the impact of corporate social responsibility perception on job satisfaction and the moderating role of job levels among small and medium enterprises in hanoi

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS RESEARCH PROPOSAL Module Research Methodology for Economics and Business TOPIC THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY PER.

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

-RESEARCH PROPOSAL Module: Research Methodology for Economics and Business

TOPIC: THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY PERCEPTION ON JOB SATISFACTION AND THE MODERATING ROLE OF JOB LEVELS AMONG SMALL AND MEDIUM

ENTERPRISES IN HANOI

Instructor: Prof Pham Thi Cam Anh Class: KTEE206.CLC.1

Hanoi, October 2022

TABLE OF CONTENTS

6 Significance and expected contribution of the study 15

II Research proposal stages outline

1 Abstract

2 Introduction

3

Research objective and research questions 3.1 Research objective

3.2 Research questions

4

Theoretical framework 4.1 Theory

4.2 Literature review 4.3 Research gap

5

Research method 5.1 Research data 5.2 Data collection 5.3 Sampling method 5.4 Data analysis

6 Significance and expected contribution of the study

7 Research ethics

8 Validity and reliability

9 Potential limitations

10 Research project timeline

11 References

III Research proposal stages modeling

1 Abstract

This research aims to assess the impact of Corporate Social Responsibility Perception (CSRP) on job satisfaction (JS) through the mediating role of job levels This study will use quantitative method and survey data will be collected from 500 small and medium enterprises (SMEs) employees Partial Least Squares Structural Equation Modeling (PLS-SEM) will be used to analyze structural relationships This research is expected to help businesses foster their human resources and have a deeper understanding of their workforce to adjust their CSR strategies and take action to boost employee JS

Keywords: job satisfaction; job level; corporate social responsibility; small and

medium enterprises, Hanoi

2 Introduction

Corporate Social Responsibility (CSR) has been growing in its importance in the development of any business Individuals are realizing the increasing emphasis on CSR and adopting it to the available structure Many previous researches have highlighted the importance of CSR and how perceived thoughts about it can influence different aspects: Qingyu Zhang and Sohail Ahmad (2022), Maja Żychlewicz (2016), Yiming Wu (2013), Servaes & Tamayo (2013); Menichini & Rosati (2014)

On the knowing of CSR importance and its significant impacts, published research claimed to prove the relationship between CSR and many dependent factors, including JS: Greenberg (1990) argues that CSR is a prerequisite for attaining JS, etc

Our study also aims to discover how the way CSR is perceived influences JS but with the moderating role of job levels The role of job levels are closely observed

as it is an important factor that influences the perception but is often neglected That

is, CSR is viewed differently as job levels change from non-managerial to managerial positions

Using the theory of stakeholder (Thomas & Lee, 1995), which indicates that businesses need to create value for stakeholders, not just shareholders, we place our emphasis on exploring how CSR towards different stakeholders namely labor, customer and community have different levels of impact on JS

We believe that a clear know-how of the topic can help business foster its human resources and better understand the employees - indispensable stakeholders of any organization Therefore, companies can alter their CSR policies or take steps to increase the level of JS among staff

Our study is limited within the Ha Noi (HN) boundary The data collected are primary data and are analyzed with descriptive statistics The samples will be selected

through convenience random sampling method from 5 companies with a population of

500 employees

3 Research objective and research questions

3.1 Research objective

This research aims to study the impact of employee CSRP on JS, thereby recommending a number of management implications for raising employee satisfaction This is the key for businesses to achieve important goals such as: increasing productivity, work efficiency, revenue growth, maintaining and boosting profits, etc

3.2 Research questions

- How does employee CSRP affect JS?

- Perceived thoughts of CSR towards which types of subject have the most significance on JS?

- How does the difference of job level affect the CSRP - JS link?

