The Effects of Corporate Social Responsibility on Employee Job Satisfaction: The Case of Selected Private Commercial Banks in Ethiopia
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Date
2023-06-26
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A.A.U
Abstract
This research study investigated the relationship between corporate social responsibility (CSR)
and employee job satisfaction using the Stakeholder Theory of CSR. A mixed methods research
approach was used to conduct deductive explanatory research utilizing primary cross-sectional
data collected through a questionnaire survey from 351 employees supplemented by qualitative
data obtained from interviews with senior managers. The study targeted a total of 2,859 head
office employees of three private commercial banks using a two-stage purposive and
convenience sampling technique to sort out the participating banks and employees respectively.
A sample size of 352 was drawn from the target population with 351 useable responses
collected. The desired sample size was determined using Taro Yemane’s formula at a
confidence level of 95% and 0.05 precision level. Descriptive and inferential analyses were
conducted on the collected qualitative data using IMB SPSS v25. The interview data were
analyzed using content analysis. The findings indicate that employee-oriented CSR and
customer-oriented CSR positively and significantly affect employee job satisfaction. However,
natural environment-oriented CSR has a negative and significant effect on employee job
satisfaction while community-oriented CSR, supplier-oriented CSR, and shareholder-oriented
CSR have a statically insignificant influence on employee job satisfaction. The study concludes
that CSR initiatives related to employees and customers play a crucial role in enhancing
employee job satisfaction in the studied banks. The main recommendations made include
policymakers establishing a comprehensive legal CSR framework, banks establishing a
dedicated CSR department, improving crisis response mechanisms, strengthening CSR
financial resource management, and future studies exploring industry-specific factors and other
employee outcomes related to CSR implementation.
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Keywords
Corporate Social Responsibility; Employee Job Satisfaction; Commercial Banks; Ethiopia; Africa; Developing Countries; Sub-Saharan; CSR; Job Satisfaction