The influence of corparate social responsibilty on the engagement and organisational commitment of employees

Companies are facing unprecedented pressure from various stakeholders to behave as responsible corporate citizens. The issue of Corporate Social Responsibility (CSR) has therefore gained prominence as a central facet of both social and business platforms in recent years. There is overwhelming evidence from research literature that CSR is an emerging and increasingly important driver of employee engagement and organisational commitment. Studies however also point out that businesses that have engaged in CSR have generally failed to embrace fully the fact that it can be an important driver of employee engagement and not many of them are using this potentially powerful tool to attract, engage and retain employees. The primary objective of the study is to investigate the perceived economic benefit, social impact and environmental impact of CSR on employee engagement and organisational commitment in business firms. Convenience sampling was used to select a stratified sample of 150 employees from six different industries in the Nelson Mandela Bay Metropolis. While 150 questionnaires were distributed, only 91 respondents eventually participated (response rate = 60.7 percent). The data analyses included the calculation of Cronbach alpha coefficients, descriptive statistics (percentages, means, standard deviation and frequency scores), multiple regression, Pearson correlations and Scheffé tests. The empirical results show, among others, that the economic benefit of CSR has the strongest effect on affective commitment of employees; that the environmental benefit of CSR plays a big role in employees wanting to stay with their firms (continuance commitment) and feeling obliged to stay with their firms (normative commitment); and that the social benefit of CSR has a strong effect on the level of employee engagement. The managerial implications of these findings are discussed. The shortcomings of the study and gaps for future research are also highlighted