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Corporate social responsibility has become a popular topic used throughout society. However, the topic of the employee perspective in CSR is rarely studied and even less studied is the impact CSR has on the IT industry. An industry currently facing a challenge where the demand for labor is higher than the supply due to its rapid growth. With characteristics of high, intense work that easily results in burn-out, the importance of CSR in this industry is crucial for survival. Additionally, through the use of CSR IT companies have the opportunity to stand out from their competitors and gain competitive advantages, such as attracting high-quality employees in the labor market. Therefore, the thesis will research to what extent IT companies in Sweden use the employee perspective in CSR in their operations, and the influence competition has on this decision to implement CSR. This resulted in the following research question: 

How does corporate social responsibility initiatives towards employees affect the IT companies’ position and competitive advantages on the labor market? 

To answer this research question, a qualitative study was conducted with employees from various medium to large-sized IT companies in Sweden. They were interviewed regarding their view of the company’s CSR for employees as well as their competitors, and how it affected them. The goal of the study was to understand if there is a correlation between competition in the labor market and the IT companies’ CSR for employees and its impact on the employees. To achieve this, stakeholder theory was used to analyze and draw comparisons to the results from the study. The main findings show that a correlation is present and that employees wish for further developed CSR practices for employees which are uniquely adapted to the company. It was also shown that CSR for employees could lead to competitive advantages in the labor market depending on the company’s execution of CSR for employees. Where competitive advantages can be financial gain while competitive disadvantages can be employee attrition. The results of the thesis are presented through a conceptual model that shows how employees’ perception of the IT company’s CSR is linked to the company’s position in the labor market. The implications of this thesis are many as it supports and extends previous research in the area of CSR and stakeholder theory. Furthermore, it can assist companies and managers to further develop their strategies with well-implemented and communicated CSR activities for employees. Additionally, the study opens the possibility for further research into specific areas in the IT industry and their relation to the employee perspective in CSR, as well as investigate what the size of the company has on its CSR practices for employees.