Corporate social responsibility on worker turnover rate and worker turnover cost: the role of symbolic image dimensions and the unemployment rate
Abstract
Purpose
This study aims to examine the relationship between corporate social responsibility (CSR) and worker turnover rate (WTR) and worker turnover cost (WTC) in Vietnamese garment companies, using the mediating role of symbolic image dimensions (SID) of employer image and the moderating role of unemployment rate.
Design/methodology/approach
This study uses Signaling Theory and Job Embeddedness Theory as theoretical frameworks to examine the mediating role of SID and the moderating role of the unemployment rate on the link between CSR and WTR, as well as the associated cost. Data from 119 Vietnamese garment companies are analyzed using structural equation modeling – AMOS software.
Findings
The findings suggest that CSR has a direct adverse effect on the WTR and an indirect effect on WTC through WTR. The results also indicate a direct relationship between the level of CSR adopted by companies and workers’ perception of the symbolic attributes of their company’s employer image as sincere, innovative, competent and prestigious. This, in turn, leads to a reduced rate of worker turnover. In addition, this study discovers the moderating influence of the region’s unemployment rate on the correlation between companies’ CSR and WTR.
Practical implications
The results indicate that companies should view CSR as a strategic tool to obtain better performance by achieving a win-win state of affairs with their workers. It also implies the influence of external economic factors on the relationship between CSR and worker turnover.
Originality/value
This study contributes to the literature by highlighting the economic benefits of CSR and the SID.
Keywords
Acknowledgements
The authors extends deep appreciation to Professor Nguyen Van Thang, the source of inspiration for this study. Being friends and students of Professor Nguyen Van Thang is both fortunate and an honor for the authors.
Funding: This research is funded by National Economics University, Vietnam.
Citation
Nguyen, H.N., Vu, H.N., Hoang, H.V. and Tran Huy, P. (2024), "Corporate social responsibility on worker turnover rate and worker turnover cost: the role of symbolic image dimensions and the unemployment rate", Social Responsibility Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SRJ-01-2024-0038
Publisher
:Emerald Publishing Limited
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