Socially Inclined Engagement and Its Effect on CSR Perception Observed In Manufacturing Companies

Abstract

The manufacturing industry majorly constitutes electrical, electronics, telecommunication, mechanical engineer-ing, and textile companies. This sector provides more employ-ment for the skilled level employee than that of service and in-formation technology sectors. Besides, the manufacturing indus-try significantly contributes to the economy. Hence, the employ-ees working in such companies are expected to be engaged with the goals of the company. A high level of engagement leads to productivity. This study aims to understand the level of socially inclined employee engagement and its impact on the perceived image of the company’s CSR activities. The study uses Partial Least Square – Structural Equation Model (PLS-SEM) to deter-mine the association between employee engagement and CSR activity. The results indicate that there exists a positive associa-tion between engagement level and positive perception of CSR activity. The instrument to measure this association is developed and supported with the evidence from reliability tests and validity test.