Keywords

1 Introduction

Our times are characterized by great complexity and constant change. The economic, social, health, cultural and, working environment are changing in succession. Globalization and the free market, combined with the increase in global competitiveness, in terms of labor, make it even more difficult for companies to attract new talent that they can retain within them and increase their commitment. To achieve this, businesses need to contribute to the wellbeing of the community and society in which they operate [1].

Research has shown that employees are attracted to and prefer organizations that have something to offer them and can promote their development. For this reason, it is now recognized that companies need to showcase their unique characteristics and advancement potential when seeking employees. The reason for this attitude, related to the perception of attractiveness on the part of employees, constitutes a key factor in the recruitment process in order to attract the most talented and efficient employees [2]. In the above, a key role is played by the CSR policies “adopted” by each company, which benefit not only the company itself but also society [3].

At company level, through CSR policies, revenues are increased. This is achieved by building its good reputation. Both stakeholders and investors prefer it and thus it gains added value. CSR, among other things, however, significantly affects both the commitment of a firm’s human resources and the degree of attracting new talent [4]. This is crucial as the human factor is one of the most important factors of production. Consequently, firms that promote it create a sense of satisfaction in their employees. When they behave responsibly they manage to attract new talents and retain their employees [3].

The above can be placed within the framework of Talent Management. When a company wants to hire a new talent then it needs to offer them the prospects of development within the company so as to increase their commitment [5].

Research findings have shown that the existence of CSR policies in a company plays a very important role for job seekers, positively influencing their preference for employment in that company. According to the Attraction- Selection- Attrition (ASA Theory), this happens as the job seeker’s values become ‘aligned’ with the values of the firm [6]. The aim of the research is to investigate the relationship between CSR in Greece in the operation and recruitment of personnel in companies and organization.

2 Literature Review

In recent years, CSR has become part of the core business approach that aims at sustainable development by providing economic, social and environmental benefits to all stakeholders. Several studies highlight that CSR activities help organizations to acquire more resources and make optimal profits, while also attracting new people to work [8]. In fact, several studies have focused on how CSR actions affect organizational attractiveness, and those mechanisms that increase it, in order to provide firms with appropriate information on the areas that need strengthening [7].

According to signaling theory, a firm’s CSR can inform job applicants about what it would be like to work for a firm [8]. This theory is considered the most tractable in investigating the mechanisms that enhance firm attractiveness [9]. According to social identity theory, people derive emotional meaning from the perception of a sense of unity with the group they identify with [10]. Therefore, job seekers whose values and beliefs are more highly identified with the employer may be more prone to generate positive emotional responses [11].

Other research has examined the benefit of firms’ use of CSR in relation to organizational commitment, as employees perceive that these firms have prestige and business ties that offer security [12].

3 Methodology

Based on the main purpose of the research the following research hypotheses were formulated.

H1: CSR actions have a positive impact on the organizational attractiveness of the company and the employer.

H2: CSR actions have a positive impact on employee engagement.

In the research the method chosen is the quantitative method. The appropriate sampling for the research was convenience sampling. However, in this type of sampling, the principles of probability sampling are applied at each stage to ensure that a characteristic will not always have the same proportion as that of the population [13].

Once the questionnaires were designed, their distribution was chosen to be implemented on an internet-based. Before completing the questionnaires, those who decided to participate were informed about their obligations and rights, as well as how to ensure their anonymity and personal data.

Based on the objectives and the main purpose of the survey, which was to investigate the employees in companies in Greece, the target population was selected as people aged 22 years and older. From them the sample used in the survey was collected, which consisted of 121 individuals. In the target population, the only restriction that applied was that they had worked or were working in an enterprise in Greece, and there were no other restrictions, neither in terms of gender nor in terms of the position they held or held.

From the quantitative survey we conducted, we collected data through the participants’ responses, which we then processed in order to extract the statistical and numerical data we were aiming for. SPSSV17.0 was chosen to process the data.

4 Results

Table 1 presents the findings of the analysis comparing employees’ views on the use of CSR by companies in terms of their demographic and other characteristics. The analysis showed that employees’ views on CSR activities in the enterprises they work in do not differ in terms of their demographic characteristics and the size of the enterprise (a p-value of more than α = 0.05 was recorded in all analyses).