4 Theoretical framework

4.1 Theory and Hypotheses

4.1.1 Corporate Social Responsibility Perception (CSRP)

The concept of CSR began to take shape in the 1930s and evolved over the decades In 1953, the concept of CSR was first stated by Bowen Up to now, there have been many other studies that define CSR, as well as the application of CSR in practice CSR has been identified as a crucial topic in business as well as management, environmental, and psychological academic research CSR is frequently defined as corporate initiatives and practices that go above and beyond an organization's financial interests in order to have a positive impact on all stakeholders Companies should adopt ethical business practices to benefit society and the environment so that both men and women can advance in the workforce (Farid, 2019)

It also refers to the firm's socially responsible business strategies and practices that produce outcomes at the macro- or organizational-level CSR is significant to internal stakeholders, especially those who work for organizations, according to empirical research In this way, CSR's impact on work-related outcomes like JS, organizational commitment, desire to leave the company, organizational identity, organizational citizenship behavior, and engagement at work is demonstrated The fact that employees can directly watch, participate in, criticize, react to, and implement CSR programs makes them stand out among the diverse internal and external stakeholders that are influenced by it Employees may respond to CSR initiatives differently, and their perception will determine their subsequent attitudes and behaviors (Mahmood, 2020) Therefore, it is crucial for managers to comprehend how staff members respond to CSR initiatives and what consequences these initiatives have on their results (Donia, 2019)

CSR perceptions influence employee behaviors and attitudes such as organizational commitment, turnover intentions, burnout, organizational citizenship behaviors, JS, task performance, creativity, work engagement, organizational identification, and voicing behavior (Ilkhanizadeh, 2017) Although the connections between CSRPs and overall wellbeing, JS, and life happiness have been studied, there hasn't been much research on the specific impact of CSR perceptions on employees' career satisfaction

4.1.2 Approaching CSR according to stakeholder theory

This study is based on the stakeholder theory concept (Thomas & Lee, 1995), which is frequently applied in CSR research In accordance with this theory, a stakeholder is any group or person that is in some way impacted by an enterprise's operations Stakeholders include people who participate in, have influence over, or gain from CSR-related activities Examples include owners/shareholders, clients, vendors, and staff Along with the groups mentioned above, other groups and people are also regarded as stakeholders, including the media, the general public, future generations, past generations (the founders of businesses), competitors, non-governmental organizations, people and organizations that provide funding in addition

to shareholders, such as creditors, governments, regulators, and policymakers In accordance with this theory, a company's main objective is still to make money, but it also needs to operate in accordance with the expectations of its stakeholders, including customers, partners, employees, government agencies, investors, suppliers, local authorities, etc

According to the stakeholder theory, a company must consider its stakeholders

as well as its shareholders when making decisions The interests of the parties should

be balanced by businesses, and if there are conflicts of interest, businesses must find the best way to reconcile the interests of the parties

Thomas & Lee (1995) studied the theoretical model of stakeholders in the business as follows:

Source: Thomas & Lee (1995) Image 1: Theoretical model of stakeholders in a business

This study will focus on CSR perception towards labor, customers, and community We believe that these 3 objectives will have the most impact on employee perceptions

4.1.3 Job satisfaction

As earlier established, the idea of JS takes into account both an employee's internal feelings and attitude toward their employer (Landis et al., 2015) Employee JS

is high when they feel good about their work, the company they work for, and the duties and responsibilities of their position (Robbins & Judge, 2015) According to Robbins and Judge (2015), a number of variables may have an impact on how satisfied employees feel about their jobs The nature of the job, administration, pay, prospects for promotion, and relationships can be used to condense these aspects On the other hand, there are several elements that can have a detrimental impact on JS According to Barakat et al (2016), stress might make workers less content with their jobs This could even lead to a decrease in their performance The expected increase in efficiency, profit, and satisfaction can also lead to an improved work environment which again has an impact on employees' JS (Landis et al., 2015) Research has shown that JS and CSR activities can be positively associated with each other (Valentine & Fleischman, 2008) More recently, Mascarenhas et al (2020) have confirmed the positive relationship between JS and CSR practices According to Barakat et al (2016), a reason for the positive connection could be that CSR can have a positive influence on the company’s image and reputation, which then influences the employees Additionally, it is asserted that CSR initiatives are accompanied by values that, when implemented as decisions, policies, or actions, may increase a worker's sense of pride Additionally, this emotion may result in greater JS (Pérez et al., 2018)

