CSR and Employee Happiness: A Systematic Review and Critique of Organizational Cultures for Employee Satisfaction ()
1. Introduction
In the last few decades, Corporate Social Responsibility (CSR) has emerged a globally resonant subject while gaining substitutional acknowledgment and widespread acceptance across the different sectors of the domains of business, academia and any national or international institute with corporative societies (Macassa et al., 2021) . The attractive elements of CSR are caused by its fruitful impact on business community with the creation of valuable role it plays by integrating environmental and societal considerations voluntarily into business operations thereby not only creating the bond between companies and stakeholders but also playing a crucial role for the economic and social development of nations. With these strategies, the natural environment within companies is poised for better production. In the business scenario, the CSR has become a potential tool for strong values for competitive advantages. It plays an important role in shaping and giving structural framework to cooperative business. It is also noticed that CSR attitude have very positive but potential influence on society and worker for their physical and mental health (Espasandín-Bustelo, Ganaza-Vargas, & Diaz-Carrion, 2021) . By application of CSR, multi-national organizations can have a trusted value system towards the international activities under the umbrella of that business firm. It develops healthy relationships within organization, individual and social network of firm. Internal CSR not only plays a vital role in the well-being of an individual but also triggers the behavior and satisfaction levels of employees (Jeong, Kang, & Choi, 2022) . The leading businesses are beginning to exert stress over the implementation of CSR in office community or workplaces. To get positive evolution from employees of any firm either national or international the CSR application is necessary for stakeholders. It develops the physiological relationship between stakeholder and particular organization. The commitment of a specific company for domain is based upon the different internal and external factors, in which the organizational culture or attitude of colleagues among themselves plays a crucial role in the progress of an institute (Alves, Booth, & Fryzeł, 2019) . It is said that the organizational environment is precursor for the activity of CSR however, there is limited empirical evidence as to how different culture configurations play a role in the evolution of CSR. Galbreath (2010) stated that a lack of both theoretical and empirical attention to exploring the understanding of the drivers that affect CSR. Turker (2018) differentiates the components into various groups as micro level, internal CSR policies and external CSR pressure. Hayat & Afshari (2022) examine the significant role of organizational culture in influencing the implementation of internal Corporate Social Responsibility (CSR) measures and explore the resulting impact on employee well-being. The main emphasis lies on the perceptions held by employees regarding the internal CSR practices implemented by their respective organizations. Due to the scarcity of studies in the CSR field that utilize self-reported performance variables, the investigation places particular importance on considering the perception of employees who are the primary beneficiaries of internal CSR actions, as the main unit of analysis (Ruiz-Palomino, Morales-Sánchez, & Martínez-Cañas, 2021) .
Moreover, the association between corporate social responsibility (CSR) and organizational psychology entails reciprocal advantages. The incorporation of organizational psychology into CSR paves the way for innovative research, departing from the traditional approach of regarding CSR as a distinct field of study aimed at external audience. While organizational psychology has traditionally focused on financial productivity and short-term performance, a shift towards considering employee well-being and long-term outcomes can foster a more sustainable relationship between employees and employers. The convergence of organizational psychology with CSR provides a distinctive standpoint, recognising that employees are driven by factors beyond financial objectives. By surpassing the constraints imposed by an emphasis on immediate gains, this integrated approach creates opportunities for insightful research that examines work dynamics from a fresh perspective. The manuscript is structured to offer an overview of CSR, delve into its integration with organizational psychology, and propose a research agenda that underscores potential synergies for future exploration (Saha, Shashi, Singh, & Dahiya, 2020) .
2. Overview of CSR
The evolution of conceptualisations of Corporate Social Responsibility (CSR) has primarily concentrated on the institutional and macro levels, resulting in a multitude of overlapping and occasionally confusing definitions within various schools of thought. Carroll (1999) and Waddock (2008) emphasize the diversity of perspectives, with Peloza (2009) identifying 36 distinct ways to measure CSR. Terms such as corporate citizenship, corporate social performance, stakeholder theory, sustainability, and sustainable development have been used interchangeably with CSR (Omidi & Dal Zotto, 2022) .
