In this study an attempt is made to identify the role of strategic CSR on employee retention in an organization. The concept of CSR is becoming stronger and increased awareness about it is influencing organizational policies and practices. Firms are employing strategic CSR efforts to enhance their employee retention plans. Various trends of CSR are emerging and these trends are imposing vital consequences on employee retention in an organization. One of the foremost trend is that CSR is growing at a steady pace which is affecting the HRM of a firm and employees prefer to associate themselves with organizations who have moderate to high commitment to CSR. Similarly the trends of corporate ethics and environmental issues in CSR are influencing employee retention in an organization.
Organizations while using CSR should be strategic in approach so that they can retain qualified and skillful employees. Cases of companies who are using CSR strategically are provided and their implications on employee retention are being observed. Further the paper provides insights to organizations that how organizational performance is facilitated through the utilization of strategic CSR which helps in employee retention. Advantages and disadvantages on the role of strategic CSR influencing employee retention are examined as well.
The study will provide a guideline to organizations that how they can employ strategic CSR effectively for increasing employee retention which in further would increase the organizational performance in the short term as well in long term.
Index Terms: CSR, employee retention, organizational performance and corporate ethics