of Vietnam. The data is analysed by structural equation modelling.FindingsThe paper reveals that the two international intrapreneurship activities of employee strategic renewal behaviour and new business venture behaviour significantly contribute to SMEs’ export performance. Transformational leadership, internal CSR practice and international entrepreneurial orientation positively and significantly direct influence the two international intrapreneurship activities. The effects of transformational leadership on international intrapreneurial behaviours are partially mediated by firm internal CSR practices and international entrepreneurial orientation.Research limitations/implicationsFirms would have to form the architecture and mechanisms to apply internal CSR and international entrepreneurship orientation for supporting the dedication of international intrapreneurship with a transformational leadership base.Originality/valueThe study contributes to the body of knowledge on international business by integrating resource-based view theory and dynamic capabilities theory in a way that benefits entrepreneurship and SMEs’ export performance.

Sustainable Human Resource Management for Improved Environmental Performance

In this study, we examine the role that different types of human resource management (HRM) practices play on firms’ environmental performance. We develop a model to evaluate the influence of managers’ environmental performance evaluations and two types of internal corporate social responsibility (CSR) practices (socially responsible employee benefits and corporate volunteering practices) on organizations’ environmental performance. In doing so, we go beyond the green HRM framework, which focuses on practices specifically designed to address environmental concerns, and we start integrating other aspects of the larger sustainable HRM area to improve our understanding of the effect of HRM practices on firms’ environmental outcomes. To accomplish our goal, we analyze a sample of 142 manufacturing companies that have gone through B Lab’s Impact Assessment process, one of the few independent certifications of social and environmental responsibility available to small and medium businesses. The results show that managers’ performance evaluations on environmental goals not only have a direct impact on firms’ environmental performance, but also strengthen the positive effect of environmental management practices on performance. Findings also support the influence of both types of internal CSR practices on environmental performance, which opens the door to explore whether and how different types of internal CSR have an effect on firms’ environmental performance. Our study advances recent work on societal grand challenges in the field of management, pointing to specific people management practices by which businesses can move from being part of the environmental problem to being part of the solution.

Effects of Internal CSR Activities on Social Performance: The Employee Perspective

Corporate social responsibility (CSR) continues to receive greater attention in the current business world. Many studies on CSR focus on manufacturing or industrial companies by examining external CSR activities from external stakeholders’ perceptions. However, academic institutions such as higher education institutions (HEIs) remain highly unexplored in the context of internal corporate social responsibility (ICSR). Employees are the most valuable and vital assets for every business organization. Therefore, this study focuses on CSR’s internal dimensions to determine its impact on social performance in HEIs in Ghana. Recognizing the social exchange theory (SET), we specifically examined the effects of five internal CSR dimensions (i.e., health and safety, human rights, training and development, workplace diversity, and work-life balance) on social performance. We used a multi-case approach to assess internal CSR activities in private and public Ghanaian universities. We purposely selected three public universities and one private university because of their varying contexts and academic mandates. We used structured questionnaires to collect data from both teaching and non-teaching staff of the selected universities. Structural equation modeling (SEM) was used to assess the data. We found that health and safety, workplace diversity, and training and development positively and significantly impact social performance. At the same time, human rights and work-life balance have an insignificant effect on social performance. Thus, ICSR practices have a substantial influence on both employees’ and organization’s performance, and hence this study gives important implications for both researchers and practitioners

The effect of internal corporate social responsibility practices on firm performance: the mediating role of employee intrapreneurial behaviour

The effect of internal corporate social responsibility practices on firm performance: the mediating role of employee intrapreneurial behaviour

The Mediating Role of Employee Intrapreneurial Behavior in Nexus between Constructs of Internal Corporate Social Responsibility Practices and Organizational Outcomes

ABSTRACT The study explores how employees respond to internal CSR practices and contribute to organizational outcomes at the macro and micro-level with the mediating role of employee intrapreneurial behavior. Based on a primary data sample collected from 607 employees at 23 pharmaceutical firms in Ho Chi Minh City of Vietnam, using a structural equation model (SEM). The estimates results reveal the significant effects of employee perception of internal CSR dimensions on organizational performance and innovative behavior with the mediation role of employee intrapreneurial behaviors. However, the direct effect of internal CSR constructs on organizational outcomes is weakly significant. It is acknowledged that having a particular concern with the welfare of employees will boost the efficient outcomes of the organizations.

The effects of internal, external and aggregated CSR practices on the firm's reputation and profitability

PurposeContemplating the concerns often expressed by skeptics about the value generated by corporate social responsibility (CSR) practices, this study aims to examine the effects of CSR practices on the firm's reputation and profitability in the distinct socio-economic context of Nepal.Design/methodology/approachThe study used a simple random sampling method in collecting data from 168 listed companies in Nepal. The data were collected using structured questionnaires. Then, hierarchical multiple regression analyses were used to test the stated hypotheses.FindingsResults showed that all types of CSR practices positively affect the firm's reputation and profitability. However, a firm's reputation was better explained by the external CSR practices, and profitability was better explained by the internal CSR practices. Moreover, CSR practices were more strongly linked with the firm's reputation than profitability.Research limitations/implicationsPerceptual data on profitability may be seen as a limitation although it can capture the current profitability situation as well as a future prospect within a single construct.Practical implicationsPracticing managers can consider CSR as an important strategic issue to stay ahead in competition rather than simply a response to regulatory requirements or stakeholder pressures.Originality/valuePerhaps this is the first study to examine the effects of internal CSR practices, external CSR practices, and aggregated CSR practices separately on the firm's reputation and profitability in the unique socio-economic context of Nepal.

