JOURNAL OF SECURITY AND SUSTAINABILITY ISSUES

ISSN 2029-7017/ISSN 2029-7025 (online)

2020 Volume 9 Number May
http://doi.org/10.9770/jssi.2020.9.M(6)

TOWARDS SUSTAINABILITY OF COMPANIES’ DEVELOPMENT VIA ATTRACTING

MILLENNIAL JOB APPLICANTS: IMPACT OF CORPORATE SOCIAL RESPONSIBILITY AND
INDIVIDUAL VALUES

Praptini Yulianti 1*, Refita Syaiskha Prameswari 2

1,2
Department of Management, Faculty of Economics and Business, Universitas Airlangga, Indonesia

E-mail: 1 praptini-y@feb.unair.ac.id (Corresponding author)

Received 11 September 2019; accepted 15 March 2020; published 30 May 2020

Abstract. Organizations can be sustainability development so it is becoming some needs to balancing between profitability and moral
responsibility through Corporate Social Responsibility. This study objective is to explore external and internal CSR policy in attracting
millennials employees regarding their values. Data collected with an online questionnaire and technique analyses using PLS. The result of
this study states that all hypothesis is supported. External CSR is significantly influenced by P-O fit, Internal CSR is significantly
influenced by P-O fit and P-O fit is significance influenced among Job Pursuit Intention. The implication of this study is organizations
which have positive Internal CSR policies are more attractive to potential applicants because the organizations are seen to "care for" its
employees and external CSR is viewed as a means of enhancing corporate image and organizational attraction for job seekers in
competitive environments.

Keywords: internal CSR; external CSR; P-O fit; job pursuit intention

Reference to this paper should be made as follows: Yulianti, P., Prameswari, R.S. 2020. Towards sustainability of companies’
development via attracting millennial job applicants: impact of corporate social responsibility and individual values. Journal of Security
and Sustainability Issues, 9(M), 69-76. http://doi.org/10.9770/jssi.2020.9.M(6)

JEL Classifications: M14, Q56

1. Introduction

In an increasingly competitive global environment, corporations seek to attract the best job candidates [1]. Job
applicants consider the reputation of organizations when applying for a job and/or accepting job offers. One factor
that influences an organization' perceived reputation is its commitment to corporate social responsibility (CSR).
CSR refers to an organization interest in social responsibility, as well as social policies that aid in improving its
relationship with society. CSR is an integral aspect of the organizational image. CSR policies include those that
show concern for the environment, promote community relations, improve employee relations and improve
diversity and benefits (Backhaus et al., 2013). CSR is viewed as a means of enhancing corporate image and
organizational attraction for job seekers in a competitive environment (Adetunji and Ogbonna, 2013).
Organizations who have positive CSR policies are more attractive to potential applicants because the organization
is seen to “care for” its employees (Highhouse et al., 2003).

CSR refers to organizational actions and policies to achieve financial, social environmental sustainable
development. Sustainability in an organization can be achieved if the organization is not only focused on the
macro level that organization profitability achievement, but also must have moral responsibility on government,
society, and employees. Organizations can be sustainability development so it is becoming some needs to

69
 JOURNAL OF SECURITY AND SUSTAINABILITY ISSUES
ISSN 2029-7017/ISSN 2029-7025 (online)
2020 Volume 9 Number May
http://doi.org/10.9770/jssi.2020.9.M(6)

balancing between profitability and moral responsibility through Corporate Social Responsibility. CSR
researchers often make the distinction between internal and external CSR (Werther and Chandler, 2005). External
CSR ( focused on the macro level ) refers to practices focused on stewardship the local community, the natural
environment, or consumers (Akremi et al., 2018). Internal CSR (focused on the micro level) refers to practices
focused on stewardship toward the internal workforce, This has included activities such as employee
development, continuing education program, work-life balance and safe working condition (Turker, 2019).

Millennials were born in 1980 and 2000 (Kaifi et al., 2019). They are confident and optimistic (Guha, 2010;
Kowske et al., 2010). Millennials are preferred on flexibility at works, fully optimistic and values on finishing
their tasks (Long, 2017). Millennials are very rarely wished to spend their career until retirement times and
believe that organizations will bring work safety (De Hauw and De Vos, 2010). Millennials prefer abos who
cares more than any other quality (Andert et al., 2012). Ng, Schweitzer and Lyons (2012) concluded that the
millennials have realistic expectations about career and pay advancement when it comes to the first job after
graduation. They want into work with good people in a nurturing environment, which allows for balance between
work and life. (Ng, Schweitzer and Lyons, 2012). CSR policies do not have an influence on all job seekers. Not
all millennials job seekers may be attracted by an organization’ s CSR policies. Millennials have some different
characteristics, values, and demands with the previous generations.

