Introduction
Overview
The rapid growth of the global economy has significantly improved the quality of life, making it more comfortable for many However, this progress has come at a cost, leading to environmental degradation and negative impacts on human life Accompanying this development are serious societal issues, including natural disasters, environmental pollution, resource depletion, discrimination, labor exploitation, and the proliferation of toxic products.
Human activities are rapidly leading to the destruction of our planet, raising the critical question of whether it is wise to prioritize profit maximization at any cost As we face the possibility of a shortened existence on Earth, it is essential to adopt a serious approach to responsible and sustainable development This concern has been prominent since 1953, coinciding with the emergence of the concept of Corporate Social Responsibility (CSR) in business practices.
Corporate Social Responsibility (CSR) has emerged as a significant global movement, particularly in Euro-American countries, where consumers increasingly prioritize not only product quality but also environmentally friendly production methods that promote community well-being and human health This shift has led to widespread boycotts of products like fast food, carbonated beverages, and fur items In response to social pressure, many enterprises have integrated CSR initiatives into their core strategies, implementing programs focused on energy conservation, carbon emission reduction, and the use of recycled materials and solar energy Additionally, companies are investing in community development by building schools, establishing research centers for epidemic diseases in developing nations, and enhancing employee working conditions Notable CSR leaders include TNT, Google, Intel, Unilever, Coca-Cola, GE, Nokia, HSBC, Levi Strauss, Bayer, Dupont, Toyota, Sony, and Samsung.
Corporations worldwide have seen significant success through the implementation of Corporate Social Responsibility (CSR), leading to increased employee satisfaction, reduced operating costs, and an enhanced public image Consequently, CSR has become a crucial strategy for the sustainable development of businesses.
The state of Corporate Social Responsibility (CSR) in Vietnam is closely tied to the country's doi moi (renovation) reforms and the impacts of globalization, initiated in December 1986 when the Communist Party adopted a market-oriented socialist economy This shift has transformed Vietnam from a state-led economy to a more market-driven one, facing challenges from foreign investment and donor pressures, particularly after joining the World Trade Organization (WTO) As CSR emerged as a key initiative for market development, it became essential for the environmental and social sustainability of the nation The forces of doi moi and globalization have heightened awareness among citizens regarding social responsibility, prompting the need for legal adaptations to align with international standards Although Vietnam lacks a formal CSR policy, the government has begun addressing CSR-related issues through the sustainability strategy known as Vietnam Agenda 21, signed by the prime minister in 2004 This strategy emphasizes sustainable development with a focus on people, asserting that environmental protection is vital for the well-being of current and future generations It advocates for a balance between present and future interests, while also promoting training, workshops, and media outreach to enhance understanding and management capabilities for sustainable development, alongside budget allocations and international cooperation efforts.
In Asia, there is a growing interest in Corporate Social Responsibility (CSR), yet its development remains relatively limited Notably, Vietnam has experienced a rapid increase in awareness and concern regarding CSR practices.
Corporate Social Responsibility (CSR) was initially introduced in Vietnam through the initiatives of multinational companies These companies have implemented various effective CSR activities, such as Honda Vietnam's "I love Vietnam" campaign, Unilever's educational programs on personal hygiene for children in mountainous areas, and Microsoft, Qualcomm, and HP's computer training program TOPIC64 Additionally, VinaCapital and Samsung have supported congenital heart defect surgeries and victims of the Can Tho bridge collapse, while Western Union has contributed to vision rehabilitation programs for underprivileged children.
In Vietnam, domestic enterprises, particularly in the garment and footwear sectors, prioritize Corporate Social Responsibility (CSR) by focusing on worker treatment and ethical practices The Vietnam Business Links Initiative established a local code of conduct for the footwear industry in the late 1990s and now presents annual CSR Awards for the garment, textile, and marine products sectors Additionally, major corporations like Mai Linh, Duy Loi, ACB, Sacombank, and Kinh Do are actively engaging in CSR initiatives to enhance their public image However, these efforts often lack depth and comprehensive impact.
