CORPORATE SOCIAL RESPONSIBILITY AND EMPLOYEE SATISFACTION A STUDY OF VIETNAMESE FIRMS IN HCMC

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.. After that

Our earth will be quickly destroyed soon by ourselves So is it reasonable to continue to maximize profits at any cost? Will we accept to have a short life left on earth? Or is it time we all get the same serious look about developing world responsibly and sustainably? The question has made a major concern from 1953 to date in the process

of business development and the concept of Corporate Social Responsibility (CSR) also was originated

Currently, CSR has become a real movement and growth in worldwide For the current Euro-American countries, consumers are interested in not only the quality of end product but also the way that production method which are friendly with environment, community, human healthy or not For example, there have been many movements to boycott products such as fringe food, carbonated soft drinks, fur products, etc With social pressure, the enterprise has made CSR initiative as one of the essential and serious activities, even drafting for their own CSR strategy For example, a series of programs have been implemented such as saving energy, reducing carbon emissions in the production and using recycled materials, solar energy, improving water sources, building schools, building epidemic diseases research center in developing countries,

improving the working environment of employees and helping surrounding communities Companies are known as CSR leaders: TNT, Google, Intel, Unilever, Coca-Cola, GE, Nokia , HSBC, Levi Strauss, Bayer, Dupont, Toyota, Sony, Samsung, etc With the ongoing effort to implement CSR, corporations in the world today have achieved a lot of success from the increasing employee satisfaction, reducing operating costs to enhance the prestige image in public Therefore, the implementation of the CSR is as a key strategy for sustainable development of enterprises

CSR in Vietnam

The state of CSR in Vietnam is intimately linked to doi moi (renovation) and the effects

of globalization In December 1986, Vietnam’s Community Party adopted a oriented socialist economy under state guidance.’ Since then, the Vietnamese state and society have undergone dramatic transformations Vietnam has been transformed from

‘market-a st‘market-ate-led economy to ‘market-a more m‘market-arket-oriented one There were ch‘market-allenges to st‘market-ate-owned enterprises, including foreign investment and donor pressure Joining the World Trade Organization (WTO) continued to drive the shift from state to market orientation With this shift, CSR, an initiative of the market, comes to the fore CSR plays a major role in the environmental and social sustainability of the country The

state-forces of doi moi and globalization brought the pressure of international codes of

compliance to Vietnamese firms Not only did citizens become more aware of the importance of social responsibility, but the legal code of the country now had greater need to adapt to meet and enforce international standards Although Vietnam did not adopt an explicit CSR policy, the government began to address some CSR-related issues within the sustainability strategy called Vietnam Agenda 21 This document, officially signed by the prime minister in 2004, provides a strategy for sustainable development in Vietnam It puts people at the center of development, but says that environmental protection is inseparable from benefits for people It aims at a balance

between the interests of present and future generations so that actions taken now do not imperil the well-being of the future The strategy calls for training, workshops and media outreach to improve understanding of sustainable development and the management capability to achieve it Agenda 21 allocates budget for these activities and calls for efforts to strengthen international cooperation on sustainable development

In Asia, the trend of interest in CSR is increasing but the development of CSR is still relatively low In particular, Vietnam is one country that CSR concerns have been risen fast CSR was first introduced into our country through the activities of multinational companies investing in Vietnam The contents of CSR performance in these companies are basic and effective: "I love Vietnam" - Honda Vietnam, educational programs for personal hygiene for children in the mountainous provinces of Unilever; computer training program TOPIC64 of Microsoft, Qualcomm and HP; supported programs surgery of congenital heart defects and supporting victims of Can Tho bridge collapse

by VinaCapital, Samsung; vision rehabilitation program for poor children by Western Union's, etc

For domestic enterprises, the initial concern for CSR in the export enterprises such as garment and footwear (focusing on the treatment of workers and applying the good work) The Vietnam Business Links Initiative, a multi-stakeholder initiative, developed

a local code of conduct for the footwear sector in the late 1990s The Initiative now provides annual CSR Awards for the footwear, garment and textile industries, and recently initiated an award for CSR in the marine products industry In addition, large corporations in Vietnam also implement CSR initiative and build a good image with the public such as Mai Linh, Duy Loi, ACB, Sacombank, Kinh Do, etc However, these activities lack of depth