The values of millennials differ from those of older workers. These differences in values may lead to millennials
job applicants to a different view of CSR. Person-organization fit ( P-O fit) demonstrates that employees are
attracted and committed to organizations that better fit their values (Cable and Judge, 1996; Kristof-Brown,
2000). The attraction – selection – attrition (ASA) model supports the idea that job seekers will be more attracted
to organizations whose values match their own (Schneider et al., 1995). The Perception of person-organization fit
is one of the strongest predictors of applicant attraction to an organization (Uggerslev et al., 2012). Applicants
appear to review the characteristic of an organization in light of their own needs and values to determine fit
(Chapman et al., 2012). When an organization employs people similar to applicants in terms of values, the
applicant may take the perceived similarity as a signal that the organization's value is also a similarity to their
own. This study objective is to explore external and internal CSR policy in attracting millennials employees
regarding their values.

2. Theory and Hypothesis Development

3.1. The Relationship of External CSR to Person-Organization Fit

External CSR (focused on the macro level) refers to practices focused on stewardship the local community, the
natural environment, or consumers (Akremi et al., 2018). Organizations exhibiting social and environment (SER)
can positively enhance the local community and shareholder perceptions (McWilliams et al., 2012). Greening and
Turban (2016) demonstrated that corporate social performance dimensions significantly predicted company
reputation and employer attractiveness perceptions among management students beyond assets and profitability.
Research on person-organization fit (P-O fit) demonstrates that employees are attracted and committed to the
organization that better fit their values Cable and Judge, 1996; Kristof-Brown, 2000). The attraction–selection–
attrition (ASA) model supports the idea that job seekers will be more attracted to organizations whose values
match their own (Schneider et al., 1995).

70
 JOURNAL OF SECURITY AND SUSTAINABILITY ISSUES
ISSN 2029-7017/ISSN 2029-7025 (online)
2020 Volume 9 Number May
http://doi.org/10.9770/jssi.2020.9.M(6)

H1: External CSR is related to Person-Organization Fit

3.2. The Relationship of Internal CSR to Person-Organization Fit

Internal CSR refers to practices focused on stewardship toward the internal workforce, This has included
activities such as employee development, continuing education program, work-life balance and safe working
condition (Turker, 2019; Nasih, 2019; Utama and Mirhard, 2016). Millennials are very rarely wished to spend
their career until retirement times and believe that organizations will bring work safety (De Hauw and De Vos,
2010). Millennials are a very easy deciding to out from organizations because their commitment is more based on
respect among organizations, not on the length work. Millennials are unique, they have a high expectation of
career development, and they have higher self-esteem and assertiveness than the previous generation (Deal et al.,
2010). Millennials are more preferable to choose the job which is more meaning and challenging for them (De
Hauw and De Vos, 2010). They expect to be in a workplace that is nurturing with regard to their well-being and
fitness, and they seek to achiee a balance between work and other life events. Millennials rank social awareness
high on organizational responsibility and prefer work that is socially responsible (De Hauw and De Vos, 2010).
CSR Internal will attract millennials if there is some congruence between values which is owned by organizations
and millennials values. The organization which has respect to the employee make millennials have an interest in
applying job to the organization. Slaughter and Greguras (2009) state idea that the values of job applicants
influence their initial attraction to an organization.

H2: Internal CSR is related to Person-Organization Fit

3.3. The Relationship of Person-Organization Fit (P-O Fit) to Job Pursuit Intention

Slaughter and Greguras (2009) state idea that values of job applicant influence their initial attraction to an
organization. Cable and Judge (1996) argue that job seekers pursue fit between their work orientation and their
future work environment. Research on person-organization fit (P-O fit) demonstrates that employees are attracted
and committed to organizations that better fit their values. The Attraction – Selection – Attrition (ASA) model
supports the idea that job seekers will be more attracted to organizations whose values match their own
(Schneider et al., 1995).

H3: Person-Organization Fit is related to Job Pursuit Intention

3. Research Methodology
3.1. Sample

This study respondent is an undergraduate student at state university in Surabaya, Indonesia who will have
graduation in September 2018 byusing purposive sampling. The criteria which is used, is the undergraduate
student has been internship on the multinational company. Their age separated between 21-23 years old and they
are job-seeker. They are asked to value 3 multinational company which has developed good CSR. The
questionnaire has been done by an online survey about 250 questionnaire sent and the answered questionnaire is
213 students. This study uses Partial Least Square (PLS) analyze with SmartPLS 2.0 program to examine
hypothesis.