2.1. Navigating the Diverse Definitions
CSR entails the concern for the well-being of others and the environment, with the aim of creating value for the business. It is manifested through a company’s strategies and operational practices in managing relationships with key stakeholders and the natural environment. For scholars focusing on micro-CSR, the absence of a universally accepted definition presents both challenges and opportunities. The lack of clarity makes it difficult to generalise findings on CSR, necessitating scholars to precisely define CSR in their studies. However, the broad nature of CSR allows for significant variation in how employees perceive it. Some may interpret CSR as a moral obligation of a firm, encompassing environmental stewardship and equitable compensation, while others may view it as strengthening relationships with key stakeholders. These diverse perceptions have the potential to influence employee attitudes and behaviors in different ways (Guzzo, Abbott, & Madera, 2020) .
2.2. Taxonomy of CSR
When considering the conceptualisations and taxonomies of Corporate Social Responsibility (CSR) that have been previously discussed, there are challenges that arise for organizational psychologists who are tasked with the measurement of internal CSR. The taxonomy of CSR, places emphasis on the embedded nature of CSR within the daily operations of a company, involving every employee. As a result, the extent to which CSR is embedded within a company may vary, thus influencing the perceptions of employees. The perceptions of employees regarding CSR can differ, and this in turn can influence their work attitudes and behavior in various ways. For example, some employees may view non-substantive CSR as greenwashing, which can have a negative effect on their perceived values alignment with the organization. On the other hand, some employees may prioritise the impact of CSR on the organization’s reputation, finding that the symbolic CSR has a positive influence on their organizational identification. Additionally, employees may respond positively to instrumental CSR, perceiving it favorably if it creates value for the company. However, there are also individuals who insist on normative CSR and view profit-driven CSR as hypocritical. These examples demonstrate that the impact of CSR on employees is highly dependent on individual differences, personal values, and self-concepts areas that have been extensively explored in the field of organizational psychology (Bhatia & Mohsin, 2020) . In essence, organizational psychology provides an opportunity to deepen our understanding of the implications of CSR at a more profound level.
3. Research Question and Objectives
The primary objective of this systematic review is to evaluate and consolidate the existing body of literature regarding the correlation between Corporate Social Responsibility (CSR) practices and the well-being of employees. To address this inquiry, the following specific objectives will be pursued:
1) Scrutinize and categorize pertinent studies on CSR practices and employee well-being.
2) Assess the methodological rigor of the selected studies.
3) Combine the findings to identify common trends and variations.
4. Theoretical Review
4.1. Employee Happiness
Employee happiness refers to the overall sense of contentment and well-being experienced by individual within their professionals’ roles (Opatha & Uresha, 2020) . It encompasses feelings of satisfaction fulfillments and positivity derived from various aspects of work life such as job satisfaction, personal growth opportunities work life balance and supportive relationship with colleagues and supervisor. Employee happiness is subjective and reflects individuals’ perceptions of their work experiences and environment.
4.2. Internal Corporate Social Responsibility
Internal CSR denotes the voluntary initiative policies and practice adopted by organizations to integrate social and environmental concerns into their operations and relationship with employee (Low, 2014) . It encompasses actions aimed at enhancing employee well-being fostering a positive organizational culture and contributing to social and environmental sustainability within organization. Internal CSR initiative may include programs related to employee welfare diversity and inclusion, ethical labor, training and development, health and safety supportive and socially responsible workplace environment that promote employee satisfactions and engagement while aligning with the organizational broader CSR objectives.
4.3. Organizational Culture
Organizational culture refers to the shared values, beliefs, norms, and practice that characterise collective behaviors and identity of an organization. It encompasses the overall atmosphere attitude and social dynamics within the organization that influence employee interactions perceptions of work environment and approaches to work related tasks and responsibilities (Tran, 2020) . Organizational culture extends beyond employee happiness and internal CSR to encompasses all aspects of organizational life, including external relationship, strategic objectives, and the organizational identity. While employee happiness and internal CSR are specific dimension of organizational culture focused on employee wellbeing and social responsibility, organizational culture encompasses a broader range of organizational behaviors and dynamics.
