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The contribution of corporate social responsibility to internal employee motivation

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Purpose ‐ The purpose of this paper is to examine the impact of corporate social responsibility (CSR) on internal employee motivation. Design/methodology/approach ‐ A survey was conducted among 274 employees from medium and large enterprises engaged in CSR activities in Lithuania. The research hypotheses were tested using correlation and regression analysis using factor scores from a principal component factor analysis. Findings ‐ The findings suggest that internal and external CSR activities positively correlate with internal employee motivation. Internal CSR was found to be stronger related to internal employee motivation than all the external CSR dimensions. Regarding the external CSR, customer-related activities indicated stronger correlation with internal employee motivation than local communities and business partners related CSR activities. The weakest relation was found between internal employee motivation and business partners related CSR activities. Research limitations/implications ‐ This study is limited to one country under investigation, therefore further research needs to be extended to other countries. The survey is conducted in the period of economical recession. In order to assess the generality of the findings, it is suggested to repeat the research in a stable economy situation. Practical implications ‐ Executives could use the results of the research to resolve practical dilemmas by giving priority to the areas of CSR which facilitate employee internal motivation enhancement. Originality/value ‐ By revealing the importance of CSR activities to employee internal motivation enhancement, this study contributes to the CSR investigation arena.
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Keywords: Corporate governance; Employees behaviour; External corporate social responsibility; Internal corporate social responsibility; Internal employee motivation; Lithuania; Motivation (psychology); Social responsibility

Document Type: Research Article

Publication date: 2012-01-06

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