Table 1 Employees’ views on the use of CSR by enterprises according to their demographic and other characteristics
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Furthermore, Fig. 1 shows that there is a fairly strong correlation between CSR actions and business attractiveness. The correlation coefficient between the two variables was found to be equal to 0.432 (p = 0.000). These results indicate that there is a moderate level of positive correlation between CSR actions and business 1attractiveness.

Fig. 1
A scatterplot of attractiveness versus C S R. It plots a linearly ascending line that starts at 2.5, fitting the dataset. The y-intercept is y equals 2.1 + 0.49 asterisk x. The value of R squared linear is 0.187.

Scatter plot between CSR and attractiveness

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Finally, Table 2 shows the results of the linear regression with CSR actions as the independent variable and the level of attractiveness as the dependent variable. The analysis showed that CSR actions are a significant predictor of firm attractiveness (F = 27.376, p = 0.000). Furthermore, CSR actions explain 18.7% of firm attractiveness (R2 = 0.187). The findings indicate that an increased level of CSR actions predicts an increased level of firm attractiveness (b = 0.490, t = 5.232, p = 0.000).

Table 2 Linear regression results with CSR actions as independent variable and attractiveness level as dependent variable
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The last section presents the findings of the analysis on the relationship between CSR actions of companies and employee commitment.

Figure 2 shows that there is a fairly strong correlation between CSR actions and employee engagement. The correlation coefficient between the two variables was found equal to 0.469 (p = 0.000). These results indicate that there is a moderate level of positive correlation between CSR actions and employee engagement.

Fig. 2
A scatterplot of commitment versus C S R. It plots a linearly ascending line that starts at 2.5, fitting the dataset. The y-intercept is y equals 2.1 + 0.49 asterisk x. The value of R squared linear is 0.187.

Scatter plot between CSR and engagement

Full size image

Finally, Table 3 shows the results of the linear regression with CSR actions as the independent variable and the level of commitment as the dependent variable. The analysis showed that CSR actions is a significant predictor of employee engagement (F = 33.567, p = 0.000). Furthermore, CSR actions explained 22.0% of employee engagement (R2 = 0.220). The findings indicate that an increased level of CSR actions predicts an increased level of employee engagement (b = 0.743, t = 5.794, p = 0.000).

Table 3 Linear regression results with CSR actions as the independent variable and the level of commitment as the dependent variable
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5 Discussion and Conclusion

The purpose of this study was to highlight the importance of Corporate Social Responsibility (CSR) policies and initiatives in increasing employee commitment and loyalty, but also the organizational attractiveness of the company to attract new talent. Salaries are not the only parameter that increases engagement and attractiveness. Other parameters are equally important, such as shared values and principles of the organization and employees, the possibility of advancement, rewarding performance by other means (e.g. leave, promotion, etc.), healthy working conditions, work flexibility, etc. All of the above-mentioned parameters contribute to increasing employee attractiveness and loyalty [1].

In addition, CSR plays an important role, which creates a positive feedback loop between the firm, employees and society, ultimately leading to the building of competitive advantage [3]. In terms of the workforce, CSR policies increase employee commitment and loyalty, as well as attracting potential employees, allowing the firm or organization to draw talent from a wider pool [4].

Increasing organizational attractiveness is important for firms and organizations for three main reasons: (a) a high level of internal attractiveness contributes to the retention of existing human capital, (b) a high level of external attractiveness attracts a larger pool of job seekers, so that the firm has the opportunity to discover talent from a wider pool [14], (c) both employees of the firm and potential employees are part of the consumer audience [15].

Two research hypotheses were formulated in this study. According to the first research hypothesis, the undertaking of CSR actions is positively correlated with organizational attractiveness. According to the second research hypothesis, undertaking CSR actions is positively correlated to employee commitment.

The results of the survey show that corporate social responsibility actions are implemented to a moderate degree in the sample companies. Employees’ views on CSR actions in the enterprises where they work do not differ in terms of their demographic characteristics and the size of the enterprise.

The findings showed that the sample firms have a high level of attractiveness, while there is a moderate positive correlation between CSR actions and the attractiveness of the firms. An increased level of CSR actions predicts an increased level of business attractiveness. The first research hypothesis is confirmed.

The employees in the sample had a strong level of commitment to the companies in which they were employed. Finally, it is noted that CSR actions are an important predictor of employee engagement; an increased level of CSR actions predicts an increased level of employee engagement. The research can add value as the issue is examined in the context of Greece, which means that the influence of Greek culture plays an important role.