The impact of uncertainty-fear against COVID-19 on corporate social responsibility and labor practices issues

Abstract

Purpose

The research aims to profoundly investigate the correlation between uncertainty-fear against COVID-19, corporate social responsibility (CSR) and labor practices issues based on ISO 26000.

Design/methodology/approach

Partial least squares structural equation modeling (PLS-SEM) was adopted for data analysis and hypotheses testing on a sample of 304 managers and employees in the Egyptian small and medium enterprises (SMEs).

Findings

Preliminary results indicate that the uncertainty-fear against COVID-19 positively affects CSR practices in SMEs. CSR positively impacts labor practices dimensions. However, CSR has an insignificant effect on the social protection and work condition dimension. Also, CSR has a significant mediating role in the association between uncertainty-fear toward the pandemic and labor practices. But, this relation is insignificant regarding social protection and work condition dimension.

Practical implications

Managers could develop a consistent strategy for applying CSR practices, providing clear information and focusing on their procedures to protect their workforce during COVID-19. Governments should impose policies to guarantee that all employees have the same opportunities and not discriminate directly or indirectly in any labor practice.

Originality/value

Based on both the “stakeholder” and “social-cognitive” theories, this study shed light on the optimistic side of the COVID-19 pandemic, as it also brings the concepts of social responsibility, sustainability and green practices back into the light, which helps in solving labor issues.

Citation

Kholaif, M.M.N.H.K. and Ming, X. (2023), "The impact of uncertainty-fear against COVID-19 on corporate social responsibility and labor practices issues", International Journal of Emerging Markets, Vol. 18 No. 11, pp. 5280-5298. https://doi.org/10.1108/IJOEM-03-2021-0457