Boosting employee retention through CSR: A configurational analysis

Abstract

Internal stakeholders' perception of corporate social responsibility (CSR) plays a crucial role for organizations in pursuing innovative, sustainability-based business models. The majority of research on CSR has examined its effects on organizations' financial performance or external stakeholders' behavior toward CSR. However, little attention has been devoted to employees' behavior toward CSR. The current study investigated how organizations' CSR initiatives and the fulfillment of employee job needs (existence, relatedness and growth, or ERG) affect employees' job satisfaction and retention intention. Methodologically, the study applied the fuzzy-set qualitative comparative analysis method to capture the integrative effects of explanatory factors on the outcomes by examining the case of a leading chain department store in Asia.The results revealed that an organization's efforts on CSR could enhance the fulfillment of employees' ERG needs. Moreover, the perceived CSR initiatives could generate positive effects on employees' satisfaction and retention intention by fulfilling employees' ERG needs. KEYWORDScorporate social responsibility (CSR), fuzzy-set qualitative comparative analysis (fsQCA), job needs, job satisfaction, retention intention, sustainability business model

How to achieve sustainability?—Employee's point of view on company's culture and CSR practice

“…The norms, values, and beliefs of employees are likely to play a significant role in their CSR perceptions and behaviors (Quazi, 2003). CSR reflects a win-win strategy that enables companies to simultaneously increase their financial performance and provide social benefits (Lee & Chen, 2018). Haniffa and Cooke (2005) and Momin and Parker (2013) pointed out that the management of the company culture and corporate image is closely connected to CSR.…”

“…The minority of them is responsible for the company's strategic approach, but the majority of them are responsible for everyday effort and daily routines that compose the final performance. That is why the company's employer branding strategy is so important and closely related to corporate behavior and how it influences staff behavior (Klimkiewicz & Oltra, 2017;Lee & Chen, 2018). Testa, Boiral, and Iraldo (2018) directly pointed out the fact that CSR performance depends on employee's commitment.…”

“…Du, Bhattacharya, and Sen (2015) argued that employees' expectations, motives, views, or attitudes are not homogeneous, and heterogeneity is essential for a deeper understanding of employee's reactions to CSR. Like Lee and Chen (2018), they stressed that employee and CSR relation is still not enough explored. Like Lee and Chen (2018), they stressed that employee and CSR relation is still not enough explored.…”

“…Findings of Ghosh (2018) indicated that the perceived internal image of CSR predicts the deep organizational identification of employees. That is why the company's employer branding strategy is so important and closely related to corporate behavior and how it influences staff behavior (Klimkiewicz & Oltra, 2017;Lee & Chen, 2018). All these theoretical linkages lead to the company's culture that shapes employee's behavior and strongly supports company performance (Kucharska & Wildowicz-Giegiel, 2017).…”

“…Story and Neves (2015) pointed out that employees are quite aware of CSR practices of their organizations and are more than leaders exposed to the formal and informal practices, values, and cultures. Like Lee and Chen (2018), they stressed that employee and CSR relation is still not enough explored. As Packalén (2010, p. 118) pointed out, "culture and sustainable development go hand in hand" and "only those who are insightful about the human condition can understand the causes of complex problems and are in a position to find solutions which are sustainable" (p. 121).…”