Corporate Social Responsibility and Employee Satisfaction

Abstract

The current paper extends empirically the CSR literature by investigating the linkage between CSR and job satisfaction and employees’ retention. Besides, the paper cites the impact of Covid-19 pandemic on the employment industry. The pandemic has seen many employees’ working contracts terminated, suspended or even forced to survive on half salary. In addition, the research paper tries to depict how companies are struggling to retain their high performing employees without stretching on their finances. The onset of the pandemic affected the employees both at work places and homes. The companies find themselves struggling to convince the employees to stay on half salaries. The paper finally highlights the employee’s intention to stay despite the suspended employment contract. Data was collected from 500 questionnaires filled by employees working in Romanian companies from different industries. The results showed that employees’ satisfaction was positively influenced by CSR initiatives. The findings reveal some important actions about how to boost employees’ satisfaction through CSR practices. Directions for future research are discussed.

Introduction

Human resource management (HRM) has always been one of the most outstanding research areas in the business segment. Employees welfare has always been the number one concern in most workplaces especially during this time of Covid 19 pandemic. Covid 19 pandemic has seen employees’ layoffs with the lucky once forced to survive on half salaries. However, when speaking of HRM, it is of crucial importance to understand that employee satisfaction serves as a major variable in all theoretical frameworks related to the issue. Hence, any idea of a conceptual model implemented into an organization is inevitably influenced by human capital to a certain extent. However, when speaking of the situation from an opposite perspective, it is rather difficult to define the extent to which the employees are impacted by the working framework.

One of the most widespread frameworks integrated into the working environment is the Corporate Social Responsibility (CSR) model. According to the researchers, the latter stands for the organization’s actions aimed at positive outcomes beyond its sphere of interest, contributing to society in general (Tamvada, 2020). Thus, the following commitment implies a wider range of responsibilities for both the human capital and top management, as it encompasses a range is sustainable interventions in the working process. Taking this assumption into consideration, the research employee is may be outlined: employee CSR attribution considerably influences the overall level of job satisfaction and the employee retention. Companies are struggling to retain most of their high performing and proficient employees. The employees have always ensured business continuity for a long time. Besides, those employees were often used to luxuries lifestyle and finds it difficult to adapt to half salary which cannot meet their primary needs. Unfortunately, some of the employees succumbed to corona virus pandemic and the companies resolve to turnover of employees for replacement. Most of the businesses are running on a tight budget due to poor economy and low profits. The turnover has led to loss of valuable knowledge and experience which requires time to acquire.

This article is structured as follows: First, we discuss the literature related to CSR, the relationship between employee satisfaction and CSR and the research approaches taken to it. We also pass through the employee retention concept, highlighting the related models, the notion of turnover rate and the related literature to build our hypothesis. We then identify our study method used to test our hypotheses and present the results. Finally, we discuss the findings, including limitations and suggestions for future research.

Literature review

The corporate social responsibility

Prior to understanding the idea of interrelation between CSR and job satisfaction, it is important to identify the working definition of Corporate Social Responsibility, as the definition helps outline some of the major variables. Hence, according to the researchers, the notion of CSR is frequently regarded similarly within organizations, whereas the theoretical foundation for its implementation varies significantly (Frynas & Yamahaki, 2019). Hence, while some leaders perceive CSR as a legal endeavor driven by corporative regulations, others associate the idea with collective ethical consciousness and even charitable activity. However, for the sake of rationality, the following literature review will be focused on Blowfield and Frynas’s definition that claims CSR to be an umbrella term for concepts and theories aimed at companies’ responsibility recognition in terms of social impact, environment, and sustainability (Frynas & Yamahaki, 2019). The other variables, in their turn, may be either promoted or dismissed within the organization.

CSR has significant effects on an organizational image. Most organizations are often concerned about their growth and competitiveness in the marketplace and are constantly seeking positive image among the concerned stakeholders (Brands & Gavin, 2020, p. 45). Furthermore, the strength of a brand always increases with incorporation of CSR approach. Besides, it is an important tool in attracting potential customers. CSR policies have helped several businesses to keep their market position and gain competitive advantage in the business world (Brands & Gavin, 2020, p. 43). In addition, CSR has been used by companies to build reputations along with enhancing their brand image especially in relation to their stakeholders. CSR is an important approach in any business setup globally.

