Effects Of Corporate Social Responsibility (CSR) On Employees’ Job Satisfaction

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


Abstract


This thesis presents the effect of CSR practices towards the staff’s job satisfaction in Akwa ibom, Nigeria. The relationship between the employees’ job satisfactions and five core dimensions of CSR practices which are health and safety, human rights, training and development, work-life balances and workplace diversity are discussed. After conducting this research, it revealed that the independent variables which are health and safety, training and development, work life balance and workplace diversity have a positive and significant relationship towards academic staff’s job satisfaction. Nevertheless, one of the independent variables namely human rights has a positive relationship towards the staff’s job satisfaction but it is not significant. Through understanding the five core dimensions, it could help institutions to retain talents. In addition, employees’ job satisfaction would increase if management teams of companies adopt the above dimensions.


Chapter One


Introduction

This chapter will discuss the importance of internal Corporate Social Responsibility (CSR) and its practices towards the job satisfaction of academic staff in private higher learning institutions in Akwa ibom. The first part is the introduction of the background of the research which followed by the problem statements, research objectives, research questions, significance of the research and the scope of study.


1.1 Background to the Study

Corporate Social Responsibility (CSR) has received an increasing amount of attention from the society. As a result, there are more companies particularly recognized for the needs of practising CSR. In reality, company that practices CSR is the one that able to sustain their business in the long run. In Nigeria, CSR activities and practices have clearly been on the rise as compared to the past because there are increasing expectations of such activities from the public. Additionally, Bursa Nigeria also launched a CSR framework in 2006 that involves four focal areas: the workplace, the marketplace, the environment and the community; this framework serves as a guideline for companies in the implementation of CSR activities (Sankar and Yong, 2008). This shows that Nigeria strongly encourage companies to engage in the practice of CSR as part of their corporation’s culture.

There are many definitions of CSR; According to Holme and Watts (2000) of the World Business Council for Sustainable Development, CSR is defined as “the ongoing commitment by corporation to behave ethically and contribute to economic development while improving the quality of life employees, and their families as well as the local community and society at large.”

In fact, CSR concept not only emphasis on satisfying customers’ needs, it also consider the interests of other relevant stakeholders such as suppliers, investors, employees, government and the society. Moreover, previous researches have shown the interconnection between CSR initiatives of firms and employee engagement where the engaged employee tend to remain more loyal to the firm and bring positive effect on organizational success (Ali and Ali, 2011). The studies point out the benefits of CSR in several aspects: enhanced corporate image, increased sales and market share, strengthened brand positioning, increased ability to attract and retain employees, decreases operation costs and increases appeal to investors (Kotler and Lee, 2005).

Generally, there are many researches have been conducted to examine the impact of CSR on overall organizational success and performances. However, little research has focused on the impact of CSR practices on employees and its influence on job satisfaction. Hence, this study aims to address this gap.

In the past research it has been discussed that organization commitment will lead to behavioural outcomes such as lower turnover and higher performance; where highly committed employee should have a weak intention to quit (Dixit and Bhati, 2012). Thus, it is vital for an organization to identify the factors that will greatly affect the employees’ job satisfaction.

As a result, this study examines the impact of five core dimensions of CSR practices on the academic staff in private higher learning institutions, the five core dimensions are adopted from Al-bdour et al. (2010) and are show in the following:

  1. Health and safety
  2. Human rights
  3. Training and development
  4. Work life balances, and
  5. Workplace diversity

1.2 Problem Statement

Higher learning institution plays a crucial role in building occupational skills among students and enabling students to realize their full potential which will be the foundation for the society development. Besides that, higher learning institution plays a major role in the development of innovative knowledge-based economy that will provide sustainable employment opportunities and good standard of living for all the citizens (National Strategy for Higher Education to 2030, 2011). Well-being of the society depends upon students because they are the one who determine the success of the society in the future. Academic staff plays an important role in achieving this goal since they serve as storehouses of knowledge for nurturing the manpower needs of the nation and for satisfying the aspirations of the people for a good and humane society (Jain, 2013).

