CSR practices and labor retention: How can these variables be related?

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Companies offer volunteering activities and training & development for several reasons but mainly because it is an investment that can have a great impact in one variable with major importance within every company: labor retention, once socially responsible companies are likely viewed as better companies to work with and which value more their employees and their interests and values. Using survey information collected from 100 business professionals, this exploratory study proposed that the investment in both company-sponsored volunteering and training & development will have a positive impact in affective commitment and organizational identification that as last result will reduce the employees’ turnover intentions and consequently there will be a higher retention rate of employees in the company. This is crucial for companies nowadays because it is a competitive advantage which makes them stand out from others, once these socially responsible companies are able to keep their employees trained and with values aligned with the ones that characterize the company, getting positive outcomes from the investment they are making in human capital. Using a sample of 65 employees from different industries and roles within the company, results indicated that these CSR measures have a statistically significant impact on turnover intentions and, by consequence on labor retention.