Corporate Social Responsibility and Employee Retention
99 Pages Posted: 30 Jun 2022 Last revised: 10 Dec 2024
Date Written: November 27, 2023
Abstract
Utilizing administrative data from the U.S. Census, this study provides first direct evidence on the impact of corporate social responsibility (CSR) on employee retention. Exploring both positive and negative shocks to firms’ CSR policies, our findings reveal a significant impact on the separation rate of CSR-conscious employees within an employer, with no discernible effect on others. Our results suggest that employer-employee values alignment constitutes an important nonfinancial job benefit that enhances employee retention. Our estimation also suggests that employees’ willingness to pay for CSR and the cost savings from reduced employee turnover associated with better CSR provisions are economically meaningful.
Keywords: employee retention, corporate social responsibility, CSR, environmental consciousness, social consciousness, financial incentive, non-financial incentives, non-financial job benefit
JEL Classification: G13, G14, G41, G23, J31, L25, M52
Suggested Citation: Suggested Citation
Cen, Xiao and Qiu, Yue and Wang, Tracy Yue, Corporate Social Responsibility and Employee Retention (November 27, 2023). Available at SSRN: https://ssrn.com/abstract=4144689 or http://dx.doi.org/10.2139/ssrn.4144689
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