5. Methodology
Data was collected from different sources including databases, search engines (google scholars, Pub Med, Eric, EBSCOhost, and ProQuest). The evaluation of selected article was based on systematic analysis and according to formula know as Boolean formula which screened down the articles up to narrow range for specific topic as per requirements. This study was done during the time of six month from January 2023 to July 2023. The chosen methodology integrates quantitative analysis to evaluate existing literature and qualitative, methods to corroborate findings and provide deeper insight into employee perception and experience.
5.1. Rationales for Methodical Approaches
The decision to adopt said method approached stems from the complexity of research questions which require an abstruse understanding of the relationship between CSR practice, organizational culture, and employee happiness. By analysing the literature available on the theme and with qualitative inquiry, this study seeks to capture both the breadth and depth of the phenomenon under investigation. Data analysis allows for the systematics trends and variation facilities exploration of employee perceptions, attitude and experience related to CSR practice and finding. This approach enhances insight that complement quantitative findings of published research and increases the robustness and validity of the study by triangulation data from multiple sources and perspectives.
5.2. Data Extractions Process
The data extraction processes involve several steps to ensure a systemics and comprehensive review of relevant literature. Initially a thorough search is conducted across various databases, including PubMed, PsycINFO, and Business Sources Complete using relevant keywords of CSR, employee well-being and organizational culture. Boolean operators are employed to refine search queries and identify pertinent search articles. Upon retrieving relevant articles, a screening process is implemented based on predefined inclusion and exclusion criteria. Studies selected for inclusion are peer reviewed articles that focus on CSR practice and their impact on employee well-being incorporating quantitative or qualitative data analysis and encompassing a wide range of industries and organizational sizes. Studies that do not meet criteria or lack relevance to the search questions are excluded.
5.3. Inclusion and Exclusion Criteria
Studies that satisfy the following criteria are included:
1) Publication in peer-reviewed journals with emphasis on CSR practices and their impact on employee well-being.
2) Incorporation of quantitative or qualitative data analysis.
3) Encompassing a wide range of industries and organizational sizes.
4) Studies are excluded if they cannot be accessed, lack relevance to CSR and employee well-being, or are not peer-reviewed.
5.4. Search Strategy
A comprehensive exploration is conducted in electronic databases such as PubMed, PsycINFO, and Business Source Complete. Keywords will encompass various forms of “CSR,” “employee wellbeing,” and related terminology. Boolean operators are employed to refine search queries.
5.5. Data Extraction
Data is extracted using a predetermined template, capturing essential details such as study design, sample characteristics, CSR practices under examination, and outcomes pertaining to employee well-being.
5.6. Data Synthesis
A narrative synthesis is undertaken to summarize the findings. If feasible, meta-analysis will be considered for studies with comparable methodologies and outcomes.
5.7. Reporting
This study adheres to the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) guidelines to ensure transparency and completeness in the reporting process.
The Boolean formula utilized in this investigation encompassed strategic utilization of keywords and operators to screen pertinent research articles from databases such as Google Scholar, Pub Med, Eric, EBSCOhost, and ProQuest. Through the amalgamation of terms pertaining to “CSR,” “employee well-being,” and related lexicon, the formula enhanced search queries to guarantee all-encompassing coverage of the selected subject matter. This systematic approach was designed to produce a focused compilation of studies suitable for a comprehensive examination of the correlation between Corporate Social Responsibility practices and employee contentment. Figure 1 provides the details of screening process in this study using Boolean formula.
6. Results
Internal CSR and employee happiness have been evaluated to conclude that both need to move analogously for the progress and development of organizations. The investigation conducted a thorough examination of the interaction between internal Corporate Social Responsibility (CSR) initiatives and employee well-being, uncovering a critical parallel association between employee values, self-concepts and holistic corporate initiatives for employee engagement and work-life balance (Sanusi & Johl, 2020; Bhatia & Mohsin, 2020; Omidi & Dal Zotto, 2022) and to proactively enhance employee experiences that create a sense of fulfillment for their personal and social expectations. The results emphasized that, to achieve ongoing progress and advancement within a particular work environment, both internal CSR practices and employee well-being must align harmoniously. The assessment highlighted the reciprocal nature of this relationship, underscoring the significance of cultivating a workplace culture that integrates CSR measures. By integrating CSR policies, such as staffing, training, work-life balance, and diversity promotion, with the pursuit of employee welfare, organizations can greatly enhance their overall effectiveness (Alatawi, Ntim, Zras, & Elmagrhi, 2023; Omidi, & Dal Zotto, 2022) .
