The thesis aims at building a factor model affecting corporate social responsibility (CSR) implementation in businesses; scale test of factors affecting CSR implementation; Conclusion on the trend and the influence of the factors on the implementation of CSR in enterprises of Vietnam National Textile and Garment Group as a basis for proposing policy implications and solutions to enhance the performance of responsibilities. society at the unit.
Trang 1CHAPTER 1 GENERAL INTRODUCTION TO THE STUDY
1.1 Inspiration to start the study
From the economists' point of view, the ultimate responsibility of an enterprise is
to maximize profits and create value for shareholders (Friedman, 1970) Therefore,
finance is the only motivation to promote the activities of an enterprise Today, that
concept has given way to the business method of the enterprise for not only using its
resources to serve the interests of shareholders but paying attention to the stakeholders as
well as having to be run from a moral point of view This broader thinking is called
“Corporate SocialResponsibility - CSR” (Freeman, 1984)
Vinatex is one of the enterprises that make a great contribution to the economy
In particular, the industry uses a lot of unskilled workers; the production process of
textile enterprises directly has an impact on the environment; the level of competition
in the domestic and world market is high, subjected to many barriers when exporting
goods to the US, EU, Japan, Korea and other countries However, implementing CSR
in Vinatex based enterprises still reveals limitations, existences and shortcomings
Many enterprises have not really actively explored the factors affecting the
motivation to implement CSR, there are still many enterprises doing it due to the
enforcement of the legal system, due to pressure from related parties or implementing
this action but violating other areas, which leads to low competitiveness, not-yet-built
reputation to convince consumers' beliefs, partners, community and society
In order for enterprises in Vinatex to actively implement CSR, it is necessary
to determine the factors affecting the CSR implementation of enterprises Therefore,
it is necessary and meaning for selection of study on CSR with the title “Factors
affecting the CSR implementation of Vietnam Textile and Garment Group based
enterprises”
Regarding the overview of CSR study, CSR implementation and factors affecting
the CSR implementation have been studied by many authors and many domestic and
foreign enterprises such as:
1 Caroll A.B., (1991), The Pyramid of CSR: Toward the Moral Management
of Organizational Stakeholders, Management of Organizational Stakeholders,
Business Horizons, pp.39-48
2 Caroll A.B., (1979), A Three-Dimensional Conceptual Model of Corporate
Performance Academy of Management Review, No.4, pp.497-505
3 Davis, K 1973 The case for and against business assumption of social
responsibilities Academy of Management Journal, Vol.16, pp 312-322
4 Friedman, M (1970), The social responsibility of business is to increase its
profits, York Times Magazine, pp 32-33, 122-124
5 Galbreath Jeremy (2010), ”Drivers of Corporate Social Responsibility: The Role of Formal Strategic Planning and Firm Culture”, British Journal of Management, Vol 21, pp.511–525
6 Maignan, i & Ferrell, O C 2000 Measuring Corporate Citizenship in Two Countries: The Case of the United States and France Journal of Business Ethics, Vol
23, No 3, pp 283-297
7 Maignan, i & Ferrell, O C 2004 Corporate Social Responsibility and Marketing: An Integrative Framework Journal of the Academy of Marketing Science, Vol 32, Issue 1, pp 3–19
8 Mcwilliams, A., Siegel, D & Wright, P 2006 Corporate social responsibility: Strategic implications Journal of Management Studies, Vol.43, No.1, pp.01-18
In addition, there are many other studies that the graduate student does not mention in the scope of this content In general, no study has analyzed the factors affecting the implementation of CSR in Vietnam Textile and Garment Group based enterprises in a systematic and comprehensive way Therefore, it can be affirmed that this is an independent and serious study project, without duplication and copy, and as
a new field of both theory and practice that needs to be studied
1.2 Objectivesof the thesis
• Overall objectives:
- Build a model of factors affecting the implementation of CSR in Vietnam Textile and Garment Group based enterprises
- Test the scale of factors affecting the implementation of CSR in Vietnam Textile and Garment Group based enterprises
- Make a conclusion on the direction and degree of influence of factors on the implementation of CSR in Vietnam Textile and Garment Group based enterprises as
a basis for proposing policies and solutions to enhance the implementation of social responsibilities at the unit
• Detailed objectives:
- Select CSR definition and implement CSR to conform business context and conditions in Vietnam Textile and Garment Group based enterprises
- Assess the status of CSR implementation in Vietnam Textile and Garment Group based enterprises
- Develop theoretical models and test factors affecting the implementation of CSR in Vietnam Textile and Garment Group based enterprises
- Give implications and make suggestions for the State, Vietnam Textile and Garment Group based enterprises in the process of review and evaluation,
Trang 2determination of the priority order of influencing factors and further improvement of
the importance of CSR implementation
1.3 Main research questions of the thesis
• Questions 1: What factors affecting the CSR implementation of Vietnam
Textile and Garment Group based enterprises?