71
 JOURNAL OF SECURITY AND SUSTAINABILITY ISSUES
ISSN 2029-7017/ISSN 2029-7025 (online)
2020 Volume 9 Number May
http://doi.org/10.9770/jssi.2020.9.M(6)

3.2. Measurement

External CSR is a firm moral responsibility to the society Measurement 6 indicators which is developed by [26],
Indicator is company implements special programs to minimize its negative impact on the natural environment,
supports the non-governmental organizations working in the problematic areas, contributes to the campaigns that
promote the well-being of the society, company targets a sustainable growth which considers to the future
generation, the company implements special programs to minimize its negative impact on the natural
environment.

Internal CSR is a firm moral responsibility to the employees. Measurement 6 indicators which are developed by
[26]. Indicators are company policies encourage the employees to develop their skills and career, supports
employees who want to acquire additional education, company implements flexible policies to provide a good
work and life balance for its employees, Company encourages its employees to participate in the voluntary
activities, the management of the company primarily concerns with employees needs and wants, the management
decisions related to the employee are usually fair.

Person-Organization Fit ( P-O fit) is a congruence value, objective, and characteristic with jobs and congruence
to employee’s needs with organization systems. Measurement has 4 indicators which are developed by Kristof-
Brown (2000) such as congruence between individual value and organizational value, congruence objectives
between individual and coworkers, congruence preference or individual needs with structure and organization
systems, congruence between individual self-characteristic and organizations.

Intention to Apply is a job applicants motives to apply their jobs to the organization and actively involved in the
recruitment process on the organization which has positive values to them. Measurement has 5 indicators which
is developed by Highhouse et al., (2003) such as will receive jobs offering by organizations, will make the
organizations becoming their first choices, will come when they get interview invitation from the organization,
will have much effort to get the jobs in the organization, and they will recommend the organizations to others.

4. Results

The first sections are Outer Model test to test validity and reliability construct of this study. indicators will be
valid if it has loading factor values > 0,5. Variable will be reliability if it has Composite reliability> 0.7. The
validity test result (see, Table 1), that all indicators has outer loading value > 0,05. The reliability test result (see,
Table 2), that all variables has reliabilty value > 0,7. Table 3 explains hypothesis test.

72
 JOURNAL OF SECURITY AND SUSTAINABILITY ISSUES
ISSN 2029-7017/ISSN 2029-7025 (online)
2020 Volume 9 Number May
http://doi.org/10.9770/jssi.2020.9.M(6)

Table 1. Outer Loading Values

Variable Outer Loading Value Result
External CSR
X1.1 0.712774 Valid
X1.2 0.779107 Valid
X1.3 0.709293 Valid
X1.4 0.733149 Valid
X1.5 0.654616 Valid
X1.6 0.643806 Valid
Internal CSR
X2.1 0.689389 Valid
X2.2 0.765023 Valid
X2.3 0.635360 Valid
Variable Outer Loading Value Result
X2.4 0.691065 Valid
X2.5 0.613086 Valid
X2.6 0.541110 Valid
P-O Fit
Z1 0.719107 Valid
Z2 0.641280 Valid
Z3 0.713407 Valid
Z4 0.750293 Valid
Job Pursuit Intention
Y1 0.688979 Valid
Y2 0.677341 Valid
Y3 0.605361 Valid
Y4 0.716703 Valid
Y5 0.704207 Valid

Table 2. Composite Reliability

Variable Composite Reliability
External CSR 0,867
Internal CSR 0,845
P-O Fit 0,864
Job Pursuit Intention 0,862

Table 3. Hypothesis Test

Path Coefficient Error standard t-statistic Result

External CSR → P-O fit 0,326 0,074 4,396 Supported

Internal CSR → P-O fit 0,399 0,075 5,340 Supported
P-O fit → Job Pursuit Intention 0,422 0,082 5,176 Supported

73
 JOURNAL OF SECURITY AND SUSTAINABILITY ISSUES
ISSN 2029-7017/ISSN 2029-7025 (online)
2020 Volume 9 Number May
http://doi.org/10.9770/jssi.2020.9.M(6)

