Impact of Corporate Social Responsibility on Employee Motivation and Organizational Performance: Evidence from Global Firms

Abstract

The objective of this study is to establish the relationship between Cooperate Social Responsibility (CSR) and motivation and performance of employees in an organization based on both quantitative and qualitative research methodologies. The quantitative data collected from 400 employees working in global firms reveal that the CSR practices are positively related with the employee motivation (r = 0. 65, p < 0. 01) and the organizational performance (r = 0. 58, p < 0. 01). Multiple regression also confirms the hypothesis of CSR as a significant predictor of the above outcomes explaining 45% of the variance in motivation and 40% of the variance in organizational performance. The qualitative data which were collected from the interviews with the key informants provide more insights into the dynamics of these relations. Among some of the themes that are common include; enhanced employee involvement, good image of the organization, and recruitment and maintenance of employees. These studies demonstrate that CSR is an important element in building a motivated workforce and organisational effectiveness. The study therefore concludes that firms should ensure that CSR is integrated into the strategic management plans so as to maximize on the various benefits. Future research should also look at the impact of CSR on organisations over a longer period of time, on organisations in different industries and on organisations in different cultures.