Category: Finance, Business, Management, Economics and Accounting
ORIGINAL
Investigating the influence of internal corporate social responsibility (ICSR) on work commitment and performance of employees of automobile companies in Chennai
Investigación de la influencia de la responsabilidad social interna de las empresas (RSI) en el compromiso laboral y el rendimiento de los empleados de las empresas automovilísticas de Chennai
K.P. Indhuja1 
*, M. Chandran2 *
1Vels Institute of Science, Technology and Advanced Studies (VISTAS), Pallavaram, Chennai, Tamil Nadu, India.
2Department of Commerce, Vels Institute of Science, Technology and Advance Studies (VISTAS), Pallavaram, Chennai, Tamil Nadu, India.
Cite as: Indhuja K, Chandran M. Investigating the influence of internal corporate social responsibility (ICSR) on work commitment and performance of employees of automobile companies in chennai. Salud, Ciencia y Tecnología - Serie de Conferencias. 2024; 3:893. https://doi.org/10.56294/sctconf2024893
Submitted: 04-02-2024 Revised: 23-04-2024 Accepted: 11-06-2024 Published: 12-06-2024
Editor: Dr.
William Castillo-González 
ABSTRACT
As the automobile sector continues to evolve, the dynamics of employee engagement, commitment, and performance become crucial considerations for sustained success. Understanding how internal CSR practices influence employee behaviours and outcomes is essential in navigating the unique challenges and opportunities within this dynamic sector. This research seeks to explore these dimensions, aiming to bridge the existing knowledge gap and provide valuable insights for both academia and industry practitioners.
This study employs an exploratory and descriptive approach, utilizing a mixed research methodology that integrates both qualitative and quantitative methods. The population of employees working in Chennai’s automobile companies is the focus of the study. A Convenience Sampling method was employed to select a sample of 150 Employees belong to Automobile Sector from various parts of Chennai district. A Structured Questionnaire was used to gather primary data. The researcher employed a combination of descriptive and inferential statistical techniques to analyse the collected data.
The study found that Internal CSR Practices have strong, positive and high relationship with Work Commitment and Performance of employees working in Select Automobile Companies. Male Employees have perceived more regarding the different Internal CSR Practices, have more positive Work Commitment and Performance of employees than their counter-part. ‘Labour Practices’ has stronger influence and ‘Recognition and Rewards Programs’ practice has weaker influence and ‘Diversity and Inclusion Initiatives’ Practice has no discernible impact on employees’ performance in Select Automobile Companies. The study contributes to the ongoing discourse on the strategic internal CSR practice implementation in the automobile industry, offering actionable recommendations for companies to enhance employee commitment, and performance.
Keywords: Internal CSR Practices; Work Commitment; Performance; Labour Practices; Recognition & Rewards Programs; Diversity & Inclusion Initiatives; Automobile Companies.
RESUMEN
A medida que el sector del automóvil sigue evolucionando, la dinámica de la participación, el compromiso y el rendimiento de los empleados se convierte en un factor crucial para el éxito sostenido. Comprender cómo influyen las prácticas internas de RSC en los comportamientos y resultados de los empleados es esencial para afrontar los retos y oportunidades únicos de este dinámico sector. Esta investigación pretende explorar estas dimensiones, con el fin de colmar la laguna de conocimientos existente y ofrecer valiosas perspectivas tanto al mundo académico como a los profesionales del sector.
Este estudio emplea un enfoque exploratorio y descriptivo, utilizando una metodología de investigación mixta que integra métodos cualitativos y cuantitativos. El estudio se centra en la población de empleados que trabajan en las empresas automovilísticas de Chennai. Se empleó un método de muestreo por conveniencia para seleccionar una muestra de 150 empleados pertenecientes al sector del automóvil de diversas partes del distrito de Chennai. Se utilizó un cuestionario estructurado para recopilar datos primarios. El investigador empleó una combinación de técnicas estadísticas descriptivas e inferenciales para analizar los datos recogidos.
