Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country
CSR is a strategy to realize sustainability. CSR needs to be understood based on a priority scale and objectives to build a solid organizational structure and ensure sustainable CSR implementation. In this regard, CSR implementation at the micro and macro levels needs further explanation. The study...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-08-01
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| Series: | Administrative Sciences |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2076-3387/13/8/186 |
| _version_ | 1797585884520906752 |
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| author | Dudung Abdurachman Rudy M. Ramdhan Ateng Karsoma Daniel Kisahwan Alex Winarno Deni Hermana |
| author_facet | Dudung Abdurachman Rudy M. Ramdhan Ateng Karsoma Daniel Kisahwan Alex Winarno Deni Hermana |
| author_sort | Dudung Abdurachman |
| collection | DOAJ |
| description | CSR is a strategy to realize sustainability. CSR needs to be understood based on a priority scale and objectives to build a solid organizational structure and ensure sustainable CSR implementation. In this regard, CSR implementation at the micro and macro levels needs further explanation. The study aims to analyze the effect of CSR on employee performance through assessment and job satisfaction using the micro foundation framework. This causal study surveyed 382 state-owned enterprises’ non-manager employees in Indonesia. The results demonstrate employees’ responses to internal and external CSR. Internal CSR, which primarily aims to improve employee performance, was found to improve employee satisfaction and engagement and lead to better performance more significantly than external CSR. Internal CSR had a higher effect on employee performance than external CSR. Compiling a scale of top priorities for corporate stakeholders became the leading choice to encourage long-term performance. The originality of this study is that the foundation of long-term performance ensures the corporation’s performance, and CSR lies in the strength of the microstructure at the individual level. The implementation of CSR based on the legal system requires paying attention to the scale of priorities based on the internal function of CSR in strengthening a corporation’s microstructure. |
| first_indexed | 2024-03-11T00:13:30Z |
| format | Article |
| id | doaj.art-6df0185321e24b569d0ae34b8f1bf066 |
| institution | Directory Open Access Journal |
| issn | 2076-3387 |
| language | English |
| last_indexed | 2024-03-11T00:13:30Z |
| publishDate | 2023-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Administrative Sciences |
| spelling | doaj.art-6df0185321e24b569d0ae34b8f1bf0662023-11-18T23:49:23ZengMDPI AGAdministrative Sciences2076-33872023-08-0113818610.3390/admsci13080186Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing CountryDudung Abdurachman0Rudy M. Ramdhan1Ateng Karsoma2Daniel Kisahwan3Alex Winarno4Deni Hermana5Department of Postgraduate, Sekolah Tinggi Hukum Militer, Jl. Matraman Raya No. 126, Jakarta 13150, IndonesiaDepartment of Postgraduate, Sekolah Tinggi Hukum Militer, Jl. Matraman Raya No. 126, Jakarta 13150, IndonesiaDepartment of Postgraduate, Sekolah Tinggi Hukum Militer, Jl. Matraman Raya No. 126, Jakarta 13150, IndonesiaDepartment of Business Administration, STIA Bagasasi, Jl. Cukang Jati No. 5, Bandung 40273, IndonesiaDepartment of Business Administration, Telkom University, Jl. Telekomunikasi No. 1 Terusan Buah Batu, Bandung 40257, IndonesiaDepartment of Business Administration, STIA Bagasasi, Jl. Cukang Jati No. 5, Bandung 40273, IndonesiaCSR is a strategy to realize sustainability. CSR needs to be understood based on a priority scale and objectives to build a solid organizational structure and ensure sustainable CSR implementation. In this regard, CSR implementation at the micro and macro levels needs further explanation. The study aims to analyze the effect of CSR on employee performance through assessment and job satisfaction using the micro foundation framework. This causal study surveyed 382 state-owned enterprises’ non-manager employees in Indonesia. The results demonstrate employees’ responses to internal and external CSR. Internal CSR, which primarily aims to improve employee performance, was found to improve employee satisfaction and engagement and lead to better performance more significantly than external CSR. Internal CSR had a higher effect on employee performance than external CSR. Compiling a scale of top priorities for corporate stakeholders became the leading choice to encourage long-term performance. The originality of this study is that the foundation of long-term performance ensures the corporation’s performance, and CSR lies in the strength of the microstructure at the individual level. The implementation of CSR based on the legal system requires paying attention to the scale of priorities based on the internal function of CSR in strengthening a corporation’s microstructure.https://www.mdpi.com/2076-3387/13/8/186internal CSRexternal CSRmicro foundationperformanceengagementsatisfaction |
| spellingShingle | Dudung Abdurachman Rudy M. Ramdhan Ateng Karsoma Daniel Kisahwan Alex Winarno Deni Hermana Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country Administrative Sciences internal CSR external CSR micro foundation performance engagement satisfaction |
| title | Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country |
| title_full | Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country |
| title_fullStr | Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country |
| title_full_unstemmed | Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country |
| title_short | Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country |
| title_sort | corporate social responsibility micro foundation framework for high employee performance in a developing country |
| topic | internal CSR external CSR micro foundation performance engagement satisfaction |
| url | https://www.mdpi.com/2076-3387/13/8/186 |
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