• Questions 2: How is the impact of factors on the CSR implementation of
Vietnam Textile and Garment Group based enterprises?
• Questions 3: What recommendations should be given to entities when the factors
are assessed to affect the CSR implementation of Vietnam Textile and Garment Group
based enterprises?
1.4 Subject and scope of the study
• Subject of the study: The subject of the thesis is the factors affecting the
implementation of CSR of Vinatex based enterprises
• Scope of study: Including Vinatex based enterprises, the data used in the study
which were collected mainly in the period from 2016 - 2019
• Summary of research methods : Qualitative research by collecting
information from articles, industry journals, magazines, Internet, newsletters and data
from the General Statistics Office, on the website and quantitative research applying the
method of collecting random data with cascaded non probability from Vinatex based
enterprises
1.5 New contributions of the study
About the theory: The thesis has clarified the concept of CSR and CSR
implementation of enterprises; Verify the appropriateness and specificity of the
model and propose the influencing factors including: (1) Plan external orientation
strategies, (2) Plan internal orientation strategies, (3) Law and law enforcement, (4)
Humanistic culture of enterprises In which, the factor “Law and law enforcement”
was newly built by the author in the model; Being the first study in Vietnam to apply
quantitative research to a field that is difficult to quantify as the humanistic culture of
enterprises with CSR implementation
About the practice: (1) The thesis has evaluated the actual situation of CSR
implementation and the status of factors affecting the implementation of social
responsibility of Vinatex based enterprises (2) The thesis verifies the reliability of
research concepts and scales in the model (3) The thesis finds the factor “Law and
law enforcement” positive to affect the implementation of CSR of Vinatex based
enterprises (4) The thesis has proposed some policy implications for Vinatex based
enterprises and recommendations to the State to promote textile and garment
enterprises to implement CSR better and better
1.6 Structure of the thesis
The thesis is organized into 5 chapters, presented in 118 pages, with 31 tables, 7 figures, 2 diagrams, 8 illustrations, conclusions and reference lists
Chapter 1: General introduction about the study Chapter 2: Research overview, gaps and research models Chapter 3: Research Methods
Chapter 4: Research results Chapter 5: Conclusions and recommendations
CHAPTER 2 RESEARCH OVERVIEW, GAPS AND
RESEARCH MODELS 2.1 Some common issues about implementing CSR 2.1.1 History of formation and development of CSR
CSR of the 1950s: Represented by the study of Bowen (1953), CSR belonged
to business people; 1960s: Develop CSR understanding and search for appropriate
reasoning system, typically Davis (1960), McGuire (1963) with the thought towards
the response of related subjects in society; 1970s: It appears the argument between
the two schools is that “representative” administration is Milton Friedman (1970), enterprises only take their responsibilities to maximize profits and “multi-party” management, the enterprises must be aware of the impacts on society and must be
responsible for their own behaviors; 1980s: Prominently, Freeman (1984), emphasizing
the influence of subjects related to the CSR implementation of enterprises and the
relationship between CSR and the performance of enterprises; 1990s: Wood and Carroll
(1999), CSR is a strategic tool, so it is necessary to integrate CSR into corporate
strategy; 2000s: Porter & Kramer (2002), Kotler & Lee (2005) emphasize CSR strategy
as a competitive advantage of enterprises
2.1.2 Benefits of CSR implementation
CSR implementation will help enterprises: Reduce costs and improve labor productivity; Enhance the brand value and reputation of enterprises; Increase revenue and new market access opportunities; Attract, retain good and skilled employees; Increase the loyalty and reduce the risk
2.1.3 Subjects of CSR implementation of enterprises
Based on the definition of CSR of World Bank (WB, 2010) proposed by the Private Economic Development Group, CSR of enterprises must be associated with sustainable development Enterprises need to implement CSR for employees ; for consumers ; for the community and CSR towards the environment
Trang 32.2 Research overview on CSR in enterprises
2.2.1 Important concepts
* CSR and CSR components. Carroll's view (1979) seemed to receive the most