This alignment was recognized as a strategic necessity, contributing not only to job satisfaction but also to the broader commitment of the organization. The CSR policies has been shown in Table 1. The investigation thus illuminated the complex dynamics between internal CSR and employee well-being, underscoring their interdependent role in driving positive outcomes in a workplace context.
Organizational variables encompass the configuration of ownership, the composition of the executive board, the strategic orientation, and the corporate culture. The cultivation of a supportive culture towards Corporate Social Responsibility (CSR) presents a significant hurdle for organizations, as culture exerts influence on the way socially responsible practices are instituted by organizations.
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Table 1. Overview of CSR policies in particular study.
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Figure 1. Data Search Process using Boolean formula for screening specific articles according to domain.
Although the Competing Values Framework (CVF) proposed by Cameron and Quinn (1999) is widely acknowledged as a robust model for assessing organizational culture, the existing body of literature indicates a correlation between organizational culture and Corporate Social Responsibility (CSR) Al-Ghazali, & Sohail, 2021) . CVF model proposed four different types of cultural typologies to explain cultural structure in organisations. These four typologies are; human relations and development (clan) culture, hierarchy (bureaucracy) culture, market culture and harmony with the environment (adhocracy) culture (Cameron & Quinn, 1999) .
However, empirical research exploring the relationship between the various cultural types identified by Cameron and Quinn (1999) and CSR is scarce (Kucharska & Kowalczyk, 2019) . Pasricha et al. (2018) , utilising Cameron and Quinn’s model (1999) , suggest that clan and adhocracy cultures are likely to have a positive impact on both internal and external CSR practices. Furthermore, Übius and Alas (2009) discover that the four cultural configurations identified by Cameron and Quinn (1999) can predict CSR outcomes. Based on these observations, we formulate the following hypotheses in Table 2.
This research concentrates on measuring the perception of employee regarding their level of satisfaction, the socially responsible initiative carried out by their organization, and overall culture within the company. The investigation involves individual working in various sectors and organizations of different sizes, all of which are headquartered in different countries across the world. This paper undertakes a comprehensive examination to investigate the potential impact of organizational culture, particularly the function of internally Cooperative Social Responsibility (CSR), on the contentment of employees during their work hours and draws its methodological vision from works of Kunda, Ataman, & Kartaltepe (2019) on corporate social responsibility and organizational citizenship behaviour.
The information depicted in Table 3 represents a concise overview of the discoveries derived from the chosen studies incorporated in the comprehensive examination. These investigations encompass a variety of methodologies, including surveys administered by different researchers exploring the employee and industrial factors associated with CSR and well-being. The survey responses illustrated in Table 3 do not originate from primary research conducted for this article, but rather represent a consolidation of existing studies included in the comprehensive examination. These factors show the higher representation in smaller companies, employee less than 50 individuals, but with a considerable annual revenue exceedingly more than 2 million dollars.
Most of the participant having the higher level of education, containing completed more than 15 years of schooling and have an average age of 37 year.
Table 3 outlines essential characteristics of respondents surveyed across various categories in the research study. Each row represents a distinct category, while the columns detail the absolute frequency and percentage of respondents within each category.
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Table 2. Four domain or hypothesis and their association with CSR.
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Table 3. Key characteristics of survey respondents across various categories.
Analysis of Corporate Social Responsibility (CSR) Metrics across Different Domains, Working Communities, Income Levels, Biological Sex, and Work Age Groups.
Characteristics column specifies the different categories of respondents surveyed, such as their work domain (e.g., construction, industrial, service), the size of their working community (e.g., number of employees), their annual income range, biological sex, and work age group. Absolute Frequency: This column indicates the total count of respondents falling into each category. Percentage: This column illustrates the percentage of respondents relative to the overall respondent count, providing insights into the distribution of respondents across different categories. The table aims to offer a comprehensive snapshot of respondent characteristics, facilitating a better understanding of the demographic and professional diversity within the research sample.
