When CSR Feels Real, Employees are Happier, Study Finds

14.09.2026

Wittenborg's Rauf Abdul, Usman Ahmad and Fellow Researchers Examine Employee Happiness

Corporate social responsibility has become a familiar feature of corporate life. Companies plant trees, fund community projects, reduce plastic use and publish sustainability reports. But what happens inside the organisation? Do employees actually feel happier working for a company that claims to be socially and environmentally responsible?

New research suggests that the answer is yes, although the relationship is more complicated than it might first appear.

The study, ‘Untangling the mystery of employee happiness in the FMCG sector: the role of corporate social responsibility, environmental self-identity and corporate image’, examines how corporate social responsibility (CSR), environmental self-identity and corporate image influence employee happiness in India's fast-moving consumer goods (FMCG) sector.

The research was co-authored by Rauf Abdul, Sheifali Jamwal and Usman Ahmad of Wittenborg, together with Maria Saleem of Universidad Loyola Andalucía and Kashif Akram of The Islamia University of Bahawalpur. The paper was published in the International Journal of Business and Globalisation.

The researchers surveyed 238 employees working for five large multinational companies in India's food and beverage and household care industries. Using partial least squares structural equation modelling, they examined whether employees' happiness was linked to their organisations' CSR activities and to their own environmental values.

The results produced both expected and surprising findings.

CSR Makes a Difference

The clearest finding was that CSR was significantly and positively associated with employee happiness.

Employees were more likely to report higher levels of happiness when they perceived their organisations as socially responsible. The researchers suggest this may be because employees gain a sense of pride, purpose and meaning from being associated with an organisation that contributes positively to society.

For Abdul, the findings reflect a broader shift in how organisations should think about employee well-being.

“While many organisations focus on salaries and benefits, this study highlights that employees also value working for companies that make a positive contribution to society and the environment,” he says.

In other words, CSR is not only about how a company is viewed by customers, investors or the wider public. It can also shape how employees experience their own workplace.

The Importance of Corporate Image

One of the study's most significant findings was the role played by corporate image.

The research found that corporate image mediated the relationship between CSR and employee happiness. In simple terms, employees' perceptions of their organisation helped connect its responsible practices with their own sense of well-being.

“When employees see their organisation being recognised for responsible and ethical practices, they feel a greater sense of pride and belonging,” says Abdul. “This positive perception strengthens their happiness and engagement at work.”

The finding highlights the importance of credibility. CSR activities may have the greatest impact when employees believe that an organisation's social and environmental commitments are genuine and reflected in its everyday operations.

Being Environmentally Conscious Is Not Enough

The researchers expected employees with a strong environmental self-identity, meaning people who see themselves as environmentally friendly, to experience greater happiness at work.

However, the study found no significant direct relationship between environmental self-identity and employee happiness.

This suggests that simply caring about the environment does not automatically make someone happier in their job. An employee may personally value sustainability, but those values need to be reflected in the organisation around them.

The study found that corporate image also mediated the relationship between environmental self-identity and employee happiness. For environmentally conscious employees in particular, it may not be enough for a company to have sustainability policies on paper. They need to believe that the organisation is genuinely committed to those values.

The findings therefore point to a more complicated picture of workplace happiness. Personal values matter, but their effect may depend on whether employees see those values reflected in the organisation's identity and actions.

Beyond the Greenwashing Problem

The findings also point to one of the central challenges facing companies today: the difference between genuine responsibility and symbolic CSR.

The researchers argue that CSR initiatives should be meaningful, transparent and connected to an organisation's everyday operations. If employees believe that sustainability campaigns are merely a public relations exercise, the organisation risks damaging its credibility rather than strengthening it.

This is particularly important in the FMCG sector, where companies face highly visible environmental challenges, including packaging waste and resource consumption.

For businesses, the researchers recommend integrating CSR into organisational culture, communicating its impact clearly to employees and ensuring that sustainability commitments are reflected in actual business practices.

The study also suggests that companies should communicate their CSR efforts internally, not only externally. Employees may be more likely to feel connected to an organisation's social and environmental goals when they understand how their own work contributes to them.

Abdul says the findings have practical implications for business leaders and HR professionals.

“CSR initiatives should not be viewed simply as compliance activities or marketing tools,” he says. “Instead, they can be used strategically to improve employee well-being, strengthen workplace culture and enhance talent attraction and retention.”

Putting People at the Centre

The research contributes to a relatively underexplored area of scholarship by examining the relationship between CSR and employee happiness in a developing-country context. It also brings together two theoretical perspectives, stakeholder theory and social identity theory, to explore how organisational responsibility and personal values interact.

For Abdul, the research is part of a broader belief about the relationship between people and organisational success.

“This research reflects a theme that runs through much of my work, especially in the area of human resources: organisations perform better when they put people at the centre of their strategy,” he says.

“I believe that corporate social responsibility is not simply a compliance requirement or a branding exercise. It is a way of creating workplaces where employees feel valued, connected and proud of the organisation they represent. In the long run, that sense of purpose is a powerful driver of both employee well-being and sustainable organisational success.”

The study's central message is therefore both straightforward and challenging: CSR can make employees happier, but only when it is credible enough to mean something to the people inside the organisation.