Are Employees Better Off in Socially ResponsibleFirms?

The growing awareness of the issue of corporate social responsibility (CSR) has raised thequestions about how responsible behavior of firms would impact employees’ well-being. Thispaper investigates the link between corporate social responsibility and job satisfaction, whichis a more widely recognized measure to assess well-being at work. Based on the survey of3637 employees in Estonia, Latvia and Lithuania, measures of internal and external socialresponsibility are found to be positively associated with job satisfaction. Findings of the studyindicate that employees’ assessments on various aspects of their job are noticeably higher infirms that are perceived as more engaged in CSR activities both towards their internal andexternal stakeholders. A further outcome of the study emphasizes the negative link betweenfirm size and corporate social responsibility thus reflecting that smaller firms tend to showhigher assessments regarding CSR. Similar relationships are also found between firm sizeand job satisfaction....