Tsourvakas 2018
Tsourvakas 2018
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Thessaloniki, Greece.
results was derived from the responses on an employee engagement questionnaire.
Findings – Findings show that employees are proud to identify themselves with companies that have a
caring image. CSR is also positively linked to employee engagement for both companies.
Research limitations/implications – The small size of the sample is a limitation because it leaves no
room for generalising the findings. Secondly, although some of the hypotheses were backed by the data,
he findings are not strong enough, as the reported correlations are too small.
Practical implications – Practitioners and marketing professionals can benefit from this research by
absorbing the fact that employees feel engaged, satisfied and motivated when they play a positive role in
the society through their work. As a result, it would be constructive for professionals to plan CSR
strategies and involve employees both in planning and execution of those strategies.
Originality/value – Unlike other studies, the authors tried to examine the link between CSR and
employee behaviour amid Greece’s financial difficulties.
Keywords Job satisfaction, Corporate social responsibility, Employee engagement, Staff motivation
Paper type Research paper
1. Introduction
The most commonly used definition of corporate social responsibility (CSR) has been
derived from Davis (1973) who describes it as a combination of social benefits and
economic gains where companies empower the society’s betterment. In the past two
decades, CSR has grown into a very popular idea (Nan and Heo, 2007) for businesses
around the world. The benefits of CSR for both firm and society have been widely
acknowledged by consumers, NGOs, governments and media (Kerr et al., 2008).
Extensive literature brings to light the corporate external profits of CSR (Zappalà, 2004; King
and Lenox, 2002). For example, empirical research has shown an indirect positive
relationship between responsibility and turnover increase (McGuire et al., 1988). Similarly,
the stakeholder theory invites businesses to displace the mono-stakeholder concept and
establish a multi-stakeholder approach (Cornell and Shapiro, 1987; Freeman, 1984; Wood
and Jones, 1995; McGuire et al., 1988).
Received 4 September 2016
On the contrary, literature supports that there are important internal gains for sustainable Revised 14 March 2017
1 May 2017
companies. Hence, it is believed that corporate citizenship can have a strong influence on Accepted 2 June 2017
employee morale, motivation, commitment, loyalty and training (Weiser and Zadek, 2000; The authors thank Procter &
Zappalà, 2004; Orlitzky et al., 2003). Quite parallel to what this research paper aims to Gamble, Greece, and Unilever,
Greece, for giving consent to
confirm, Waddock and Graves (1997) note that organisations with CSR activities can benefit publish their names and the
from empowering and encouraging their staff’s commitment and productivity. The author research findings.
DOI 10.1108/SRJ-09-2016-0153 VOL. 14 NO. 1 2018, pp. 123-137, © Emerald Publishing Limited, ISSN 1747-1117 j SOCIAL RESPONSIBILITY JOURNAL j PAGE 123
also links increased staff productivity to an increase in financial performance. Equally,
Peterson (2004) found a positive correlation between employees’ perceptions of CSR and
organisational commitment, mainly when organisational values and ethics are in agreement
with the employees’ personal values and norms.
Similar to this study, in the research studies by Kim et al. (2009), Babcock-Roberson and
Strickland (2010) and Glavas and Piderit (2009), additional employee-centric variables and
their relationship to CSR policies were statistically measured, such as employee
commitment to the company, employee identification with their firm and staff’s creative
involvement. Their studies were based on the organisational level (CSR activities) and
individual level (employee-centric variables). Correspondingly, this study aims to show the
correlation between CSR strategies (organisational level) and employee engagement,
motivation and job satisfaction (individual level).
Regarding recruiting, Cave (2002) notes that money is no longer the most critical force that
influences staff motivation. The author states that employees are also looking for meaning in
their work [. . .] they want to know they are making a difference to the community in general
(Cave, 2002, p. 32). Thus, literature supports that responsible companies are a magnet for
more talented workforce and inspire their staff to work harder (Zappalà, 2004; Cave, 2002).
