The primary research question addressed through this paper is whether and how corporate social responsibility (CSR) can create business value for organizations as measured through employee attitudes and behaviours. Specifically, this study aims to examine the impact of CSR on employee engagement through its influence on psychological meaningfulness, safety and availability.
In total, 187 business professionals working for a wide variety of organizations in India constituted the study sample. Regression analysis was used to test the proposed hypotheses.
CSR positively predicted employee engagement. Psychological conditions of meaningfulness, safety and availability fully mediated the relationship of CSR with employee engagement.
The study establishes CSR as an important talent management tool in the hands of management to cultivate an engaged workforce. The results provide corporate managers with the necessary evidence to justify their investment in CSR initiatives.
The study by establishing CSR as a determinant of employee engagement addresses the need for micro-level CSR research, and, hence, bridges the macro-micro gap in the CSR literature. In addition, the application of micro-level theories helped to establish the psychological processes defining CSR and employee engagement relationship. In doing so, the study empirically tests Khan’s theory of engagement and the underlying mechanisms of engagement.