Relationship between CSR and job satisfaction

A variety of job satisfaction definitions exist that are characterized by a variety of factors that contribute to the notion. For example, Locke perceives job satisfaction as the employee’s positive frame of mind after the assessment of his or her working experience (Pang & Lu, 2018). Another interpretation stated that job satisfaction might be considered as an extent to which people feel content with their working conditions (Yuh & Choi, 2017). The criteria for job satisfaction are generally divided into internal and external, where the former stands for the individual’s expectations from the workplace.

Job satisfaction carries significant importance to companies has it helps save on operational cost. When employees are satisfied, the company’s productivity level will be boosted and there will be a reduced employee absenteeism. In addition, employee productivity is increased and lower voluntary turnover experienced. Job satisfaction causes reduced long-term human resource cost.

Considering the aforementioned definitions, it may be outlined that everything that takes place within the working environment affects employees’ contentment. Thus, in order to understand the role of CSR in one’s job satisfaction, it is necessary to dwell on the relationship between theories relevant to certain working environments and their influence on the overall job satisfaction levels. When speaking of the stakeholder theory, the overall level of job satisfaction tends to be affected due to the fact that employees are perceived as stakeholders, therefore, play a significant role in the organization’s management patterns (Appiah, 2019).

Institutional theory, being focused on the adherence to social norms and institutions, contributes to the levels of job satisfaction by providing a structured approach to the employee’s scope of responsibilities (Van Wijk et al., 2019). Legitimacy theory, driven by the principle of justifying the organization’s actions as socially acceptable and non-harmful, tends to improve the patterns of communication between the employee and the company, resulting in the employee satisfaction modification (Fatma et al., 2019; Gallardo-Vázquez et al., 2019). Another CSR-related theory, known as the resource-based view, contributes to the perception of job performance because employees are considered as a major strategic resource in terms of management (Ahmed et al., 2018).

Agency theory is also crucial in terms of job satisfaction, as it outlines managers as the agents of any action, providing them with distinct objectives (Zogning, 2017). Considering the fact that that job description plays a pivotal role in satisfaction and performance, the managerial framework presented on the basis of agent theory considerably impacts the employee’s perception of the environment (Evans & Tourish, 2017). Finally, the major idea behind resource-dependent theory provides companies with the ability to cooperate with external organizations rather than limit their own resources, eventually leading to the minimized conflict risks on the team (Wang et al., 2020). Hence, having taken the following information into consideration, it may be concluded that the scholarly data justifies the assumption that CSR-related frameworks affect the employee’s job satisfaction regardless of the theoretical foundation chosen.

Several CSR practices can be used to boost an employee’s satisfaction. CSR provides employees with a sense of purpose by tying their culture to the business (Gutierrez, 2016, p. 78). Furthermore, employees who have clear and motivating goal feels as if they have ownership in the company’s success therefore boosting their confidence. In addition, CSR makes employees identify with organization (Gutierrez, 2016, p. 65). The employees get a sense of belonging which promotes their satisfaction and retention (Jamali & El Dirani, n.d., p. 69). Finally, CSR programs can be used to empower the employees to be actively involved in the business engagements which will feed directly into satisfaction.

CSR and Employee Performance

CSR is considered a sophisticated concept, which may work efficiently only once all the variables co-exist in a unified working environment. Hence, according to Carroll’s CSR pyramid, the model includes legal, ethical, economic, and discretionary categories (Lu et al., 2020). That is, when securing a successful business, top managers are to make sure that the economic goals crucial for the enterprise’s existence are achieved without violating neither legal nor ethical considerations. Predictably, some researchers began to question the idea of employee performance in the context of CSR model implementation (Kucharska & Kowalczyk, 2019; Asante Boadi et al., 2020). However, despite the assumption that CSR may negatively impact the performance, the results have shown the opposite, claiming internal expectations and value to be highly important for the CSR-performance paradigm (Kim & Kim, 2020). Hence, it is now important to realize the extent to which the employee performance may be positively affected by the CSR model.