As a result, it is important to take into account staff’s job satisfaction and commitment since they directly influence the success of the academic institutions. Furthermore, when the academic staff satisfied with their job they will perform their responsibilities with more concentration, devotion and competence which eventually lead to increase in the productivity of the private higher learning institutions (Saba and Iqbal, 2013).

However, the retention of academic staff has become a key concern in most of the private higher learning institutions. This is due to increasing difficulties in retaining academic staff in Nigeria’s higher learning institutions. According to a research conducted by Nigeria Employers Federation (MEF) (as cited in The
Star Nigeria, 2012), Nigeria’s education industry experienced an average yearly employee turnover rate of 29.28% from July 2010 to June 2011.

The reasons of academic staff leave the private higher learning institution include work overload, lack of organization support, lack of career development, better remuneration packages in other organization, lack of career opportunities and limited postgraduate training provided to the academic staff.

High academic staff turnover not only incur high cost for the organization but it also create huge impact on the quality of education being delivered and negative effect on the student achievement in the long run (Jain, 2013). This would eventually jeopardize the nation’s objective to produce quality human capital.

Hence, it is important to determine the predictors of academic staff job satisfaction in order to attract and retain excellent academic staff. However, little research has focused on the impact of CSR on academic staff and its influence on their job satisfaction, this study attempts to provide insight of the positive link between the proposed five core dimensions of CSR practices and academic staff organizational job satisfaction in private higher institution in Akwa ibom, Nigeria.


1.3 Research Questions

This study attempts to address the following research questions:

  1. Is there any relationship between the five core dimensions of CSR practices and academic staff job satisfaction?
  2. Which dimension of the CSR practices has the most significant impact towards academic staff’s job satisfaction?

1.4 Research Objectives

The objective of this study is to investigate the relationship between five core dimensions of CSR practices and academic staff’s job satisfaction in private higher learning institution.

The aims of this research:

  1. To investigate the significant relationship between CSR and academic staff job satisfaction.
  2. To determine the impact of CSR practices on academic staff job satisfaction.
  3. To determine which dimension of CSR practices should be improve in order to increase academic staff job satisfaction in organization.

1.5 Scope of Study

This research examines the relationship of CSR practices and the job satisfaction of private higher learning institution in Nigeria. Generally, private higher learning institution can be classified into three types: University, College, and University and College. Academic staff refers to personnel who hold the teaching position as tutor, assistant lecturer, lecturer, senior lecturer, assistant professor, associate professor and professor (Ministry of Higher education, 2012).


1.6 Significance of the Research

The commitments of academic staff are important because it is the key factor in determining the success of the higher learning institution and also have direct impact on student learning. Hence, it is important to foster job satisfaction among the academic staff because high levels of commitment lead to several favourable outcomes. Highly committed academic staff will provide better performance, improve productivity and devote more effort in teaching student.

In addition, there will be great impact on student learning if qualified and experienced academic staff leaves the education institution. High costs may incur when academic staff turnover is high; these costs include the time involved in recruitment and training of new academic staff.

The findings of this study will benefit to all higher learning institutions in Nigeria where it helps them to evaluate their CSR activities and also determine which CSR practices is appropriate and suitable to be adopt in order to optimize the job satisfaction of academic staff. Moreover, they can develop prevention plans in order to avoid negative outcomes such as high turnover and academic staff absenteeism.

In addition, this study also contributes useful information on CSR practices and employee’s job satisfaction to other researchers which means that the findings of this study can be used as reference by other researchers that also conducting study about CSR practices and employee’s job satisfaction.


Chapter Five


Conclusion and Recommendation

5.1 Discussion

5.1.1 Health and Safety

Based on the results of this study, it can be concluded that health and safety has positive and significant relationship on employee’s job satisfaction (β=0.120, p<0.05).

