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Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country

Author

Listed:
  • Dudung Abdurachman

    (Department of Postgraduate, Sekolah Tinggi Hukum Militer, Jl. Matraman Raya No. 126, Jakarta 13150, Indonesia)

  • Rudy M. Ramdhan

    (Department of Postgraduate, Sekolah Tinggi Hukum Militer, Jl. Matraman Raya No. 126, Jakarta 13150, Indonesia)

  • Ateng Karsoma

    (Department of Postgraduate, Sekolah Tinggi Hukum Militer, Jl. Matraman Raya No. 126, Jakarta 13150, Indonesia)

  • Daniel Kisahwan

    (Department of Business Administration, STIA Bagasasi, Jl. Cukang Jati No. 5, Bandung 40273, Indonesia)

  • Alex Winarno

    (Department of Business Administration, Telkom University, Jl. Telekomunikasi No. 1 Terusan Buah Batu, Bandung 40257, Indonesia)

  • Deni Hermana

    (Department of Business Administration, STIA Bagasasi, Jl. Cukang Jati No. 5, Bandung 40273, Indonesia)

Abstract

CSR is a strategy to realize sustainability. CSR needs to be understood based on a priority scale and objectives to build a solid organizational structure and ensure sustainable CSR implementation. In this regard, CSR implementation at the micro and macro levels needs further explanation. The study aims to analyze the effect of CSR on employee performance through assessment and job satisfaction using the micro foundation framework. This causal study surveyed 382 state-owned enterprises’ non-manager employees in Indonesia. The results demonstrate employees’ responses to internal and external CSR. Internal CSR, which primarily aims to improve employee performance, was found to improve employee satisfaction and engagement and lead to better performance more significantly than external CSR. Internal CSR had a higher effect on employee performance than external CSR. Compiling a scale of top priorities for corporate stakeholders became the leading choice to encourage long-term performance. The originality of this study is that the foundation of long-term performance ensures the corporation’s performance, and CSR lies in the strength of the microstructure at the individual level. The implementation of CSR based on the legal system requires paying attention to the scale of priorities based on the internal function of CSR in strengthening a corporation’s microstructure.

Suggested Citation

  • Dudung Abdurachman & Rudy M. Ramdhan & Ateng Karsoma & Daniel Kisahwan & Alex Winarno & Deni Hermana, 2023. "Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country," Administrative Sciences, MDPI, vol. 13(8), pages 1-24, August.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:8:p:186-:d:1214746
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    References listed on IDEAS

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    1. Magdy Sayed Ahmed Abolnasser & Ahmed Hassan Abdou & Thowayeb H. Hassan & Amany E. Salem, 2023. "Transformational Leadership, Employee Engagement, Job Satisfaction, and Psychological Well-Being among Hotel Employees after the Height of the COVID-19 Pandemic: A Serial Mediation Model," IJERPH, MDPI, vol. 20(4), pages 1-27, February.
    2. Owais Nazir & Jamid Ul Islam, 2020. "Influence of CSR-specific activities on work engagement and employees’ innovative work behaviour: an empirical investigation," Current Issues in Tourism, Taylor & Francis Journals, vol. 23(24), pages 3054-3072, December.
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    4. Deborah E. Rupp & Ruodan Shao & Daniel P. Skarlicki & E. Layne Paddock & Tae-Yeol Kim & Thierry Nadisic, 2018. "Corporate Social Responsibility and Employee Engagement : The Moderating Role of CSR-Specific Relative Autonomy and Individualism," Post-Print hal-02312131, HAL.
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