The Impact of Corporate Social Responsibility and Perceived Market Competition on Employees' Engagement

Abstract

This study investigates the interplay between Corporate Social Responsibility (CSR) and perceived market competition, examining their combined impact on employee engagement within a multinational corporation. The objective is to determine how CSR activities and the perception of market competition independently and jointly influence the engagement levels of employees. A cross-sectional design was employed, with a sample of 280 employees selected through stratified random sampling from various departments of a multinational corporation. The Corporate Social Responsibility Scale (CSR-S), Market Competition Scale (MCS), and Utrecht Work Engagement Scale (UWES) were administered to measure the respective constructs. Data analysis was conducted using Pearson correlation and linear regression models in SPSS software, version 28. The descriptive statistics showed average scores of 3.56 (SD = 0.78) for CSR, 4.22 (SD = 0.88) for perceived market competition, and 4.01 (SD = 0.85) for employee engagement. Pearson correlation analysis indicated significant positive relationships between employee engagement and CSR (r = 0.43, p < 0.001) and market competition (r = 0.38, p = 0.001). Regression analysis revealed that these variables collectively accounted for 39% of the variance in employee engagement (R² = 0.39, adjusted R² = 0.38, F = 87.43, p < 0.001). The findings suggest that both CSR and perceived market competition significantly enhance employee engagement. CSR activities not only bolster corporate image but also significantly contribute to employee motivation and engagement, while a higher perception of market competition tends to increase employee dedication and involvement in work. These insights are crucial for organizational leaders aiming to optimize engagement through strategic management of CSR and competitive practices.