Employee happiness and corporate social responsibility: the role of organizational culture

PurposeThis research explores how does the organizational culture influence internal corporate social responsibility (CSR) actions and the effect of these actions on the level of happiness of employees.Design/methodology/approachThe study adopts an employee perspective since the perception of employees is the unit of analysis. By relying on a sample of 921 workers of firms from different sectors and sizes headquartered in Spain, the empirical analysis is performed using partial least squares.FindingsThe findings evidence that clan and adhocracy cultures highly foster internal CSR practices and that internal CSR activities enhance employees' happiness. The mediating role of internal CSR in the relationship between organizational culture and employee happiness is also found. These results suggest that managers could play a proactive role in fostering internal CSR by designing the organizational culture according to features of clan and adhocracy cultures such as flexibility, innovation, creativity, autonomy, communication, training and support of supervisors.Research limitations/implicationsThe research focuses on a single country, which makes it difficult to generalize the results and guides future research into cross-cultural analysis. Including countries that present differences in their cultural and institutional context would allow to explore the influence of the national context on the business culture, on internal CSR and on employee happiness. This work is also limited in time, as the data used are of a cross-cultural nature.Practical implicationsA greater effort in internal CSR by companies translates into a higher level of happiness for their workers. Specifically, occupational health and safety practices have the greatest influence on employee happiness. Hence, organizations must develop cultures that contribute to promote internal CSR—adhocracy and clan—since this would enhance employees' happiness if the values and beliefs that characterize these cultural configurations are translated into internal CSR practices such as occupational health and safety, work–life balance and equal opportunities.Social implicationsThe improvement of employee happiness creates social value and can be enhanced through an organizational culture that promotes CSR. The research findings might be useful when defining institutional policies to promote job quality, as encouraged by the social policy agenda of the United Nations embodied in the Sustainable Development Goals.Originality/valuePromoting internal CSR through organizational culture will have positive effects for companies internally by enhancing employees' happiness. Therefore, the article contributes to overcome the lack of evidence about the antecedents of internal CSR and its relationship with employees' happiness, an emerging variable in the management literature.

Mediating Role of Job Satisfaction on Internal Corporate Social Responsibility Practices and Employee Engagement in Higher Education Sector

The study aims to investigate the relationship between internal corporate social responsibility (ICSR) practices and employee engagement through job satisfaction as a mediating variable. The ICSR dimensions are comprised of employee empowerment, education and training, employment stability, as well as a working environment. This study is based on the social exchange theory to explore the relationship between the above factors and ICSR. In this study, purposive sampling was adopted. A quantitative (survey) method was employed, generating 93 valid responses. The data was then analyzed using Partial Least Square Structural Equation Modelling through Smart-PLS 3.0. The results revealed that ICSR practices, namely employee empowerment, and employment stability contributed positively to job satisfaction. However, training & education and working environment were found not significant to job satisfaction. In addition, job satisfaction has a positive influence on employee engagement. The results of the study found that except for training, education, and the work environment, job satisfaction mediates the relationship between ICSR practices and employee engagement. Conclusion, implications of the findings, and suggestions for future study are also discussed.

The effect of internal corporate social responsibility practices on pharmaceutical firm's performance through employee intrapreneurial behaviour

PurposeThe present study aimed to investigate the relationship between employee perceived internal corporate social responsibility (CSR) practices and pharmaceutical firms' performance with the mediating role of employee intrapreneurial behaviour.Design/methodology/approachThe study sample consisted of 607 employees at pharmaceutical firms in Ho Chi Minh City of Vietnam. The data was analysed by a structural equation modelling (SEM).FindingsThe results revealed that the model fitted well into the empirical data considering the goodness-of-fit measures. The estimates results revealed the significant total effects of employee perception of internal CSR practices on pharmaceutical firms' performances through the influencing mechanism of employee intrapreneurial behaviour.Practical implicationsEmployee welfare is a fundamental factor for organisational performance. Ethical organisations might yield prosperity through innovation employee behaviour. Firms should build the structure and mechanism to implement internal CSR and support the commitment of intrapreneurship.Originality/valueThe study investigates how employees respond to internal CSR practices and contribute to firm performance through employee intrapreneurial behaviour.

Determinants of Internal Corporate Social Responsibility Practices and Employee Engagement: A Study of Malaysian Private Higher Education Institution

Determinants of Internal Corporate Social Responsibility Practices and Employee Engagement: A Study of Malaysian Private Higher Education Institution

Corporate social responsibility and intention to quit

PurposeWhile some work on how employee perceptions of corporate social responsibility (CSR) affect behavioral outcomes has been examined, less work simultaneously investigates whether employee perceptions of internal and external CSR influence the behavioral outcomes of incumbent employees working in organizations. The purpose of this paper is to draw on social exchange theory arguments to investigate the direct and indirect effects of internal and external CSR practices on employee organizational citizenship behavior (OCB) and intention to quit.Design/methodology/approachAn empirical study was conducted among 664 employees working in the banking sector in Kuwait. Structural equation modeling techniques were used to test the suggested hypotheses.FindingsThe results reveal that both internal and external CSR activities are positively related to OCB and OCB is negatively associated with intention to quit. Results also show that distributive justice moderates the relationship between OCB and intention to quit.Practical implicationsThese findings extend the literature on CSR and demonstrate that organizations engaged in CSR activities (internal and external) can enhance citizenship behaviors among employees and thereby increase retention rates.Originality/valueThis research demonstrates the importance of CSR activities in tax-free countries, particularly, in the Gulf Cooperation Council (GCC) region. Since employees in GCC countries are increasingly concerned about the CSR behaviors of organizations, CSR activities can allow local organizations to signal that they are good corporate citizens. Hence, CSR could be considered as a particularly critical source of competitive advantage for businesses in the region.