It should be noted that if employees are indeed aware of CSR activities taking place at

the company, it will be good for their JS According to research, because employees might not understand CSR policies, their awareness may be more crucial than the policies themselves (Ellis, 2009) Employee well-being and JS won't be affected by CSR activities if they aren not made conscious to them by their employer Additionally, misinterpretation of such ideas might result in annoyance, which would lower JS (Ellis, 2009)

JS theories have a strong overlap with theories explaining human motivation The most common and prominent theories in this area include: Maslow’s needs hierarchy theory; Herzberg’s motivator-hygiene theory; the Job Characteristics Model; and the dispositional approach

As the importance of the issue is becoming more widely known, the question of how CSR might impact employees' wellbeing has arisen Different employees may react differently to CSR initiatives, and perceptions influence subsequent attitudes and behaviors CSR perceptions have an impact on employee attitudes and behaviors, such

as organizational commitment, intentions to leave the company, burnout, organizational citizenship behaviors, JS, task performance, creativity, work engagement, and voicing behavior More research is required to comprehend the causes of one's JS because the career contexts at the workplace are changing This is especially true in the current environment, where achieving successful results depends

on having a positive workplace experience

4.1.4 Relationship between CSRP and JS

According to social identity theory, people develop a positive sense of self-identity when they feel like they belong to and are connected to particular organizations (Van Dick, Crawshaw, Karpf, Schuh, & Zhang, 2020) This theory focuses on people who typically try to maintain a positive sense of who they are by placing people in social groups to which they aspire to belong These groups will give them traits that will set them apart from other groups (Tajfel & Turner, 2004) Additionally, it helps fulfill the needs for a high degree of adaptation, self-worth, and self-harmony Shahzadi, Qadeer, John, and Jia (2019) emphasized “the significance of social identity theory in organizations and concluded that people will consider it positively when they see that their organization is being perceived by others as valued

or admired by the general public.”

Employment, morale, productivity, and employee retention are just a few of the variables that have been linked to employee CSR benefits (Berger, Cunningham, & Drumwright, 2007) A company can create a long-lasting competitive advantage that will aid in retention when it is able to retain committed and highly skilled employees (Wright, Ferris, Hiller, & Kroll, 1995) According to Tuzzolino and Armandi's (1981) research, by meeting their staff's expectations for CSR initiatives, businesses can improve employee attitudes toward their jobs, encourage higher levels of productivity, and foster better interactions with customers For instance, according to Welford (2004), internal education, job training, and workplace non-discrimination policies are all highly valued by employees Furthermore, studies by Larson, Flaherty, Zablah,

Brown, and Wiene (2008) demonstrated that CSR initiatives enhance employees' job satisfaction (JS), sense of company identity, and sales staff performance

We argue that, based on the appraisal theory of emotion, CSR perceptions have

a significant impact on feelings (like organizational pride), work behaviors (like organizational embeddedness), and psychological resources (like psychological capital), which in turn relate to outcomes related to employment (i.e., increased career satisfaction) Additionally, the workforce's internalized and symbolic moral identity serves to moderate the relationship between JS and CSR perceptions The rationale behind this choice of organizational pride is that it is a sentiment that staff members may feel as a result of membership in or affiliation with particular groups that are hedonistically favored by individuals