5. Conclusions

The result of this study states that all hypothesis is supported. External CSR is significantly influenced by P-O fit,
Internal CSR is significantly influenced by P-O fit and P-O fit is significance influenced among Job Pursuit
Intention. This is indicated with T Value > 1, 96. Even External CSR or Internal CSR is significantly influenced
by P-O fit but also Internal CSR will have more contribute than External CSR. Organizational policy on the
opportunity employee development, opportunity to have continuous study, flexible work practices, family
support work practices, and work-life balance makes attracting millennials to apply for a job on those
organizations. The organizational policy for human resourcesappears to be of significant value to Millennials and
may attract Millennial applicants to an organization that advertises such policies. Ng, Schweitzer and Lyons
(2012) concluded that the Millenials have realistic expectations about career and pay advancement when it comes
to the first job after graduation. Organizations who have positive Internal CSR policies are more attractive to
potential applicants because the organizations are seen to " care for" its employee (Highhouse et al., 2003).
External CSR refers to an organization's interest in social responsibility, as well as social policies that aid in
improving its relationship with society. External CSR is an integral aspect of an organizational image. External
CSR is viewed as a means of enhancing corporate image and organizational attraction for job seekers in
competitive environments (Adetunji and Ogbonna, 2013). This study proves to attracting millennials job-seekers
so the organizations expected to understand their values such as career development, challenges, meaning of
work, and work life balance. Our study did have some limitations. First, all data were cross-sectional or one –
shoot data collection, for the next study, could be performed using different timescales to investigate the causal
relationship between variables in order to obtain better results when testing the causal relationship between the
variables. Second, this study focuses on millennials employee, However, our results need to be reproduced in
other generation for validation.

References

Adetunji, O. J. and Ogbonna, I. G. (2013). Corporate social responsibility as a recruitment strategy by organisations. International review
of Management and Business research, 2(2), 313.
Akremi, A. E, Gond, J. P., Swaen, V., De Roec, K. and Igalens, J. (2018). How do employees perceive corporate responsibility?
Development and validation of a multidimensional corporate stakeholder responsibility scale. Journal of Management, 44(2), 619-657.
https://doi.org/10.1177/0149206315569311
Andert, D. (2011). Alternating leadership as a proactive organizational intervention: Addressing the needs of the Baby Boomers,
Generation Xers and Millennials. Journal of Leadership, Accountability, and Ethics, 8(4), 67-83.
Backhaus, K. B., Stone, B. A. and Heiner, K. (2002). Exploringthe relationship between corporate social performance and employer
attractiveness. Business & Society, 41(3), 292-318. https://doi.org/10.1177/0007650302041003003
Breaugh, J. A. (2013). Employee recruitment. Annual review of psychology, 64, 389-416. https://doi.org/10.1146/annurev-psych-113011-
143757
Cable, D. M. and Judge, T. A. (1996). Person–organization fit, job choice decisions, and organizational entry. Organizational behavior and
human decision processes, 67(3), 294-311. https://doi.org/10.1006/obhd.1996.0081
Chapman, D. S., Uggerslev, K. L., Carroll, S. A., Piasentin, K. A. and Jones, D. A. (2005). Applicant attraction to organizations and job
choice: a meta-analytic review of the correlates of recruiting outcomes. Journal of applied psychology, 90(5), 928.
https://doi.org/10.1037/0021-9010.90.5.928
Deal , J. J., Altman , D. G. and Rogelberg , S. G. (2010). Millennials at work: What we know and what we need to do (if anything). Journal
of Business and Psychology, 25(2), 191-199. https://doi.org/10.1007/s10869-010-9177-2
De Hauw, S. and De Vos, A. (2010). Millennials’ career perspective and psychological contract expectations: does the recession lead to
lowered expectations?. Journal of business and psychology, 25(2), 293-302. https://doi.org/10.1007/s10869-010-9162-9

74
 JOURNAL OF SECURITY AND SUSTAINABILITY ISSUES
ISSN 2029-7017/ISSN 2029-7025 (online)
2020 Volume 9 Number May
http://doi.org/10.9770/jssi.2020.9.M(6)