consensus from researchers (Galbreath, 2010) According to Carroll, CSR included
four main areas: responsibility for economic growth, law compliance, ethical issues
and voluntary responsibility, finally It is the most important factor of responsibility
for economic growth, second is the responsibility for the law compliance, followed
by moral responsibility, finally voluntary responsibility (Carroll, 1979) According to
Carroll, economic responsibility is the first and foremost responsibility of enterprises,
which is a natural matter of nature, the enterprises are assumed to be responsible for
producing goods and services that society desires, (Galbreath, 2010)then selling them
for profit (Carroll, 1979) and thereby making economic growth in general (Galbreath,
2010) Legal responsibilities, the society expects the enterprises to fulfill economic
tasks in legal frameworks, in other words, to meet economic and legal responsibilities
simultaneously (Carroll, 1979, Galbreath, 2010) Moral responsibility Although both
economic responsibility and legal responsibility represent a certain angle of moral
responsibility (Carroll, 1979) However, moral responsibility still has differences that are
expectations of society without being regulated into laws, requiring the enterprises to meet
the requirements and standards higher than laws, (Carroll, 1979) which are the moral rules
and those rules are to define behaviors considered as social behavior standards (Galbreath,
2010) The final aspect is voluntary responsibility , which is the responsibility that requires
the compliance of enterprises to be the least, less than the moral responsibilities Volunteer
responsibilities are the ones that are not obliged in the society, required by the law, not
even morally harmless if not performed(Galbreath, 2010, Carroll, 1979) It can be
charitable donation, training for those who are difficult to work, supporting drug
addicts(Carroll, 1979), investing local welfare projects(Galbreath, 2010)
* CSR and CSR implementation. In this thesis, the author used the CSR
concept of Maignan with his assistants, which was built on Carroll’s perspective on
the composition of CSR, whereby “CSR of an enterprise is the level that it meets the
economic, legal, ethical responsibilities and other voluntary responsibilities expected
by many related people” (Maignan et al., 1999, Maignan and Ferrell, 2000, Maignan
and Ferrell, 2001, Galbreath, 2010) In which, Maignan and his assistants believe that
CSR is the level of meeting the requirements of society in general, thus, this concept
implies the CSR implementation of enterprises In other words, the concept of CSR is
also the concept of CSR implementation
2.2.2 Research orientations on the implementation of social responsibility in enterprises
Studies often have two main orientations: CSR theoretical knowledge and communication, CSR publication Communication and CSR publication oriented studies often aim to understand the factors affecting the communication decision of enterprises, announcing the level of CSR implementation to related people (customers, social activists, State management agencies, etc) On the other hand, studies of CSR theory knowledge, are often more focused (Alcañiz et al., 2010), with the main concern of these studies is to find out which factors affect and are affected
by the level of CSR implementation of enterprises Studies of this theoretical knowledge are divided into two branches Firstly, they are studies that pay attention
to the factors motivating enterprises to implement CSR (input of CSR), as the studies of: (Schouten et al., 2014); (Zheng and Zhang, 2016) ; (Zheng and Zhang, 2016) ; (El-Bassiouny and Letmathe, 2018) ; (Khurshid et al., 2018) ; (Pasricha et al., 2018) ; (Shnayder and Rijnsoever, 2018) The second branch is the studiesthat focus on the outcome of CSR implementation (output of CSR), as the studies of: (Pérez and Bosque, 2013); (El-Kassar et al., 2017); (Wood et al., 2018) The objective is to understand the factors that have an impact on the CSR implementation of enterprises, the author chose an input based approach, which is to focus on which factors affect the CSR implementation of enterprises for his/her thesis
2.2.3 Theory is used in studies of social responsibility implementation
