Mini Project Report on

“CSR and its impact on employee engagement”

Submitted in partial fulfillment of the requirements for the course

Corporate Social Responsibility

By

ABHISHEK KUMAR-20210301092
&
ADITYA MOTE-20210301030

Under the guidance of

Ms. Anuradha Patil

(Course Faculty)
 Sector 29, Pradhikaran, Akurdi, Pune - Maharashtra, INDIA 411044

Executive Summary
Corporate Social Responsibility (CSR) refers to a company's commitment to contribute to
social and environmental issues while ensuring profitability. In recent years, there has been a
growing interest in understanding the impact of CSR on employee engagement. Employee
engagement is a measure of an employee's emotional connection with their work, colleagues,
and organization.

Research has shown that implementing CSR practices can positively impact employee
engagement. CSR activities such as volunteering, community outreach, and sustainable
practices can improve employee morale and job satisfaction. Employees are more likely to feel
proud of their organization's social and environmental contributions, which can increase their
motivation to work and improve their overall well-being.

Additionally, CSR activities can increase employee retention rates by creating a sense of
purpose and connection to the organization. Employees who feel that their employer is
committed to making a positive impact are more likely to remain loyal and engaged.
Overall, implementing CSR practices can be a valuable tool for organizations seeking to
improve employee engagement. By creating a culture of social responsibility, companies can
improve employee well-being, motivation, and retention, while also contributing to the greater
good of society and the environment.
 TABLE OF CONTENT
Sr. No. Contents Page No.

1 Introduction of the Study 1-2

2 Theoretical Background 3-5

Research Methodology

 Objectives of project
3 6-7
 Scope of study
 Design & Type of study
 Sources of data collection
4 Data Analysis & Interpretation 8-23

5 Findings & Conclusion 24-25

6 Bibliography 26

7 Annexure- Questionnaire 27
 Chapter-1
(INTRODUCTION)
Employee engagement is essential to any employer; in the same way, job satisfaction is to

employees. And employee disengagement is among the significant challenges coming in the
way of productivity. Moreover, due to the dynamic nature of the work environment, the reasons
for disengagement also tend to change, inevitably making the HR department to brainstorm

constantly. Moreover, it is not limited to the work environment, and external factors do
influence the level of engagement of employees. Trends, culture, socio-economic reasons,
disruptive

events, attitudes, and beliefs equally affect the levels of engagement. The HR department has to

always adapt or improvise because due to employee disengagement, over US$280 billion is lost

annually. However, one thing that is noticeable that the millennial generation prioritizes societal

concerns. Be it enhanced awareness of the incumbent environmental crisis or acknowledgment

of the socio-economic problems. As per Maslow's hierarchical pyramid, it is a component of

self-actualization, and as per that, the millennial wants to be part of something meaningful.

India is the first country in the world that has mandated CSR for organizations whose net worth

is INR 5 billion or above (approx. US$ 68 million or above), or net profit of INR 50 million or

above (US $679983.50 or above), by virtue of Section 135 of Indian Companies Act, 2013. As

per a 2016 report, there are 16000-17000 such organizations, and the country has been

magnanimous in CSR spending. In 2014-19, over INR 1 trillion was spent on CSR

(approximately $ 13.8 billion). As per the report on CSR (Thacker, H, CSR Policies around the

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World, 2019), India is among the top countries contributing to CSR, along with the USA and

Denmark. Organizations such as Tata, Infosys, Wipro, NTPC, BPCL, Jindal etc., have
contributed generously and developed communities around their operating areas.

CSR projects can be those specified in the companies act or those that are decided in the board

meetings. Such projects generally concern customers, suppliers, the environment, communities,

and employees. India is also among the nations with high spirituality Index. As per a report,

India ranks 2nd after Canada in terms of spirituality. Moreover, since ancient times, India has

been embedded in Indian culture (Sudhir, R, 2009). It is beyond the general sense of
philanthropy

and more associated with equitable and sustainable proactive practices.

Henceforth, corporate social responsibility or CSR is one of the major factors that attract

millennial talent and retention. The employees desire a role that enables them to contribute to

society, in a way or another. In other words, employees strive to be pro-social and wish to play

a role that has meaning and significance beyond the workspace. Moreover, any organization
that

contributes substantially to pro-society objectives tends to retain employees better than those

who don't. Furthermore, the morale of performing better at the job is high because of
underlying

motivation. However, there is an underlying assumption that motivation can be enhanced in the

case of disengaged employees by involving them in CSR activities and enabling them to take
self-driven initiatives.

