The Effects of Corporate Social Responsibility Dimensions on Employee Engagement in Iran

Abstract

In recent decades, Corporate Social Responsibility (CSR) has attracted the attention of scholars and practitioners. Nevertheless, there is a lack of researches on how CSR influences employees' positive behaviour toward their companies. By considering the dearth of engaged employees in organizations around the world, it could be expected that CSR programs used as by companies one of the key drivers of enhancing employee engagement. Understanding employee reactions to CSR could help organizations to arrange CSR programs more effectively and to use it as a tool to encourage their employees. The theoretical model of this study is based on multidimensional CSR model of Carroll (1979). The study used the Partial Least Squares (PLS) and structural equation modeling (SEM) method to test the hypotheses generated. An empirical study of a sample of 220 employees from the second most popular automotive industry in Iran shows the positive affect of ethical and philanthropic responsibility on employee engagement. The hypothesis related to the positive effect of the economic and legal responsibility on employee engagement has been rejected. This paper provides useful information and insight for managers towards the relationship between CSR dimensions and employee engagement based on social identity theory and social exchange theory.