When Values Align: Corporate Philanthropy and Employee Turnover

69 Pages Posted: 29 Jul 2022 Last revised: 26 Jan 2024

See all articles by Anthony B. Rice

Anthony B. Rice

Villanova University - Department of Finance

Christoph Schiller

Ohio State University (OSU) - Department of Finance

Date Written: February 27, 2022

Abstract

We study how corporate philanthropy affects employee retention and productivity, using comprehensive resume data from a popular professional networking website. Using large natural disasters as shocks to the demand for disaster relief to identify exogenous variation in corporate charitable giving, we show that corporate philanthropy significantly reduces employee turnover by 5.9% to 7.8%. The effect is distinct from other CSR activities, and more pronounced for employees with volunteering experience and for female and younger employees, even within the same firm and year. Our findings indicate that an alignment in values between workers and firms can increase employee commitment.

Keywords: CSR, Philanthropy, Employee Retention, Labor Supply, Human Capital

JEL Classification: J22, J24, J28

Suggested Citation

Rice, Anthony B. and Schiller, Christoph, When Values Align: Corporate Philanthropy and Employee Turnover (February 27, 2022). Available at SSRN: https://ssrn.com/abstract=4172414 or http://dx.doi.org/10.2139/ssrn.4172414

Anthony B. Rice (Contact Author)

Villanova University - Department of Finance ( email )

United States

Christoph Schiller

Ohio State University (OSU) - Department of Finance ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

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