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 CHAPTER-2
(Theoretical Background)
 What Is Corporate Social Responsibility (CSR)?
• Corporate social responsibility (CSR) is a self-regulating business model that helps a
company be socially accountable to itself, its stakeholders, and the public.
• By practicing corporate social responsibility, also called corporate citizenship,
companies can be conscious of the kind of impact they are having on all aspects of
society, including economic, social, and environmental.
• To engage in CSR means that, in the ordinary course of business, a company is
operating in ways that enhance society and the environment instead of contributing
negatively to them.

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  What is employee engagement?
Employee engagement refers to the level of constructive involvement of the employee with the
job. It includes the physical form of involvement (i.e., number of hours OR minutes, as well as
psychological aspects i.e. attitude, behavior towards work, emotional quotient, motivation, etc.)
(Markos & Sridevi, 2010). From an employer's perspective, the purpose of employee
engagement is the maximum outcome, based on the resources invested in employees, which is
similar to job satisfaction by employees. As per Kahn's definition, employee engagement is the
maximum utilization of the employee's capabilities for the workplace's benefit, indicating a
utilitarian approach. According to Schaufeli, it is a positive state of mind with zeal towards
organizational activities. It is not limited to specific moments but has to be persistent and most
effective (Alan M Saks, 2006). Employee engagement is generally measured based on various
parameters, each having its weightage, and the final score per employee determines the
engagement. The parameters taken for employee engagement are not standard, nor is the
weightage, and the process depends on the circumstances. Moreover, the wisdom of the
manager/evaluator is what matters most.

Corporate social responsibility (CSR) refers to a company's voluntary actions and initiatives to
improve its social, economic, and environmental impact. Employee engagement refers to the
extent to which employees are committed to their work, feel a sense of ownership and pride in
their job, and are motivated to contribute to the success of the organization. The relationship
between CSR and employee engagement is a topic of growing interest in the field of
organizational behavior and management.

Theoretical frameworks that explain the impact of CSR on employee engagement include social
identity theory, stakeholder theory, and social exchange theory.

Social identity theory proposes that individuals derive their sense of self from their membership
in social groups, such as their company. When a company engages in CSR activities that align
with an employee's values and beliefs, the employee may perceive the company as a more
positive social identity, leading to increased commitment and engagement.

Stakeholder theory suggests that companies have obligations to their stakeholders, including
employees, to act in a socially responsible manner. When a company engages in CSR activities,

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it signals to employees that the company values their well-being and is committed to creating a
positive social impact. This, in turn, can lead to increased employee satisfaction and
engagement.

Social exchange theory proposes that individuals engage in social interactions to maximize their
outcomes, such as rewards and benefits. When a company engages in CSR activities, it creates
a sense of reciprocity with employees, who may feel more positively towards the company and
be more motivated to contribute to its success.

Overall, research suggests that CSR can have a positive impact on employee engagement.
Companies that engage in CSR activities that align with their employees' values and beliefs can
create a sense of shared purpose and commitment, leading to increased job satisfaction,
organizational commitment, and overall engagement.

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 CHAPTER-3
Research Methodology

 Objectives of project

1. To understand how a company's social and environmental initiatives can impact

the level of employee engagement
2. To examining the relationship between CSR and employee engagement.
3. To understanding the impact of CSR on employee engagement.

 Scope of study
1. Understanding the relationship between CSR and employee engagement.

2. Identifying the types of CSR initiatives that have the most impact on employee
engagement.
3. Examining the role of leadership in promoting CSR and employee engagement.
4. Exploring the impact of employee engagement on CSR outcomes.

 Design & Type of study

The design and type of study to investigate the impact of CSR on employee engagement
would depend on the research questions, resources, and feasibility of the study. Here are a few
potential designs and types of studies that could be used to explore this topic:

1. Cross-sectional survey: A cross-sectional survey could be used to gather data from a

large sample of employees across different organizations.
2. Longitudinal study: A longitudinal study could be used to investigate how CSR
initiatives impact employee engagement over time.

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 3. Case study: A case study approach could be used to investigate the impact of CSR
initiatives on employee engagement in a specific organization.
4. Experimental study: An experimental study could be used to test the impact of
specific CSR initiatives on employee engagement.

Sources of data collection

Primary data has been collected with the help of a structured questionnaire from employees
working across various sectors in and around INDIA.

Top Secondary data sources like newspapers, magazines, journals, and various other online
data sources have been referred to for collecting existing literature.

