The study object of the thesis is the implementation of CSR of SMIEs in Thai Nguyen province for employees. CSR has various contents such as environmental protection, CSR for consumers, CSR for the community, CSR for employees. In the scope of this dissertation, the author analyzes the implementation of CSR of SMIEs in Thai Nguyen province through the steps in the process such as by working out the plan, organizing the implementation, building contents of implementing and evaluating the implementation.
Trang 1THÁI NGUYÊN UNIVERSITY ECONOMICS AND BUSINESS ADMINISTRATION UNIVERSITY
BUI THI THU HUONG
CORPORATE SOCIAL RESPONSIBILITY OF SMALL AND MEDIUM - SIZED ENTERPRISES IN THAI NGUYEN PROVINCE FOR EMPLOYEES
Specialization: Economic Management Code: 9340410
ABSTRACT OF ECONOMIC MANAGEMENT DOCTORAL THESIS
THAI NGUYEN, 2018
Trang 2THESIS IS COMPLETED IN
ECONOMICS AND BUSINESS ADMINISTRATION UNIVERSITY -
THAI NGUYEN UNIVERSITY
Scientific supervisors: 1 Assoc Prof Dr Tran Quang Huy
2 Dr Pham Quoc Chinh
The peer review 1: The peer review 2: The peer review 3:
The thesis is prevented to the Council held in Thai Nguyen University at the , , 2018
Desertation can be found at:
- Learning Resource Center, Thai Nguyen University
- Library of Economics and Business Administration University
Trang 3PREFACE
1 THE NECESSITY OF THE TOPIC
The industry of Thai Nguyen is on the rise with many small and medium - sized industrial enterprises (SMIEs) which focus on intensive investment, technological innovation, expansion of scale and location of activities and the business lines However, they only concern about profitability and ignores their responsibilities for the stakeholders, especially for the employees - an input factor that creates directly wealth for enterprises as well as the society, which plays an important role in the success of the business The dramatic increase but lack of consideration, lack of careful calculations in the mining and processing industries have resulted in many problems for the employees not only in ethical, philanthropic but also in legal and economic aspects Some problems exist in SMIEs in Thai Nguyen province such as assigning jobs to employees unequally between SMIEs, overworked employees, insufficient resting time, imporperly paid allowances for employees, insufficient protection equipment for employees while the SMIEs’ payment of social insurance premiums, health insurance for employees is not consistent with the law and contaminated working environment led to the high rate
of occupational deseases among SMIEs These have threaten the sustainable development of SMIEs in Thai Nguyen province and the society as a whole, thus creating barriers to the building and improvement of social standards
Based on these facts, the title "Corporate social responsibility of small and medium - sized enterprises in Thai Nguyen province for employees" has been
selected to study to aim at improving CSR for employees of SMIEs in Thai Nguyen province in the coming time
2 PURPOSE OF STUDY
2.1 General purpose
Research on CSR of SMIEs in Thai Nguyen province for employees, thus suggesting measures to improve SMIEs' CSR implementation in Thai Nguyen province, contributing to enhancing the job satisfaction
2.2 Detailed purpose
- To systemize theoretical and practical basis relating to CSR for employees
- Analyze and assess the actual status of CSR implementation of SMIEs in Thai Nguyen province for employees in the past and analyze the impact of CSR on employees' job satisfaction in SMIEs Thai Nguyen province
- Propose some measures to enhance the implementation of CSR of SMIEs for employees in Thai Nguyen province by 2025
Trang 43 OBJECT AND SCOPE OF STUDY
- The thesis investigates, evaluates and quantifies the influence of CSR for employees on job satisfaction of SMIEs in Thai Nguyen
3.2.2 Space
The dissertation is conducted in the SMIEs currently operating in Thai Nguyen province
3.2.3 Time
- Secondary data: The thesis collects secondary data on the implementation
of CSR of SMIEs in Thai Nguyen province in the period 2014 - 2016
- Primary data: The dissertation collects the primary data on the implementation of SMIEs in Thai Nguyen by 2016 The solutions are researched and proposed by 2025
4 NEW CONTRIBUTIONS OF THE RESEARCH
Firstly, the thesis contributes to the systematization and clarification of the
theoretical and practical basis of CSR for employees, the concept of CSR for employees in SMIEs as well as building the criteria and framework CSR of SMIEs
in Thai Nguyen province
Secondly, the survey with the sample size of 231 managers and 394
