Investigating The Influence Of Corporate Social Responsibility Practices On Business Financial Performance Amediation Analysis Of Corporate Reputation

SUMMARY OF THE DISSERTATION This is the summary of the dissertation about CSR practices affect financial performance with the mediating role of corporate reputation.. Chapter 2: Literatu

VIETNAM NATIONAL UNIVERSITY HOCHIMINH CITY

A MEDIATION ANALYSIS OF CORPORATE REPUTATION

HO CHI MINH CITY, May 2022

SUMMARY OF THE DISSERTATION

This is the summary of the dissertation about CSR practices affect financial performance with the mediating role of corporate reputation The dissertation consists of five chapters

Chapter 1: Introduction

The chapter describes the overview and the structure of the thesis The chapter also mentions the rationales why the research is conducted and the significant contributions of the research

Chapter 2: Literature review and theoretical research framework

The chapter reviews a rigorous literature about CSR practices, financial performance and the mediating role of corporate reputation The grounded theories of CSR: stakeholder theory, legitimacy theory and good management theory are also discussed to support the research objectives Based on the literature review and grounded theories, the hypotheses and conceptual framework are formed to be the core for this research

Chapter 3: Methodology

The chapter describes how research methods are chose to conduct the research topic The chapter gives brief discussion on research paradigm and justification for research methods, in this case, qualitative and quantitative methods are chosen to conduct the

research The mixed methods are used to ensure the validity and reliability of the research Chapter 4: Research findings

The chapter presents the findings from qualitative and quantitative methods In terms of quantitative methods, the researcher uses in depth interviews and draw conclusion from data analysis For the quantitative method, the research uses software SMART-PLS

to conduct empirical test and present the research findings

Chapter 5: Discussion and Recommendations

The final chapter deeply discusses the findings and how the findings can support the research objectives Base on the discussion, the research points out the recommendations

in terms of theoretical implications and practical implications Limitations and future research are also described in this chapter

CHAPTER 1: INTRODUCTION 1.1 Research background and problem statements

Overview of CSR research

The concept of corporate social responsibility (CSR) has been studied for many decades It has been researched for more than half of century in fields such as the managerial perception on CSR practices (Cacioppe et al., 2008; Singhapakdi et al., 1996; Smirnova, 2012), banking industry (Farook et al., 2011; Gangi et al., 2019), hospitality industry (Farrington et al., 2017; Fu et al., 2014), or food industry (Kong, 2012; Maloni and Brown, 2006; Zhang et al., 2014) Through years of research, the concept is generated

in different terms such as business ethics, triple bottom lines, corporate citizenship, business social responsibility (De Bakker, Groenewegen, & Den Hond, 2005) Each concept has different dimensions explaining its features Dahlsrud (2008) analysed 37 concepts of CSR and came out with five common dimensions of CSR such as finance, society, environment, stakeholder and voluntariness Bowen (1953) initially identified CSR as social obligations of businessmen to meet society demands, on the other hand, Ryan (2002) describes CSR as the issues of motherhood in terms of environmental activities Despite the multi-concepts of CSR, mostly referred to two domains: economic benefits and social benefits These two domains were used in the concept of Carroll (1979), one of the most famous studies on CSR concept The concept focused on the four dimensions of CSR concept in terms of economic, legal, ethic and philanthropic aspects, which is then illustrated in the pyramid form The study of Carroll (1979) - possibly the most famous study of CSR has been cited more than 5000 times and the model has been reproduced in approximately 100 times (Carroll, 2016)

Furthermore, CSR research is mostly conducted in developed countries, and rarely applied in developing countries (Moyeen & West, 2014) Amos (2018) states that frameworks and CSR results studied from developed countries should be tested in developing countries to study CSR in different institutional contexts Despite the great research of CSR in developed countries, with the unique social matters, the manifestation

of CSR practices in developing countries is principally critical According to Hamann (2006) CSR approaches in advanced economy settings may not suit to the developing contexts Developing countries and developed countries cannot share the same social cultural values and religious values and society norms which cause the differences in CSR implementation Thus, the trend of CSR research in developing countries is essential There has been an increase of interest of understanding CSR practices in developing countries especially in countries that have experienced continuous economic development (Jamali & Carroll, 2017; Jamali & Karam, 2018; Tilt ,2016)