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 CHAPTER-4
Data Analysis & Interpretation
Table No 1 Age

Participants Frequency Percentage (%)

18-21 2 6.7
21-25 17 56.7
25-30 11 36.7
30 0 0
Total 30 100%

Graph No-1

INTERPRETATION-
As we can see in above graph the participants are age of 18-21 year are 6.7%, 21-
25 are 56.7% and age of 25-30 years are 36.7%

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 Table no 2

Qualification Frequency Percent (%)

Diploma 2 6.7

Bachelor’s Degree 19 63.3

Master’s Degree 9 30

Total 30 100%

Graph no 2

INTERPRETATION-
According to graph 6.7% people have diploma degree; 63.3% people have bachelor’s
degree and 30% people are post graduate who takes part in survey.

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 Table no-3 Employee status

Employee status Frequency Percent (%)

Full- time 21 70

Part-time 4 13.3

Seeking opportunities 4 13.3

Prefer not to say 1 3.3

Total 30 100%

Graph no 3

INTERPRETATION-
This graph tells that our participants are 70% full time employee; 13.3% are part employee;
also 13.3% participants seeking for opportunities and 3.3% prefer not say

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 Table no 4 Industry

Industry Frequency Percentage (%)

IT 11 36.7

Finance 10 33.3

Health care 5 16.7

Other 4 13.3

Total 30 100%

Graph no 4

INTERPRETATION-
Above data show that 36.7% participants belongs to IT industry; 33.3% belongs to finance
industry; 16.7% belongs to Health care and 13.3% participants belongs to other different
industries.

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 Table no 5 Gender

Gender Frequency Percentage (%)

Male 20 66.7

Female 10 33.3

Total 30 100%

Graph no 5

INTERPRETATION-
Above data show gender ratio of participants in which 66.7% are male and 33.3% are female
participants.

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 Table no 6 Participants

Participants Frequency Percentage (%)

Not familiar 2 6.7

Somewhat 21 70

Very much 7 23.3

Total 30 100%

Graph no 6

INTERPRETATION-
70% participants are have little bit of knowledge about CSR activity; and there are 23.3%
participants well known about CSR and 6.7% are don’t know about CSR.

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 Table no 7 Positive impact on society

Positive impact on society Frequency Percentage (%)

Yes 26 86.7

No 1 3.3

Maybe 3 10

Total 30 100%

Graph no 7

INTERPRETATION-
86.7 % participant think that company’s initiatives positively impact on society, whereas
3.3% think it has no effect on society.

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 Table no 8 Motivate to work

Motivate to work Frequency Percentage (%)

Very much 9 30

Somewhat 16 53.3

Not at all 5 16.7

Total 30 100%

Graph no 8

INTERPRETATION-
30% Participants thinks that “CSR” very much motivate them whereas 53.3% participants
somewhat motivate by “CSR” initiatives but 5% participants do not motivate by “CSR”
initiatives.

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 Table no 9 Satisfaction in participation

Satisfaction in participation Frequency Percentage (%)

Not satisfied 5 16.7

Somewhat satisfied 11 36.7

Very satisfied 13 43.3

Never participated 1 3.3

Total 30 100%

Graph no 9

INTERPRETATION-
43.3% Participants are very satisfied; 36.7% are somewhat satisfied Whereas 16.7%
participant are not satisfied and 3.3% never participated in the CSR activity.

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 Table no 10 Positive impact on morale

Positive impact on morale Frequency Percentage (%)

Yes 24 80

No 3 3

Maybe 3 3

Total 30 100%

Graph no 10

INTERPRETATION-
80% Participants opinion is that “CSR” positively impact on employee moral where as 3 %
don’t think so. And 3% not sure about that.

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 Table no 11 Positive impact on job satisfaction

Positive impact on job Frequency Percentage (%)

satisfaction

Yes 23 76.7

No 7 23.3

Not sure 0 0

Total 30 100%

Graph no 11

INTERPRETATION-
76.7% participant think CSR initiatives have positive impact on job satisfaction and 23.3%
don’t think so.

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 Table no 12 Change in employee engagement

Change in employee Frequency Percentage (%)

engagement

Yes 27 90

No 3 10

Total 30 100%

Graph no 12

INTERPRETATION-
90% participants noticed change in employee engagement and 10% have not notice any
changes.

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 Table no 13 connected to colleagues

Connected to colleagues Frequency Percentage (%)

Yes 14 46.7

No 3 10

Maybe 13 43.3

Total 30 100%

Graph no 13

INTERPRETATION-
46.7% participants feel more connected to their colleagues whereas 10% not feel so and 43.3 %
participants not sure about that after the company’s CSR initiatives make them feel more
connected to their colleagues.

