Effects of Internal Corporate Social Responsibility Activities on Social Performance: The Employee Perspective

Abstract

Internal corporate social responsibility (ICSR) has gained recognition as a strategic strategy to enhancing organizational sustainability and employee well-being in recent years. It encompasses employee-centered policies like empowerment, diversity, skill development, job stability, a positive work atmosphere, and work-life balance. These programs are thought to improve social performance by encouraging long-term dedication and positive workplace behavior. However, there is no empirical data on how ICSR affects social performance from the viewpoint of employees in the Nepalese corporate sector, especially in the Kathmandu Valley. This study aims to identify effect of internal corporate social responsibility activity on social performance. It also aims to identify the influence of Internal corporate social responsibility on social performance in Kathmandu Valley. Structured questionnaires were used to collect data according to the exploratory research design. There were both descriptive and inferential analyses performed, with the inferential analysis using PLS-SEM. Kathmandu valley population were picked as a population, and 411 individuals were taken as a sample The results indicate that employment stability (H1, β = 0.256, p < 0.001), working environment (H2, β = 0.168, p = 0.002), skills development (H3, β = 0.181, p < 0.001), and workforce diversity (H4, β = 0.139, p = 0.016) have a positive and significant impact on social performance. In contrast, work–life balance (H5, β = −0.059, p = 0.396) and empowerment (H6, β = 0.032, p = 0.479) were found to have no significant relationship with social performance. This study aims to identify effect of internal corporate social responsibility activity on social performance in corporate sector in Kathmandu valley, analyze its impact, identify challenges, and managerial solutions.