Employee satisfaction, corporate social responsibility and financial performance
Journal
Sustainability (Switzerland)
Journal Volume
13
Journal Issue
18
Date Issued
2021
Author(s)
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 manufac-turers (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. ? 2021 by the authors. Licensee MDPI, Basel, Switzerland.
Subjects
Corporate social responsibility
Employee turnover
Mediation effect
corporate social responsibility
correlation
financial system
manufacturing
performance assessment
Taiwan
Type
journal article