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 Table no 14 proud to be associated

Proud to be associated Frequency Percentage (%)

Yes 21 70

No 1 3.3

Not sure 8 26.7

Total 30 100%

Graph no 14

INTERPRETATION-
70 % participants feel proud to be associated with company that engages in CSR initiatives.
3.3% not feel so and 26.7% not sure about it.

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 Table no 15 Align with person value

Align with person value Frequency Percentage (%)

Yes 21 70

No 3 10

Not sure 6 20

Total 30 100%

Graph no 15

INTERPRETATION-
70% participants believe that the company’s CSR initiatives align with personal values.
Whereas 10% participants are not believe in that and 20% are not sure about it.

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 CHAPTER-5

Findings & Conclusion

1. Participants are age of 18-21 year are 6.7%, 21-25 are 56.7% and age of 25-30 years are
36.7%.
2. 6.7% people have diploma degree; 63.3% people have bachelor’s degree and 30%
people are post graduate who takes part in survey.
3. Our participants are 70% full time employee; 13.3% are part employee; also 13.3%
participants seeking for opportunities and 3.3% prefer not say.
4. 36.7% participant belongs to IT industry; 33.3% belongs to finance industry; 16.7%
belongs to Health care and 13.3% participants belongs to other different industries.
5. Gender ratio of participants in which 66.7% are male and 33.3% are female participants.
6. 70% participants are have little bit of knowledge about CSR activity; and there are
23.3% participants well known about CSR and 6.7% are don’t know about CSR.
7. 86.7 % participant think that company’s initiatives positively impact on society,
whereas 3.3% think it has no effect on society.
8. 30% Participants thinks that “CSR” very much motivate them whereas 53.3%
participants somewhat motivate by “CSR” initiatives but 5% participants do not
motivate by “CSR” initiatives.
9. 43.3% Participants are very satisfied; 36.7% are somewhat satisfied Whereas 16.7%
participant are not satisfied and 3.3% never participated in the CSR activity.
10. 80% Participants opinion is that “CSR” positively impact on employee moral where as 3
% don’t think so. And 3% not sure about that.
11. 76.7% participant think CSR initiatives have positive impact on job satisfaction and
23.3% don’t think so.
12. 90% participants noticed change in employee engagement and 10% have not notice any
changes.

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13. 46.7% participants feel more connected to their colleagues whereas 10% not feel so and
43.3 % participants not sure about that after the company’s CSR initiatives make them
feel more connected to their colleagues
14. 70 % participants feel proud to be associated with company that engages in CSR
initiatives. 3.3% not feel so and 26.7% not sure about it.
15. 70% participants believe that the company’s CSR initiatives align with personal values.
Whereas 10% participants are not, believe in that and 20% are not sure about it.

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 CHAPTER-6

Bibliography-
 Bhattacharya, C. B., Sen, S., & Korschun, D. (2008). Employee–customer relationship:
An empirical study. Journal of Services Research, 8(1), 61-76.
 Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral
management of organizational stakeholders. Business Horizons, 34(4), 39-48.
 Chen, Y., & Hung, Y. (2010). The impact of corporate social responsibility on
employee organizational commitment: An empirical study in Taiwan. Journal of
Business Ethics, 96(2), 291-301.
 Maignan, I., Ferrell, O. C., & Ferrell, L. (2005). A stakeholder model for implementing
social responsibility in marketing. European Journal of Marketing, 39(9/10), 956-977.
 Mishra, S., & Modi, S. B. (2013). CSR and employee engagement: A case of an Indian
company. Journal of Business Ethics, 114(2), 339-351.
 www.reserchgate.in

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 CHAPTER-7

Annexure- Questionnaire-
1. What is our age range?
2. What is your highest level of education?
3. What is your employment status?
4. Which industry are you working for?
5. your gender
6. How familiar are you with the company's CSR initiatives?
7. Do you believe that the company's CSR initiatives positively impact society?
8. How much do the company's CSR initiatives motivate you to work harder?
9. How satisfied are you with the opportunities provided by the company to participate in
CSR activities?
10. Do you believe that the company's CSR initiatives positively impact employee morale?
11. Do you feel that the company's CSR initiatives have a positive impact on your job
satisfaction?
12. Have you noticed any change in employee engagement since your company started
implementing CSR initiatives
13. Do you feel proud to be associated with a company that engages in CSR initiatives
14. Do you believe that the company's CSR initiatives make you feel more connected to
your colleagues?
15. Do you believe that the company's CSR initiatives align with your personal values?

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