It is necessary to dwell on the notion of job security as one of the major performance enhancers. For example, the recent COVID-19 pandemic outbreak has drawn much attention on the matter of how CSR may contribute to job security and satisfaction (Bae et al., 2021). Thus, one of the studies aimed at discovering the CSR’s influence on the employees’ psychological capital in terms of COVID-19 quarantine (Mao et al., 2020). The results of the survey claim positive results in terms of influence on employees’ hope, resilience, and optimism. Moreover, the notion of CRS presupposes the team’s orientation for long-term performance, which generally provides employees with a higher level of security and, consequently, performance (Trivellas et al., 2019). COVID-19 has affected CSR practices both positively and negatively. The pandemic has led businesses to shift toward a more genuine and authentic CSR initiatives. Besides, CSR has significantly represented a great context to examine how institutional factors influence businesses (COVID-19: Analysis of extending the coronavirus job retention scheme, 2020, p. 78). Businesses ethical practices significantly shifted due to the corona virus pandemic (P D. & D’Silva, 2020, p. 54). Some companies especially those making masks and personal protective equipment tried profiteering from the crisis bridging their commitment to CSR. The pandemic has also affected the marketing and marketing philosophy originally used by the companies (McWilliams et al., 2019, p. 64). However, the pandemic has also led some businesses to venture in production of ventilators, hand sanitizer and even personal protection equipment with a more approach to CSR. Other companies have changed their operation hours to accommodate the pandemic effects (McWilliams et al., 2019, p. 90). Besides, the pandemic has led to development of strong bonds between the consumer and the business brands. The COVID-19 pandemic has significantly given companies great opportunities to actively engage with their CSR agendas and strategies. When speaking of other CSR aspects in performance, it is necessary to outline that the model could be combined with other initiatives in order to secure employee performance. According to the scholarly evidence, the conceptual framework between CSR implementation and employees may be mediated through endeavors such as green practices and social exchange (Paillé & Meija-Morelos, 2019; Suganthi, 2019). Taking the aforementioned literature into consideration, it may be concluded that the CSR-related models obtain a positive influence on employee performance when perceived seriously by the management.

Moreover, when speaking of the employee’s performance, it is necessary to dwell on the financial motivation behind the process. Considering the complexity of the CSR integration in the environment, it would be safe to assume that it requires much financial investment in order to succeed. Moreover, there exists a common belief that the sustainable development of the company is not profitable in the long run (Bae et al., 2021). However, considering the research data presented over the past years, it becomes evident that CSR implementation secures extremely positive financial outcomes for the company and, consequently, employees (Cho et al., 2019; Sinthupundaja et al., 2019; Awaysheh et al., 2020; Galdeano et al., 2019). These benefits include higher credibility rates in the market and headhunting the best employees to the firm. As a result, the overall implementation of CSR in the workplace creates all the necessary conditions for higher job satisfaction rates. However, it is important to understand that such economic benefit is only achievable when combined with the active promotion of non-economic CSR variables.

The Role of HRM in Employee Retention

Gaining loyal customers in any business is essential for a healthy organization, but what about retaining loyal employees especially those top performers who show full commitment toward achieving organizational goals. As reported by Beer (1992), the growing competitions around the world have alerted the company leaders about the importance of retaining knowledgeable and skillful employees to serve customers. Those dedicated workers are the critical elements in getting the customers satisfied; they create the organizational value and set the business on the lane of success.

However, with the COVID-19 pandemic, several businesses faced challenges in retaining their employees. In addition, the pandemic has crushed the business economy and the human resource professionals have the task of keeping everything in perspective (OECD, 2020, p. 64). The businesses are forced to organize mental health and wellness programs to solve the stress issues among employees (OECD, 2020, p. 74). In addition, the pandemic has affected the employee’s communication since most people are working remotely and the human resource professionals are constantly looking for the right remote working tools to monitor them and ensure they never leave.

So that, overlooking employees’ contentment is so risky and ends up with not only the inaptitude to maintain worthy staff members, but also losing valuable customers. Although companies strive to find out the best possible marketing strategy to ameliorate clients’ fulfillment of needs and wants, evidences have shown how serious is the impact of employees’ fidelity on customers’ loyalty and organizational profitability and success (Ineson, Benke, & Laszlo, 2013). Consequently, taking care of the human resources in the company is a serious concern.