In other words, it means that the more effectively an organization promotes health and safety through their work practices, the more commitment of the employee’s will be generated towards the organization. Bernard (2012) indicates that a good working environment with employer’s considerable concerns on employees’ health and safety situation will promote employee’s job satisfaction. Moreover, when the organization provide safe and conducive working environment that compliance with health and safety standards, employees will feel appreciated and are more likely to exert full commitment to the organization. This finding is also consistent with the findings of Hải (2012), Al-bdour et al. (2010) and Kipkebut (2010) that proved that this variable has positive and significant relationship on employees’ job satisfaction.

5.1.2 Human Rights

The results (β=0.063, p-value <0.05) show that there is a positive relationship between human rights and employee’s job satisfaction. However, according to Table 4.6, it signifies that there is no significant relationship between these two variables. This can be explained that, academic staff will still commit fully to the organization even though the education institution does not emphasize much on human right. Thus, there is no evidence that human rights have significant relationship with employee’s organization commitment as H2 is rejected.

As the target population for this research study is academic staff of private higher learning institutions in Nigeria, thus the result might divert according to Nigerian’s culture that is practicing high power distance. Based on Ahmed, Mouratidis and Preston (2009)’s study, it indicated that Nigeria is one of the countries that are practicing high power distance culture. Moreover, according to Hofstede’s cultural dimension theory, society is more likely to accept and conceive that power to be distributed unequally in high power distance culture. Those with high power distance accept and value unequal power; they value obedience to authority and are comfortable receiving commands from their superiors without consultation or debate (McShane and Glinow, 2010)

In addition, Nigerian employees tend to view the relationship with their superior as dependence and they will obey their superior instructions, even though they might disagree or dissatisfied with the command. As a result, when academic staff are not given freedom of speech, freedom of expression and equal opportunities, it will not affect their sense of belonging to the education institution as well as their intention to stay in the institution for longer period since they accept and value unequal power.


5.2 Implication

5.2.1 Managerial Implication

With the proven result, academic institutions’ top management is encouraged to pay greater amount of attention and constantly revise the five core dimensions of CSR in their organization. Once the employees feel valued and cared by the organization, they are likely to be more loyal and committed to the organization in the long run. Besides that, organization is advised to establish an independent CSR department so that both the internal and external CSR activities can be implemented and monitored more efficiently and effectively.

Furthermore, top management should realize that CSR practices like providing safe working condition, improving training and development program to their employees, deploying work-life balances policies and practices more effectively (such as flexible work schedules), as well as promoting workplace diversity will also impact the job satisfaction of the academic staff, but not only the personal-related factors (such as job satisfaction).

Moreover, based on the results of this study, it indicated training and development as the most influential variable that affecting academic staff’s job satisfaction due to the standardized coefficient Beta value of 0.394. Therefore, it is essential for top management to exert greater amount of effort in every dimension of CSR practices. For instances, management could offer greater variety of chances for career advancement, enhance career development policies and practices as well as provide educational program and supportive research facilities in assuring them to achieve higher status in the institutions.


5.3 Conclusion

In this study, the researchers did not look into both financial and non-financial organizational performance but only focus and discuss the impact of job satisfactions. In other words, job satisfaction is interrelated to job performance but the researchers did not have further elaboration in this research. According to Memari, Mahdieh and Marnani (2013) and Khan et al. (2010), there is a significant relationship between job satisfactions and individual’s job performance. Therefore, it can be conclude that academic staff with high job satisfaction would have better job performance as well as support their institutions to achieve common goals.

Based on the discussions above, it is crucial to cultivate job satisfaction among academics staff as they are the asset of educational institutions. This is because low job satisfaction comes from improper managements. It will bring negative effects to the organizations such as high turnover rates, damage company’s reputation and low efficiency.
Besides that, there are other variables that would affect the academic staff’s job satisfaction which are not included into this research. For future studies, other factors should be taken into considerations. For example, job involvements, employees’ characteristics and organizational structures.


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