El estudio reveló que las prácticas internas de RSE tienen una relación fuerte, positiva y elevada con el compromiso laboral y el rendimiento de los empleados que trabajan en empresas automovilísticas seleccionadas. Los empleados masculinos tienen una mayor percepción de las prácticas internas de RSE y un compromiso laboral y un rendimiento más positivos que sus homólogos. Las “Prácticas Laborales” tienen una mayor influencia, los “Programas de Reconocimiento y Recompensa” tienen una influencia menor y las “Iniciativas de Diversidad e Inclusión” no tienen un impacto perceptible en el rendimiento de los empleados de las empresas automovilísticas seleccionadas. El estudio contribuye al debate en curso sobre la aplicación estratégica de prácticas internas de RSE en la industria del automóvil y ofrece recomendaciones prácticas para que las empresas mejoren el compromiso y el rendimiento de sus empleados.
Palabras clave: Prácticas Internas De RSE; Compromiso Laboral; Desempeño; Prácticas Laborales; Programas de Reconocimiento y Recompensa; Iniciativas de Diversidad e Inclusión; Empresas Automovilísticas.
INTRODUCTION
In today’s corporate landscape, the concept of Corporate Social Responsibility (CSR) has evolved from a mere peripheral concern to a fundamental ethos driving organizational behavior. No longer confined to external philanthropic endeavors, CSR has permeated internal organizational dynamics, giving rise to Internal Corporate Social Responsibility (ICSR) as a potent force shaping employee engagement, organizational culture, and ultimately, business performance. Within the bustling metropolitan hub of Chennai, renowned for its vibrant automobile industry, the influence of ICSR on the workforce of automobile companies emerges as a compelling area ripe for comprehensive investigation.
The automobile industry stands as a cornerstone of the global economy, wielding immense influence through its contributions to economic growth, employment, and technological advancement. Its impact extends far beyond the assembly lines, shaping related sectors and nurturing the broader industrial ecosystem. Amidst the intricacies of the contemporary business milieu, the significance of Internal Corporate Social Responsibility (ICSR) practices within the automobile sector has ascended prominently. These practices transcend mere regulatory compliance, serving as beacons of ethical conduct, advocates for employee well-being, and champions of environmental sustainability.
As the automobile sector continues its evolutionary journey, the dynamics of employee engagement, commitment, and performance assume paramount importance for sustained prosperity. This study embarks on a nuanced exploration of how Internal Corporate Social Responsibility (ICSR) initiatives within Chennai’s automobile companies influence the dedication of workers to their roles and their resultant output. Unraveling the intricate interplay between internal CSR practices and employee behaviors is essential for navigating the multifaceted challenges and seizing the abundant opportunities inherent within this dynamic sector.
This study aims to delve into the intricate interplay between ICSR initiatives, employee work commitment, and performance within Chennai’s automobile companies. By examining how internal CSR practices, such as employee volunteer programs, diversity and inclusion efforts, ethical leadership, and employee well-being initiatives, shape employee attitudes and behaviors, this research seeks to provide valuable insights into enhancing organizational effectiveness and sustainability. This research poses the following questions:
1. How do workers perceive the different internal CSR activities within select automobile companies in Chennai, and to what extent do these perceptions surpass the average level?
2. Are there significant differences in the perception of internal CSR initiatives between male and female employees within these automobile companies?
3. How do internal CSR practices contribute to fostering work commitment among employees within select automobile companies, and what is the nature of this contribution?
4. Do the various internal CSR practices exhibit a stronger influence on employee performance?
Literature review and research gap
The research(7) pioneered the examination of internal CSR activities within a quality management framework, encompassing elements such as ethical consciousness, working circumstances, and organizational structure. Schuler(12) delved into the connection between internal corporate social responsibility, employee engagement, and employee perception, identifying a central variable that mediates this connection. Additionally, their study highlighted the organizational position as a mediator identification in the impact of internal CSR on employee job performance. Keraita(6) explored Employee Organizational Commitment and Internal CSR’s Impact, pinpointing training, diversity in the workplace, work-life balance, and safety as positively correlated elements.
Fnais(3) investigated the employee collective orientation’s moderating effect on the relationship between internal CSR and its dimensions, revealing positive relationships involves identification, dedication, and knowledge-sharing inside the company. Farooq(2) identified CSR as a strong predictor of worker identity, involvement, and dedication to the organization, with organizational trust and identification mediating this relationship. Thang(13) utilized Social Exchange Theory to establish a favorable link between organizational commitment and internal CSR components in the service industry. Mory(8) found a significant impact of internal CSR on employees’ emotional and normative organizational commitment.