Problem statements

Vietnam is a developing country that has gained some impressive economic achievements, along came achievements also came raising concerns on business consequences related with environmental and social issues According to Bui (2010) the rapid growth of economic performance without concerning social responsibilities, has negatively affected sustainable development, especially societal and environmental aspects Issues of waste management, energy saving, workplace standards, safety and health for customers keep increasing in recent years For example, unprocessed waste water discharge caused serious pollution to the rivers and communities of Miwon Company, Hyundai Vinashin Company (Khanh Hoa), Viet Tri Paper Company; contaminated Thi Vai River and health safety problems such as tainted milk distribution toxic ingredients and banned chemicals in consumer goods; the production of foods containing substances harmful to human health, have raised significant concerns for business managers and government in Vietnam The competition to survive for any costs enables the side effects for the society and environment (Nguyen, 2010) Along with the rapid economic development, lack of CSR practices causes customer dissatisfaction, environmental damages, unethical business practices The reasons for these consequences may be rooted

in the lack of understanding of CSR implementation and benefits

CSR concept is introduced to Vietnamese business through foreign companies who propose codes of conduct for ethics and disciplines (Mai, 2017) These multinationals have specific CSR programs that contribute to Vietnam development For example, Honda

Vietnam, Intel Products Vietnam and HSBC Vietnam implement charities and donations every year Foreign companies with CSR implementation have experienced significant success Following the examples of successful foreign companies, other business types in Vietnam should consider CSR implementation In the past, CSR research in Vietnam mainly focused on labour codes and safety (Twose & Rao, 2003) Recently, the CSR research trend has shifted to other areas, such as consumer and customer awareness (Bui, 2010; Pham, 2011, Truong 2016) and organisational outcomes (Trang & Yekini, 2014; Nguyen, Mai & Cao, 2021) However, according to Vu and Buranatrakul (2018), Vietnamese companies have not recognised the importance of CSR as a strategic tool for competitive advantage Good corporate social responsibility will not only help businesses

to do business, but also help businesses address strategic issues related to business and social issues Good social responsibilities help firms add more values, improve goodwill

as well economic benefits and social-political benefits (Hoang, 2015).CSR practices are the significant conditions for sustainable development and internationalization as CSR is one of the requirements for expanding market The issues of business ethics are still the concerns for the authorities as well as the communities Vietnam is a potential land for studying CSR practices, also the Vietnam government expressed willingness to promote CSR practices (Jeppesen, Kothuis, & Tran, 2012) and integrate CSR practices into corporate culture (Clemence, 2017) The Vietnam Prime minister issues The National Action Plan implements the 2030 agenda for sustainable development (Decision 622/QĐ-TTg dated 10 of May, 2017) The action plan indicates the clear objective of sustainable development in relation to triple bottom line: economy, society and environment The economic development must go along with the society development and environment protection The objective 12.6 of the Action Plan points out that “Encourage the business community to adopt sustainable practices, including cleaner production technologies, efficient use of natural resources, and environmental protection; carry out social responsibility for the poor and disadvantaged groups; integrate sustainability information into your periodic reports” According to Dang (2016), when doing business activities, businesses need to have four subjects that they need to pay attention to: the market and

consumer, employees, local communities and the living environment These are the important stakeholders that affect organizational success

Research gap

Many scholars have studied the CSR in different sectors, from services to manufacturing The research question why is CSR so important to businesses to have received so much attention? According to Choi (2012), ethical behaviours of firms can increase firm’s value Several authors studied the effectiveness of CSR on organizational performance especially financial performance According to Nguyen and Nguyen (2020) CSR research in Vietnam is limited in quantity and quality, it is important to conduct more rigours methodologies to measure a wide range of CSR practices and address the relationship between CSR and FP A lack of context-sensitive research on CSR in Vietnam along with the distinct social, political, economic and cultural context enables Vietnam a suitable location for evaluating the relevance of universal CSR theories in a local context (Nguyen, Bensemann & Kelly, 2018) The analyses of the relationship between CSR and financial performance provide inconsistent results, some identifying direct effects and some finding the support of mediating or moderating variables Further, researchers found mixed results in terms of neutral, negative, and positive effects (Galbreath & Shun, 2012; Margolis & Walsh, 2003; Orlitzky et al., 2003) The relationship between CSR and financial performance in so complex that testing for a direct effect could not explain the relationship As such, many researchers identified mediating and moderating variables that help explain this complexity, such as customer satisfaction, firm size, reputation, visibility (Galbreath & Shum, 2012; Orlitzky, 2001; Park, 2017) Corporate reputation has received increasing attention since researchers paid attention to the long-term effect of corporate reputation on the relationship between CSR and financial performance From some perspectives, CSR is likely to be understood as charity, donations, or philanthropic activities (Mishra & Nigam, 2015) However, the perspective beyond the philanthropic activities brings more advantages Specifically, firms fully integrating CSR performance into their strategy and business activities, can easily meet stakeholders’ expectations and

increase their reputation and identity, eventually sustaining their survival and business growth CSR practices are a key determinant of corporate reputation, which can enhance organizational attractiveness (Esen, 2013)

