Relationships Between Nonprofits’ Social Responsibility Structures and Employee Relations: A Multi-Level Approach

Abstract

What is the social responsibility (SR) an organization has to its employees? Seasoned experts have observed that existing SR literature predominantly emphasizes external SR to society while largely overlooking internal SR towards organizational employees. This can be misleading when nonprofit organizations (NPOs) provide labor-intensive social services, where the quality of labor inputs directly affects the desired outcomes. This study examines the relationship between the institutionalization of SR structures (SR vision and strategic plans, ethical codes, and SR units) and internal SR as measured by employee relations, using multi-level theoretical approaches. The findings suggest that the presence of SR structures in NPOs leads to improved relationships between employers and employees, manifested through enhanced compensation, working conditions, and employee protection programs. However, structural properties marginally affect NPOs in comparison to for-profit organizations.