Nevertheless, literature advocates that the relationship between CSR and employee attitude
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is culture driven (Zappalà, 2004; Collier and Esteban, 2007). Similarly, Sethi (1975)
highlights the importance of distinguishing the various CSR definitions due to variations in
culture, economic, political and social characteristics. For example, firms that operate in
Western countries have a more constructive position towards CSR (Franke et al., 1991).
Other scholars note that citizenship is not only dependent on culture but is also strongly
linked to the country’s social system; thus, the CSR strategy has to be adjusted accordingly
(Metaxas and Tsavdaridou, 2010). This study took place in Greece, a country with two key
characteristics: hit by a major financial crisis since 2010 and although a Western culture
responsibility is still in its formative years. Consequently, it is of interest to examine whether
people’s perception of responsibility has shifted due to their personal economic losses.
In particular, this study examines the association between CSR and employee engagement,
motivation and job satisfaction among the staff of two multinational companies in Greece,
Procter & Gamble (P&G) and Unilever. Both companies gave consent to publish their
names and the research findings. These two organisations belong to the consumer goods
industry, which is a business area that has a negative outcome on the environment (Deloitte,
2010). Therefore, it is motivating to study the impact of CSR activities on employees who
work for organisations linked to environmental and social casualties in a rather CSR-
unfamiliar country. Finally, the study attempts to form an understanding of how employees
view responsibility amid rapid wage cuts or benefit loss.
2. Literature review
2.1 CSR in Greece
As CSR policies differ among countries due to diversities in culture, economic development,
social systems, legal and political formation and expectations (Franke et al., 1991; Wotruba,
1997), it is essential to capture an overview of citizenship in Greece.
Greece is positioned as a rather CSR-unfamiliar place (Skouloudis et al., 2011; Metaxas and
Tsavdaridou, 2010). For example, a research conducted by the National and Kapodistrian
University of Athens (2006) among managers shows that 53 per cent of them believe that
CSR is rarely adopted. The same survey found that Greek companies are mostly interested
in promoting their brand name and increase sales through CSR (National and Kapodistrian
University of Athens, 2006). According to the survey, responsibility for Greek organisations
is mainly about equal opportunities, education and environment, while 54 per cent of the
and environmental details in their annual financial reports (KPMG, Universiteit Van
Amsterdam, 2002). Skouloudis et al. (2011) believe that Greek firms’ lack of enthusiasm to
report is a failure in building up stakeholder engagement and disclose their corporate
accountability to the general public. The European Social Survey (2003) notes that the
Greeks are suspicious and it seems difficult for them to accept organisations’ “goodwill” as
truthful. In addition, Skouloudis et al. (2011) highlight that 99.5 per cent of organisations in
Greece are small and medium enterprises, with limited resources or knowledge to take up
CSR activities.
Not unexpectedly, the Hellenic Network for CSR (2000) was only established in 2000. The
network, based in Athens, was founded by 13 companies and now approximately 60 firms
have enrolled. The network’s role is to share information with its members regarding CSR
development, to support joint social projects and complete regular surveys to understand
societal needs and update their approach accordingly (Hellenic Network of CSR, 2009).
Finally, Stavroulakis (2009, p. 149) quotes “Greece having been a rural country for long still
lacks business tradition and ethics”. Sustainability consciousness is still in its early years in
the country, with the exception of a few large corporations. Not surprisingly, Skouloudis
et al. (2011) pessimistically state that the current economic decline in Greece will, sooner or
later, hit donations and result in managers’ oversight CSR.
1. people’s self-concept;
3. environmental factors such as economic and social status (Steers and Sanchez-Runde,
2002).
It is also believed that these three features serve not only as a source of motivation but also
as predictors of job performance (Steers and Sanchez-Runde, 2002).
3. Hypotheses
Employees may be informed about their organisations’ CSR efforts internally by their seniors
or externally by the media and their own personal experience (e.g. community service
experience). To measure the influence of citizenship on employee behaviours, it has to be
clear whether employees perceive their employers as socially and environmentally
responsible. Even if a company is well known to the world as being responsible, it is
preferable to assess the appeal of the companies’ CSR strategies on the views of the
employees.