Greening, D. W. and Turban, D. B. (2016). Corporate Social Performance and Organizational Attractiveness to Prospective Employees. In
Proceedings of the International Association for Business and Society (Vol. 7, pp. 489-500). https://doi.org/10.5840/iabsproc1996746
Guha, A. B. (2010). Motivators and Hygiene Factors of Generation X and Generation Y-The Test of Two-Factor Theory. Vilakshan: The
XIMB Journal of Management, 7(2).
Highhouse, S., Lievens, F. and Sinar, E. F. (2003). Social-identity functions of attraction to organizations. Organizational Behavior and
Human Decision Processes, 103(1), 134-146. https://doi.org/10.1016/j.obhdp.2006.01.001
Kaifi, B. A., Nafei, W. A., Khanfar, N. M. and Kaifi, M. M. (2012). A multi-generational workforce: Managing and understanding
millennials. International Journal of Business and Management, 7(24), 88. https://doi.org/10.5539/ijbm.v7n24p88
Kowske, B. J., Rasch, R. and Wiley, J. (2010). Millennials’(lack of) attitude problem: An empirical examination of generational effects on
work attitudes. Journal of Business and Psychology, 25(2), 265-279. https://doi.org/10.1007/s10869-010-9171-8
Kristof-Brown, A. L. (2000). Perceived applicant fit: distinguishing between recruiters'perceptions of person‐job and person‐organization
fit. Personnel psychology, 53(3), 643-671. https://doi.org/10.1111/j.1744-6570.2000.tb00217.x
Long, S. (2017). Exploring Which Leadership Styles are Effective with Millennial Employees.
McWilliams, A., Siegel, D. S. and Wright, P. M. (2006). Corporate social responsibility: Strategic implications. Journal of management
studies, 43(1), 1-18. https://doi.org/10.1111/j.1467-6486.2006.00580.x
Nasih, M., Harymawan, I., Paramitasari, Y. I. and Handayani, A. (2019). Carbon Emissions, Firm Size, and Corporate Governance
Structure: Evidence from the Mining and Agricultural Industries in Indonesia. Sustainability, 11(9), 2483.
https://doi.org/10.3390/su11092483
Ng, E. S. W., Schweitzer, L. and Lyons, S. T. (2012). New generation, great expectations: A field study of the millennial generation.
Journal of business and psychology, 25(2), 281-292. https://doi.org/10.1007/s10869-010-9159-4
Schneider, B., Goldstiein, H. W. and Smith, D. B. (1995). The ASA framework: An update. Personnel psychology, 48(4), 747-773.
https://doi.org/10.1111/j.1744-6570.1995.tb01780.x
Slaughter, J. E. and Greguras, G. J. (2009). Initial attraction to organizations: The influence of trait inferences. International Journal of
Selection and Assessment, 17(1), 1-18. https://doi.org/10.1111/j.1468-2389.2009.00447.x
Turker, D. (2009). How corporate social responsibility influences organizational commitment. Journal of Business ethics, 89(2), 189.
https://doi.org/10.1007/s10551-008-9993-8
Turker, D. (2009). Measuring corporate social responsibility: A scale development study. Journal of business ethics, 85(4), 411-427.
https://doi.org/10.1007/s10551-008-9780-6
Uggerslev, K. L., Fassina , N. E. and Kraichy, D. (2012). Recruiting through the stages: A meta‐analytic test of predictors of applicant
attraction at different stages of the recruiting process. Personnel Psychology, 65(3), 597-660. https://doi.org/10.1111/j.1744-
6570.2012.01254.x
Utama, A. A. G. S., Mirhard, R. R. (2016). The influence of sustainability report disclosure as moderating variable towards the impact of
intellectual capital on company’s performance. International journal of economics and Financial Issues, 6(3), 1262-1269.
https://doi.org/10.7176/jesd/10-10-21
Werther, W. B. and Chandler, D. (2005). Strategic corporate social responsibility as global brand insurance. Business Horizons, 48(4), 317-
324. https://doi.org/10.1016/j.bushor.2004.11.009
Wu, L. Z., Kwan, H. K., Yim , F. H., Chiu , R. K. and He, X. (2015). CEO ethical leadership and corporate social responsibility: A
moderated mediation model. Journal of Business Ethics, 130(4), 819-831. https://doi.org/10.1007/s10551-014-2108-9

75
 JOURNAL OF SECURITY AND SUSTAINABILITY ISSUES
ISSN 2029-7017/ISSN 2029-7025 (online)
2020 Volume 9 Number May
http://doi.org/10.9770/jssi.2020.9.M(6)

Aknowledgements

The authors would like to thank the editor and anonymous reviewers for their supportive comments and suggestions. The
authors have received no funding for this research.

Short biographical note about the contributors at the end of the article (name, surname, academic title and scientific degree, duties,
research interests):

Praptini YULIANTI is a Doctor and also a lecturer of Universitas Airlangga, Indonesia. Her current research is management which
focuses on human resource management and organizational behavior.
ORCID ID: orcid.org/0000-0002-0721-5261

Refita Syaiskha PRAMESWARI is a post graduate student of Universitas Airlangga, Indonesia. Her research interest is human resource
management.
ORCID ID: orcid.org/0000-0001-7500-7803

This work is licensed under the Creative Commons Attribution International License (CC BY).
http://creativecommons.org/licenses/by/4.0/

76