Employee Satisfaction, Corporate Social Responsibility and Financial Performance

Chu-Hsuan Chang, Hsiou-Wei Lin, Wen-Hsien Tsai, Wei-Liang Wang and Cheng-Tsu Huang
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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

Sustainability, 2021, vol. 13, issue 18, 1-26

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.

Keywords: corporate social responsibility; employee turnover; mediation effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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