Many small and medium enterprises in Vietnam remain largely inactive regarding Corporate Social Responsibility (CSR) issues, such as the controversies surrounding soy sauce 3MCPD, melamine-tainted milk, and environmental pollution This lack of engagement indicates a misunderstanding of CSR's significance, which ultimately undermines their competitive edge and deteriorates the business environment The question arises: are managers unaware of CSR's importance for sustainable development, or do they lack guidance on how to initiate and implement CSR practices? Thus, fostering a correct perception of CSR is crucial and requires careful attention.
Problem statement
Corporate Social Responsibility (CSR) in Vietnam is interpreted in various ways, and not all CSR initiatives by Vietnamese organizations achieve success The perception of CSR among individuals is crucial, as employees are increasingly aware of the expanding responsibilities that companies have towards society Consequently, CSR has become a significant concern for employees, highlighting its importance in the workplace.
Research by Claydon and Doyle (1996) highlights the critical role of employee power in organizational engagement Greenwood (2007) further identifies employees as key internal stakeholders, possessing significant influence in stakeholder engagement Consequently, the perceptions of managers and employees regarding Corporate Social Responsibility (CSR) are vital, as they shape employee attitudes and behaviors in the workplace.
Recent studies have explored the link between employees' perceptions of Corporate Social Responsibility (CSR) and various aspects of job satisfaction globally However, there is a notable gap in research regarding the relationship between employees' CSR perceptions and their job satisfaction specifically in Vietnam.
The main objective of this research is to observe the relationship between employees’
CSR perception and employees’ satisfaction of Vietnamese firms in Ho Chi Minh City (HCMC)
Thus, this research is to answer two questions:
Is there any relation between between employees’ CSR perception and employees’ satisfaction of Vietnamese firms in HCMC?
How employees’ CSR perception affects on their satisfaction at work?
Research Scope
This research mainly focus on identifying the key CSR factors influencing employees’ satisfation of Vietnamese firms The target interviewees are employees and managers (middle and low level managers)
Quantitative research will focus exclusively on companies in Ho Chi Minh City (HCMC), a key commercial hub in Vietnam that attracts significant and emerging industries.
Research Structure
The article outlines the research process, beginning with the identification of problems, objectives, scope, and methodology Chapter 2 focuses on the literature review, establishing the theoretical concepts and conceptual framework that underpin the research, along with the development of hypotheses for testing Chapter 3 details the research methodology, including the research approach, design, measurement scales, questionnaire development, and data analysis methods Chapter 4 presents the data analysis results, statistical findings, and discussions, highlighting the theoretical and managerial implications of the research Finally, Chapter 5 offers conclusions, addresses research limitations, and provides recommendations.
Literature Review
The concept of Corporate Social Responsibility
Corporate Social Responsibility (CSR) emphasizes that businesses should extend their obligations beyond merely maximizing short-term profits to include the protection and nurturing of society and the environment The implementation of CSR remains contentious due to the lack of a consistent definition and universally accepted measurement methods Various studies have sought to define "corporate responsibility," offering a spectrum of interpretations from "corporate philanthropy" to "business ethics."
Corporate Social Responsibility (CSR) lacks a singular, definitive explanation, despite extensive theoretical and practical discussions surrounding the concept Generally, CSR involves making business decisions that align with ethical values, adhere to legal standards, and show respect for individuals, communities, and the environment According to Jones (1980), CSR is the belief that corporations have responsibilities to various societal groups beyond just shareholders and legal obligations Additionally, Kotler and Lee provide further insights into the definition of CSR.
(2005), who defined CSR as “a commitment to improve community well-being through discretionary business practices and contributions of corporate resources”
The World Business Council for Sustainable Development (WBCSD) defines Corporate Social Responsibility (CSR) as a company's commitment to contribute to sustainable economic development by collaborating with employees, their families, and the local community to enhance quality of life Additionally, Wood describes CSR as the framework of a business organization's principles of social responsibility, processes of social responsiveness, and related policies and outcomes that reflect its societal relationships.
Corporate Social Responsibility (CSR) involves how companies manage their business processes to positively impact society, as noted by Baker (2003) The World Bank (2002) emphasizes that CSR encompasses businesses' obligations to foster sustainable economic development through collaboration with employees, their families, and the local community, ultimately enhancing livelihoods and promoting beneficial business growth.