Figure 2 presents a more nuanced look into the data set of the published research, and it is evident that much of internal CSR primary research has historically focused on Industrial community. We also see skewness in the representation of women or other gender minorities in the research which may be indicative of the inherent gender bias in the research. With focus shifting to other represented communities, we might come to more insightful correlations between employee happiness and internal CSR. The data variables about the size of company and number of years of employment reconfirm conclusions from Table 2 and Table 3 that smaller-sized organizations where employees have at least spent 5 years with the company show higher levels of employee satisfaction and happiness resultant from the internal CSR activities of training and development, work-life balance, fair practices, diversity, and human rights.
7. Discussion
The discourse revolves around unraveling the intricate dynamics among internal Corporate Social Responsibility (CSR) practices, organizational culture, and employee happiness. The study underscores the reciprocal connection between CSR initiatives and employee well-being, emphasizing the necessity for both to progress in tandem for the advancement of a specific work environment. It emphasizes that aligning internal CSR practices with employee welfare is not merely a strategic
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Figure 2. Data set percentages of study variables based on secondary research.
maneuver for job satisfaction but also contributes to broader organizational commitment (Amrutha & Geetha, 2021) .
The study highlights the strategic importance of cultivating a workplace culture that seamlessly integrates CSR measures. Through the incorporation of policies pertaining to staffing, training, work-life balance, and diversity promotion, organizations can significantly augment overall effectiveness (Drummond et al., 2017) . This approach aligns with the broader commitment of the organization, emphasizing the need for holistic strategies that consider employee well-being alongside operational practices. Internal CSR policies, which encompass staffing, training and development, performance appraisal, career management, compensation, work-life balance, diversity promotion, and occupational health and safety, posit that organizations should adopt a comprehensive CSR approach that transcends mere legal and ethical compliance (Vasconcelos, 2023) .
The study contributes theoretically by expanding CSR research to incorporate the construct of happiness in the analysis of internal CSR. This shift from traditional economic-focused perspectives broadens the understanding of social outcomes associated with CSR initiatives (Dutschke, Jacobsohn, Dias, & Combadão, 2019) . Furthermore, the investigation delves into the relationships between organizational culture types (clan, adhocracy, market, hierarchy) and internal CSR, offering hypotheses for future research. From a practical perspective, the study provides valuable insights for organizations to strategically foster internal CSR by aligning with specific organizational cultures, such as adhocracy and clan cultures (Bibi et al., 2022) .
8. Theoretical Advancement
The study presents significant theoretical contributions while offering practical implications for both organizational strategies and policy development. In terms of theoretical advancements, it expands the existing literature on Corporate Social Responsibility (CSR) by incorporating the construct of happiness into the analysis of internal CSR, thereby highlighting its positive impact on employee well-being. This broadens the scope of research beyond the traditional focus on economic benefits, shedding light on the social outcomes that are often overlooked. Moreover, the research addresses a gap in the literature by examining company culture as a precursor to internal CSR. Specifically, it explores the relationship between mechanical cultures (hierarchy and market) and internal CSR (Chen, Hong, & Occa, 2019) .
Additionally, it investigates the mediating role of CSR between organizational culture and employee happiness, providing nuanced insights into the interplay among these factors. This lends protracted depth to the existing body of knowledge, which has predominantly focused on the relationship between organic cultures (clan and adhocracy) and internal CSR. Another notable contribution of this study is the generation of knowledge from the employee perspective, which is a less common approach in the literature on internal CSR that typically relies on managerial data. This shift in focus offers a more comprehensive understanding of how internal CSR practices are perceived by the workforce (Haque, Fernando, & Caputi, 2021) . From a practical standpoint, the study offers valuable insights for organizations, suggesting a strategic approach to fostering internal CSR by cultivating specific organizational cultures, such as adhocracy and clan cultures. By aligning these cultural values with tangible CSR practices, such as initiatives related to occupational health and safety, work-life balance policies, and equal opportunities, organizations can enhance employee happiness (Kim, Woo, Uysal, & Kwon, 2018) .