Most small and medium enterprises in Vietnam is still relatively inactive in CSR issues such as soy sauce 3MCPD, melamine-tainted milk, petrol station fraud or causing serious environmental pollution, etc So clearly, the perception about CSR is incorrect and not enough that makes the Vietnamese enterprises losing competitive advantages

on their playground and ruin the business environment from indirectly to directly What

is the reason? Do not managers of the enterprises have fully aware of the importance of CSR for sustainable development? Or they do not know where they start and how they implement CSR? Therefore, CSR perception is very important and sensitive

1.2 Problem Statement

Corporate Social Responsibility (CSR) in Vietnam is understood by many ways Not all CSR activities and campaigns of Vietnamese organizations are successful So, how people perceive about CSR is more important than how they operate Employees are more and more conscious of the widening obligations of firms towards the society This means that they nowadays perceive CSR as one of the important issues to be considered by the employees

The study by Claydon and Doyle (1996) emphasizes the importance of employee power in organizational angagement Similarly, in the study by Greenwood (2007) employees as representatives of the internal side of the organization are identified as the most salient stakeholders among all others and thus can be expected to have the biggest power in terms of stakeholder engagement Therefore, managers and employees’ perception about CSR is very important in companies beacause it decides the employees’ attitude and employees’ behavior at work

Until now, some studies investigate the relationship between employees’ perception about CSR and different aspects of job satisfaction all over the world However, there

is not any study which find out the relationship between employees’ CSR perception their job satisfaction 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?

1.3 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)

Quntitative research will be applied to the companies or enterprises in Ho Chi Minh City (HCMC) only HCMC is a central commercial city in Vietnam, where attracts most of important and developing industries in Vietnam

1.4 Research Process

1.5 Research Structure

Chapter 1 Introduction to introduce the research background, the research problem

Raising the problems, the objectives, scope and the process of the research were

defined in order to solve Then, Chapter 2 Literature review to present the theorical

concepts and conceptual framework being the base for the research Hypotheses according to the conceptual framework selected for this research were discussed and

developed for testing After that, Chapter 3 Research Methodology to present in more

detail research approach, research design, development of the measurement scales, the

questionnaire and the data analysis approach And Chapter 4 Data Analysis to present

the resut of research and statistic analysis and discussion It also concludes on the

theoretical and managerial implications of the research findings Finally, Chapter 5 Conclusion and Recommendations to propose the conclusions on the research,

limitations and recommendations (if any)

Chapter 2 LITERATURE REVIEW

This chapter presents the theorical concepts and conceptual framework being the base for the research Hypotheses according to the conceptual framework selected for this

research are discussed and developed for testing

2.1 The concept of Corporate Social Responsibility

The basic concept of CSR is that corporations have responsibilities to go beyond the traditional business objective of maximizing short-term profits and protect and nurture society and the environment However, implementation CSR is controversial because there is no consistent definition of CSR and no accepted way to measure it Numerous studies attempt to define “corporate responsibility” from various perspectives, with descriptions ranging from “corporate philanthropy” to “business ethics”

The definition of CSR does not come in the form of a single conclusive definition even though in theory and practice, there were many detailed discussion with regard to the concept of CSR In genral, CSR refers to making business decision associated with ethical values, compliance with legal requirements, and respect for people, communities and environment Jones (1980) argues that CSR is the perception that corporations have an obligation to groups in sciety other than stockolders and beyond that prescribed by law and union contract Another definition is from Kotler and Lee (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) (2002) defines CSR as “the commitment of the company to contribute to the sustained economic development by working with employees, their families, the local community, and the entire society in order to improve life quality” Wood (1991) defines CSR as “a business organization’s configuration of principles of social responsibility, processes of

social reponsiveness, and policies, programs, and observable outcomes as they relate to the firm’s societal relationship”