Lindgren (2008) identified the major activities of the HRM. They involve recruiting the right personnel, listing their job description, performing training programs and developing their employees’ skills, dealing with staff complaints, employee’s recognition and compensation and of course making sure that company rules and regulations are being applied. So that, the HR department’s primary responsibility is to look after the human resources available in the company, respond to their needs and value their contributions toward making a successful and reputable company.

This is not all; the HR responsibility encompasses educating employees on their mandatory benefits such as social security, unpaid family or medical leave, workers compensations and others. Besides are the voluntary settlements, listing of them the retirement plans and family care. Managing those benefits helps in attracting eligible candidates and lowering the organizational turnover (Mathis & Jackson, 2006).

Motivating staff members falls within the typical duties of the HR department. Employee development and training are two possible motivational strategies pursued together with job enrichment to amplify the staff performance and give them a sense of empowerment (Dessler, 2012).

The Importance of Retention

Looking for a competitive advantage remains always a priority for the corporate level in companies which most of the times fail to keep an eye on the employee turnover rate and notice how serious is the impact of losing competent employees on organizations’ profitability.

Heinrich Roth (2008) said: “There is a clear link between successful staff retention strategies and the performance of a company”.

Common sense tells about the harmful effect of talented employee’s departures on the business life cycle. Leaving workforces take with them all the skills, knowledge, experiences and proficiency acquired throughout the years of performance.

CSR plays an importance role in influencing an employee’s intention to stay. Employees often prefer to work where they get recognized and feel useful (Rasche et al., 2017, p. 76). CSR creates a conducive environment which leads to strong bonds and close relationships between employees. Besides, CSR creates a positive feeling to employees about their organization which further improves their commitment and loyalty to the organization (Rasche et al., 2017, p. 87). CSR brings better employee engagement and performance resulting to increased creative and boosts in confidence of the employees positively affecting their intention to stay.

Employee Retention Models

Sultana Nazia&Bushra Begum (2013) stated that company must exert an effort to retain its employees by providing a supportive workplace environment that assists in satisfying the employees’ needs and reducing the considerable costs associated with employee turnover. For this reason, different retention strategies were addressed to help organizations retain their proficient performers.

Following, are three important models of employee retention.

The first one is called Zinger model developed by the Canadian expert in employee engagement, David Zinger. This model reveals engaging employees in various organizational activities can boost their performance to achieve the desired results.

In addition, it shows that employees’ alignment with physical, spiritual and emotional energy in the organization contributes to the employees’ wellbeing, career development and customers’ satisfaction.

In other words, a strategy of work connections and commitments ends up with meaningful results and this is vital to employee retention.

The second model is the Employee Retention connections model (ERC). It focuses mainly on three employee retention drivers: the first one consists of work stimulation by assigning more duties for the employees while empowering them to take the required decisions when needed. This model recognizes also the importance of the motivation in retaining employees. Leaders are asked to act as role models in the organization, inspire and influence employees creativity and adopt an “open door” strategy coupled with an open-minded vision that reveals the organizational morals. As per the ERC model, appreciating personal contribution within the company and celebrating the teamwork success boost the employees’ performance and make them hard workers.

The third model entitled the integrated system for retaining employees adds to the company’s values through its five sectioned approach: it begins with the analysis of the prevailed organizational retention culture considering both its positive and negative aspects. Next, the focus is mainly on how to engage employees and support them to achieve and succeed. The third segment considers the methods of implementing a powerful leadership style through training and guidance. The fourth section is concerned with the competency progress and career path development ending with the implementation of a recognition and reward system that pushes the employees to perform at their best.

Every manager has a different way implementing the employee retention models; however, the esteem should always be the base of their application. Organization can have a waiting list of applicants once their workplace is that hard-to-leave, and this becomes attractive for other candidates (Branham, 2005).

Research and studies recommend the amendment of priorities when it comes to employees’ wants fulfillment (Gale Group, 2006). Going beyond the conventional needs that involve the basic salary, promotion packages and compensation programs, is a must (Feldman, 2000). Setting training programs (Cunningham, 2002), edification climate (Walker, 2001) as well as career development (Boomer Authority 2009) and friendly environment (Zenger, Ulrich, Smallwood, 2000), all are considered as factors that enhance the workplace long stay of employees.

