CONGRUENCE IN CORPORATE AND EMPLOYEE SOCIAL RESPONSIBILITY IN MANUFACTURING INDUSTRY: CONNECTING THE IDENTITY AND BEHAVIOR OF EMPLOYERS AND EMPLOYEES

Abstract

Corporate Social Responsibility (CSR) has become a trend that appeals to change the business orientation from short-term to long-term goals, from maximum to optimum profit and become the essential part as the standard operating procedure for a company. Nowadays, only implementing CSR is not sufficient to sustain the business competitiveness. There are six key responsibilities for companies to manage within CSR which are customers, employees, business partners, the environment, communities and investors. Therefore, it is expected that employees who appreciate CSR activities will satisfy their own demands such as no lay-off policies, strict equity policies or pleasant work aesthetics. Specific managerial practices representative of CSR towards employees are likely to lead to employee commitment. Thus, in Small and Medium Enterprises (SMEs) or Multi-National Companies (MNC) started to take an active role in promoting their CSR programs and encourage employee social responsibility (ESR) which it was viewed as more favourable than those that do not have highly visible programs because they believe that having goals and vision that go beyond products and profits definitely provides a warmer image for the business that consumers and employees will be more eager to engage with. In this study, we explore how the CSR practices used by the manufacturing business, how employees form socially responsible through CSR programs and how it perceived by the employees. It is also important to understand the influence of corporate and employee social responsible identity and behaviour influence on CSR engagement pattern. The need to disseminate, increase ESR knowledge and acceptance on CSR among the employee will also be determined. The study also differentiate the social responsibility identity and behaviour among three groups of determinants which are no ESR-CSR congruence, single dimensional and full dimension by adopting the ESR-CSR Congruence Model. Stratified ransom sampling is use in this study. Qualitative and quantitative research will be used in this study to provide valuable information for the player who involve in manufacturing industry on the way forward to consider implementing CSR in their business. For qualitative research, the sample size taken is 30 employees from the executive level and top management from the Volume: 3 Issues: 10 [June, 2018] pp. 44-51] International Journal of Accounting, Finance and Business eISSN: 0128-1844 Journal website: www.ijafb.com45 selected 5 manufacturing industry. On the other hand, 500 non-managerial employees will be interview using self-administrative questionnaire for quantitative research in order to achieve the aim of this study