Corporate Social Responsibility (CSR) and Its Influence on Employee Loyalty and Engagement in Saudi Arabia

Abstract

This study investigates the influence of Corporate Social Responsibility (CSR) approaches in Human Resource (HR) practices on employee loyalty and engagement within Saudi Arabia’s healthcare sector, a context shaped by the nation’s Vision 2030 reforms. Drawing on Stakeholder Theory and Social Identity Theory, the research explores how CSR dimensions environmental, social, and governance (ESG) integrated into HR policies can foster organizational commitment, retention, and employee identification. A qualitative, interpretivist methodology is employed, utilizing secondary data from peer-reviewed studies, government reports, and institutional publications, analysed thematically to identify patterns and implications. Findings reveal that genuine, culturally aligned CSR initiatives embedded in HR practices such as staff welfare programs, ethical governance, environmental sustainability measures, and community engagement significantly enhance employee trust, pride, and loyalty. Sectoral differences emerge, with public healthcare CSR focusing on societal welfare, while private sector efforts prioritize direct employee benefits. The study underscores the strategic role of CSR as both a driver of workforce stability and a tool for aligning organizational goals with national priorities. Recommendations emphasize transparent, authentic CSR integration into HR strategies to strengthen engagement and retention, contributing to sustainable organizational performance in the evolving Saudi healthcare landscape.