Corporate Social Responsibility and Employee Retention

60 Pages Posted: 30 Jun 2022 Last revised: 30 Nov 2023

See all articles by Xiao Cen

Xiao Cen

Mays Business School, Texas A&M University

Yue Qiu

Temple University

Tracy Yue Wang

University of Minnesota - Twin Cities - Carlson School of Management

Date Written: November 27, 2023

Abstract

Utilizing administrative data from the U.S. Census, this study provides first direct empirical
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 the employer-employee values alignment constitutes an
important non-financial job benefit that enhances employee retention. The observed CSR-related
employee retention also affects labor productivity, reinforcing the pivotal role of the employee
channel in delineating CSR’s broader impact on firm value.

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

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

Xiao Cen

Mays Business School, Texas A&M University ( email )

430 Wehner
College Station, TX 77843-4218
United States

Yue Qiu (Contact Author)

Temple University ( email )

Philadelphia, PA 19122
United States

Tracy Yue Wang

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

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