The Manifestation of Internal Corporate Social Responsibility on Employee’s Behaviour in Small Medium Sized Enterprises

Abstract

Corporate Social Responsibility (CSR) has gained increasing attention and popularity since the last decade. There are many CSR debates arise since then. These debates were shaped by trends and fundamental changes of the political, social, and economic spheres of life. Tracing back, the precursor to CSR was topic of charitable giving, which had been in existence since 1980s. Todate, CSR has evolved to a business concept that had been accepted widely. Business corporations are focusing on CSR due to tremendous pressures from the society. Presently, CSR approach has emerged from focusing on the shareholders to stakeholders due to the acknowledgement of the crucial roles of stakeholders in every organisation. Stakeholder management and CSR is a relational affair. Stakeholder theory involves list of critical stakeholders namely employees, 260 NGOs, that could be source of new competitive advantage. This present a research agenda to look into internal CSR practices as to how it manifest among the crucial stakeholders of every organisation, i.e. the employees, on their attitudes and behaviours. As Small Medium Sized Enterprises (SMEs) are gaining its foothold in Malaysia, they also encountered many challenges, one of these is the issue of high employee turnover that lead to substantial costs to the organisations. The findings reveal that internal CSR practices enhanced employee's job satisfaction and also resulted in the reduction of employee's turnover intention. It was interesting to discover that internal CSR practices enhance employee's organisational commitment like job satisfaction, but it failed to reduce employee's turnover intention through enhanced organisation commitment as a result of internal CSR practices. The results also show that perceived ease of movement has an impact on employee's turnover intention.

Internal Corporate Social Responsibility Practices and Employees’ Job Satisfaction in a Malaysian Banking Company

“…Congruently, when employees perceived internal CSR dimensions, ethical and legal dimensions (human rights, labour rights and compliance with certified international standards) more positively, their job satisfaction increases. This outcome supports the findings of the previous studies pertaining to employees' perceptions about internal CSR practices being positively related to employees' job satisfaction (Low & Ong 2015;Low et al 2017;Rahman et al 2016;Tamm et al 2010).…”

“…On the basis of the foregoing notions, internal CSR has become a significant aspect of attracting and retaining employees. This element is understandable since a better working environment and good internal relations help an organisation to enhance employee job satisfaction (Low & Ong 2015) and increase their commitment (Edmans 2011). This conjecture is aligned with the concept of Bakotić (2016) that satisfied and committed employees are vital assets which determine the success and survival of an organisation.…”

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

“…Contradicting to previous studies by Low (2015), Mory et al (2015), Cavazotte and Chang (2016), Thang and Fassin (2017) who found working environment has a significant and positive association with job satisfaction. The findings coincided with the Herzberg's Motivation Hygiene Theory (1966) which claimed that low satisfactory working environment will lead to job dissatisfaction among employees.…”

“…For instance, Obeidat, Altheeb, and Masa'deh (2018) found that skills development and employment stability are not significantly related to job satisfaction; however, the findings from Khan et al (2019) found that those variables have a significant relationship with job satisfaction. A study by Low and Ong (2015) stated that job satisfaction is not significantly related to employee turnover and employee engagement. In contrast, Singh, Sethuraman, and Lam (2017) found that they are significantly related to each other.…”

The Influence Of Csr On Company’s Non-Financial Performance: A Review On Literature

“…In recent years, it is evident that CSR studies began to focus on employees' outcomes. Those studies explore the relationship between CSR and employees' commitment (Low & Ong, 2015b;Low et al, 2017), organizational citizenship behavior (Azim, 2016), job satisfaction (Low & Ong, 2015a), employees' turnover (Kim et al, 2016;Low et al, 2017), job performance (Newman et al, 2015) and employee engagement (Azim, 2016;Flammer & Luo, 2017). This conceptual paper, however, is meant to collect relevant literature and infer to theoretical framework that explains CSR -employees' commitment relationship through organisational justice.…”