NIRMA
UN IVERS ITY
|
NSTlTUTE0FMANAGEvEN
Integrated BBA- MBA
Semester V
Human Resource Management
Group Assignment
TOPIC- Exploring the relationship between Internal Corporate Social
Responsibility, Employer Branding and Employee Trust in Management,
in FMCG industry.
PART- 1
Submitted to- Prof. Bhajan Lal
Submitted by- Group B3
Submitted on- 15th August, 2024
1
Purpose:
This study intends to investigate the complex interaction between Internal Corporate Social
Responsibility (ICSR), employee trust in management, and employer branding in India’s
FMCG sector. The importance of this study stems from its potential to provide crucial insights
into how internal CSR programs can change employee attitudes and improve a company’s
brand as an employer, particularly in a highly competitive and continuously moving industry
like FMCG.
Further it addresses the research gap on the impact of CSR on employee trust and employer
branding in India's FMCG sector. By integrating known theories with primary and secondary
data, it aims to provide actionable insights for FMCG firms to leverage CSR for trust-building
and competitive advantage.
What specific HRM issue will you investigate?
A specific HRM issue that we will investigate is the impact of Internal Corporate Social
Responsibility (ICSR) on employee trust in management and how these practices influence a
company’s employer branding within the FMCG sector.
Why is it important to study?
This topic is important to study mainly because of three reasons:
• The degree to which employees trust their management is essential to determine their
productivity and morale levels. Therefore, knowing how ICSR activities affect
employees’ trust may help offer insightful information about HR practices,
• A strong employer brand is vital for attracting top talent in the competitive FMCG
sector, this research can assist companies in formulating plans to strengthen their
standing as top cmploycrs.
• Exploring the link between ICSR, employer branding, and trust that helps FMCG firms
reduce turnover and maintain a competitive advantage.
2
How does this topic relate to contemporary HR practices?
By emphasising how internal corporate social responsibility (ICSR) builds employer branding
and employee trust—two factors that are vital for attracting and retaining talent in the FMCG
industry—this topic pertains to modern HR practices. It supports the strategic employer
branding, integration of ESG goals, and emphasis on employee well-being that modern HR
places on HR professionals, enabling them to meet changing worker expectations and cultivate
a pleasant workplace culture.
Research Objectives:
1. To find out how internal corporate social responsibility (ICSR) affects FMCG industry
and employee trust in management.
2. To study in the FMCG industry, the link between employee trust in management and
the success of employer branding.
3. To examine how internal CSR actions within FMCG companies promote sustained
employee engagement and organisation loyalty.
Research Questions:
1. Does employee trust in management help to balance internal CSR with employer
branding?
2 In what ways can internal CSR affect FMCG industry employees' confidence in
management?
3. How do internal CSR initiatives influence the external perception of FMCG companies'
employer brand?
4. What role does transparency in internal CSR practices play in enhancing employee trust
in management?
3
Contribution to HRM/ OB:
1 This research aims to enhance our understanding of the impact of corporate social
responsibility (CSR) on employee relations. It will provide actual data on how CSR
practices within a company influence employee trust, which is essential for promoting
positive employee relations. This study will contribute to the field of human
resource management (HRM) and organisational behaviour (OB).
2 This research will provide valuable insights for HR professionals on how to strengthen
their branding efforts by focussing on building Uust with employees
Initial Literature Review:
Employer branding, business reputation, and CSR are positively linked (Ana Tkalac Verčič and
Dubravka Sinčić Ćorić, 2018). CSR cnhanccs cmploycr brands and attracts top talcnt by
building trust and mitigating declines in leadership trust (Eberl and Schwaiger 2019). Corporate
reputation and CSR are largely mediated by employee trust in the company, which is fostered
through CSR efforts. The organization's reputation and employee views are positively impacted
by employee trust (Kalpina Kumari 1, Jawad Abbas, Sara Rashid, Mirza Amin Ul Haq, 2021).
Aggerholm et a1. (2011) highlight how CSR practices, like transparent communication and
diversity programs, enhance employee retention, but don't explore how industries adapt CSR
strategies to differing employee expectations. Employee brand and business reputation are
directly impacted by employee perception on CSR initiatives. Employer branding boosts
employee performance, with organizational trust serving as a key mediator. Strong employer
branding enhances trust within the organization, which in turn significantly improves employee
performance (Muhamad Ekhsan1, Tim Saroh. 2021) Organisations should prioritise effective
ICSR practices, especially in health and safety, diversity, and training, to improve social
performance. For better results, tactics pertaining to work-life balance and human rights may
also need to be adjusted (Mavis Adu-Gyamfi, Zheng He, Gabriel Nyame, Seth Boahen and
Michelle Frempomaa Frempong, 2021).
The study by (Fatih Özcanl and Meral Elçi1, 2020) found that CSR initiatives improve
employees' perceptions of their companies, which in turn builds the employer brand and
improves business reputation.
4
Research Gap:
While existing research largely focuses on CSR's influence on corporate reputation within
educational institutions and other sectors, there are very rare which talks about FMCG sector
in India. So, this study will bridge this gap by examining how CSR initiatives impact corporate
reputation, employee trust, and commitment specifically in the FMCG sector. It will also
consider the role of HRM practices and organizational justice as moderating variables, offering
insights tailored to the unique dynamics of the FMCG industry.