Babcock-Roberson and Surveys on 91 employees USA Significant positive relationship between work
Strickland (2010) engagement and organisational citizenship
behaviour (OCB) and between leadership and
OCB
Corporate Leadership Surveys on 50.000 employees, Worldwide Community involvement and organisational
Council (2004) from 59 organisations from 30 culture drive employee engagement
countries
Valentine and Fleischman Surveys on 313 business USA CSR mediates the positive associations
(2008) professionals between ethics programmes and job
satisfaction
Yousaf, et al. (2016) Surveys on 163 employees of Pakistan Internal CSR has a direct positive impact of
five major commercial banks employee engagement
Cullen et al. (2003) Online surveys on 411 Netherlands Benevolent climates are positively linked to
employees of a telephone employee commitment
company (study 1) and 139
employees (study 2) of smaller
firms
Baden et al. (2009) A combination of 25 interviews UK There is positive connection between employee
with 49 respondents of an online motivation and retention to CSR
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In accordance with Ritch et al.’s (2010) view, we believe that doing good to the community,
through your work, will raise the engagement levels. Therefore, we hypothesize that
employees’ perceptions of their company’s CSR efforts are positively related to engagement.
H1. Perceptions of CSR and employee engagement are positively related.
Csikszentmihalyi and Hunter (2003) believe that when people find meaning in their work,
they are further motivated to work harder, which in turn leads to increased productivity.
Willard (2004) found that organisations with CSR activities provide a meaningful workplace
for their staff. Combining the above-mentioned notions, we hypothesize that favourable
perceptions of CSR and job motivation are positively related.
H2. Perceptions of CSR and job motivation are positively related.
McWilliams and Siegel (2001) believe that CSR satisfies all the stakeholder groups,
including staff. Similarly, we hypothesize that the adoption of CSR promotes individuals’ job
satisfaction.
H3. Perceptions of CSR and job satisfaction are positively related.
4. Methodology
4.1 Research design
A quantitative methodology is used in the form of statistical analysis of the results derived
from the responses on an employee engagement questionnaire.
In theory, the purpose is to:
n find a positive connection between employee engagement, motivation and job
satisfaction with CSR;
were asked to answer five questions about themselves including gender, age, how long
they have been working for this company, their position in the company and the department
that best described their nature of work.
The second part of the questionnaire was piloted in accordance with analogous surveys that
have been conducted by large consultancy firms and measures employee engagement and
organisational behaviour in general. In the survey, there were statements with which participants
had to decide whether they agree or not by selecting one of the five-point Likert-type scale (1 =
Strongly agree, 2 = Agree, 3 = Neutral, 4 = Disagree and 5 = Strongly disagree).
It is useful to briefly describe how three of the largest consultancy firms measure employee
engagement in their surveys. Firstly, Towers Perrin’s (2008) employee engagement index is
measured according to the following nine questions:
Q1. I think my job is considered important in my company.
Q2. I am likely to speak well of my company.
Q3. I am proud to work for my company.
Q4. I believe strongly in my company’s future direction and key priorities.
Q5. I understand my company’s future direction and key priorities.
Q6. I am personally motivated to help my company be successful.
Q7. I am willing to put in a great deal of effort beyond what is normally expected to help
my company succeed.
Q8. At present time, are you seriously considering leaving your company?
Q9. I would recommend my company as a good place to work.
Secondly, Best Companies found eight key factors that drive employee engagement. These
factors and their meanings are explained in Table II.
As a result, the Best Companies engagement index provides the following five survey
questions that best measure staff engagement levels (Best Companies, 2016):
Q1. I love to work for this organisation.
Q2. I would miss this place if I left.
Q3. I feel proud to work for this organisation.