Corporate Social Responsibility Theories
Stakeholder theory significantly influences corporate decision-making and investment in corporate social responsibility (CSR) It posits that an organization's success is closely linked to its ability to align its goals with those of its stakeholders By meeting stakeholder expectations, companies foster trust and loyalty, leading to a stronger relationship with their stakeholders Consequently, an increasing number of corporations are adopting socially responsible practices and policies to effectively address these demands.
In this study, CSR concept from Turker (2009) is adopted Turker (2009) defined CSR as below
“CSR as corporate behaviors, which aim to affect stakeholders positively and go beyond its economic interest”
Stakeholders consist of shareholders and investors, employees, customers, suppliers, governmental organizations, trade associations, environmental groups, and members of the community where a company operates
2.2.2 Caroll’s CSR conceptualization - Carroll’s CSR Pyramid
In his 1979 paper on corporate social performance, Carroll introduced the four categories of Corporate Social Responsibility (CSR): economic, legal, ethical, and discretionary responsibilities He emphasized that these categories serve to classify motives and actions, highlighting their distinct nature The hierarchical arrangement of these categories reflects their fundamental role in the evolution of CSR's significance.
The initial framework was developed with a retrospective perspective, highlighting that the evolution of business has historically prioritized economic and legal factors before shifting focus to ethical and discretionary considerations.
In 1991, Carroll introduced his CSR model as a pyramid, emphasizing that while various responsibilities have always existed, ethical and philanthropic functions have gained prominence in recent years He highlighted the importance of economic performance as the foundational element that supports all other responsibilities.
He emphasizes that while the components are interconnected, it is beneficial for the manager to recognize the ongoing tension between the various types of obligations.
Figure 2.1 The Pyramid of Corporate Social Responsibility (Carroll, 1991)
Carroll (1999) appeared to briefly retract his dubious equating of philanthropy with corporate citizenship and to abandon his pyramid concept by reconceiving his model as
“the four faces of corporate citizenship”, but soon returned to his original construct
Carroll has revisited his 1991 CSR pyramid, now integrating the concept of stakeholders In this updated model, economic responsibility emphasizes the need for companies to fulfill the demands of global capitalism Legal responsibility requires adherence to the expectations of global stakeholders, while ethical responsibility focuses on meeting the anticipated standards of these stakeholders Finally, philanthropic responsibility encourages companies to act according to the desires of global stakeholders.
Previous research about Corporate Social Responsibility and Employees’
Albdour & Altarawneh (2012) explore how employees' perceptions of internal corporate social responsibility (CSR) influence their engagement levels The study focuses on five key CSR factors: training and education, human rights, health and safety, work-life balance, and workplace diversity Findings indicate that all these CSR factors positively affect both employees' job engagement and organizational engagement.
A comprehensive measure of Corporate Social Responsibility (CSR) that accurately reflects a business's obligations to various stakeholders has been established, as noted in Duyu Turker's 2009 study This CSR scale was created through a systematic development process, ensuring its originality, validity, and reliability.
This research incorporates 42 observation variables categorized into four elements: CSR towards employees, CSR towards customers, CSR towards government, and CSR towards society and other stakeholders Building on the previous work of Duyu Turker (2009), the study utilizes these four factors to assess perceptions of Corporate Social Responsibility (CSR).
A study by Aharon Tziner, Yaki Bar, Lior Oren, and Gal Kadosh (2011) explores the relationship between employees' perceptions of corporate social responsibility (CSR) and their levels of job satisfaction and organizational justice The findings indicate a positive correlation between employees' CSR perception and both job satisfaction and organizational justice The authors utilized Turker’s CSR scale to assess employees' perceptions of CSR.
And the model as below
CSR organizationa l engagement health and safety work life balance workplace diversity
Research Model
H1: There is a positive impact of CSR to employees on Employees’ satisfaction
Employees' views on Corporate Social Responsibility (CSR) can significantly enhance organizational trust and job satisfaction This is because CSR initiatives boost employees' self-image and morale by aligning their personal identities with the values of the corporation.