Adding on to the definition from the social perspectives, Baker (2003) maintained that CSR concerns the way companies manage their business processes which positively affect society aligned to the business World Bank (2002) describes CSR as the businesses’ obligations to provide renewable economic development through cooperation with employees, their families, the local community and society in a manner that enhances their livelihood and consequently leads to beneficial business and

of its various stakeholders By satisfying stakeholder demands, corporations develop trust and loyalty among those stakeholders More and more corporations promote socially responsible actions and policies to effectively respond to stakeholder 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

Carroll (1979) first delineated the now-familiar four categories of CSR in a paper on corporate social performance, depicting them as ordered layers which he labelled economic, legal, ethical and discretionary responsibilities Carroll (1979) explained that the four classes “are simply to remind us that motives or actions can be categorized as primarily one or another of these four kinds” The order and relative weighting was “to suggest what might be termed their fundamental role in the evolution of importance”

In its first conception, therefore, the framework took a retrospective developmental perspective, based on the claim that “the history of business suggests an early emphasis

on the economic and then legal aspects and a later concern for the ethical and discretionary aspects”

In 1991, Carroll (1991) first presented his CSR model as a pyramid, as shown in Figure 2.1 He once again uses his original historical explanation for the relative weighting, saying: “To be sure, all these kinds of responsibilities have always existed to some extent, but it has only been in recent years that ethical and philanthropic functions have taken a significant place” He also introduces dependence as a rationale, “beginning with the basic building block notion that economic performance undergirds all else” Finally, he suggests that, although the components are not mutually exclusive, it “helps the manager to see that the different types of obligations are in a constant tension with one another”

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 Most recently, Carroll reproduced his 1991 CSR pyramid once again, but this time attempted to incorporate the notion of stakeholders, in terms of which economic responsibility contains the admonition to “do what is required by global capitalism”, legal responsibility holds that companies “do what is required by global stakeholders”, ethical responsibility means to “do what is expected by global stakeholders”, and philanthropic responsibility means to “do what is desired by global stakeholders” (author’s original emphasis)

2.3 Previous research about Corporate Social Responsibility and Employees’ job satisfaction

Albdour & Altarawneh (2012) investigate the impact of internal CSR perception on employees’ engagement Specially, this study examines the impact of five CSR factors namely: training and education, human rights, health and safety, work life balance and workplace diversity on the two dimensions of employees’ job engagement and organizational engagement All CSR factors above make positive impact on employees’ job engagement and organizational engagement

According to the previous study of Duyu Turker (2009), an original, valid, and reliable measure of CSR reflecting the responsibilities of a business to varoius stakeholders is built A scale for CSR is developed through a systematic scale development process There are 42 observation varaibles in four elements: CSR to employee, CSR to customer, CSR to government and CSR to society and other stakeholders And four factors in the previous research of Duyu Turker (2009) have been applied to this research So there are four factors to measure CSR perception: CSR to employee, CSR

to customer, CSR to government and CSR to society and other stakeholders

The study by Aharon Tziner, Yaki Bar, Lior Oren and Gal Kadosh (2011) examines the connections between employees’ CSR perception and employee dimensions of job satisfaction and organizational justice The results show that employees’ CSR perception is positive related to both job satisfaction and organizational justice In this research, the authors use Turker’s CSR scale to measure employees’ CSR perception And the model as below

+

Internal CSR

organizationa

l engagement

health and safety

work life balance

Organizational Justice

CSR to society

CSR to employee

CSR to customer

CSR to government

2.4 Research Model

H1: There is a positive impact of CSR to employees on Employees’ satisfaction

Employees’ perceptions of CSR are likely have a positive effect on organizational trust and job satisfaction because CSR activities elavate employees’ self-image and morale

by helping align personal identities with those of the corporation (Lee et al., inpress)

In the theoretical literature, social identity theory suggests that employees and other stakeholders are more likely to have positive perceptions of an organization when they feel connected to its objectives (Peterson, 2004) To this end, CSR strategies can positively enhance the perceptions that employees have their own organization (Brown and Dacin, 1997), and stakeholders tend to trust company that recognize and resolve social problems in an ethical manner (Hosmer, 1995) Further, Vlachos et al (2010) identified a positive relationship between salespersons’ perceptions of their company’s CSR and job satisfaction In the hospitality literature, one recent study found that multiple dimensions of CSR have significant, positive effects on employees’ job satisfaction (Lee et al., in press)