Many previous research studies the effects of Carroll’s pyramid (Carroll, 1979): economic, legal, ethical and philanthropic responsibility on organisational performance (Fauzi, Mahoney, & Rahman, 2007;Galbreath & Shum, 2012; Saeidi et al., 2015; Wang

& Berrens; 2015 Zhu, Sun, & Leung, 2014) Although there is great research on the four Carroll’s dimensions of CSR practices with the confirmation of many empirical tests in different settings, the pyramid should be restudied due to the change of current business economy Lu et al (2020), one of the first research groups studies the effects of modified Carroll’s pyramid with added environmental dimension on the organisational performance The added environmental responsibility is to ensure sustainable development of manufacturers Their study aims to address the issues of manufacturing industry Furthermore, there are also few research studying the modified Carroll pyramid on organisational performance (Lu et al., 2020) Acknowledging of this matter, the thesis aims

to clarify the relationship of modified Carroll’s pyramid and financial performance in manufacturing, real estate, trade and service industries of a developing setting

Due to above reasons, the researcher has decided to make research on the relationship between CSR categories on financial performance which is mediated by corporate reputation, and hope that the research can somehow contribute to the field of business ethics which can improve business ethic practices in Vietnam

1.2 Research objectives and research question

Research question

The previous section provides the detailed background and the reasons why research about CSR in developing country is needed The call for CSR research in developing counties is practically critical due to the purpose of addressing issues for sustainable

development Since Doi Moi policy issues in 1986, Vietnam has developed dramatically in

economy and society, however, the rapid development comes with challenges Business

plays an important role in the development, however their business performance without considerations for sustainable development causes so many issues for the society and environment The triple bottom of economy, society and environment is imbalance as economy develops but society and environment suffer from the economic development Since the researcher aims to clarify CSR practices in Vietnam and how CSR practices can affect business success, the researcher has raised the following research question:

To what extent and how do CSR practices directly and indirectly affect business financial performance?

The research questions help the researcher to stay on track for the whole research process A good research questions is framed by the research outcomes, population, time line (Thabane et al., 2009) Based on the research question, the researcher can make research design, choose methodology and strategies for analysis More importantly, the research question guides the researcher to select research team members To ensure every research procedure for answering the research questions, the researcher needs to set up a set of research objectives, however according to Doody and Bailey (2016), researchers usually face challenges of converting issues to practical research Thus, it is important to have a clear set of research questions and objectives Research objectives are made to clarify the research questions To answer the research question of this dissertation, the researcher points out a list of following research objectives.:

Research objectives

Based on the research gaps and the business context in Vietnam The dissertation aims to deeply investigate how firms conduct CSR practices; and also aims to measure the direct effects of CSR practices on business reputation and financial performance; as well

as to measure the indirect effects of CSR practices on business financial performance through the mediation of corporate reputation Finally, the dissertation tries to provide strategic and policy implications for organizational and social-economic management and development

1.3 Research methodology

The main research questions are formed to understand how Vietnamese businesses conduct CSR practices and how these practices lead to organizational outcomes The research objectives are the foundation for clarifying the research questions CSR phenomenon is a complex phenomenon which requires a combined method approach to answer the questions Although content analysis is the most popular method for studying CSR disclosure (Sapkauskiene & Leitoniene, 2014), this research is suitable for correlation and regression analysis, as the research aims to explore the phenomenon of CSR practices

in Vietnam and to investigate how the CSR factors and outcomes are correlated Before testing the correlations between CSR practices and outcomes, the research conducts the methodology as following:

Firstly, the research started to answer the research questions by doing literature review CSR practices and CSR outcomes are the keywords for searching articles The articles were grouped into two sections: the independent variables (CSR practices) and dependent variables (corporate reputation and financial performance) The researcher tried

to find the articles that describing the definition and background for CSR practices, corporate reputation and financial performance The researcher chose to review high impact articles to ensure the quality of literature review After reviewing the literature about these factors, the researcher explored the articles that indicating the relationships between CSR practices, corporate reputation and financial performance Based on the rigorous literature review, the researcher built a conceptual model with research hypotheses

to deeply explore the CSR implementation in Vietnam In order to validate the conceptual framework, the researcher also described the grounded theories for the research The grounded theories were used to support the conceptual framework

After building a conceptual framework, the researcher conducted the first stage of data collection by qualitative approach According to Chenitz and Swanson (1986), qualitative method is use to explore the psychological and social phenomena The sampling technique used for qualitative method is convenience sampling The convenience sampling

was applied by selecting samples based on cases: medium and large enterprises, CSR disclosure (Singleton & Straits, 2005) Furthermore, the snowball sampling was also applied to help the researcher recruit other participants which can save time and target participants easily (Bryman & Bell, 2011) The qualitative approach was used to test the conceptual framework by interviewing the participants if they share similar thoughts or agree on the model Furthermore, the interviewing data can guide the researcher to modify the conceptual model with suggestions from the participants The qualitative approach was conducted to ensure the practical implementation into the model The model is based on literature review, so the model may mainly depend on theories, the qualitative approach enables the researcher to find out new factor or ideas for building a conceptual framework

In other words, the qualitative stage is to confirm the conceptual model before empirical test

Thirdly, the conceptual model is the core research framework for this dissertation The results of qualitative approach were the foundation for the next stage: quantitative approach The main aim of this approach is to test the correlation between factors in the model Before the empirical test of the model, the researcher conducted a pilot study to consider the validity and reliability of measure items The pilot test was also used to modify survey questionnaires by deleting measurement items not indicating significant results Five-point Likert scale questionnaire from strongly disagree (1) to strongly agree (5) to evaluate the managerial perception on the importance of each measurement item, or to evaluate how CSR practices were conducted and its link to the outcomes as corporate reputation and financial performance

1.4 Scope of the research

The research aims to study CSR implementation of business as business plays an important role in developing the economy Business groups are the ones who directly use natural resources for their production, thus they need to pay back to the society through CSR practices The research participants are representatives of firms that belong to manufacturing, real estate, trade and service sectors The reasons why the researcher

studies these sectors due to their direct business performance’s effects on the environment and society In other words, business performance of these sectors can positively or negatively affect sustainable development Manufacturing industry is involved with the whole production process from the input to output stage, these business activities directly use the natural resources and can affect the environment such as water source, material source, land and air source Decree 18/2015/NĐ-CP dated 12 February 2015 requires manufactures to have responsibilities for environmental protections plans Regarding real estate industry, this industry is involved with the land use thus it also affects the environment and living conditions of people Businesses of real estate industry invest in landing projects needs to follow Decree 49/2021/NĐ-CP Real estate dated 1 April 2021 about land use requirements and rehabilitate people The trade and service sector are also chosen for this study due to its effects on the environment: paper work, logistics, distribution process, etc Trade and service industry plays an important role in economic development, and their performance contributes a lot to the society Although there is no decree about environmental protection for trade and services, their CSR performance also account for the society development The previous research normally aims to study CSR performance of single industry: agriculture (Nguyen et al., 2015); banking (Farook et al, 2011; Gangi et al, 2011; Le & Hoang, 2019); manufacturing industry (Torugsa et al., 2012; Williamson, et al., 2006); real estate industry (Dahlin et al., 2020; Eichholtz et al., 2009) For the notice, this research can be considered as pioneering research that study the wider range of CSR practices for different industries

• Timeline: the research was conducted from 2018 to the end of 2020

• Geographical region: Binh Duong province and Ho Chi Minh city – the two most dynamic economic zones in the Southern Vietnam As illustrated in the figure below, CSR term is dominantly searched on the internet in five cities and provinces: Ho Chi Minh city, Ha Noi city, Binh Duong province, Hai Phong and Da Nang The searching tend indicates that more people pay attention to CSR practices in Vietnam Ho Chi

Minh city and Binh Duong province are chosen in this research due to convenience of

locations and their economic conditions

Figure 1.1: Searching “CSR” keyword according to the region

• Research subject: private business, public business and Foreign direct investment

(FDI) business

• Industry: Manufacturing industry, real estate industry, trade and service industry

