The Effect of Corporate Social Responsibility on Employee Satisfaction, Employee Engagement and Employee Retention

Corporate social responsibility (CSR) has emerged as a critical philosophy and a strategy that affects employee attitudes. While much of the CSR research focuses on the relationship between CSR activities and external customers, relatively few studies examine the impact of CSR from the perspective of employees. This study examined the effect of CSR on employee engagement, satisfaction, and retention. Data was collected from 300 employees working in cement companies of Pakistan. A questionnaire was used to collect data and all scales were adopted from previous studies. Convenience sampling technique was used and respondents include both managerial as well as non-managerial staff members of the cement companies. The respondents were asked to rate their opinions on a five point Likert scale ranging from 1 strongly disagree to 5 strongly agree. Employees were contacted personally and questionnaires were collected three weeks after distribution. Out of 4000 questionnaires distributed, 300 responses were collected. SPSS was used to analyze the data. Through regression analysis, the study found that CSR was positively associated with employee engagement, employee satisfaction, and retention. These findings are very meaningful for decision makers and researchers. It depicts that organizations can enhance their employee engagement, satisfaction, and retention through involving themselves in social activities for instance, identifying needs of the community and fulfilling them, working for better environment, involving in employee welfare, producing quality products for customers and complying with government rules and regulations and working within legal ambiance. All these activities significantly and positively influences employee positive behaviors and improve organizational performance.