Yousaf(4) demonstrated the direct and indirect impact of internal CSR on staff involvement as perceived by staff, with the latter’s indirect effect contingent on employee discretion. Ekawati(11) explored the implementation inside the hospitality sector’s internal CSR, revealing a positive effect on organizational commitment, though not significantly influencing employee performance. Rangarajan(10) conducted a study on Pandyan Grama Bank and identified “Equal treatment & Diversity” as a significant predictor of employee work performance. Parveen(9) studied the impact of CSR on organizational commitment in public sector banks, highlighting the strong influence of Recruitment & Promotion, particularly among male employees.
A study(5) in the medical device industry in Malaysia during a pandemic uncovered the effects of CSR, both internal and external, on job satisfaction in employees. Internal CSR significantly enhanced a happiness at work and a feeling of community, while external CSR, directed to the community, negatively impacted job fulfilment during the pandemic. Collectively, these studies contribute valuable insights into the multifaceted relationships between internal CSR practices, employee perceptions, and organizational outcomes across diverse sectors and contexts.
The existing literature acknowledges the positive corporate social responsibility’s internal effects on organizational commitment, job performance, and employee satisfaction. However, a critical research gap exists, necessitating more investigations into the contextual factors influencing the effectiveness of specific internal CSR practices, particularly in the diverse Indian automobile industry in Chennai. Addressing these gaps is crucial for a more comprehensive understanding of the intricate relationships between internal CSR initiatives, employee perceptions, and organizational outcomes, particularly in the dynamic and competitive environment of Chennai’s automobile industry.
Theoretical/conceptual framework
Internal CSR Practices
Internal Corporate Social Responsibility (ICSR) Practices in the Indian automobile sector refers to the internal initiatives adopted by automotive companies to integrate social and environmental responsibility into their organizational culture and operations. This includes promoting ethical business conduct, ensuring the well-being of employees, implementing sustainable practices within manufacturing processes, and contributing to community development. In the context of the Indian automobile sector, ICSR may involve measures such as promoting workplace diversity, ensuring fair labour practices, implementing eco-friendly manufacturing processes, and engaging in community outreach programs. The objective is to align the company’s internal practices with broader social and environmental goals, demonstrating a commitment to responsible business conduct. This internal focus is centred on the well-being of employees and the internal dynamics of the company.
In essence, internal CSR is a strategic approach that recognizes the impact of business operations on internal stakeholders, particularly employees. By integrating internal CSR practices, organizations not only enhance the well-being of their workforce but also contribute to building a positive organizational reputation and fostering employee engagement in the broader mission of social and environmental responsibility. The following internal CSR practices were used in this study are considered and employed for analysing their influence on Work Commitment and Performance of employees of Automobile Sector in Chennai.
Management Policy
In the context of the automobile sector, management policy is essential to shaping the ethical framework and strategic direction of companies. A well-defined management policy ensures that automotive companies establish guidelines for responsible business practices, sustainable operations, and adherence to regulatory standards. This includes commitments to environmental stewardship, product safety, and corporate governance.
Labour Practices
Labour practices are of paramount importance in the automobile sector, where the workforce is engaged in various stages of manufacturing, assembly, and distribution. Ethical labour practices encompass reasonable pay, secure working environments, and respect for human rights norms. In the automobile industry, CSR-driven labour practices also involve promoting diversity and inclusion, ensuring equal opportunities, and fostering a culture of employee well-being. By prioritizing these practices, automobile companies contribute to the positive development of their workforce and set industry benchmarks for ethical employment standards.
Diversity and Inclusion Initiatives
Diversity and inclusion initiatives are increasingly recognized as vital components of CSR within the automobile sector. These initiatives aim to create a workplace culture that values diversity, embraces inclusivity, and promotes equal opportunities for all employees. In the automotive industry, where innovation and creativity are essential, diversity of thought and background becomes a competitive advantage. Companies in this sector are implementing policies to foster an inclusive environment, attract diverse talent, and enhance collaboration, ultimately contributing to the industry’s overall progress and adaptability.
Recognition and Rewards Programs
Recognition and rewards programs are integral to fostering a positive and motivated workforce in the automobile sector. In the context of CSR, these programs go beyond acknowledging individual performance; they also recognize contributions to sustainability, safety, and ethical conduct. By implementing robust recognition and rewards systems, automobile companies incentivize employees to align with CSR goals, creating a culture where ethical behavior is not only expected but celebrated. This approach contributes to building a corporate identity that values social responsibility and employee engagement within the competitive landscape of the automotive industry.