H2: There is a positive impact of CSR to customers on Employees’ satisfaction

Carroll (1999) states that economic viability is something business does for society as well and describe the economic component as a responsibility to produce goods and servies that customers want and do right thing what customers expect

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., 2007) Results indicated that higher levels of customer orientation encourage employees to have higher degrees of job satisfaction This finding is grounded in the theoretical literature: social exchange theory proposes that individuals engage in

reciprocal behaviors and support those from whom they benefit, and Hoffman and Ingram (1992) apply this to the workplace in finding that customer orientation behavior positively correlates with job satisfaction In addition, it seems customer orientation is associated with job satisfaction (Motowidlo, 1984)

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

According to Sim (2003), “social responsibility” and “legality” are not one and the same thing CSR is often seen as acts that go beyond what is prescribed by the law The definitions of McGuire (1963) and Davis (1973) state that legal obligations is one of important compnent of CSR

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

(1953), one of the first scholars to define the concep CSR “to pursue policies, make decisions, or to follow lines of action which are desirable in terms of the objectives and values of our society” Accoring to Carroll (1991), there is a natural fot between the idea of CSR and an organization’s stakeholders In a broader understanding, which can

be attributed to the famous definition of Freeman (1984), stakeholders are “those groups or individuals who can affect or are affected by the achievement of the organization’s objecives or are those actors with a direct or indirect interest in the company” Therefore, CSR to society and other stakeholder is a important factor in the scale

Moderated variable: Position

Previous studies show that managers’ and employees’ concern about CSR are not totally the same Managers believe that CSR activities will make benefit and reputation for enterprises and they focus much on external CSR activities (Jeremy Galbreath, 2009)

Findings of Leonidas, Mary, Theofilos, Amalia (2012) indicate that most companies have an internal management function that executed CSR programs which were mostly oriented towards society, environment and employees Moreover, managers believe that CSR activities offer a number of benefits Interestingly, managers who believe that CSR activities should be communicated and evaluated externally by a national agency tend to hold a strong positive attitude for 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

Research Model

Fifure 2.2 The proposal research model

H1: There is a positive impact of CSR to employees on Employees’ satisfaction

H2: There is a positive impact of CSR to customers on Employees’ satisfaction

H3: There is a positive impact of CSR to government on Employees’ satisfaction

H4: There is a positive impact of CSR to society, environment, generations and NGOs

on Employees’ satisfaction

H2

H4 H3

Chapter 3 RESEARCH METHODOLOGY

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

A qualitative research with preliminary questionnaire was conducted with pilot enterviews with some key interviewees who are employees and managers (middle and low level managers) in Vietnameses firms by in-depth interview After that, the sample size is determined

In the main survey, the qualitative study was conduct to this research by face-to-face interview method Questionnaires were sent to 440 interviewees who are employees and managers coming from different organizations in HCMC And the main method which is used to interview in this survey is direct survey and online survey Data was collected in two weeks

After interviewed, there are 410 questionnaire were sent back but only 391 questionnaires in collected samples coulb be used for analyzing because of the missing problems in the answers After checking the correction and quality, the data were imported to SPSS software in order to analyze

The validation of questionnaires and the reliability of measurement scale of this research were also tested by using Exploratory Factor Analysis (EFA) and Cronbach alpha reliability methods while the Standard Multiple Regression was applied for hypotheses testing The research steps were showing in the following figure

Cronbach’s reliability cofficient

Research Hypotheses testing

Regression analysis

The research steps of this research consist of seven steps:

Step 1: Initial research model and the draft questionnaire

Based on the literature review, the conceptual model and preliminary hypotheses on CSR and employees’ satisfaction were developed While the draft questionnaire which has based on the various measurement scales in the previous and extent researches was also designed