Turnover Rate

Employee turnover has been always considered a serious problem for businesses and it is still concealed how much money companies lose over the turnover of employees however; working hard on retaining employees is not only for the sake of saving money but also, to avoid the leakage of talented workers.

Causes of Management Turnover

The employee turnover could be caused by several factors. Listing several ones will include the following:

1. Compensation and benefits: studies addressing the relationship between employee turnover and employee compensation affirm that a good pay is predicted to motivate the long stay of employees in the organization (Gomez-Meija and Balkin 1992; Milkovich and Newman 1993). The salary is not the sole aspect involved; other benefit packages occupy a great role in pushing the workforce toward staying or leaving their companies (Heneman, 1985).
2. Leadership and Supervision: the superior-subordinate relationship has a lot to do with employees’ intention to stay. The communication skills are significant in strengthening or weakening the employees’ loyalty to their company. How smooth is the exchange of information, to what extent workers are engaged in decision making and how supportive are the mangers in the workplace, all these factors have a direct impact on the employees turnover (Dansereau, Graen, and Haga 1975, Graen and Scandura, 1986).
3. Career development and promotion: sticking to financial compensations as way of motivating the workforce is not enough. Investing in the human resources is a must. Giving them more duties and tasks that stimulate their challenging spirit and coming up with fair promotion opportunities have proved to be effective in retaining employees and decreasing their turnovers. So that, lack of a career planning and development is classified among the leading causes of high employee turnover Muskan Khan, 2013).
4. Peer-group relations: Morale turned to be stronger when colleagues are friends and this give the worker a sense of belonging to the company, which has a great effect on the inner satisfaction of the concerned employee; being satisfied within the social circle of peers developed at work encourages the long stay of the employee as explained by Ibid (1986).
5. Labor Unions: those unions whose mission is mainly to defend employees’ rights and enhance the security of working conditions among performers has a powerful influential function in lowering the worker turnover rate (Kuo-Shun Sun 2011).

Cost of employee’s turnover

When the employee quits the organization, staffing and financial expenses arise. Calculating the costs that arise with employees’ turnover begins with addressing the exit interviews, going after the expenses incurred for the recruiting process and the following routine of interviewing and selecting the candidates that best suit the position’s requirements (Vu, 2008).

In other words, replacing those who left and training the new workers to meet the productivity level demanded in the organization are time-consuming and costly processes for the human resource department (Cattle and Tigyu, 2009).

Ensuring that the company has the right number of workers at the right places with the right skills is a pivotal function for the HR department noting that, staff shortages may alter the company’s level of performance due to the load placed on the lingering workforce.

When an organization faces a problem of high turnover, it does not only affect its productivity but also impacts the overall employees’ morale. Such state of affairs pushes the human resources department for proceeding with an effective strategy of boosting the work environment to reduce the negative outcomes of this problem.

Procedures and methodology

In this paper, we will be investigating the impact of CSR initiatives on job satisfaction and employees’ retention. Additionally, we will be looking for the root cause (s) of the high employees’ turnover taking place at the Romanian companies, discussing the effectiveness of the strategy followed and its impact on employees’ retention. Stated otherwise, it is to figure out the importance of employees’ satisfaction. These findings will undoubtedly help in revealing the smartest course of action to be adopted by the management to retain the proficient and well experienced workers permitting thus a healthy running of the business.

Following are the research questions highlighting the areas of concern.

• Is there any positive correlation between CSR practices and employees’ satisfaction?
• Is there a positive relationship between the employees’ salaries and their plane of satisfaction?
• Is there a constructive correlation that links job satisfaction to employees’ intent to quit in Romanian companies?