Leadership Measures how people feel about the senior management and head of their company
Well-being Measures the balance between work and personal life
My manager Measures how people feel about their immediate manager
My team Measures how people feel about the other members of their team, whether they care or have fun with them
My company Indicates how much employees value their company and feel proud to work for them
Personal grow Measures whether employees feel that their work leads to the kind of the future career that they want, if their skills
are used
Fair deal Measures how people feel about their compensation and benefits
Giving something Measures how employees feel about their company’s efforts towards the public well-being and whether they believe
back that the firm’s activities are driven by profit motives
also drive employee engagement. As a result, the IES developed 12 questions (or
statements that should be answered positively) that should be asked to measure
engagement (IES, 2003):
Q1. I speak highly of this organisation to my friends.
Q2. I would be happy for my family and friends to use this organisation’s products or
services.
Q3. This organisation is known as a good employer.
Q4. This organisation has a good reputation generally.
Q5. I am proud to tell others that I am a part of this organisation.
Q6. This organisation really inspired the very best in me in the way of job performance.
Q7. I find that my values and those of the organisation are very similar.
Q8. I always do more that is actually required.
Q9. I try to help others in this organisation whenever I can.
Q10. I try to keep abreast of currents developments in my area.
Q11. I volunteer for things outside my job that contribute to the organisation’s
objectives.
Q12. I frequently make suggestions to improve the work of my team/department.
After disclosing how the above three reputable consultancy firms measure employee
engagement, it is easy to distinguish some similarities between them. Primarily, all of
them refer to drivers of employee engagement that lead to understanding whether or
not an employee is engaged or not to his job. The questionnaire that we conducted
specifically for this research is based on the arguments mentioned above. As for job
satisfaction, the Gallup consultancy firm notes that the key drivers that promote
satisfaction are the compensation and benefits that employees earn, the feedback that
they receive, the safety in the work environment and the possibility of a career
development (Gallup Poll, 2008). Finally, the recognition of employees’ contributions
and their encouragement are considered as drivers of motivation. Table III illustrates 16
of our total 22 questions that measure employee engagement, job satisfaction and
motivation.
My job performance is evaluated fairly (q.2) I feel safe to express my opinions in the At work I receive appropriate recognition
company (q.5) for my contributions (q.1)
I think that my job is considered important in I often get feedback on my job performance The company encourages my
the company (q.3) from my supervisor or line manager (q.6) development (q.4)
The people here are pleasant and I believe that all employees have the training Managers support equal opportunities for
cooperative to work with (q.7) they require (q.9) all employees (q.13)
I am proud to work for this company (q.11) I believe that my earnings match my
responsibilities (q.10)
I would recommend the company as a good Working for this company will lead to the
place to work (q.12) kind of future I want (q.16)
I know the goals of my company (q.14)
I believe in the goals of the company (q.15)
Regarding CSR, the survey aims to measure employees’ perceptions of their company’s
efforts towards responsibility by providing six statements that demonstrate whether or not
employees feel satisfied and appreciate the organisation’s current CSR activities (Table IV).
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4.3 Sample
Given the fact that the proper sample size of a research should be at least 10 per cent of
the population (Malhotra and Birks, 2007), and taking into account that P&G counts
approximately 600 employees in Greece while Unilever counts 800, a total of 154 responses
is an adequate sample size for this study (64 from P&G and 90 from Unilever).
SPSS v23 software (originally, Statistical Package for the Social Sciences) was used for
statistical analysis. The data set was checked for errors and one error on a questionnaire
from Unilever was identified. Consequently, 89 valid responses were gathered form
Unilever and 64 from P&G.
5. Results
5.1 P&G
Most of the respondents from P&G are females (62.5 per cent) and males represent only
37.5 per cent of our sample. More than two thirds of the respondents work for P&G between
6 and 20 years, while only 11 and 9 people are working for less than 5 and more than 21
years, respectively. The majority of the respondents were employees with no managerial
responsibilities (45.3 per cent), followed by 29.7 per cent of managers with no employees
reporting to them and 25 per cent managers with employees reporting to them. Finally, most
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of the respondents (23.4 per cent) reported to work at the Engineering department, 18.8
per cent at Marketing and Sales, 15.6 per cent at the Safety, Health and Environment
department and 10.9 per cent at Legal. Percentages less than 10 per cent were indicated
for the departments of Communications and Public relations (PR), HR, Finance and
Accounting and IT.