Step 2: Questionnaire refinement by qualitative pilot research

In the first round of this step, the qualitative research with preliminary questionnaire was conducted with pilot interviews by in-depth inetrview method This round was executed with three employees and two middle level managers of some Vietnamese firms who are friends of author in order to assess the sufficiency of the measurement scales, the conceptual model and the questionnaire Then, the sample size was identified

Step 3: Quantitative pilot research for the clarity of questionnaire testing

A quantitative pilot research was carried out in this step by face-to-face interview method in order to test how the interviewees understood not only about the content of questionnaires but also about the measurement scales of this research This round was undertaken with 14 interviewees who also employees and managers in Vietnamese companies in HCMC The feedbacs from interviewees in this step were very important

to the questionnaire refinement process and ensure the understanding of most pilot intervieweesabout this survey The questionnaire which was refined was also the final version to be released in the main survey

Step 4: Data collection

The direct survey with attached questionnaires was sent to 360 interviewees with hard copy Besides, online survey was also sent with 180 questionnaires There are 410 questionnaires replied and only 391 questonnaires were used for data analysis step

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<0.05)

The KMO index was greater than 0.6 (the range from 0 to 1)

Consequently, the hypotheses model was modified

Step 6: Cronbach Alpha Analysis

Cronbach Alpha Analysis method was applied to assess the reliabiity of measurement scales by testing the consistent of the internal variables in the same factors The scale was considered as the reliable scale when the Cronbach Alpha coefficient was greater than 0.7

Step 7: Standard Multiple Regression

The Standard Multiple Regression was used for the hypotheses testing

3.2 Data Collection

3.2.1 The primary data

The primary data was collected by face-to-face interviews method by traditional survey with hard copies and by the online survey (which was sent by emails to the interviewees) The interviewees are employees and managers of Vietnamese firms in HCMC

3.2.2 The Secondary data

The extant literature, international business journals, articles, books, and professional newspapers are useful sources of relevant information contributing tho the research The internet information from the business or expertise websites are also the valuable sources for collecting related information to this research

3.3 Field Work Organization

n ≥ 100 and n ≥ 5k (where k is equal to the number of variables)

Therefore, in this study the minimum sample size for this research is

n = 5 x 51 = 255 (k=51 is the number of variables)

Otherwise, Tabachnick & Fidell (2001) illustrated the minimum sample size which is required for the multiple regressions should be:

n ≥ 50 + 8m (where m is equal to the number of independent factors)

There are four independent factors in thi study And the minimum sample size is required for the multiple regressions:

n ≥ 50 + (8 x 4) = 82

Consequently, the minimum size for this research is 82

Finally, the sample size is used for this research was 391 While the sent back questionnaires are 410, there were 440 questionnaires sent out to the interviewees

3.3.2 Qualitative research

Before having the final questionnaire, the preliminary questionnaire as pilot method was sent to some key employees and managers of some Vietnamese companies by in-depth interview method in order to check the content of the measurement and find out the mistakes of questionnaire After that, the quantitative research in pilot research period is also conducted with randomly-selected 14 interviewees who are targeted interviewees as mentioned come from Vietnamese companies located in HCMC by face-to-face interviews for final test before launching the final survey

The information is collected in in-depth interview in order to identify the influence of the independent factors (CSR to employee, CSR to society and other stakeholders, CSR

to Government and CSR to customer) on employees’ satisfaction of Vietnamese firms

in HCMC

All the comments from the interviewees gathered in pilot study is to revise the measurement scales and questionnaires The misunderstanding mistakes or duplicated issues (between the variables) were also mentioned by the interviewees to ensure that the questionnaire could be understood more clearly and easily

3.4 Measurement scales

3.4.1 Measurement construct

All the factors from the model in this research are original from many previous studies with citing Based on the literature review briefing, the most appropriate measurement scale is a multivariate scale applied for this study

They are four independent factors adapted to fit the characteristic and culture of Vietnamese: CSR to employee, CSR to Government and CSR to customer, CSR to society and other stakeholders In order to executed the quantitative study in this research, the Five-point Likert scale was used in the questionnaire for survey

