ABSTRACT. Purpose: This research aims to determine the relationship between internal and external CSR with that of employee engagement and whether CSR constructs could predict outcome of such engagement, particularly, from the perspective of SMEs in Malaysia. Design/methodology/approach: An online Google form survey successfully obtained 250 usable responses through a snowballing and networking approach. Statistical analyses such as Pearson product moment correlation, ANOVA and standard multiple regression were employed to examine the correlation and the strength of relationship as well as the prediction between the CSR attributes and their impact on employee engagement. Findings: The results represented a significant positive association between all the five CSR constructs and that of employee engagement. These constructs were also significantly contributed to the prediction of employee involvement towards the CSR initiatives except communities CSR. Research limitations/implications: The positivist approach of the current research could be supplemented with a more interactive qualitative in-depth study investigating why and how employees behave as such. Practical implications: The implications for Malaysian companies is that it is imperative for their long term survival that a strategic view, rather than just a tactical, reactive or operational view, is taken of their CSR activities. Furthermore, it will help organisations to confidently predict positive behaviour of employees which would likely to boost performance level. Originality/value: The outcome of this study has filled the CSR lacuna in the context of a developing country as well as adding new insights into the influence and perceived value of CSR on how it affects the employees’ involvement in the organisation.
JEL codes: M14; F16; J21; R23

Keywords: corporate social responsibility; employee engagement; small and medium enterprises; Malaysia

How to cite: Yeo, Amy Chu-May, Stephen Carter, and Nurhidayah ‘Aliaa Chezulhaimee (2018). “Corporate Social Responsibility Intervention: A Catalyst to Small-Medium Enterprise Employee Engagement,” Psychosociological Issues in Human Resource Management 6(1): 38–62.

Received 20 January 2018 • Received in revised form 11 March 2018
Accepted 13 March 2018 • Available online 28 March 2018

doi:10.22381/PIHRM6120182