• Grounded theories in the research

Stakeholder theory: the theory aims to meet and satisfy stakeholder requirements

Stakeholders are the important groups that affect business performance Stakeholder theory

assists researchers to understand the behaviors and performance of business to meet the

stakeholder requirements With the stakeholder pressure and requirements, the stakeholder

theory can be the foundation for explaining the CSR practices of organizations CSR

practices in terms of legal, economic, ethical, philanthropic and environment responsibility

are involved with meeting stakeholder requirements, stakeholder theory is chosen as a

grounded theory for this study

Legitimacy theory: legitimacy theory is used to explain the business purpose of CSR

implementation in terms of making peace with the society The theory helps to explain the

origin of business existence in relation with business performance system and the whole

society system The close connection enables higher survival rate for business

performance, in return generating financial benefits The legitimacy theory is suitable to

explain why businesses are connected with the society to increase business success In this

case, legitimacy theory can help the researcher to explain the necessity of CSR performance to gain legitimacy in the society, and in return helping businesses to gain better organizational performance

Good management theory: good management theory is used to test the effects of CSR

practices on CSR outcomes, especially for financial performance The good management theory is not widely used in the research; however, it can point out the meaning of CSR implementation in terms of good practices lead to good outcomes The theory indicates that

as business manages their business activities well, they receive good returns (for financial return) The good management theory can help the researcher explain the cause-and-effect link of CSR practices and CSR outcomes of this research

1.5 Significance of the research

Academic contribution

The first academic contribution of the research is to answer the call of research in the world about CSR performance in developing context This research contributes to understand the CSR field by enhancing existing research with empirical data based in Vietnam In particular, the research helps to contribute to understand how firms conduct CSR practices in Vietnam and how these practices enable better organizational performance The findings can provide an overview of the CSR performance in developing contexts and academic and researchers can use the findings to make a comparison with findings from other areas or developed contexts This clarifies the picture of CSR implementation in the world, and helps academics be able to gain a deep insight of current CSR practices

Secondly, the findings provide evidence to support stakeholder theory, legitimacy theory and good management theory in a developing context and address the support for inconsistent relationship between CSR practices and financial performance The research deeply investigates and clarifies the relationship between CSR and financial performance with the mediating role of corporate reputation Using mediating variable to explain the relationship is also the way to response to the call of clarifying the inconsistent relationship

The research tests the additional effects of corporate reputation on the relationship between CSR and financial performance to address the complexity of the relationship to answer for addressing this issue suggested by Galbreath and Shum (2012) and Margolis and Walsh (2003)

Thirdly, a conceptual framework of CSR, corporate reputation and financial performance is built for references and future research The conceptual framework with empirically tested contributes to theoretical understanding of CSR implementation in a developing context Unlike previous studies, the Carrol’s pyramid is modified with environmental variable, thus it comes up with five economic, legal, ethical, philanthropic and environmental dimensions This is also a new point for the CSR research by studying each CSR dimension effects on corporate reputation and financial performance The study

of effects on modified Carroll’s pyramid is necessary in Vietnam as Vietnam economy has changed rapidly and faced various environmental issues for the price of economic development

Practical contribution

The practical contribution of this research can be divided into two sides: governmental side and business side Regarding business side, the research findings can help key people at managerial positions to understand more about the importance of CSR practices and its benefits Managers can use the research findings as reference for CSR policies that promote business performance and sustainable development CSR performance should be implemented as a key strategic objective due to CSR outcomes This can increase higher survival rate for business Based on the findings, manager can also make decision on which CSR responsibility their business pays more attention to, so

it is easier for them to gain success and do business effectively and efficiently Furthermore, in order to improve CSR performance, firms in the same industry can collaborate to apply more diversified CSR performance with the efficient cost

In terms of governmental side, the research findings are reckoned as a good source for policy making The findings are the reflection of currently typical CSR performance,

based on this, the government can acknowledge the actual CSR performance which can assist them to make policies promoting CSR practices The government should improve a propaganda to promote CSR practices and CSR benefits through media, training programs, conferences Furthermore, it is important to issue propaganda for businesses about CSR and build regulations and sanctions to handle business who violate CSR The government should be the middle man between businesses and the society in terms of encouraging business to make commitments about CSR performance and build their own CSR mechanisms and policies More importantly, the government can use this research as a reference to set up CSR measure indicators for CSR performance, thus the government can use the indicators to issue rewarding and punishment guidelines for business

