How does corporate social performance affect (prospective) employees? A systematic literature review of experimental studies

Abstract

There is a consensus between academics and practitioners that acquiring and maintaining a competitive workforce is key for corporate success. The claim that corporate social performance (CSP) can give companies a competitive edge in the competition for talent and affect the existing workforce positively has been a mantra repeated in many business textbooks. However, whether this claim, after 25 years after of burgeoning empirical research, still holds, ultimately remains an empirical question with far reaching consequences for businesses. This systematic literature review gives an overview of the development of the field and synthesizes the findings of experimental studies in order to understand how, when, and why CSP affects the behavior of job seekers and employees. Although finding that most of the empirical evidence suggests a positive causal effect of corporate social responsibility (CSR) on behaviors and attitudes of (prospective) employees, some studies demarcate boundary conditions that can compromise the stated effects. In addition to that, I identify three underdeveloped areas of inquiry potentially posing limitations to the current state of knowledge: There is (1) a lack of studies on corporate social irresponsibility (CSI) and adverse effects of CSR, (2) a geographic bias due to studies relying mostly on Europe and North American samples, and (3) a negligence of opportunity costs for CSP measures. Taken together this paper grants a more nuanced view for academics and practitioners alike.