Health and Wellness Programs
In the automobile sector, where the workforce often faces demanding physical and mental challenges, health and wellness programs are instrumental in ensuring the well-being of employees. CSR-driven health initiatives include providing access to healthcare resources, mental health support, and promoting a healthy work-life balance. These programs contribute to reducing workplace stress, enhancing productivity, and showcasing the company’s commitment to the holistic health of its workforce. In the dynamic and competitive environment of the automobile sector, prioritizing employee well-being through CSR-aligned health programs becomes a strategic imperative for long-term success.
Work Commitment
Work commitment pertains to the dedication, Performance, and engagement demonstrated by employees in this industry toward their jobs and respective organizations. In the context of the Indian automobile sector, work commitment includes factors such as employees’ emotional attachment to their roles, their willingness to go above and beyond, and their sense of responsibility toward the organization’s success. In a sector known for its competitiveness and innovation, work commitment becomes crucial for sustaining a motivated and skilled workforce. Indian automotive companies may foster work commitment by providing opportunities for professional growth, ensuring fair labour practices, and promoting a positive work culture that encourages employee well-being.
Work Performance
Work performance refers to the effectiveness and efficiency with which employees carry out their job responsibilities. In the automobile sector, work performance is often measured by key indicators such as productivity, quality of output, adherence to safety standards, and innovation. The complex and dynamic nature of the automotive industry in India demands a high level of technical expertise, adaptability, and teamwork. Companies in the Indian automobile sector may enhance work performance by investing in employee training programs, fostering a culture of continuous improvement, and providing a conducive work environment that encourages collaboration and innovation. Work performance in this sector is closely tied to the overall success and competitiveness of automotive companies in the Indian market and beyond.
Statement of Problem
Internal CSR Practices contribute to fostering a positive workplace culture, attracting and retaining top talent, and mitigating risks associated with ethical lapses. In an industry where innovation and adaptability are paramount, ethical and socially responsible practices not only bolster corporate reputation but also position companies as leaders in a rapidly evolving market. Thus, the integration of ICSR practices is integral to the long-term viability and positive impact of the automobile industry in Chennai. While the automobile industry in India, thrives as a cornerstone of economic growth and technological advancement, there exists a critical need to investigate the influence of Internal Corporate Social Responsibility (ICSR) practices on the work commitment and employee performance within this dynamic sector.
Despite the sector’s strategic importance, gaps persist in understanding how internal CSR initiatives are implemented and how they resonate with the workforce. The lack of comprehensive research in this domain leaves unanswered questions regarding the specific mechanisms through which ICSR impacts employee commitment and employee performance in Chennai’s car companies. This investigation seeks to explore these dimensions, aiming to bridge the existing knowledge gap and provide valuable insights for both academia and industry practitioners.
METHOD
This study employs an exploratory and descriptive approach, utilizing a mixed research methodology that integrates both qualitative and quantitative methods. The research is centered on the population of Employees of Chennai’s Automobile Companies district of Tamil Nadu State. A Easy accessibility The sampling technique was used to choose a sample of 150 Employees belong to Automobile Sector from various parts of Chennai district. A Structured Questionnaire was used to gather primary data.
The researcher employed a combination of descriptive and inferential statistical techniques, including Mean Analysis, In order to analyze the data gathered and look into the impact of internal CSR practices on work commitment and performance of employees working in specific automobile companies located in the Chennai district of Tamil Nadu State, three main statistical methods were used: independent sample ‘t’ test, correlation analysis, and multiple regression analysis.
