The Perception of Corporate Social Responsibility and Employee Flourishing: Cultural Diversity as an Underlying Mechanism

Abstract

Corporate social responsibility (CSR) has been a field of interest over the past couple of decades. The challenges posed by rapidly evolving technology and frequently changing market conditions along with well-informed customers, have compelled firms to pay greater attention to their stakeholders and address social, economic, and environmental issues. This heightened focus on CSR reflects a growing perception that success transcends financial gains and encompasses broader benefits to communities and society. Moreover, there is growing recognition of the impact of internal CSR practices, which not only enhance a firm’s reputation, assets, and customer retention but also significantly influence the well-being, engagement, and satisfaction of their workforce. Currently, for some firms, particularly multinational corporations (MNCs), promoting internal CSR practices becomes particularly complex amidst diverse workforces encompassing varied languages and cultures. This study, thus, explores the relationship between perceived CSR practices and workplace outcomes, including the mediating role of cultural diversity. Based on data collected from 211 employees in 19 different countries, the results reveal that perceived CSR effects on employee well-being, satisfaction, and engagement are driven by diversified cultural settings. Accordingly, these findings reinforce the urgency to delve deeper into the implications of cultural diversity within CSR frameworks.