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

By Low, Mei Peng; Ong, Seng Fook et al. | Global Business and Management Research: An International Journal, January 2017 | Go to article overview

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


Low, Mei Peng, Ong, Seng Fook, Tan, Pei Meng, Global Business and Management Research: An International Journal


Abstract

Purpose : The main objective of this research paper is to examine the role of Internal Corporate Social Responsibility (CSR) in the professional service industry. Professional service industry was used as the contextual background as it is often hit by the issue of high turnover. This research paper capitalizes on Stakeholder Theory and Social Exchange Theory to investigate and explain the role played by Internal CSR in professional service industry turnover intention.

Design/methodology/approach: Quantitative method by way of questionnaire survey was employed to gauge the respondents' perceptions on the effect of Internal CSR practices. Multi-stage sampling and judgmental sampling are adopted. The data obtained was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).

Findings: Internal CSR practices are found to have a role to play in the professional service industry. Internal CSR practices could make a difference in employees' turnover intention. This positive outcome is explained by the mediating roles of organizational commitment and job satisfaction, along with the direct relationship between Internal CSR practices and turnover intention. Besides, it was observed that the degree of Internal CSR practices is varied among the professional firms. Most of the firms are found to have implemented Internal CSR practices in the aspects of career opportunity, employee well-being, family friendly policy and organizational justice.

Practical implications : The findings provide insights to the professional service firms on the manifestation influence of Internal CSR practices to curb turnover intention issue in the professional service industry.

Originality/ Values: This research paper adds value to current knowledge by highlighting the importance of Internal CSR, which past research had mostly focused on external CSR. The findings also contribute to the body of knowledge on the mediating effects of organizational commitment and job satisfaction instead of its direct relationship which had heavy research in the past. Besides, this research paper explored the underlying research issues by utilizing PLS-SEM that is not common in the field of organizational behavior.

Keywords: Internal CSR, professional services, organizational commitment, job satisfact ion, turnover intention

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. …

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