Social identity theory posits that employees and stakeholders develop positive perceptions of an organization when they feel aligned with its goals (Peterson, 2004) Implementing effective CSR strategies can enhance these perceptions, as employees are more likely to trust companies that address social issues ethically (Brown and Dacin, 1997; Hosmer, 1995) Research by Vlachos et al (2010) indicates a positive correlation between salespersons' views on their company's CSR and their job satisfaction Additionally, recent findings in the hospitality sector reveal that various aspects of CSR significantly boost employee job satisfaction (Lee et al., in press).
H2: There is a positive impact of CSR to customers on Employees’ satisfaction
According to Carroll (1999), economic viability involves businesses fulfilling their responsibilities to society by producing goods and services that meet customer demands and expectations.
The relationship between job satisfaction and customer orientation has been explored in several studies (e.g., Donavanet al., 2004; Hoffman and Ingram, 1992; Pettijohn et al.,
Research from 2007 shows that increased customer orientation leads to higher job satisfaction among employees This aligns with social exchange theory, which suggests that individuals engage in reciprocal behaviors with those who provide them benefits Hoffman and Ingram (1992) found a positive correlation between customer-oriented behavior and job satisfaction, further supported by Motowidlo (1984), indicating that customer orientation is linked to enhanced job satisfaction.
H3: There is a positive impact of CSR to government on Employees’ satisfaction
Based on study by Tziner, Bar, Oren and Kadosh (2011), a significant positive relationships were found between CSR to government and employees’ job satisfaction
Especially, the research of Choong-Ki, Hak-Jun, Hye-Mi, Seoki, Bernhard (2012) also found a significant and positive effect from legal CSR dimension on employees’ job satisfaction
Social responsibility and legality are distinct concepts, as noted by Sim (2003) Corporate Social Responsibility (CSR) encompasses actions that exceed legal requirements While legal obligations are a crucial aspect of CSR, as defined by McGuire (1963) and Davis (1973), CSR extends beyond mere compliance with the law.
H4: There is a positive impact of CSR to society, environment, generations and NGOs on Employees’ satisfaction
Philanthropic responsibility means to “do what is desired by global stakeholders”
(Caroll, 2004) And according to Choong-Ki, Hak-Jun, Hye-Mi, Seoki, Bernhard
(2012), philanthropic CSR make a positive impact on organizational trust and job satisfaction
Besides, a significant positive relationship were found between CSR to social, other stakeholders and employees’ job satisfaction (Tziner, Bar, Oren and Kadosh, 2011)
Despite the fact that CSR is one of the most prominent concepts in the literature, it still difficult to give a precise and commonly accepted definition According to Bowen
In 1953, a pioneering scholar defined Corporate Social Responsibility (CSR) as the pursuit of policies and actions that align with societal objectives and values Carroll (1991) emphasized the connection between CSR and an organization’s stakeholders, while Freeman (1984) broadened this understanding by describing stakeholders as groups or individuals who can influence or are influenced by the organization’s goals Consequently, CSR plays a crucial role in balancing the interests of society and various stakeholders.
Previous research indicates a disparity between managers' and employees' perceptions of corporate social responsibility (CSR) While managers view CSR initiatives as beneficial for enhancing the company's reputation and overall success, they tend to prioritize external CSR activities.
A study by Leonidas, Mary, Theofilos, and Amalia (2012) reveals that many companies implement internal management functions to execute Corporate Social Responsibility (CSR) programs focused on societal, environmental, and employee welfare Additionally, managers recognize the various benefits of CSR activities Notably, those who advocate for external communication and evaluation of CSR by a national agency exhibit a strong positive attitude towards the institutionalization of CSR.
Employees’ concern should be higher regarding internal CSR, whereas managers should consider both dimensions as equally important (Brammer et al, 2005)
According to Tamm, Eamets, Motsmees (2010), managers’ and employees’ assessments of external CSR are closer to each other than their assessments of internal CSR
Fifure 2.2 The proposal research model
Corporate Social Responsibility (CSR) significantly enhances employee satisfaction by fostering a positive work environment Additionally, CSR initiatives positively influence customer perceptions, leading to increased employee morale and satisfaction Furthermore, CSR efforts contribute to a favorable relationship with government entities, which in turn boosts employee satisfaction through enhanced organizational reputation and stability.