employees in SMIEs in Thai Nguyen province showed that the proposed research model is relevant The proposed hypotheses are supported where responsibilities of SMIEs for employees in the economic, legal, ethical, philanthropic aspect have the same impact on the job satisfaction of employees
Thirdly, the survey results show that the SMIEs in Thai Nguyen province
have not properly performed the economic and legal responsibility for the employees
Trang 5Fourthly, the quantitative research results show that the economic
responsibilities for employees will have the greatest impact on job satisfaction among SMIEs in Thai Nguyen province, followed by legal, ethical responsibilities have the least effect
Fifthly, the content in the thesis will provide a basis for enterprises to
compare with their CSR implementation for their to employees This, in combination with groups of solutions presented in the dissertation will enhance the CSR implementation of the enterprises for employees, thereby improving the job satisfaction for employees
Sixthly, the research results will a reference for the policy-making agencies
involved in the development of SMIEs in Thai Nguyen province in particular as well as Vietnam in general
5 STRUCTURE OF THE RESEARCH
Chapter 1: Overview of corporate social responsibility for employees
Chapter 2: Theoretical and practical basis for corporate social responsibility
of small and medium - sized industrial enterprises for employees
Chapter 3: Research methods
Chapter 4: Results of research on corporate social responsibility of small and medium - sized enterprises in Thai Nguyen province for employees
Chapter 5: Some solutions to improve the corporate social responsibility of small and medium - sized enterprises for employees in Thai Nguyen province
CHAPTER 1 OVERVIEW OF CORPORATE SOCIAL RESPONSIBILITY
FOR EMPLOYEES 1.1 RESEARCH ON CORPORATE SOCIAL RESPONSIBILITY FOR EMPLOYEES
1.1.1 Overseas studies
1.1.1.1 Studies on corporate social responsibility for employees
1.1.1.2 Studies on the effect of corporate social responsibility for employess on job satisfaction
1.1.2 Vietnam studies
Trang 61.1.2.1 Studies on corporate social responsibility for employees
1.1.2.2 Studies on the effect of corporate social responsibility for employees on job satisfaction
1.2 GENERAL ASSESSMENT ON RESULTS OF RESEARCH AND PRINCIPLES OF RESEARCH
1.2.1 Successes
1.2.2 Limit
- In the country and abroad, research on CSR for employees is relatively high but only concentrated and deepened in theory From a practical point of view, there have been a number of researches on the implementation of CSR on employees in enterprises, but there is no such research in small and medium - sized enterprises in the industrial sector in Thai Nguyen province, Vietnam
- The implementation of CSR for employees is discussed in various aspects but no research has developed a scale to assess the impact of CSR for employees on job satisfaction among SMIEs in Thai Nguyen province This is also the "gap" in the study
- There have been many studies using analytical and synthesis methods; Statistical methods, description and modern methods (EFA, regression) to assess the relationship between CSR and employees' satisfaction, but no study was found in Thai Nguyen
- In Vietnam in general and in Thai Nguyen in particular, the industry is becoming a key industry With the rapid growth of the industry, the current status of CSR in SMIEs in Thai Nguyen province is not discussed yet
1.2.3 Research orientation
In the thesis, the author will focus on the following issues: Choosing the framework; Develop criteria for CSR assessment of SMIEs for employees based on the selected framework; Evaluate the performance of CSR of SMIEs in Thai Nguyen for the employees through the selected criteria; Evaluate the impact of CSR
on employees on job satisfaction of SMIEs; Propose solutions to improve CSR of SMIEs to employees in order to develop sustainable SMIEs
CHAPTER 2 THEORETICAL AND PRACTICAL BASIS FOR CORPORATE SOCIAL RESPONSIBILITY OF SMALL & MEDIUM -
SIZED INDUSTRIAL ENTERPRISES FOR EMPLOYEES
2.1 THEORETICAL BASIS
Trang 72.1.1 Small and medium - sized industrial enterprises
2.1.1.1 Conception
a Concept of industrial enterprises
Understandable, industrial enterprises are economic organizations with their own names, assets, stable transaction offices and business registration in accordance with the law for the purpose of conducting business activities In the field of industry include mining, processing and repair services
b Concept of small and medium - sized enterprises
Small and medium - sized -sized enterprises are independent production and business establishments and have registered their business according to the current law, with a registered capital of no more than VND 100 billion or an average annual labor force of no more than 300
