Commendable Role of CSR Initiatives Taken by Multinational Corporation’s in Increasing Employee Engagement, Loyalty, And Retention

Abstract

This research examines the impact of CSR programmes on employee commitment, loyalty, and retention in MNCs with consideration of cultural factors. Using quantitative questionnaires supplemented with qualitative interviews, the study explores the impact of CSR engagement on employees’ perceptions and behaviours in different cultural environments. The findings indicate that CSR has a positive effect on the overall employee satisfaction and commitment, particularly in cultures high in collectivism index since the values are heralded by the community. These cultures respond positively to CSR, especially social and community-oriented CSR practices, they are committed, thus have low turnover rates. On the other hand, the effect of CSR on the employee turnover is relatively less in the individualistic cultures where the self-achievement is most valued. This variation suggests that MNCs should need to bring the CSR policies into correspondences with the traditional values of the areas where they locate. CSR programmes’ effectiveness can be improved and better employee-related outcomes gained according to the proposed MNC cultural sensitivity approach of CSR activities. It also highlights the importance of CSR as a tactical approach in enhancing employee satisfaction and retention rates. This study investigates the influence of Corporate Social Responsibility (CSR) initiatives on employee engagement, loyalty, and retention in multinational corporations (MNCs). CSR's role in fostering positive employee attitudes has gained attention in recent years, with many MNCs leveraging CSR to promote a socially responsible image and enhance internal outcomes like employee commitment. Using employee engagement, organizational loyalty, and turnover rates as key variables, this paper compares the effects of CSR initiatives across different cultural contexts, utilizing data analyzed through SPSS. The results reveal significant variations in the impact of CSR depending on cultural dimensions, with implications for global HR management strategies in MNCs.