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Corporate Social Initiatives and Employee Retention

Author

Listed:
  • Christiane Bode

    () (Bocconi University, 20136 Milano, Italy)

  • Jasjit Singh

    () (INSEAD, Singapore 138676)

  • Michelle Rogan

    () (INSEAD, Fontainebleau 77305, France)

Abstract

Firms are increasingly launching initiatives with explicit social mandates. The business case for these often relies on one critical aspect of human capital management: employee retention. Although prior empirical studies have demonstrated a link between corporate social initiatives and intermediate employee-related outcomes such as motivation and identification with the firm, their relationship with final retention outcomes has not been investigated. Our study fills this gap. Using individual-level data for approximately 10,000 employees in a global management consulting firm, we present empirical evidence of a positive retention effect associated with employee participation in a corporate initiative with explicit social impact goals. In addition, we offer arguments for moderating conditions that weaken this relationship and present evidence consistent with our arguments. Further econometric analysis based on a stringent matching approach as well as additional analyses based on survey and interview data suggest that the retention effect can at least partly be attributed to treatment and is not all just a manifestation of sorting of certain types of employees into the social initiative. Overall, by demonstrating a positive association between social initiative participation and employee retention, this study highlights the need for further research into how corporate social engagement can serve as a tool for strategic human capital management.

Suggested Citation

  • Christiane Bode & Jasjit Singh & Michelle Rogan, 2015. "Corporate Social Initiatives and Employee Retention," Organization Science, INFORMS, vol. 26(6), pages 1702-1720, December.
  • Handle: RePEc:inm:ororsc:v:26:y:2015:i:6:p:1702-1720
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    File URL: http://dx.doi.org/10.1287/orsc.2015.1006
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Non, Arjan & Rohde, Ingrid & de Grip, Andries & Dohmen, Thomas, 2019. "Mission of the company, prosocial attitudes and job preferences: A discrete choice experiment," ROA Research Memorandum 006, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    2. repec:gam:jsusta:v:11:y:2019:i:6:p:1561-:d:213965 is not listed on IDEAS
    3. repec:bla:stratm:v:39:y:2018:i:10:p:2666-2690 is not listed on IDEAS
    4. Henry Sauermann, 2017. "Fire in the Belly? Employee Motives and Innovative Performance in Startups versus Established Firms," NBER Working Papers 23099, National Bureau of Economic Research, Inc.
    5. Vanessa C. Burbano, 2016. "Social Responsibility Messages and Worker Wage Requirements: Field Experimental Evidence from Online Labor Marketplaces," Organization Science, INFORMS, vol. 27(4), pages 1010-1028, August.
    6. repec:bla:stratm:v:39:y:2018:i:10:p:2591-2617 is not listed on IDEAS
    7. Abigail S. Hornstein & Minyuan Zhao, 2018. "Reaching through the fog: Institutional environment and cross‐border giving of corporate foundations," Strategic Management Journal, Wiley Blackwell, vol. 39(10), pages 2666-2690, October.
    8. repec:bla:stratm:v:39:y:2018:i:4:p:1003-1030 is not listed on IDEAS
    9. repec:bla:stratm:v:38:y:2017:i:2:p:163-183 is not listed on IDEAS
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    11. repec:gam:jsusta:v:10:y:2018:i:11:p:4265-:d:183734 is not listed on IDEAS
    12. repec:bla:stratm:v:39:y:2018:i:11:p:2899-2920 is not listed on IDEAS

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