2.2.3.1 Theory of management of Freeman's related parties According to Freeman, related parties are “any group or individual that is affected by or can affect the organization's objectives” (Freeman and McVea, 2001) The related parties can be shareholders, employees, customers, suppliers, communities and other groups (Freeman and McVea, 2001) CSR of enterprises in the economy requires the connection of business activities with social, economic and environmental expectations of related parties (Kanji and Chopra, 2010) According to Freeman, it is the study on CSR that emphasizes the role of related parties and builds good relationships with these groups and individuals to ensure the long-term success of enterprises (Freeman and McVea, 2001) Along with the strong development of social movements, enterprises are less concerned about related parties suffered heavy losses So more and more enterprises integrate the management of related parties through the implementation of CSR on their operational goals (Freeman and McVea, 2001) This view of Freeman received the approval of a number of researchers, typical of studies that follow this orientation, such as: (Clarkson, 1995); (Decker, 2004); (Maignan and Ferrell, 2004)…
2.2.3.2 Carroll's CSR Pyramidal Model
Carroll has produced four concepts that constitute CSR, including: economic
Trang 4responsibility, legal responsibility, moral responsibility and volunteer responsibility
Inheriting Carroll's model, Maignan with assistants have taken a view of many other
researchers' support, which is consistent with actual CSR measurement requirements,
four components of CSR that play the same role(Maignan et al., 1999, Maignan and
Ferrell, 2000, Galbreath, 2010) At the same time, Maignan and his assistants also
provide a definition of CSR, create a solid theoretical basis for future research
(Galbreath, 2010) Many researchers have used Carroll's CSR Pyramidal Model in
their studies of implementing CSR in different fields, in different cultures, such as:
(Wartick and Cochran, 1985); (Maignan et al., 1999); (Joyner and Payne, 2002);
(Schwartz and Carroll, 2003); (Galbreath, 2010)…
2.2.3.3 In combination with using both Carroll's CSR Pyramid Model theory and
Freeman's related parties management
The thesis inherits the theoretical foundations of both fundamental theories, with
the core being Carroll's CSR Pyramid Model of the components of CSR
implementation(Carroll, 1979), adapted the role of these components in overall by
Maignan and his assistants(Maignan et al., 1999, Maignan and Ferrell, 2000) The
factors affecting the implementation of CSR are based on Freeman's management theory
of related parties Most of Carroll's CSR Pyramid Model-based research approaches
follow this orientation ( (Maignan et al., 1999) ; (Maignan and Ferrell, 2000) ; (Maignan
and Ferrell, 2001) ; (Joyner and Payne, 2002) ; (Schwartz and Carroll, 2003) ;
(Galbreath, 2010) .) The author decided to choose Carroll’s model and the adjusted
definition of Maignan with his assistants on the implementation of CSR, combined with
Freeman's related parties management theory in research as his theoretical foundation
2.2.4 Overview of factors affecting CSR implementation
2.2.4.1 Strategic planning
Related parties, such as customers, suppliers, social organizations,
management agencies, shareholders, employees, etc who desire or put pressure on the
implementation of CSR of enterprises by requesting enterprises must strengthen
strategic planning towards them(Galbreath, 2010, Carroll and Hoy, 1984) Through
the environmental assessment by both inside and outside manner, enterprises will
strengthen the implementation of some non-market issues, such as: CSR based
behavior to the community and the natural environment (Fineman and Clarke, 1996)
Enterprises develop studies on the business environment, then embody in their
strategic orientation and at the same time provide appropriate responses by
implementing CSRs (Galbreath, 2010, Carroll and Hoy, 1984, Burke and Logsdon,
1996) Strategic planning is considered under two important trends: Strategic
planning for internal orientation and strategic planning for external orientation, these
are also two important components of strategic planning (Galbreath, 2010, Kalyar et al., 2012)
The study of Kalyar et al (2012) on the sample 172 concluded by senior manager in Pakistan, the orientation strategy within the influence is stable and strong (stronger than the external strategic orientation) to the level of CSR performance of enterprises, with a standardized coefficient β = 392, p <0.01 (Kalyar et al., 2012) Similar results on the impact of strategic planning are positive to CSR implementation, also confirmed by Torugsa et al in the study conducted on 171 small and medium size enterprises in Australia (Torugsa et al., 2012), or the study of Galbreath (2010) also affirmed strategic planning, in particular the internal and external orientation strategies all had an impact (though not too high, standardized β