Data analysis and results
Employees’ Perception on Internal CSR Practices of Automobile Companies – Mean Analysis
To determine the Employees’ Views regarding the Internal CSR Practices, 15 inquiries about the five practices i.e., Management Policy, Labour Practices, Diversity and Inclusion Initiatives, Recognition and Rewards Programs and Health and Wellness Programs (3 Likert Scale Sentences for each Practice) are questioned from the Employees of Automobile Companies through the structured questionnaire and the results are as follows.
|
Table 1. Employees’ perception on internal CSR practices of automobile companies |
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|
|
Descriptive Statistics |
|||
|
S. No. |
Internal CSR practices |
N |
Mean |
RANK |
|
1. |
Management Policy |
150 |
11,37 |
II |
|
2. |
Labour Practices |
150 |
12,28 |
I |
|
3. |
Diversity and Inclusion Initiatives |
150 |
10,03 |
V |
|
4. |
Recognition and Rewards Programs |
150 |
11,05 |
III |
|
5. |
Health and Wellness Programs |
150 |
10,64 |
IV |
|
Employees’ perception on internal CSR practices of automobile companies |
150 |
55,37 |
|
|
From the above table 1, It is deduced from the Mean score that workers’ perception on Labour Practices’ (M = 12,28) is more than others and employees’ perspective on ‘Diversity and Inclusion Initiatives’ (M = 10,03) is lesser than other Internal CSR Practices of Select Automobile Companies. Moreover, it is implied that the Employees’ perspective on the various Internal Since all of the mean values are more than 10, CSR practices are above average. out of 15 (two-third). The Mean Score for the Overall employees’ Perception on Internal CSR Practices of Select Automobile Companies is 55,37 which is 73,83 % (55,37/75 x 100) which indicates the over the typical threshold.
Independent Sample ‘t’ TEST – Analysis
H0: The differences between male and female employees are negligible Regarding Perception on the Internal Corporate Social Responsibility of Select Automobile Companies.
The difference between the Male and Female was compared using an independent-samples t-test. Employees Regarding the Viewpoint on the Internal CSR Activities of Select Automobile Companies.
|
Table 2. Views on internal CSR practices by gender with respect to select automobile companies |
||||||||
|
Variable |
Gender – internal CSR practices |
T - value |
P – Value |
|||||
|
Male |
Female |
|||||||
|
N |
Mean |
SD |
N |
Mean |
SD |
|||
|
Perception on internal CSR practices |
98 |
56,43 |
4,111 |
52 |
52,78 |
5,986 |
8,664 |
0,000** |
|
Note: (**1 % Level of Significance) |
||||||||
From the above table 2, As the P Value (0,000) is lesser than Sig. Value at 1 %, the Null Hypothesis is rejected. Based on the Mean score, implication is that the employees’ Views about Internal CSR Activities is more in case of male Employees (M = 56,43) than female Employees (M = 52,78) working in Select Automobile Companies. Hence, inference drawn that there is a statistically notable distinction between males and females Employees Regarding Perception on the Internal CSR Practices of Select Automobile Companies.
Work Commitment and Work Performance of Staff
H0: The male and female Employees are not very different from one another Regarding the Work Commitment and Achievement of employees in Select Automobile Companies.
To compare the differences between male and female employees on work commitment and performance in specific automobile companies, an independent-samples t-test was performed.
|
Table 3. Gender – work commitment and performance of employees |
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|
Variables |
Gender – work commitment and performance |
T - value |
P – value |
|||||
|
Male |
Female |
|||||||
|
N |
Mean |
SD |
N |
Mean |
SD |
|||
|
Work Commitment |
98 |
18,54 |
3,535 |
52 |
16,36 |
4,414 |
5,634 |
0,000** |
|
Employee Performance |
98 |
18,03 |
3,784 |
52 |
17,08 |
4,087 |
2,881 |
0,018* |
|
Note: (**1 % & *5 % Level of Significance) |
||||||||
From the above table 3, As the P Values (0,000 and 0,018) are lesser than Sig. Value at 1 % and 5 %, We reject the null hypotheses. Using the Mean score of Work Commitment and Performance of employees in Select Automobile Companies due to the Internal CSR Practices, It is assumed that male workers are more dedicated to their jobs. ((M = 18,54) and Performance (M = 18,03) than their counter-part i.e., female employees (M = 16,36 and 17,08). Therefore, it can be said that there is a statistically significant difference in the work that separates the male and female employees. Commitment and Performance of employees in Select Automobile Companies.
Correlation Analysis
Relationship between Internal CSR Practices and Work Commitment in Select Automobile Companies
H0: There is no significant relationship between Internal CSR Practices and Work Commitment of employees in Select Automobile Companies.
