Employee satisfaction, corporate social responsibility and financial performance

Chu Hsuan Chang, Hsiou Wei Lin, Wen Hsien Tsai, Wei Liang Wang, Cheng Tsu Huang

Research output: Contribution to journalArticlepeer-review

6 Scopus citations


This study explores the extent to which employee turnover, a proxy variable to employee loyalty, helps mediate the relationship between Taiwanese firms’ corporate social responsibility (CSR) performance and financial outcome. The results show that a firm’s CSR performance is negatively correlated with employee turnover and turnover variability, and moreover, employee turnover is negatively correlated with a firm’s financial performance. The result is especially noteworthy for studies regarding Taiwanese companies since quite a few of them are original equipment manufac-turers (hereafter also referred to as OEMs), of intermediate goods. For the sample firms, although the contribution of social responsibility appears to have insignificantly direct benefit on financial performance, we document that the extent to which CSR conducts influence on long-term financial outcomes may be moderated and mediated by employee enthusiasm.

Original languageEnglish
Article number9996
JournalSustainability (Switzerland)
Issue number18
StatePublished - Sep 2021


  • Corporate social responsibility
  • Employee turnover
  • Mediation effect


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