Corporate Social Responsibility as a Determinant of Employee Loyalty and Business Performance
Andelka Stojanovic, Isidora Milosevic, Sanela Arsic, Snezana Urosevic, Ivan Mihajlovic
Keywords:
Corporate Social Responsibility, employees, business performance, competitiveness
Abstract:
The paper presents the results of an international research on Corporate Social Responsibility
(CSR) conducted in post-transitional countries in Europe. The aim was to investigate the
recognition level of the efforts in companies toward CSR activities by employees and their influence
on perception and identification with those activities. It was expected that employees
with a higher level of CSR awareness would show a greater level of loyalty and identification
with the company and, therefore, perform their activities better. A number of significant issues
were investigated, i.e. the purpose of CSR implementation, CSR activities in companies, barriers
for CSR implementation, employee loyalty, and the performance of companies, along with
how these factors are interconnected. CSR was accessed from the point of view of employees
through a questionnaire, after which the proposed conceptual model and hypothesis were tested
using SEM methodology. The results point out that a clearly defined purpose of implementing
CSR can contribute positively to appropriate CSR activities and overcoming the barriers that can
occur during implementation. In addition, statistical evidence was gathered showing that CSR
activities significantly influence employee loyalty, thus more commitment from employees to the
company. Finally, the findings indicate that the greater the loyalty of employees, the greater the
performance and competitiveness of the company. The presented results can be very significant
for decision-makers and researchers, as they highlight the specificity of CSR and can be used for
creating appropriate business strategies that introduce and implement CSR in business operations
in order to increase competitiveness and overall company results.
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 10.7441/joc.2020.02.09
Stojanovic, A., Milosevic, I., Arsic, S., Urosevic, S., & Mihaljovic, I. (2020). Corporate Social
Responsibility as a Determinant of Employee Loyalty and Business Performance. Journal of Competitiveness,
12(2), 149–166. https://doi.org/10.7441/joc.2020.02.09
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