The Impact of Corporate Social Responsibility (CSR) Initiatives on Employee Attraction and Retention

Abstract

This study investigates the impact of Corporate Social Responsibility (CSR) initiatives on employee attraction and retention within the industrial sector of Hattar, District Haripur. Drawing on Stakeholder Theory and Social Exchange Theory, the research explores how social, environmental, and ethical CSR practices influence workforce dynamics in a competitive labor market. A structured questionnaire survey was administered to a stratified random sample of 250 employees across operational, supervisory, and managerial levels. Reliability analysis confirmed strong internal consistency of measurement scales (Cronbach’s Alpha ranging from 0.77 to 0.95). Regression results revealed that CSR initiatives significantly affect both employee retention and attraction, with environmental initiatives exerting the strongest influence on retention (β = 0.334, p < 0.001) and ethical initiatives most strongly driving attraction (β = 0.416, p < 0.001). The models explained 57.1% of variance in retention and 44.6% in attraction, underscoring CSR as a strategic instrument in talent management. Findings highlight that CSR programs not only enhance organizational reputation but also foster employee loyalty, satisfaction, and long-term commitment. The study contributes empirical evidence to the growing literature on CSR as a sustainable HRM practice, offering practical implications for industrial organizations seeking to reduce turnover and strengthen employer branding.