CHAPTER 2: LITERATURE REVIEW AND THEORETICAL RESEARCH

FRAMEWORK 2.1 Corporate social responsibility

The CSR concept has a strong evolution of constructs Back to the early time of CSR research, Bowen (1953, pg.6) known as the father of CSR defines the initial meaning

of CSR as “the obligations of businessmen to pursue those policies to make those decisions

or to follow those lines of action which are desirable in terms of the objectives and values

of our society” Bowen (1953) suggests the role of businessmen in taking responsibilities for outcomes of their business practices rather than just focuses on profitability This definition has created a new era for modern CSR concept According to Carroll (1999), the literature of CSR was expanded during 1960s, more research aimed to understand the meaning of CSR concept During this period, based on the Bowen’s initial definition, Davis (1960), attempts to address decisions on social responsibility of business beyond technical and economic interests Social responsibility should be recognized as corporate responsibility under managerial view In 1970s, this is the period of time that authors tried

to expand and define CSR concept in different dimensions in terms of stakeholder involvement, strategic policies, profit interests, and other social responsibility (legal, ethics, philanthropic) There was less research on CSR definitions in 1980s, however the

researchers and academia tried to figure out CSR into alternative themes and models In the next decade, the CSR concept was deeply investigated based on previous research and expanded into more diversified themes: instructional level, legitimacy of originations, stakeholder theory (Carroll, 1991) The classical view of CSR mainly focusses on prosocial behavior, voluntarism and profit excoriating (Roszkowska-Menkes, 2016) The CSR definition keep being evolved in accordance with business performance and changes However, the CSR concept is discussed under three main domains: business, social and political development (Thomas & Nowak, 2006) The themed research enables the classification and clarification of CSR practices Especially, in the 21st century, the research of CSR aims to address the themes of environmental issues and sustainability along with the emerging research in developing and emerging markets

In order to understand CSR practices, academics and professors tend to disaggregate CSR performance Academics and researchers tried to analyze CSR practices and group into different themes One of the most notable authors who has strong contribution to the classification of CSR practices is Carroll (1979) Identifying categories of CSR is also a good way to think about CSR (Carroll & Shabana ,2010) Carroll (1979) and Carroll (1999) classified the main corporate social responsibilities are economic, legal, ethical and philanthropic responsibility The first two responsibilities are required by the society in which firms are responsible for profitability with operation system under law abiding Furthermore, the society expect firms to contribute to social development by ethical behaviors and charitable contributions These four types of CSR and their impacts are the interesting research topic in recent years, possibly the most famous study of CSR has been cited more than 5000 times and the 4 type CSR model has been reproduced in approximately 100 times (Carroll, 2016) However, the environmental dimension has received a lot of attention of research in recent years (Buysse & Verbeke, 2003; Torugsa, O’Donohue & Hecker, 2013; Hao & Kang, 2019) That is why the research look at five dimensions of CSR: economic, legal, ethical, philanthropic and environmental responsibility

Economic CSR dimension

Economic CSR aspect is the foundation of CSR pyramid where it represents the profitability of the business According to Carroll (1991), firms need to follow five following principles to demonstrate their economic responsibility: (1) maximizing earnings per share, (2) Commitment to profitability, (3) sustain a durable competitive position, (4) maintain operational efficiency, (5) maintain consistent profitability The five principles are the strong indicators guiding how a firm should perform business responsibly and ensure its position in the market

Legal CSR dimension

Legal CSR refers to how businesses conduct their business activities under the law requirements And the legal CSR responsibility is required by the society as obeying the law is a must responsibility of everyone in the society Carroll (1991) states five principles

of legal responsibility that a firm has to follow: (1) perform business in line with expectations of government and law; (2) acquiesce not only state regulations but also local regulations; (3) one condition of a corporate citizen is law-abiding; (4) a firm is considered

as a successful business when it its obligated to the law; (5) firms need to meet law requirements when providing good and services

Ethical CSR dimension

Ethical CSR practices are expected by the society as the society is seeking to the returns from the business According to Carrol (1991), there are five rules to demonstrate ethical responsibility: (1) it is vital to operate business in the line of meeting ethical norms and societal expectation; (2) it is vital to identify and respect new ethical norms; (3) it its vital to avoid any actions that harm moral norms to gain strategic goals; (4) it is vital that good corporate citizenship take actions in an ethical manner; (5) it is vital to acknowledge that ethical behaviour should exceed the law requirements

Philanthropic CSR dimension

Beside ethical responsibility, the society also expects firms to contribute more to the society development and sustainability Philanthropic activities consist of all types of