To ascertain the association between internal CSR practices and employees’ work commitment in certain automobile companies, a Pearson product-moment correlation was conducted.
|
Table 4. Relationship between internal CSR practices and work commitment in select automobile companies |
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|
Variables |
N |
‘r’ value |
P - value |
Relationship |
Remarks |
|
|
Significant |
Result |
|||||
|
Management Policy – Work Commitment |
150 |
0,802** |
0,000 |
Positive |
Significant |
Rejected |
|
Labour Practices – Work Commitment |
150 |
0,883** |
0,000 |
Positive |
Significant |
Rejected |
|
Diversity and Inclusion Initiatives – Work Commitment |
150 |
0,627** |
0,000 |
Positive |
Significant |
Rejected |
|
Recognition and Rewards Programs – Work Commitment |
150 |
0,715** |
0,000 |
Positive |
Significant |
Rejected |
|
Health and Wellness Programs – Work Commitment |
150 |
0,766** |
0,000 |
Positive |
Significant |
Rejected |
|
Internal CSR practices – work commitment |
150 |
0,739** |
0,000 |
Positive |
Significant |
Rejected |
|
Note: **Correlation is significant at the 0,01 level (2-tailed). |
||||||
Due to the P values being lower than Sig. Value (0,01) in each of the previous relationships, the Null Hypotheses are rejected. There are high positive correlations between Internal CSR Practices and Work dedication of workers in Select Auto Companies.
From the above table 4, Out of five Internal CSR Practices, “Labour Practices” (r = 0,883) has a greater bond with Work Commitment and “Diversity and Inclusion Initiatives” (r = 0,627) has lesser relationship with Work Commitment of employees working in Select Automobile Companies in contrast to other. As a whole, the Internal CSR Practices possess a solid, uplifting, and superior relationship (r = 0,739) with Work Commitment. Hence, There is a noteworthy connection between Internal CSR Practices and Work Commitment of employees in Select Automobile Companies in Chennai.
Relationship between Work Commitment and Performance of Employees towards Select Automobile Companies
H0: The job commitment and performance of employees at certain automobile companies do not significantly correlate.
The relationship between work commitment and performance of employees of Select Automobile Companies was examined using a Pearson product-moment correlation.
|
Table 5. Relationship between work commitment and performance of employees in select automobile companies |
||||||
|
Variable |
N |
‘r’ VALUE |
P - value |
Relationship |
Remarks |
|
|
Significant |
Result |
|||||
|
Work Commitment - Performance of employees |
150 |
0,806** |
0,000 |
Positive |
Significant |
Rejected |
|
Note: **Correlation is significant at the 0,01 level (2-tailed). |
||||||
From the above table 5, The Null Hypothesis is rejected in the relationship above because the P value is smaller than the Sig. Value (0,01). The two have a strong positive association (r = 0,806). Work Commitment and Performance of employees working in Select Automobile Companies.
Internal CSR Practices – Performance of Employees
Multiple Regression Analysis
We used multiple regression to find the optimal linear combination of the Internal CSR Practices for predicting Performance of employees with respect to Select Automobile Companies.
|
Table 6. Internal CSR Practices – Performance of Employees in Select Automobile Companies |
||||||
|
Model |
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
||
|
B |
Std. Error |
Beta |
||||
|
1 |
(Constant) |
1,784 |
,757 |
|
1,888 |
,072 |
|
Management Policy |
,239 |
,172 |
,225 |
4,553 |
,000** |
|
|
Labour Practices |
,421 |
,154 |
,248 |
5,221 |
,000** |
|
|
Diversity and Inclusion Initiatives |
,102 |
,216 |
,065 |
1,752 |
,211 |
|
|
Recognition and Rewards Programs |
,201 |
,195 |
,199 |
2,668 |
,029* |
|
|
Health and Wellness Programs |
,224 |
,186 |
,210 |
3,775 |
,000** |
|
|
Note: Dependent Variable: Performance of employees of Select Automobile Companies; (**1 % and *5 % Level of Significance) |
||||||
Four of the five independent variables combined i.e., Internal the dependent variable is significantly predicted by CSR practices. i.e., Performance of employees working in Select Automobile Companies, F (5, 144) = 155,338 p-values are smaller than 0,01 and Adjusted R Square is 0,638, or 64 %, and 0,05 (Sig. Value 2-tailed), which is a significant effect.(1)
Five Internal CSR Practices total., “Labour Practices” (0,248) is the most powerfully influential Internal CSR Practice when forecasting ‘Performance of employees’ working in Select Automobile Companies. It may be determined from the unstandardized coefficient that the one unit increase in “Labour Practices” strategy would raise the Performance Of staff members in Select Automobile Companies by 0,421 units. Management Policy (0,225), Recognition and Rewards Programs (0,199) and Health and Wellness Programs (0,210) Practices also influence the Performance of employees in Select Automobile Companies significantly but lesser than “Labour Practices”. However, “Diversity and Inclusion Initiatives” (0,065) does not predict the Performance of employees working in Select Automobile Companies significantly. Shown in table 6 Internal CSR Practices – Performance of Employees in Select Automobile Companies.
