An Evaluation of the Extent to Which Corporate Social Responsibility (CSR) affects the Loyalty of Employees: The Case of AVERDA Company at King Abdullah University for Science and Technology (KAUST) in the Kingdom of Saudi Arabia

Corporate Social Responsibility (CSR) has become a buzzword in contemporary business literature. Despite the extensive attention given to Corporate Social Responsibility in theory and practice, the concept is still open for interpretation, and the implications for managerial practice lack clarity and consistency. Further, the benefits of CSR in shaping desirable employee behaviour like loyalty is less emphasized. This research seeks to fill the gap in research by evaluating the role of Corporate Social Responsibility in affecting the loyalty of employees within a business case named AVERDA Company at KAUST University. The CSR lens of Dahlsrud dimensions was used to delineate the construct of the responsibility for the organisation mentioned above, and its importance in affecting employee loyalty was explored by utilizing two identified components of Niesink, namely employee satisfaction and engagement. The primary research was conducted within explanatory sequential mixed methods design and involved two data collection and analysis phases: an initial quantitative stage, followed by a qualitative one that builds on the previous phase results. Four questionnaires were utilised to examine the research hypotheses empirically and meet the study's quantitative objectives. Description and regression analysis were conducted to assess the CSR, employee satisfication and engagement awareness and to test research relationships. Two weak links that are related to CSR with performance appraisals and job insecurity factors were deduced. Based on these results, qualitative interviews and focus group meetings were introduced to explore the reasons behind such weakness. Thematic analysis method was selected to identify and analyse patterns within the qualitative data to determine the research themes that represent the causes of the two hypotheses weakness. Lack of motivational programs, unclear work-role responsibilities, unsupportive management, and lack of appreciation at workplace were reported to be the common causes for the weakness of CSR and performance appraisal relationship whereas work engagement, organizational belonging, unsupportive management, unclear work-role responsibilities, negative work environment, and lack of well-being care were informed to be the main causes behind the weakness of CSR and job insecurity link.

Since this research strategy is a case study for a company based in Saudi Arabia, the conceptual and theoretical framework of this study can be used to understand similar cases and contexts. In this case research, the concept of generalization is “analytical,” not “empirical,” and the inference of findings is “logical,” not “statistical.” Findings are significant in that it draws attention to the effects of CSR on employee loyalty in AVERDA at KAUST that can benefit similar organizations and the academe as well.