Employees see well-received CSR initiatives as investments in the future of the workforce, the environment, society, customers, and products These expenditures convey to employees that their company cares about all facets of its operations, including the ethical, social, legal, and environmental ones One of the investments that they might see as being essential is the company's commitment to the personal development of its employees Participating in socially responsible activities gives employees more chances to enhance their skill sets and career prospects People who are growing personally are better able to acquire new skills and accomplish professional goals CSR can include providing opportunities for career advancement, claim (Ilkhanizadeh & Karatepe, 2017) Employees are more likely to stay with their employers for an extended period of time if they believe their employers provide growth and training opportunities in their CSR programs, which lowers turnover and improves perceptions of overall career success Successful CSR initiatives increase employees' sense of purpose, connection, and loyalty to the business as a whole Their work becomes more important to them Based on above arguments, we propose:

Hypothesis 1 (H1): Employees' perception of CSR towards labour has a positive impact on JS

In order to build a positive reputation, brand image, and relationship with customers and suppliers, businesses are becoming more socially responsible CSR has developed into a significant strategic asset for many businesses due to the favorable public perception of having a socially responsible image According to CSR theory, stronger stakeholder relationships come as a result of increased stakeholder loyalty and satisfaction (Kim et al., 2010) Many other theories, including those by Donaldson and Preston (1995), Freeman (1984), and Jones (1995), highlighted the significance of managers tailoring their policies to suit customers, suppliers, and neighborhood organizations Companies that frequently interact with stakeholders and build those interactions on a foundation of trust and collaboration have an incentive to behave honorably and morally because doing so benefits the business As a result, current and potential employees are more aware of whether companies partake in such practices The likelihood that an employee will report high levels of job and life satisfaction, as well as greater levels of loyalty to the company and subsequently the career, increases

with their attitude toward CSR practices to customers On the basis of the reasoning provided, we suggest:

Hypothesis 2 (H2): Employees' perception of CSR towards customer has a positive impact on JS

Employee satisfaction with their jobs increases when they believe CSR programs are genuine and real in their efforts to improve society and the environment

JS refers to an employee's assessment of their level of happiness at their current position, whereas career satisfaction is broader in scope and includes an individual's perception of the cumulative impact of experiences at various jobs as well as his or her progression over time through these jobs It makes sense to assume that since perceived CSR has a positive relationship with JS, it will also have a positive impact

on an employee's career satisfaction Companies that practice CSR gain a positive public image and are able to create a positive organizational image that employees will find admirable, which raises their sense of pride in the company's policies Positive cues emerge and organizational pride grows when an employee believes that the company's CSR initiatives are aimed at improving social and environmental dynamics Employees feel more integrated into their jobs when they believe that an organization's CSR efforts are focused on improving society and the environment This is because there is a very good fit between the values and norms of the organization and the employees' personal values CSR values are compatible with the meaning and purpose of the work that employees do As a result, employees are more likely to stay with a socially conscious company over the long term due to pride, identification, compatibility, and humanistic values because they perceive greater career opportunities there This is consistent with the social exchange theory (SET), which contends that working for a socially conscious organization fosters relationships of the highest caliber between workers and employers and encourages a sense of responding in accordance with the reciprocity norm, leading to positive job outcomes On the basis of the arguments above, we suggest:

Hypothesis 3 (H3): Employees' perception of CSR towards the community has a positive impact on JS

4.1.5 Moderating role of Job Levels in CSRP – JS link

In a professional setting, expected and assumed behaviors and beliefs are implemented by both managers and non-managers, as long as the behaviors are acceptable to their roles The demands of the employees also take the various obligations and expected behaviors that come with their job levels into consideration, and it was discovered that CSR preferences changed in correspondence with job level Researchers discovered that though being aware of the scarcity in opportunities for personal growth, managers express a more positive attitude towards CSR than non-managers According to role theory (Ann Rev Social 1986), social roles are principal factors that people rely onto to adopt identities, express stereotypes and take expected actions According to Miles et al., when looking at the working environment, the level of positivity shown in the communication of supervisors is