The Impact Of CSR On Organizational Culture And Employee Engagement Beyond Profit
- IJLLR Journal
- Jan 7
- 2 min read
Aswathy Ashok, LLM, Amity Law School, Amity University, Bengaluru
Jyotirmoy Banerjee, Assistant Professor, Amity Law School, Amity University, Bengaluru
ABSTRACT
Today Corporate Social Responsibility (CSR) is a cornerstone of modern business management where the companies blend the environmental operations with the business operations. CSR initiatives have become an effective implementation in enhancing employee engagement, motivation, and fostering stronger organizational relationships rather than just focusing on organisational profits. Employees who feel that their organization supports and encourages their involvement in meaningful causes tend to contribute more, often leading to higher levels of job satisfaction and stronger alignment with company values. This paper is an examination about the numerous ways employees interact with CSR, and the role of organization in promoting employee enhancement other than making profit by focusing on three key approaches. Transactional engagement points up the participation of employees and organization in CSR activities, while relational engagement highlights the psychological contract between employees and the organization’s commitment to social responsibility. Developmental engagement expands it by cultivating a culture of responsible corporate citizenship, encouraging employees to embrace CSR as a core organizational value. The research paper further focuses on how different dimensions of CSR such as discretionary, ethical, legal, and economic affect the relationship between organizations and their employees. CSR initiatives significantly enhance these relationships, especially when employees see a strong alignment between the organization's CSR efforts and its culture. In addition, the paper analyses the correlation between CSR and profitability, examining how companies respond to financial loss, whether they will sustain, reduce, or abandon their CSR initiatives with a consideration to the role of employee involvement in driving these efforts. The growing body of research on CSR and internal relationship management, providing valuable insights for organizations. It also emphasizes the importance of aligning CSR with cultural values to strengthen organizational ties and enhance employee engagement beyond profits.
Keywords: Corporate Social Responsibility, Profit enhancement, Employee, Organization.
