The effect of employees’ CSR engagement on work outcomes: Empirical evidence from Ethiopia

ABSTRACT

In this study, we examine the effect of employees’ CSR engagement on work outcomes. Drawing insights from social exchange theory, we propose that employees’ CSR engagement is likely to positively affect their job satisfaction and organizational commitment while reducing turnover intentions, and that this relationship tends to be stronger among senior managers with greater participative leadership style. We tested our prediction using data from 580 manufacturing and service firms in Ethiopia. The results of a structural equation modeling analysis indicate that employee CSR engagement is positively associated with job satisfaction and organizational commitment and is negatively related to turnover intentions. As predicted, these baseline predictions seem to be stronger among senior managers displaying greater participative leadership style. Overall, the findings contribute to the on-going research in this area by focusing on internal-focused CSR activity and its role in promoting productive employee outcomes. Implications for research and practice are discussed.

KEYWORDS:

• corporate social responsibility (CSR)
• job satisfaction
• organizational commitment
• employee turnover intention
• participative leadership style

Acknowledgement

This study was part of the first author’s dissertation work. We gratefully acknowledge the helpful suggestions and comments from Dr. Abraraw Chane and other colleagues at the School of Commerce, Addis Ababa University.

Disclosure Statement

No potential conflict of interest was reported by the authors.

Notes

1 Since Ethiopia does not have a well-developed capital market system, we did not use a market capitalization or equity-based metrics in assessing firm size.

Additional information

Notes on contributors

Saleamlak Mola

Saleamlak Mola, Ph.D., is an Assistant Professor of Business Leadership at the School of Commerce, Addis Ababa University in Ethiopia. His research focuses on human resources management as well as the managerial and organizational determinants of corporate social responsibility practices.

Michael A. Abebe

Michael A. Abebe, Ph.D., is a Professor of Management and Associate Dean for Research and Faculty at the Robert C. Vackar College of Business & Entrepreneurship, the University of Texas Rio Grande Valley. He studies how senior leaders shape the direction and performance of established and entrepreneurial organizations. His recent works have examined how strategic leaders influence various organizational outcomes such as innovation, corporate social responsibility and misconduct.