The Effect of Corporate Social Responsibility Practices on Employee Retention and the Moderating Role of Top Management Support: The Case of Ethiopian Sugar Corporation
No Thumbnail Available
Date
2020-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
Businesses are growing rapidly and completion is getting stiff. Thus, capturing the hearts and minds
of employees and customers is becoming very important. Corporate Social Responsibility (CSR) is a
very effective tool in attracting and retaining stockholders and employees (Jamali et al., 2014;
Petersen & Vredenburg, 2009). This thesis intended to explore and examine the effect of CSR on
employee retention in the case of Ethiopian Sugar Corporation and identify which CSR dimensions
significantly predict employee retention. The study further aimed endeavored to determine whether
Top Management Support had a moderating effect on the relationship between CSR and Employee
Retention. A quantitative, cross-sectional research design was adopted. The total population was
divided into strata and then a simple random sampling was employed. A total of 195 (i.e. 86 % of
response rate) standard questionnaires were distributed, collected and analyzed from the management
and employees of the Ethiopian Sugar Corporation. Descriptive statistics, Correlation, Hierarchical
regression analysis and Factor loading were used to analyze both the study variables and the
moderating variable using the data by applying SPSS version 25. In addition, Hayes process model
version 3.3 was used for computing and depicting the moderation analysis. Evidence from the study
showed that all the study variables (labor practice responsibility, economic responsibility, legal
responsibility, ethical responsibility and philanthropy responsibility) significantly influenced the level
of employee retention, whereas, Labor practice responsibility dimension had a significant positive
effect. Top management support is found to have a moderating role in the relationship between the five
CSR dimensions (economic, legal, ethical, philanthropy, labor practice responsibility) and employee
retention. The study shows that CSR practices and top management support are important factors for
retention of employees in the organization. Based on the findings, it is recommended that the
corporation should handle employee retention with great concern and use it as a core input to its
competency. However further research is necessary to consider the impact of other retention factors
and the moderating effect of other CSR, human resource and organizational behaviour factors in
predicting employee retention.
Description
A Thesis Submitted to the graduate programs of Addis Ababa
University in Partial Fulfillment of the Requirements for the Degree
of Master of Art in Business Administration
Keywords
Corporate Social Responsibility, Economic Responsibility, Ethical Responsibility, Legal Responsibility, Philanthropy Responsibility