H4: There is a positive impact of CSR to society, environment, generations and NGOs on Employees’ satisfaction
CSR to society and other stakeholders job satisfaction
Chapter 2 presents the literature review on CSR and proposed the conceptual model, hypotheses for the factors influence employees’ satisfaction of Vietnamese firms in HCMC This chapter discusses about the research methods with four parts: Research process, Measurement Scale, Data collection and Data analysis methods.
Research Process
Following the identification of research problems and objectives, a literature review on Corporate Social Responsibility (CSR) and its measurement scales was performed to explore the factors influencing CSR and employee satisfaction This led to the development of a conceptual model along with hypotheses regarding CSR and employee satisfaction in Vietnamese firms located in Ho Chi Minh City.
A conceptual model has been developed based on a literature review of Corporate Social Responsibility (CSR) and employee satisfaction, focusing on four key CSR factors that are expected to influence employee satisfaction in Vietnamese firms in Ho Chi Minh City A draft questionnaire was created by consolidating and referencing previous studies on this topic To ensure the quality of the research, both qualitative and quantitative methods were employed The research design consists of two phases: a pilot survey and a main survey, followed by the preparation of measurement scales and pilot questionnaires related to CSR and employee satisfaction in the qualitative research phase.
A qualitative research study was carried out using a preliminary questionnaire and pilot interviews with key employees and managers at various levels in Vietnamese firms In-depth interviews were conducted to gather insights, which helped in determining the appropriate sample size for the research.
The qualitative study for this research was conducted through face-to-face interviews, targeting 440 employees and managers from various organizations in Ho Chi Minh City (HCMC) The primary methods employed for data collection included direct and online surveys, with the data being gathered over a two-week period.
After conducting interviews, 410 questionnaires were distributed, but only 391 were suitable for analysis due to incomplete responses Following a thorough review for accuracy and quality, the data was imported into SPSS software for analysis.
This research employed Exploratory Factor Analysis (EFA) and Cronbach's alpha to validate questionnaires and assess the reliability of measurement scales Additionally, Standard Multiple Regression was utilized for hypothesis testing, with the research steps illustrated in the accompanying figure.
Assessing the reliability and validity of data
The research steps of this research consist of seven steps:
Step 1: Initial research model and the draft questionnaire
The literature review informed the development of a conceptual model and initial hypotheses regarding corporate social responsibility (CSR) and employee satisfaction Additionally, a draft questionnaire was created, drawing on various measurement scales from prior research.
Step 2: Questionnaire refinement by qualitative pilot research
In the initial phase of this research, qualitative analysis was performed using a preliminary questionnaire through in-depth pilot interviews This stage involved three employees and two middle-level managers from various Vietnamese firms, who are acquaintances of the author, to evaluate the adequacy of the measurement scales, the conceptual model, and the questionnaire Subsequently, the sample size was determined.
Step 3: Quantitative pilot research for the clarity of questionnaire testing
A quantitative pilot study was conducted using face-to-face interviews to assess the interviewees' comprehension of the questionnaire content and measurement scales This phase involved 14 participants, including employees and managers from Vietnamese companies in Ho Chi Minh City The feedback gathered was crucial for refining the questionnaire and ensuring that the majority of pilot interviewees understood the survey The refined questionnaire served as the final version for the main survey.
A total of 360 hard copy questionnaires were distributed in a direct survey, while an additional 180 questionnaires were sent out online In total, 410 responses were received, but only 391 questionnaires were deemed suitable for the data analysis phase.
Step 5: The validity of scales testing with Exploratory Factor Analysis (EFA) method
After collecting data from main survey, the Exploratory Factor Analysis (EFA) method was applied to explore the inter relationship between the variables
The correlation matrix for evidence of coefficient should be greater than 0.3
Barlett’s test was smaller 0.05 (p