Corporate social responsibility and human resource performance : evidence from a selected medium manufacturing organisation in South Africa

Abstract

Over the years, the concept of Corporate Social Responsibility (CSR) has gained popularity as a management philosophy whereby companies integrate social and environmental concerns in their operations and interactions with stakeholders. It aims to contribute to societal goals of a philanthropic, or charitable nature by engaging in activities or supporting volunteering or ethically-oriented practices. This practice has mostly been associated with large organisations. However, small and medium enterprises (SMEs) have been recognized for their contributions in social and economic development of any country. Hence, this study examines the influence of CSR on human resource performance in the selected manufacturing SMEs in South Africa. This study was quantitative in design and examined production and related experiences of the manufacturing SME organisation that had adopted CSR strategy for human resource improvement. The Ordinary Least Squares (OLS) model, using Statistical Package for Social Sciences (SPSS), was used to analyse data. The selected company operates in the eThekwini District Municipality in KwaZulu-Natal. The study was achieved by collecting pre- and post-quarterly data for employee turnover and labour absenteeism. The results indicate that both employee turnover and labour absenteeism have no relationship with human resource performance post- CSR implementation. However, CSR has a relationship with human resource performance. Any increase in CSR activities results in an increase in human resource performance. Formal CSR programmes can boost employee morale and lead to greater productivity in the workforce.