c Concept of small and medium - sized industrialenterprises
Small and medium - sized industrial enterprises, first of all constituting part
of the system of enterprises, are independent production and business establishments, which have registered their business under the current legislation and have registered capital not exceeding VND 100 billion or an average number of employees not exceeding 300 people per year for the purpose of conducting business activities in the industrial sector including mining, processing and repair services
2.1.1.2 Characteristics of small and medium - sized industrial enterprises
2.1.1.3 The role of small and medium - sized industrial enterprises
2.1.2 Corporate social responsibility for employees
2.1.2.1 Conception
Corporate social responsibility for employees is the commitment of the business organization to employees to the economy, legislation, ethics and phylanthropic through inherent responsibilities to improve the quality of employees’s life in win - win situation ( both company and employees benefit)
2.1.2.2 Roles
- For the benefits of employees
- For the benefits for businesses
2.1.2.3 Contents
a Actions planning
- Identifying the demands of CSR for employees
- Developing instruments of CSR for employees
Trang 8- Budget planning
b Implementation
- Organizating apparatus
- Organizing office communication
- Organizing employees training
+ Retention and development of company
+ Making profits for funds extraction
+ Wage fund, welfare and reward funds are suitable paid for employees
- Liability for employees contains:
+ Signing labor contract
+ Ensuring legal working time, resting time
+ Ensuring protective equipment
+ Ensuring periodic medical examination
+ Legal Social insurance, health insurance payment
+ Child labor, compulsory labor and discrimination
+ The right of labour to join trade unions
- Ethical responsibilities: some indications contain:
+ Training, developing and improving labour’s ability
+ Creating a healthy labor relations
+ Respecting employee’s privacy
+ Protecting the Accusers in workplace
- Phylanthrophic responsibilities: Here some indications:
+ Providing financial services, social services to employees
+ Developing employee’s personality and ethics
+ Encourage employees taking part in charitable reserves
d Evaluating Implementation
Measurement criteria contain financia criteria and non-financial criteria Financial criteria are measured by CSR’ effects and cost - savings Non-financial are measured such as the level of CSR implementation, employee satisfaction,
Trang 9employee commitment Measuring the results of CSR helps to simplify the decision
- making process and reduce risks in the implementation process
2.1.2.4 Affected factors
a Elements of the external environment
- The economic - political environment
- Legislation environment
- The management of the authorities
- Civil society organizations
- Public opinion and the Press
b Elements of the internal environment
- Operational strategies and targets
- Company financial position
2.2.3 Learning from experience
- Proving initial support to motivate SMIEs to implement CSR for employees
- Investing time and budget for SMIEs
- The SMIEs have to fulfill all four responsibilites: economic, legal, ethical and charitable responsibilities for employees:
Trang 10+ Having flexible compensation, looking after social security issues such as social insurance, health insurance, labor satisfaction and other welfare to employees
+ Designing the legal and suitable working time, rest time for employees + Prohibitting discrimitation to appoint employees; índiscriminating training types, personal background, religion, gender, nationality in recruiment in order to creates a healthy, equitable and equal working environment
+ Employee training programs, plans, contents and methods should implement to suit the enterprises situations In addition, the enterprise creates opportunities for career advancement
+ Create a healthy and useful environment for employees to improve the their quality of mental health
CHAPTER 3 RESEARCH METHODS 3.1 RESEARCH QUESTION
- What is the role of CSR for employees in SMIEs?
- What are the criteria for assessing whether SMIEs conduct CSR for employees?
- What are the current situation of CSR of SMIEs in Thai Nguyen province for employees?
- What is the impact of CSR for employees to job satisfaction of SMIEs in Thai Nguyen province?
- What are the constraints that exist in the implementation of CSR in SMIEs
in Thai Nguyen province and what are the causes of these constraints?
- What solutions to improve CSR of SMIEs in Thai Nguyen province for employees?
