Examining the effects of CSR on organizational attractiveness: perception study of job seekers in India

Abstract

Purpose The purpose of this paper is to study the effect of corporate social responsibility (CSR) effectiveness on job seekers’ organizational attractiveness (JSA). Deriving inspiration from Carroll’s theory, the study specifically tries to measure the impact of CSR on JSA with the four dimensions pertaining to economics (PECO), pertaining to legal compliance (PLCO), pertaining to ethics (PETH) and pertaining to philanthropic (PPH). Furthermore, the paper also tries to examine the moderating role of company selection (COM SEL) done based on high or low CSR reputation and JSA. Design/methodology/approach Management and engineering students enrolled in premier institutions and universities of Western Odisha in India are surveyed for their perceptions of CSR and JSA. Purposive and convenience sampling are applied to collect data from 456 job seekers. Based on the analysis, the study proposes two main models (Models 1 and 2) wherein Model 1 tries to measure the effect of CSR on JSA and Model 2 checks the moderating effect of COM SEL on CSR and JSA. In addition, robustness of the study is tested using control variables (Models 3 and 4). Data is treated through SmartPLS 3.3 software. The structural equation modelling (partial least squares-SEM) method is applied to test the hypotheses and for further analysis. Findings The result reveals an interesting insight. There is a positive and significant effect of PECO, PLCO and PPH on JSA. Moreover, no such significant effect is observed between PETH and JSA. Further, the findings are contrary with respect to COM SEL, that partially moderates the effect of CSR on JSA. However, the results reveal that COM SEL has a substantial moderating effect on the PPH dimension of CSR and JSA. Practical implications The results highlight that CSR positively and significantly affects JSA in terms of PECO, PLCO and PPH, thereby emphasizing that organizations must be more focused on these perspectives of CSR. Further, though the results did not exhibit any significance with PETH, it is essential that organizations should strengthen the ethical aspects of CSR as well and align them with the CSR strategic actions. The study also confirms the moderating effect of COM SEL on PPH dimension of CSR and JSA, thereby supporting the philanthropic approach in this domain. Further, the organizations should foresee the philanthropic factor of CSR as a competitive advantage to attract potential job seekers. Originality/value This research attempts to contribute to CSR and HR literature in two ways. First, it is the first attempt to use PLS-SEM with an attempt to understand job seekers’ perception of CSR and JSA with Indian data consisting of students belonging to premier business management and engineering institutes. Second, the study is an attempt to empirically measure the moderating effect of COM SEL on JSA. To sum up, the study will provide insights to organizations to help craft CSR strategies for attracting more job seekers.