CE01 Our company provides a wide range of indirect benefits

to improve the quality of employees’ lives

Adapted from Duygu Turker,

CE02 The employees in our company receive a reasonable

salary to maintain an acceptable quality of life

2009

CE03 Our company policies provide a safe and healthy

working environment to all its employees

CE04 Our company supports employees who want to acquire

additional education

CE05 There are sufficient numbers of opportunities to develop

my skills in my current job

CE06 Our company policies encourage the employees to

develop their skills and careers

CE07 Company usually make change for employees take care

health

Newly developed CE08 Company does right guarantee policies for employees Newly

developed CE09 Our company implements flexible policies to provide a

good work & life balance for its employees

Adapted from Duygu Turker,

2009 CE10 The management of our company is primarily concerned

with employees’ needs and wants

CE11 The managerial decisions related with the employees are

usually fair

CE12 I believe that our company provides equal opportunities

to all its employees

CSR to customer

CC01 One of the main principles of our company is to provide

high-qualityproducts to its customers

Adapted from Duygu Turker,

2009 CC02 Our prducts comply with the national and international

standard

CC03 The guarantee extension of our products is the most

advantageous choice in the market

CC04 Our company provides full and accurate information

about its product to customers

CC05 Our company respects consumers’ right beyond the legal

CG02 Our company complies with legal regulations

completely and promtly

2009

CG03 Our company tries to help the government in solving

social problems

CG04 Our company acts legally on all matter

CSR to society and other stakeholders

CS01 Our company implements special programs to minimize

its negative impact on the natural environment

Adapted from Duygu Turker,

2009 CS02 Our company participates in activities which aim to

protect and improve the quality of the natural

environment

CS03 Our company has the necessary equipment to reduce its

negative environmental impact

CS04 Our company make a well-planned investments to avoid

environmental degradation

CS05 Our company targets sustainable growth which considers

future generations

Adapted from Duygu Turker,

2009 CS06 Our company make the investments to create a better life

for future generations

CS07 Our company make the investments to create

employment opportunities for future generations

CS08 Our company emphasizes the importance of its social

responsibilities to the society

CS09 Our company contributes to schools, hospitals, and parks

according to the needs of the society

CS10 Our company contributes campaigns and projects that

promote the well-being of the society

CS11 Our company endeavors to create employment

opportunities

CS12 Our company conducts research and development

projects to improve the well-being of the society in the future

CS13 Our company makes sufficient monetary contributions to

charities

CS14 Our company encourages its employees to participate in

voluntarily activities

CS15 Our company supports nongovernmental organizations

working in problematic areas

CS16 Our company’s main principle is honesty in every

business deeling

CS17 Our company cooperates with its competitors in social

responsibility projects

CS18 Our company competes with its rivals in an ethical

ES04 You satisfy with CSR to society policies in this company

ES05 In general, You feel satisfied when working here

3.4.2 Statistic Methods

In order to compare and test the collected data from the questionnaires, a numerous statistic methods had initially been used in this research like standard deviation, frequency, distribution and variance And the SPSS version 20.0 sofware (Statistical Package for Social Science) would be used for data analysis

3.4.3 Descriptive Statistic

The descriptive statistics is conducted in order to provide the general information of interviewee evaluation in regards gender, working experience and enterprise

ownership The criteria were positively affected to the researcher for identifying the degree of awareness of employees and managers about CSR on their satisfaction in Vietnamese organizations via values of minimum, maximum, mean, standard deviation, frequency and percentage calculated from the collected data The Likert Scale with the degree of agreement from strongly disagree to strongly agree was used raking from 1 – 5

3.4.4 Assessment of Scale Reliability

The Assessment of Scale Reliability is a measurement of the internal consistency of the constructed items in this research in order to evalue the reliability of each variable in measurement scales Otherwise, the observed varaibles describe the common construct The constructs with high reliability are those in which the items are highly inter-correlated It states that they are all measured with the same construct (Hair et al, 1998)

