Job Satisfaction, Firm Performance and CSR

Abstract

Purpose - The study proposes and empirically tests four hypotheses: the firm and CEO characteristics have a relationship with employees’ job satisfaction / the firm performance is correlated with job satisfaction/ the CSR rating is associated with employee satisfaction / the employee satisfaction is associated with CSR ratings. Design/methodology/approach - Hypotheses were all tested through both linear regression and logistic regression analyses, using data from Wharton Research Data Services (WRDS). Findings – The result of this study provides the evidence that the firm characteristics are important factors that affect employee satisfaction and job satisfaction is positively correlated with the firm performance. Moreover, when job satisfaction increases, the CSR rating will increase. However, when the CSR rating increases, the impact of job satisfaction depends on the variable we used to measure the job satisfaction. Practical implications – The finding of this paper can be used in human resources management and understanding the impact of CSR on employee satisfaction is relevant to corporate performance. Key word - Corporate social Responsibility Rating/ Employees’ benefits/ Firm Performance/ Job satisfaction