Human resource management and the economic value of social CSR: employee perceptions in a Slovak manufacturing firm

Abstract

In the context of increasing competitive pressure and regulatory demands, corporate social responsibility (CSR) is no longer perceived solely as an external reputational tool but is increasingly seen as a strategic component of human resource management. The social pillar of CSR – focused on employee development, working conditions, work–life balance and internal communication – represents a key mechanism through which firms can strengthen motivation, loyalty and long-term competitiveness. This article examines the economic value of social CSR practices from a human resource management perspective in a Slovak manufacturing firm. The study aims to evaluate how internally oriented CSR activities contribute to perceived competitive advantage and how employee perceptions differ according to education level and hierarchical position. The empirical research is based on a cross-sectional survey of 51 employees. It uses descriptive statistics, along with 2×2 contingency table analyses (Fisher's exact test and the chi-square test with Yates' correction), and complements them with effect sizes and odds ratios. The results confirm that employees perceive social CSR practices – particularly training and development, health protection, and work–life balance-as significant contributors to motivation, loyalty and organisational reputation. At the same time, differences in awareness of formal CSR strategy and variations across hierarchical levels indicate internal communication gaps. Higher management evaluates CSR implementation more positively, while uncertainty is more frequent among operational staff. Interestingly, employees with lower levels of formal education report greater awareness of an official CSR strategy. The findings highlight that the business economic value of CSR depends not only on formal ESG reporting and strategic declarations, but primarily on how deeply CSR principles are embedded in human resource management practices and organisational culture. For firms operating in competitive manufacturing environments, socially responsible HR management can represent an important intangible asset and a source of sustainable competitive advantage.