The Relationship between Corporate Social Responsibility (CSR) Initiatives and Employee Engagement in Indonesian Corporations

Abstract

This study examines the relationship between Corporate Social Responsibility (CSR) initiatives and employee engagement within Indonesian corporations, focusing on how CSR activities in areas such as environmental sustainability, community support, and employee well-being influence employee commitment and organizational loyalty. Using a quantitative approach, data were collected through a survey of 400 employees from various sectors across Indonesia and analyzed using Structural Equation Modeling (SEM) to determine the strength and significance of relationships between CSR dimensions and employee engagement. Results indicate that CSR initiatives aimed at improving employee well-being and workplace conditions have the strongest positive impact on employee engagement, followed by community-focused activities. The findings suggest that CSR serves as a strategic tool to enhance organizational commitment by fostering a supportive and ethical work environment. This study offers practical implications for corporations aiming to boost employee engagement through socially responsible practices, particularly in emerging markets like Indonesia.