= 0.12 and 0.11, p <0.05) to the level of CSR implementation of enterprises Research on Indian enterprises also affirmed that CSR implementation of enterprises will be prevented if enterprises do not make strategic plans (Goyal and Kumar, 2017)
Meanwhile, in Western countries, the role of strategic planning for the implementation of CSR is studied quite a lot, in Vietnam, studies on CSR in general, according to the author's knowledge, included the studies on CSR as a strategic planning perspective are quite limited
2.2.4.2 Corporate culture
Corporate culture is also a factor affecting enterprises' CSR implementation (Galbreath, 2010, Wood, 1991) Corporate culture refers to the values and beliefs that are hold by members of enterprises(Kalyar et al., 2012) These values shape the extent to which responsible or irresponsible business practices are performed (Kalyar
et al., 2012), reflecting the sense of responsibility to related parties as the condition and premise for enterprises to succeed in sustainable business while ensuring ethical behavior (Sinclair, 1993) Corporate culture also contributes to shaping ethical behaviors in advertising, treating workers, and the quality of products and services as well as dealing with customers (Herndon et al., 2001) Corporate culture along with the orientation of humanistic culture of enterprises affects the overall performance of enterprises and includes two important parts as cultural orientation and cultural intensity which all affect the CSR implementation of enterprises(Galbreath, 2010) Consequently, the needs and interests of the community, of the related parties are likely to be ignored and associated with a low level of CSR implementation (Galbreath, 2010, Kalyar et al., 2012) Humanistic culture is more constructive and cooperative than competition, making relationships between business members and businesses and stakeholders become more harmonious and pleasant Therefore, when humanistic culture is focused, members and businesses not only care about their own
Trang 5needs and interests but also take care of and implement behaviors that benefit the
society and the related parties(Galbreath, 2010) and that is the basis of implementing
CSR in enterprises (Kalyar et al., 2012)
The study of Kalyar et al (2012) showed that the human cultural factor is the
most influential factor on the level of CSR performance of enterprises, with β = 642,
p <0.001 (Kalyar et al., 2012) The results of Kalyar and colleagues received the
support of Galbreath (2010) when studying over 3,000 businesses in Australia,
similarly Galbreath found that the human cultural factor had the strongest impact on
the level of CSR implementation of enterprises (including 1500 service businesses
and 1500 manufacturing enterprises) in Australia, with standardized β = 0.51, p
<0.01 However, Bowrin's research results in four Caribbean countries do not seem to
support the influence of corporate culture on CSR and responsibility for announcing
CSR (Bowrin, 2013)
Tran and Jeppesen (2016) in the study of Vietnam on CSR also mentioned the
influence of corporate culture on the implementation of CSR of enterprises However,
according to the authors, the expectations of corporate and social culture only affect
informal CSR and this study is only qualitative (Tran and Jeppesen, 2016)
2.2.4.3 Operation time, number of employees, turnover
Large enterprises tend to implement CSR more, because they have a greater
impact on society than small businesses (Cowen et al., 1987) Usually the size of a
business is expressed in two main angles, namely the number of employees and the size
of capital These two factors are strongly influenced by the operation time of enterprises,
the longer the operation time of enterprises, the larger the scale of enterprises (Zheng
and Zhang, 2016) and the operation time of enterprises is usually calculated by the
number of years of operation of the enterprise (Pasricha et al., 2018) These factors
often act as important control variables affecting the CSR implementation of enterprises
(Pasricha et al., 2018, Schouten et al., 2014, Shnayder and Rijnsoever, 2018) In
addition, the implementation of CSR of Vietnamese textile enterprises depends much on
the laws of the country where the enterprises export their products, so the larger the