Summary of findings
Based on the findings, the study reveals that Workers’ Views on the Different Internal CSR Activities with respect to Select Automobile Companies is above the average level and Male Employees have perceived more on the several internal CSR initiatives, have more positive Work Commitment and Employee performance than their counter-part. “Labour Practices” has more relationship and “Diversity and Inclusion Initiatives” has lesser relationship with Work Commitment in Select Automobile Companies in contrast to other. The Internal CSR Practices possess a solid, uplifting, and elevated rapport with Work Commitment and A strong positive link exists between Work Commitment and Performance of employees working in Select Automobile Companies. Out of various Internal CSR Practices, ‘Labour Practices’ has stronger influence and ‘Recognition and Rewards Programs’ practice has weaker influence and ‘Diversity and Inclusion Initiatives’ Practice has no appreciable impact on the performance of employees in Select Automobile Companies.
RECOMMENDATIONS
Based on the findings, several key suggestions and recommendations can be offered to enhance how internal corporate social responsibility (CSR) initiatives are affected in the context of the automobile industry, particularly in the identified Select Automobile Companies. Firstly, recognizing the positive employees’ opinions about various Internal CSR Practices, it is advisable for the automobile companies to continue and potentially expand these practices. However, to further amplify their impact, a detailed analysis of the specific elements within the “Labour Practices” and “Diversity and Inclusion Initiatives” can be conducted to identify areas for improvement and refinement. Engaging in regular feedback sessions with employees can help companies tailor these practices to better align with the diverse needs and expectations of their workforce.
Secondly, the notable gender-based difference in perception, work commitment, and performance indicates the importance of adopting a more gender-inclusive approach to Internal CSR Practices. Companies should implement targeted initiatives to ensure that Internal CSR Practices resonate equally with all employees, irrespective of gender. This may involve conducting gender-sensitive training programs, fostering an inclusive work culture, and addressing any existing disparities. Moreover, recognizing the significant influence of ‘Labour Practices’ on performance, companies should further invest in enhancing employee working conditions, fair labour practices, and career development opportunities to strengthen the overall commitment and performance of their workforce. Simultaneously, a reassessment of ‘Recognition and Rewards Programs’ and ‘Diversity and Inclusion Initiatives’ can be undertaken to identify ways to augment their impact on employee performance in these Select Automobile Companies. Overall, a strategic and adaptive approach to Internal CSR Practices, considering both employee perceptions and specific practice effectiveness, can contribute to a more robust and impactful CSR framework within the automobile industry.
CONCLUSION
This study on the influence of Internal Corporate Social Responsibility (ICSR) practices on work commitment and Employee performance of employees in automobile industry in Chennai underscores the pivotal role of ethical and socially responsible initiatives within organizational frameworks. The findings illuminate the intricate dynamics between ICSR, employee commitment and performance, emphasizing the significance of internal corporate responsibility in fostering positive workplace cultures. Recognizing the multifaceted impact of Internal CSR practices in this dynamic sector is crucial for steering the industry toward sustained growth, enhanced employee satisfaction, and a resilient commitment to ethical business conduct. The study contributes to the ongoing discourse on the strategic internal CSR practice implementation in the automobile industry, offering actionable recommendations for companies to enhance commitment, and performance of employees.
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FINANCING
None.
CONFLICT OF INTEREST
None.
AUTHORSHIP CONTRIBUTION
Conceptualization: K.P. Indhuja, M. Chandran.
Research: K.P. Indhuja, M. Chandran.
Writing - original draft: K.P. Indhuja, M. Chandran.
Writing - revision and editing: K.P. Indhuja, M. Chandran.