Hypotheses

The proposed hypothesis generated through the research questions would be as followed:

• H0: CSR attribution considerably influences the overall level of employees’ satisfaction
• H1: CSR attribution has no influence on the overall level of employees’ satisfaction
• H2: The level of employees’ contentment in Romanian companies has no influence on their retention
• H3: The level of employees’ contentment in Romanian companies has direct influence on their retention

Sample

This study’s data came from 47 companies belonging to different industries operating in Romania that have been involved in CSR initiatives in recent years with a total of 512employees. Questionnaires have been distributed online to a total of 720 employees. A list of contact emails was obtained form a major research firm in Romania. We got 500 employee responses (71.1 % response rate). Participants have participated, excluding trainees, newcomer employees, and Human Resource executives. In order to ensure confidence in the reliability of the responses, no requests for employee names or positions were made. Appendix will provide an idea about the questions that were tackled, so that a quantitative model research is used in this article. The survey helps in carrying out the statistical analysis of the variables that are involved in this paper. This relies on the numerical information and data as reported by several respondents. A quantitative analysis using the SPSS system has been performed throughout the study where correlations between different variables were intended, and descriptive figures were examined. The questionnaire consists of mainly three divisions:

• The demographic aspects
• The employment conditions
• The existing organizational and functioning atmosphere

Selected variables

In this paper, the recognized independent variables are the demographic features including age, gender, monthly income levels, and employees’ industry allocation. The dependent variables are employee’s satisfaction and CSR attribution.

Since previous research has shown that a firm’s size and industry characteristics have a major effect on its output (Zhang, & Li, 2009), we included control variables for organizational performance in our research model. Employees’ tenure (in years), and educational level were included (Riketta, 2008) a control variables for job satisfaction.

The relationships between the dependent and independent variables have assisted in the evaluation and consideration of the study results. Research variables were measured using a four-point Likert scale (with scores ranging from 1 = extremely dissatisfied to 4 = extremely satisfied).

Research Methods

This research work has been carried out to investigate the impact of CSR attribution on job satisfaction and employees’ retention. The data was collected from a sample of 512 respondents who were working in different organizations from various industries. The data collection method used was questionnaire. Data was collected during the Covid-19 period. In order to analyze the data, first of all demographic profile of respondents was analyzed, then correlation between the variables was evaluated. In the end, the impact of CSR was investigated using linear regression. The data analysis was done in IBM SPSS.

Findings

Demographic profile of respondents

This section represents the frequency distribution and graphical representation of the respondents. The demographic factors include gender, age education, monthly income, tenure in the current company and type of enterprise the respondent is working in.

Table 1. Gender distribution

The results indicate that out of 512 respondents, 91 (17.8%) were males while 421 (82.2%) were females. This shows that there were more female respondents.

Table 2. Age distribution

For age distribution, out of 512 respondents, 76 (14.8%) participants belonged to the age group 19-23 years, 196 (38.3%) participants belonged to the age group 24-28 years, 120 (23.4%) participants belonged to the age group 29-34 years and 120 (23.4%) belonged to the age group 34 years and above.

Table 3. Education distribution

The results show that out of 512 respondents, 321(62.7%) had complete Bachelors, 142 (27.7%) had completed Masters and 49 (9.6%) had completed PhD.

Table 4. Monthly income distribution

Out of 512 respondents, 168 (32.8%) were earning less than 2500 RON per month, 239 (46.7%) were earning 2600-3500 RON per month, 82 (16.0%) were earning 3600-4500 RON per month and 23 (4.5%) were earning more than 4500 RON per month.

Table 5. Monthly income distribution

The results show that out of 512 respondents, 69 (13.5%) were working in a Micro enterprise (< 10 employees), 127 (24.8%) were working in a Small enterprise (10-49 employees), 200 (39.1%) were working in a Medium-sized enterprise (50-249 employees) and 116 (22.7%) were working in a Large enterprise (>250 employees).

Table 6. Tenure in the company distribution

The following table shows that out of 512 respondents, 43 (8.4%) had been working in their current company from less than 6 months; 46 (9.0%) respondents had been working in their current company for 6 months to 1 year; 159 (31.1%) respondents had been working in their current company from 1 to 2 years and 148 (28.9%) respondents had been working in their current company from 3 to 5 years and 116 (22.7%) respondents had been working in their current company from more than 5 years.

Correlation analysis

Pearson’s Correlation analysis has been applied in order to if there are any relationships between variables CSR attribution, Satisfaction, intention to stay, Income, and attribution during Covid-19.

