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Are Employees Better Off in Socially Responsible Firms?

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Author Info

  • Tamm, Katrin

    ()
    (University of Tartu)

  • Eamets, Raul

    ()
    (University of Tartu)

  • Mõtsmees, Pille

    ()
    (University of Tartu)

Abstract

The growing awareness of the issue of corporate social responsibility (CSR) has raised the questions about how responsible behavior of firms would impact employees’ well-being. This paper investigates the link between corporate social responsibility and job satisfaction, which is a more widely recognized measure to assess well-being at work. Based on the survey of 3637 employees in Estonia, Latvia and Lithuania, measures of internal and external social responsibility are found to be positively associated with job satisfaction. Findings of the study indicate that employees’ assessments on various aspects of their job are noticeably higher in firms that are perceived as more engaged in CSR activities both towards their internal and external stakeholders. A further outcome of the study emphasizes the negative link between firm size and corporate social responsibility thus reflecting that smaller firms tend to show higher assessments regarding CSR. Similar relationships are also found between firm size and job satisfaction.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5407.

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Length: 29 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5407

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Keywords: corporate social responsibility; stakeholder view; employee engagement; job satisfaction;

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  1. Sousa-Poza, Alfonso & Sousa-Poza, Andres A., 2000. "Well-being at work: a cross-national analysis of the levels and determinants of job satisfaction," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(6), pages 517-538, November.
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