The impact of corporate social responsibility on employee loyalty in chinese firms: investigating the interrelationships between csr, organisational culture and employee Loyalty

Lau, Chun Kavan (2024) The impact of corporate social responsibility on employee loyalty in chinese firms: investigating the interrelationships between csr, organisational culture and employee Loyalty. Doctoral thesis, University of Wales Trinity Saint David.

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Abstract

Corporate social responsibility (CSR) has garnered much attention, bringing into discussions its impacts in various economic, social and political contexts, in both business and academic communities. Substantial research have been conducted with CSR in an instrumental perspective from organisational level, focusing on CSR’s impact on marketing and financial performance of firms. Increasingly more studies have been shifting to focus on the micro level, and its overall influence on internal stakeholders, with research findings indicating CSR has a positive effect on Employee Loyalty (Bhattacharya, et al., 2011; Valentine & Fleischman, 2007). Further to this, many scholarly discussions shared a similar view that CSR must be embedded into a firm's business strategy and the Organisational Culture to drive positive outcomes for employee attitudes such as loyalty (Porter & Kramer, 2006). Thus, it is imperative to investigate empirically the effects of Organisational Culture on the relationship between CSR and Employee Loyalty. Kramer and Porter argued CSR has the purpose of aligning the firm’s interests to generate a sense of shared value with employee (Porter & Kramer, 2006), which is a crucial factor in facilitating better relationships, create greater chance for higher employee performance and consequently, better organisational performance. As shared value is often reflected in Organisational Culture, Organisational Culture is identified as an important factor to evaluate relating to CSR-fostered Loyalty. With the new generation of workforce being more accustomed to, and influenced by, values of acting socially responsible, firms are compelled to re-evaluate their approaches in capacity building, talent acquisition, development, and retention. Further, in addition to the high cost of replacing an employee, there are intangible costs to staff attrition as well as the implicit cost in realignment of human resources. Consequently, CSR has progressively been considered as a strategic instrument for HRM in organisations. It is therefore imperative for organisations and their leaderships, to have a more comprehensive understanding of, the interrelationships between CSR, Organisational Culture and Employee Loyalty, to formulate ‘best fit’ strategies with regards to CSR implementations. In this study, Employee Loyalty is set out as a main construct for analysis. Talent retention will be a principal business outcome for subsequent discussions. A mixed-method research approach was employed, with quantitative research method first conducted to gather empirical data on employees’ perception on 4 different dimensions of CSR, 4 different dimensions of Organisational Culture, and Employee Loyalty, prior to a qualitative research study. A survey of 382 respondents was conducted to better understand the interrelationships between CSR, Organisational Culture, and Employee Loyalty. The survey results indicated, as expected, different types of CSR elicit different strengths of effect on Employee Loyalty, with Employee-related CSR having the strongest effect. Organisational culture, likewise, also shows different strengths of effect on Employee Loyalty, with Employee-oriented Culture having significant, and highest, effect on Loyalty. Further, statistical findings establish that, certain interaction effects between CSR and Organisational Culture, namely, Product and Service-related CSR and Outcome-oriented Organisational Culture, Corporate Governance-related CSR and Innovation-oriented Organisational Culture, Employee-related CSR and Employee-oriented Organisational Culture, Employee-related CSR and Innovation-oriented Organisational Culture, are significant, to Employee Loyalty. Subsequently, different levels of employees were invited to participate in interviews under the qualitative research part of the study, to discuss their lived experiences in order to gain more insights into the results of the quantitative findings.

Item Type:	Thesis (Doctoral)
Uncontrolled Keywords:	csr, organisational culture, employee loyalty
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Theses and Dissertations > Doctoral Theses
Depositing User:	Chun Kavan Lau
Date Deposited:	01 May 2024 15:30
Last Modified:	14 Aug 2024 09:53
URI:	https://repository.uwtsd.ac.uk/id/eprint/2925

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