Table 7. Correlation between CSR attribution, Employee satisfaction, Intention to stay, Income and Practices during Covid-19

The results in the correlation table show that Income has a moderate, positive and statistically significant relationship with employee satisfaction (r=0.575, p=0.000 < 0.05) which means that employee satisfaction increases with an increase in income. Income and Intention to stay in the organization are weakly and positively correlated (r=0.181, p=0.000 < 0.05) which means that employee intent to stay in the organization in case they have attractive income. CSR attribution has a moderate, positive and statistically significant relationship with employee satisfaction (r=0.390, p=0.000 < 0.05) which means CSR attribution increases employee satisfaction. CSR attribution and intention to stay are weakly and positively correlated (r=0.218, p=0.000 < 0.05) so, intention to stay in the organization increases with CSR attribution. Employee satisfaction and intention to stay have a weak, positive and statistically significant relationship (r=0.272, p=0.000 < 0.05) so, with an increase in employee satisfaction, intention to stay in the organization increases. Employee satisfaction and attribution during COVID-19 are moderately and positively correlated (r=0.584, p=0.000) which means that employee satisfaction increases with good attribution during COVID-19.

Hypothesis testing

Hypothesis 1

• H_o: CSR attribution has no influence on the overall level of employees’ satisfaction.
• H₁: CSR attribution considerably influences the overall level of employees’ satisfaction.

Table 8. Correlation between CSR attribution and Employee satisfaction

In order to test this hypothesis, linear regression analysis has been done. Model summary table shows that the value of R-square is 0.152 or 15.2%, which means that the independent variable CSR attribution cause 15.2% variation in the dependent variable employee satisfaction.

Table 9. ANOVA test for variables CSR attribution and Employee satisfaction

The value of significance in ANOVA table is 0.000 which is less that 0.05 (pre-determined level of significance) so we can say that the results are statistically significant.

Table 10. Coefficients for CSR attribution and Employee satisfaction

In the coefficient table, the value of standardized beta is 0.390, which shows that the two variables “CSR attribution and employee satisfaction” are positively correlated to each other. We can also say that with one unit increase in CSR practices, employee satisfaction increases by 0.390 units. The value of significance is 0.000 <0.05 which shows that the results are statistically significant.

Hypothesis 2

• Ho: The level of employees’ satisfaction in Romanian companies has no influence on their intention to stay.
• H1: The level of employees’ satisfaction in Romanian companies has direct influence on their intention to stay.

Table 11. Correlation between Employee satisfaction and Intention to stay

In order to test this hypothesis, linear regression analysis has been done. Model summary table shows that the value of R-square is 0.074 or 7.4% which means that the independent variable employee satisfaction cause 7.4% variation in the dependent variable intention to stay.

Table 12. ANOVA test for variables Intention to stay and Employee staisfaction

The value of significance in ANOVA table is 0.000 which is less that 0.05 (pre-determined level of significance) so we can say that the results are statistically significant.

Table 13. Coefficients for Employee satisfaction and intention to stay

In the coefficient table, the value of standardized beta is 0.272, which shows that the two variables “Employee satisfaction and Intention to stay” are positively correlated to each other. We can also say that with one unit increase in employee satisfaction, intention to stay increases by 0.272 units. The value of significance is 0.000 <0.05 which shows that the results are statistically significant.

Conclusion

The notion of employee management is affected by several concepts and variables. When speaking of some major changes within an organization, it is also important to understand the scope and nature of such influence. This study investigates the relationship between CSR attribution and employees’ satisfaction and their intention to stay. By analyzing the data of 512 questionnaires through linear regression, the findings show that corporate social responsibility (CSR) is a mediating factor for employee satisfaction. Employee expectations of a company’s CSR have differing effects on employee retention.

However, the implicit relationship between CSR and job satisfaction is positive, which means that to exceed staff expectations the management, should select and implement the best CSR attribution what employees value the most and grant satisfactory incentives to improve their efficiency and promote a friendly and pleasant workplace in which to perform, that fact that could lead to better retention.

There are some limitations to this study that could be discussed in suggestions for future research. A future study may include more variables to be correlated with employees’ satisfaction like employees’ attitude and engagement. In addition, future research may investigate how employees perceive CSR and how it affects performance outcomes. This research can be carried out in other developing countries as well.

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