Reliability analysis is used for Cronbach’s alpha coefficient and item total correlation The reliability coefficient of Cronbach’s alpha also illustrates how relation of the items

in a set which are significantly correlated from one to another

 A common value of Cronbach’s alpha for acceptable reliability is 0.7

 Although this value is not an absolute standard but it can decrease to 0.6 in exploratory research (Hair et al, 1998)

 When the Cronbach’s alpha is closer to 1, the internal consistency reliability is higher (Sekaran, 2003)

 Any variables which have the value of Corrected Item – Total Correlation below 0.4 or Alpha if Item Deleted over the Cronbach’s alpha would be considered to

be excluded for improvement of the reliability level of the construct (Hair et al, 1998)

3.4.5 Assessment of Scales’ Unidimensionality, Discriminant Validity and Convergent Validity

After evaluating the scale reliability, the Exploratory Factor Analysis (EFA) method is also applied to test the uni-dimenionality, discriminant validity and convergent validity

in order to identify the number of underlying factors

 Uni-dimensionality considers the strong realtion of all the items in a scale (Hair

et al, 1998)

 Discriminant validity is started as the items in one single construct hang together and the items are negatively associated with the opposite construct (Neuman, 1999)

 Convergent validity assesses the degree in which two measurements of the same concept are correlated (Hair et al, 1998)

3.4.6 Multi Regression Analysis

The main task of statistic analysis is applied in the multiple linear regressions in order

to study the correlation and measure the prediction level of 4 independent varaiables on

1 dependent varaible The multiple regressions alnalysis is applied to test the conceptual model and its hypotheses

According to Pallant (2005), the summaries of Multi Regression Analysis are:

 The appropriate sample size is: n > 50 + 8m (where m is number of independent variables)

 No multicollinearity

 No outliers are used in this case, no significant impact of outlier

 Normality and linearity should be existed

Chapter 4 DATA ANALYSIS

This chapter presents the assessment of measurement and result of hypotheses testing about CSR factors on employees’ satisfaction of Vietnamese companies in HCMC The structure of this chapter consists of four sections:

 Sample descriptive statistics

 Assessment and refinement of measurement scale

 Hypotheses testing

 Chapter summary

4.1 Sample descriptive statistics

440 questionnaires were sent to interviewees who are employees and managers (low and middle level managers) There were 410 replies in which 11 of them were invalid due to missing problems The valid questionnaires were 391 which included 259 employees and 132 managers

Table 4.1 Gender of respondents, Working experience, Enterprise ownership

In the percentage of ownership of the respondents, the number of respondents who are from the State-owned Enterprise is 28% Otherwise, 56% of the respondents are from Private Enterprise and 16% are others (Joint Venture Enterprise, Non Government Organization)

4.2 Assessment and Refinement of measurement scale

4.2.1 Refinement of measurement scale

In this part of this research, the measurement scales are assessed and refined by two following methods:

 Cronbach’s alpha to test the reliability of measurement scales

 Exploratory factor analysis (EFA) to assess the validity of measurement scale Firstly, the Cronbach’s alpha test is carried out in order to test the reliability of the measurement scales The condition of each scales are over 0.7 and over 0.6 is acceptable for the reliability of them Besides, in order to increase the Cronbach’s alpha

of the scales, the variables which the item-total correlation are smaller than 0.3 are considered to be deleted

Secondly, the EFA is also conducted to test the validity of the measurement scales The principal component extraction method is used the varimax rotation method The criteria for the validity of EFA method for measurement scales are the Eigenvalue is greater than 1 and the total variable explained is over 50%

After considering the result of reliability, the alpha coefficient of all factors which met requirements from Cronbach’ alpha of each scales were qualified for the reliability All correlated item-total correlation value in all scales are over 0.3 The Cronbach’s alpha value of all the factors over 0.7 with the 0.871 for CSR to employee, 0.855 for CSR to customer, 0.862 for CSR to government, 0.936 for CSR to society and other stakeholders and 0.841 for employees’ satisfaction

The reliability test result in the following table will show the detail of the factors and variables which were reliable

Table 4.2 Reliability testing results

Variables Scale Mean if

Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

CSR to employee (12 items) - Cronbach’s alpha 0.871