Investigating the Effectiveness of Corporate Social Responsibility on Employee Satisfaction: A Case Study of Petrochemical Employees

Subject Areas : Corporate social responsibility

Shahnaz Mashayekh ^{1 *} , Shadi Ghanbari Mazleghan ²

1 - Associate Prof, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran
2 - Phd Candidate, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

Received: 2024-11-20 Accepted : 2025-04-28 Published : 2025-11-12

Keywords: Corporate Social Responsibility, Level of Employees Satisfaction, Petrochemical Employees,

Abstract :

Objective:Corporate Social Responsibility (CSR) has emerged as both a critical philosophy and a strategic approach that influences employees’ attitudes. While most CSR research has focused on the relationship between CSR activities and external customers, relatively few studies have examined the impact of CSR from employees’ perspectives. This study investigates the effect of CSR on employee engagement, satisfaction, and retention.

Method: Data were collected from 350 employees working in petrochemical companies. A questionnaire was used for data collection, and all measurement scales were adapted from previous studies. A convenience sampling method was applied, and the respondents included both managerial and non-managerial employees of petrochemical firms. Participants were asked to rate their opinions on a five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree). The employees were personally contacted, and the questionnaires were collected three weeks after distribution. Out of 400 questionnaires distributed, 350 valid responses were received. Data analysis was performed using SPSS. Correlation analysis was employed to examine the strength of the relationship between CSR and employee satisfaction.

Findings:The results of the correlation analysis indicated a positive and significant relationship between CSR and employee satisfaction (r = 0.754, p < 0.001). This initial relationship provided evidence supporting the research hypotheses. Furthermore, a multiple regression analysis was conducted to test the effect of CSR on employee satisfaction. The results showed that CSR has a positive and significant impact on employee satisfaction (β = 0.527, p < 0.001). The adjusted coefficient of determination (Adj-R² = 36.9%) revealed that CSR explains a substantial portion of the variance in employee satisfaction. This means that for every one-unit increase in CSR, employee satisfaction increases by 0.527.

Conclusion:These findings are highly significant for both decision-makers and researchers. They suggest that organizations can enhance employee satisfaction and retention by engaging in social activities—such as identifying and meeting community needs, contributing to environmental improvement, supporting employee welfare, producing high-quality products for customers, and adhering to ethical standards.

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