3.2 APPROACH AND ANALYTICAL FRAMEWORK
3.2.1 Approach
3.2.1.1 Approach to the system
3.2.1.2 Approach by type of business
Trang 11- From research papers, research works, thesis, dissertations, scientific articles, seminars, yearbooks in the country and abroad related to dissertations
- The information is officially published as the Government's decrees, codes, documents issued by the departments of the province
- Data provided by SMIEs in Thai Nguyen province
- In addition, the author also collected data through a number of official websites
3.3.1.2 Primary data
Primary data was collected by expert interview and survey method, as follows:
a Expert interview
b Survey and survey
3.3.2 Synthesis, data processing
3.3.3 Analysis of data
3.3.3.1 For secondary data
3.3.3.2 For primary data
3.4 SYSTEM OF RESEARCH METHODS
- Indicators reflect the development of CSR plans for employees, such as the number of enterprises and the percentage of enterprises wishing to implement CSR for employees; Number of enterprises and percentage of enterprises applying CSR standards for employees number of enterprises and percentage of enterprises having budget to implement CSR for employees
- Indicators reflect the organization of CSR implementation for employees, such as the number of enterprises and the percentage of enterprises establishing the department responsible for implementing CSR for employees number of enterprises and percentage of enterprises having internal communication to carry out CSR for employees; Number of enterprises and percentage of enterprises having training staff to implement CSR for employees
- Indicators reflecting the implementation contents: Indicators reflect the economic, legal, ethical and philanthropic responsibilities of the enterprise for employee
- Indicators reflecting CSR assessment of employees
Trang 12CHAPTER 4 RESEARCH RESULTS CORPORATE SOCIAL RESPONSIBILITY OF SMALL AND MEDIUM - SIZED ENTERPRISES IN THAI NGUYEN PROVINCE FOR EMPLOYEES
4.1 OVERVIEW OF SMALL AND MEDIUM - SIZED ENTERPRISES IN THAI NGUYEN PROVINCE
4.1.1 General characteristics of the Study Area
4.1.1.1 Natural Features
a Geographical Location
b Topography and Climate
c Natural Resources
4.1.2.1 Process of Formation and Development
4.1.2.2 Number of Small and Medium - Sized Industrial Enterprises in Thai Nguyen Province
a Number of Enterprises by Enterprise Type
b Number of Enterprises by Location
4.1.2.3 Labor Force in Small and Medium - Sized Industrial Enterprises
4.2 IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY
OF SMALL AND MEDIUM - SIZED INDUSTRIAL ENTERPRISES IN THAI NGUYEN PROVINCE FOR EMPLOYEES
4.2.1 Implementation of Enterprise
4.2.1.1 Actions planning
The SMIEs in Thai Nguyen Province put common world standards into application limited, but there are some SMIEs have built and announced CSR standards of internal employees which are appropriate for the needs of their enterprises This proves that SMIEs are also interested in implementing CSR towards employees
4.2.1.2 Implementation
Trang 13In order to effectively implement CSR for employees, the SMIEs also organized some forms of propaganda, dissemination of knowledge and guidance on the implementation of CSR law to employees through the conferences, the workshops This is a popular method, conducted with many participants In addition, methods of propaganda by newspapers, radio and television are also utilized, despite limited number
4.2.1.3 Content of implementation
The first responsibility which SMIEs have to accomplish, resolving the problems of employment According to the statistics of The Department of Labor, Invalids and Social Affairs, the SMIEs created jobs for nearly 2,100 labors in Thai Nguyen City; about 1,000 employments in Pho Yen Town; and also 1,000 works in Dong Hy District To achieve the results, the Thai Nguyen SMIEs have repeatedly recruited workers in various channels
In addition to job creation for employees, in 2014, SMIEs in Thai Nguyen created stable jobs for 6,740 employees; by 2015, the number of regular employees increased 7,792 people (up 115.6%); and by 2016, the number of the employees got 8,959 employees (up 115%)
Besides, the average income of labor in Thai Nguyen SMIEs also improved significantly, from 3.7 million VND per month in 2014 to 4.1 million VND per month in 2015 (up 110.8%), and to 4.5 million VND per month in 2016 (up 109.7%)
During 2014 – 2016, SMIEs are profitable The after-tax profits were deducted by the SMIEs to improve employees’ living standards through the welfare and reward funds Thai Nguyen SMIEs actions were considered as high value in implementing their economic responsibilities towards workers
Despite the reduction in the number of accidents, this figure is still quite high In 2016, there were 87 occupational accidents, most of which were concentrated in limited liability companies (35 accidents) and joint-stock companies (20 accidents) The least is the private sector (7 accidents) The number of people injured by occupational accidents in the period 2014 - 2016 also tends to decrease gradually, only 69 people in 2016 But the number of deaths caused by work accidents is on the rise, with 11 deaths in 2016 This showed that SMIEs are really irresponsible to employees in providing the labors with the protective equipment
4.2.1.4 Evaluating Implementation
In principle, the implementation of CSR standards towards employees in Thai Nguyen SMIEs must be strictly executed, because each stage has the