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.