This strategic approach becomes particularly relevant in the context of the COVID-19 pandemic, where teleworking has highlighted the importance of supportive organizational cultures that prioritise employee well-being. Furthermore, the study encourages organizations to systematically implement CSR practices that are aligned with their cultural settings. For example, companies with a clan culture can develop comprehensive training plans for all employees, promoting non-discrimination in training opportunities. This not only fosters a perception of fairness but also enhances employee identification with the organization, thereby contributing to overall job satisfaction. Policymakers can leverage the insights from this study to formulate strategies that promote socially responsible behavior among companies (Kim, Woo, Uysal, & Kwon, 2018; Felicetti, Ammirato, Corvello, Iazzolino, & Verteramo, 2022) . Financial support and targeted communication campaigns can serve as effective tools to encourage the adoption of CSR practices. The study is aligned with the United Nations’ Sustainable Development Goals, providing a foundation for policymakers to define institutional policies that prioritize job quality and advocate for CSR practices as integral components of corporate responsibility (Choudhury & Mohanty, 2019) .
In summary, this study contributes not only to theoretical advancements in the literature on CSR but also offers practical guidance for organizations and policymakers. It underscores the importance of incorporating employee perspectives into CSR research, providing a holistic understanding that can drive positive changes in organizational culture and practices.
9. Limitations and Prospects for Future Research
This investigation acknowledges the constraints associated with spatial, temporal, and model-dependent factors. The spatial restriction arises from the focus of this study on a singular nation, which hampers the ability to make more extensive generalizations. To address this limitation, future research endeavors could undertake cross-cultural analyses, encompassing countries with divergent cultural and institutional contexts. Exploring the impact of national influences on business culture, internal corporate social responsibility (CSR), and employee well-being would be of great value (Vuong & Bui, 2023) . Temporal limitations arise from the cross-sectional nature of the data, which prompts the suggestion of longitudinal investigations to validate causal relationships over time.
Furthermore, the research model itself possesses inherent limitations. The complexity of happiness as a multidimensional concept is duly recognised, and future refinements could involve the incorporation of additional variables both internal (e.g., socio-demographic factors) and external (e.g., external CSR) that may have an impact on employee happiness. Additionally, the findings of this study suggest the mediating role of organizational culture in the relationship between internal CSR and employee happiness, which opens avenues for further exploration in future research (Diaz-Carrion, López-Fernández, & Romero-Fernandez, 2019) .
10. Concluding Insights
This study posits that the clan and adhocracy cultures exert a more pronounced influence on internal CSR, compared to the other two cultural configurations. The adhocracy culture, characterized by flexibility, innovation, and creativity, along with the features of clan culture, such as a focus on employee well-being, autonomy, communication, training, and supervisor support, are found to be positively associated with increased engagement in internal CSR actions. It is worth noting that these findings contribute to the existing body of literature on CSR and organizational culture, but further research is needed to validate and expand upon these observations. Therefore, this study lays the groundwork for future investigations into the intricate relationships between cultural configurations and internal CSR initiatives. The analysis underscores that increased efforts in internal CSR by companies correspond with elevated levels of happiness among employees. Notably, occupational health and safety practices emerge as the most impactful factor on employee happiness.
In summary, this study emphasizes the importance of translating cultural attributes from adhocracy and clan cultures into practical implementation through the execution of internal CSR activities. Initiatives such as maintaining work-life balance, implementing equal opportunity measures, and upholding occupational health and safety practices significantly contribute to enhancing employee happiness.
11. Future Research
Including spatial and temporal constraints, the study suggests that future research could undertake cross-cultural analyses for broader generalizability. Additionally, the cross-sectional nature of the data prompts recommendations for longitudinal investigations to substantiate causal relationships over time. In summary, the study not only advances theoretical understanding by integrating happiness into CSR research but also provides practical guidance for organizations aiming to enhance employee satisfaction. By emphasizing the reciprocal relationship between internal CSR, organizational culture, and employee well-being, the study contributes to a holistic perspective that can drive positive changes in organizational practices and culture.