The Impact of Corporate Social Responsibility on Psychological Capital, Employee Engagement, and Performance: An Empirical Study

Abstract

This study aims to examine how CSR influences psychological capital, engagement, and performance amidst crises. It addresses a gap in the existing literature by investigating the non-financial impacts of CSR. The study employs a correlational research design. A systematic literature review was conducted following the PRISMA statement guidelines, analyzing various methodological and theoretical approaches across existing studies. Based on the synthesis of findings, a research model was developed to categorize dominant themes and their interconnections. Correlation analysis results indicate significant positive relationships among variables. The correlation analysis result indicates that employee perception of corporate social responsibility is highly positively correlated with employee psychological capital (r = 0.675, p < 0.01), employee engagement (r = 0.689, p< 0.01), and employee performance (r = 0.641, p< 0.01).  Employee engagement shows a strong positive association with employee performance (r = 0.754, p < 0.01). The strongest correlation observed is between psychological capital and performance (r = 0.821, p < 0.01). The findings of this study underscore the pivotal role of CSR initiatives in influencing employee attitudes during a crisis. Furthermore, the results emphasize the importance of effectively implementing CSR strategies to enhance employee engagement, employee performance, and psychological capital.