Academic journal article Global Business and Management Research: An International Journal

Would Internal Corporate Social Responsibility Make a Difference in Professional Service Industry Employees' Turnover Intention? A Two-Stage Approach Using PLS-SEM

Academic journal article Global Business and Management Research: An International Journal

Would Internal Corporate Social Responsibility Make a Difference in Professional Service Industry Employees' Turnover Intention? A Two-Stage Approach Using PLS-SEM

Article excerpt

Introduction

Over the last decade, Corporate Social Responsibility (CSR) has gained much attention and popularity in the business world and the academic research. Numerous driving forces in the global environment have changed the business landscape. Business organizations facing increased competition and are compelled to be as innovative as possible in order to create a competitive strategy. According to Rahim, Jalaludin and Tajuddin (2011), among the competitive strategy that enables their business to be differentiated from others is the one that involved in CSR activities. Despite research on CSR has covered across many decades and in various fields, yet only a handful of academic studies have investigated the relationship between CSR and stakeholders, especially the employees. This lead to the development of employee-centered CSR activities (Kim & Scullion, 2013). Employees are an essential part of every organization regardless of size and nature of business. In fact, socially oriented activities have emerged as a priority concern recently. This explains the pervasiveness and importance of CSR activities in this decade. Employees are highly influenced by the CSR initiatives executed in the organization. This research paper aims to look into the impact of internal CSR practices among the employees working in professional services located in Klang Valley, Malaysia and its implications towards employees' job satisfaction and organization commitment towards turnover intention. This research paper wishes to examine the possible influence of Internal CSR among the employees in the professional service industry in terms of employees' turnover intention.

Literature Review

Overview of Corporate Social Responsibility (CSR)

In the past four decades, academics have contested the definition of corporate social responsibility (CSR) as well as the paradigm that form CSR dimensions (e.g. Carroll, 1999; Brown & Dacin, 1997; Clarkson, 1995; 1979; Bowen, 1953). Van Marrewijk (2003) explained that defining CSR is not an easy task as it means something yet not always the same meaning to everybody. Despite the difficulty in defining CSR, many management disciplines did recognize that CSR fits into their objectives. As a result, various CSR definitions have been adopted respectively by different groups according to each of their specific interests and objectives.

CSR is described as cross-disciplinary in nature (Lockett, Moon, Visser, 2006). According to Brammer, Millington and Rayton (2007), CSR is potential relevance for employee management (Brammer, Millington & Rayton, 2007), organizational behavior and human resource management. However, researchers (e.g., Aguilera, Rupp, Williams & Ganapathi, 2007; Rupp, Gananpathy, Aguilera & Williams, 2006) pointed out that these are the areas which are under-investigated.

Employees-Centered Corporate Social Responsibility (CSR)

Drawing on resource-based firms, CSR practices were reported to be able to attract and retain employees (Young & Thyil, 2009). Accordingly, these CSR practices include providing employees with good and safe working conditions, competitive terms and conditions of employment, promoting employees' training and development, creating equal opportunity for skills and talents developing and encouraging employee involvement in the planning of their career path. Meanwhile, there is rising attention that direct to the internal stakeholders, specifically the employee, from the field of organizational behavior and human resource management (Aguinis & Glavas, 2013). Low (2015) also acknowledged that the focus of CSR is no longer constrained to shareholders, but has expanded to stakeholders. This development brings attention to CSR and employees as well as its linkages among each other.

Numerous terms are emerged from the development of CSR and employees. These terms are secondary stakeholders (Clarkson, 1995; Freeman, 1999); external and internal stakeholders (Verdeyen & Buggenhout, 2004); contracting and public stakeholders (Charkham, 1994); voluntary and involuntary stakeholders (Clarkson, 1994); internal, external, and societal stakeholders (Wherther & Chandler, 2006); primary social, secondary social, primary non-social, and secondary non-social stakeholders (Wheeler & Sillanpaa, 1997). …

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