Leveraging External Corporate Social Responsibility to Enhance Corporate Reputation and Employee Retention in an Emerging Market

The role of corporate social responsibility (CSR) has gained significant importance in human resource management. Companies that engage in external CSR initiatives can foster positive attitudes and behaviors among their workforce. This research seeks to investigate the impact of external CSR on corporate reputation and employee retention. The analysis is based on data gathered from 395 full-time employees in Vietnam. Partial Least Squares Structural Equation Modelling (PLS-SEM) and Covariance-Based Structural Equation Modelling (CB-SEM) were applied to assess the proposed research hypotheses. The findings indicate that external CSR has a positive direct effect on corporate reputation, though no direct link was found between external CSR and employee retention. Mediation analysis suggests that external CSR indirectly influences employee retention via the mediating role of corporate reputation. The research underscores the importance of incorporating external CSR initiatives into a strategic framework for sustainable human resource management.