5.1.1 H1. The relationship between employee engagement and CSR was investigated using
Pearson product-moment correlation coefficient. Preliminary analyses were performed to
ensure no violation of the assumptions of normality and linearity. The findings indicate a
weak positive relationship between the two variables (r = 0.251, n = 64, p < 0.05). However,
academia also tends to believe that an r value that is so close to 0 (r = 0.251) should be
interpreted carefully (Malhotra and Birks, 2007). Nevertheless, Malhotra and Birks (2007,
p. 577) comment that “values close to 0 do not indicate that the two variables are unrelated,
rather there could be a non-linear relationship between them which could not be captured
by r”. The coefficient of determination was calculated to get an idea of how much variance
our two variables share. The r value was squared and multiplied by 100 (0.251 0.251 =
0.063 100 = 6.3 per cent). This implies that 6.3 per cent indicates less overlap between
the two variables. Thus, it is proposed that H1 is confirmed for P&G with the correlation
being too small.
5.1.2 H2. Regarding H2, there is no accurate evidence that there is a relationship between job
motivation and responsibility (r = 0.200, n = 64, p > 0.05). The Pearson correlation coefficient
is too low (r = 0.200) and the significance value is quite greater than 0.05 (p = 0.114). Thus, H2
is not supported for P&G.
5.1.3 H3. Pearson correlation coefficient was also used to test H3. The results indicate that
all 64 cases had scores on both scales. According to the findings, there is no relationship
between job satisfaction and CSR as the Pearson correlation coefficient is very low and the
significance value is higher than 0.05 (r = 0.195, n = 65, p > 0.05). Hence, there is no
accurate evidence that H3 is confirmed for P&G.
5.2 Unilever
Unilever respondents are mostly males (57.8 per cent) and females are only 38 (42.2 per
cent). The majority of the respondents are young adults under 35 years (74.9 per cent).
Almost 85 per cent of the respondents work for Unilever from 1 to 10 years, while 15.6 per
cent work for the company for more than 11 years and no one works for the firm for more
5.2.2 H2. Unlike P&G, there is a weak but positive relationship between job motivation and
responsibility for Unilever subjects (r = 0.248, n = 90, p < 0.05). By calculating the
coefficient of determination (0.248 0.248 = 0.061 100 = 6.15 per cent), a little overlap of
the two variables (6.15 per cent) was found. Although the Pearson correlation coefficient is
very small (r = 0.248), it can still be considered as a relationship between the two variables;
hence, H2 is confirmed.
5.2.3 H3. All 90 cases are reported to have scores on both scales used for this analysis. The
findings indicate that there is a weak positive relationship between job satisfaction and
responsibility (r = 0.292, n = 90, p < 0.01). The coefficient of determination at 8.52 per cent
indicates that CSR and job satisfaction shares low variance [0.292 0.292 = 0.085 100 =
8.52 per cent]. Consequently, H3 is confirmed for Unilever.
7. Limitations
Evidently, the small size of the sample is a limitation for this study because it leaves no
room for generalising the findings. Secondly, although some of the hypotheses were
backed by the data, the findings are not strong enough as the reported correlations
were too small.
The research was conducted at the Greek department of two multinationals, P&G and
Unilever. Taking into consideration that academia segments Greece as a rather CSR-
unfamiliar country, the findings cannot be applied to other countries or other companies.
8. Future research
The present study is one of the few that have been conducted within the Greek
business community and the only one to examine employee engagement in relation to
corporate citizenship amid economic troubles. An important research direction would
be to continue exploring the influence of CSR on Greek employees and possibly
combine the findings with either Western or Eastern European countries. A qualitative
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Corresponding author
Georgios Tsourvakas can be contacted at: gtsourv@jour.auth.gr
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