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Employee Satisfaction, Corporate Social Responsibility and Financial Performance

Author

Listed:
  • Chu-Hsuan Chang

    (Department of Finance, National Taipei University of Business, Taipei 10026, Taiwan)

  • Hsiou-Wei Lin

    (Department of International Business, National Taiwan University, Taipei 10617, Taiwan)

  • Wen-Hsien Tsai

    (Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan)

  • Wei-Liang Wang

    (Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan)

  • Cheng-Tsu Huang

    (Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan)

Abstract

This study explores the extent to which employee turnover, a proxy variable to employee loyalty, helps mediate the relationship between Taiwanese firms’ corporate social responsibility (CSR) performance and financial outcome. The results show that a firm’s CSR performance is negatively correlated with employee turnover and turnover variability, and moreover, employee turnover is negatively correlated with a firm’s financial performance. The result is especially noteworthy for studies regarding Taiwanese companies since quite a few of them are original equipment manufacturers (hereafter also referred to as OEMs), of intermediate goods. For the sample firms, although the contribution of social responsibility appears to have insignificantly direct benefit on financial performance, we document that the extent to which CSR conducts influence on long-term financial outcomes may be moderated and mediated by employee enthusiasm.

Suggested Citation

  • Chu-Hsuan Chang & Hsiou-Wei Lin & Wen-Hsien Tsai & Wei-Liang Wang & Cheng-Tsu Huang, 2021. "Employee Satisfaction, Corporate Social Responsibility and Financial Performance," Sustainability, MDPI, vol. 13(18), pages 1-26, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:9996-:d:630315
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    References listed on IDEAS

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    1. Chen-Yueh Chen & Ya-Lun Chou & Chun-Shih Lee, 2021. "Social Innovation, Employee Value Cocreation, and Organizational Citizenship Behavior in a Sport-Related Social Enterprise: Mediating Effect of Corporate Social Responsibility," Sustainability, MDPI, vol. 13(22), pages 1-10, November.
    2. Jiangjun Li & Tao Fu & Shengyue Han & Rui Liang, 2023. "Exploring the Impact of Corporate Social Responsibility on Financial Performance: The Moderating Role of Media Attention," Sustainability, MDPI, vol. 15(6), pages 1-16, March.

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