turnover of the enterprise, the more affected by the side importing customers and
governments of CSR implementation (Galbreath, 2010, Maignan and Ferrell, 2000,
Maignan et al., 1999) Thus, it can be said that for textile enterprises, the number of
employees , years of operation and revenue will likely affect the implementation of
CSR of enterprises
2.2.5 Research gap
It seems that the inputs of CSR have not been paid much attention by
researchers in the context of Vietnam Most of the research by the author is focused on
the study of the benefits of CSR such as: CSR with business performance; CSR is the
cause of sustainability in growth (Long, 2015) ; CSR enhances corporate governance (Luu, 2012a) ; CSR and CSR communication (Bilowol and Doan, 2015) ; CSR with brand (Luu, 2012b) ; CSR with increased learning and knowledge sharing, thereby increasing competitiveness (Luu, 2013a, Luu, 2013b) In Vietnam, research on factors affecting the implementation of CSR in general, in which factors such as strategic planning and human culture of enterprises affect the implementation of CSR in particular, is still A gap needs more research to supplement the understanding of factors affecting the implementation of CSR in enterprises
2.2.6 Models, research hypotheses and scales
2.2.6.1 Research model and hypothesis
H1: External strategic planning positively affects the CSR implementation of enterprises in Vinatex
H2: Internal strategic planning positively affects the CSR implementation of businesses in Vinatex
H3: The higher the level of enterprise implementation of humanistic culture, the higher the level of CSR implementation of enterprises in Vinatex
2.2.6.2 Scale used in research Planning external orientation strategy: There are 8 scales; Planning internal orientation strategies: There are 8 scales; Humanistic culture of enterprises: There are 7 scales; Implementing CSR of enterprises: There are 5 scales
CHAPTER 3 RESEARCH METHODS 3.1 Process of conducting research
The fellows describe the 6-step research process (see Figure 3.1)
3.2 Design of qualitative research
3.2.1 Design research methods
Qualitative research is conducted by in-depth interview method, with the main subjects identified as middle and high managers of some enterprises of Vinatex These subjects were selected for their deep understanding of strategy, organization, CSR implementation programs, as well as access to relevant information that research needs to explore (Tan and Tan, 2005) ; (Tuominena et al., 2004) ; (Galbreath, 2010) Qualitative research was conducted over a period of 2 weeks, with the help of qualitative research software Nvivo 10; Quantitative research was conducted with all 110 enterprises of Vinatex
3.2.2 The goal of qualitative research
First goal: As a test and screening of independent variables in the theoretical model, the author has proposed and preliminarily identified the relationship between
independent variables and dependent variables Second goal: It is an exploration of
Trang 6which factors in the context of Vinatex also affect the implementation of CSR, which
has not been discovered in the review In case, new factors appear, the author will
review again to check the validity of the factor and propose a new scale
3.2.3 Collect and process information
Information was collected by in-depth interview method, the author contacted
the interviewer and made a schedule Interviews were conducted at convenient
locations and time for the subjects, and during the interview, the author asked for
permission to record The tape removal process is conducted immediately, usually the
night after the interview and no later than 24 hours from the end of the interview The
collected data is transferred to the Nvivo 10 software to prepare for analysis
3.2.4 Results of qualitative research
3.2.4.1 Checking the suitability of the scale, preliminary determination of the
relationship between independent and dependent variables
The results of in-depth interviews show that some scales are recommended by
strategic experts and senior managers
3.2.4.2 Add new elements
In the process of conducting in-depth interviews, with the question, "Which
factors affect your business implementation of CSR but have not been reflected in the
questionnaire and should be considered in the questionnaire? " The author has
received some suggestions about the legal system and law enforcement The author
conducted the review and found that some studies supported this view Therefore, the
author has simulated the idea of the in-depth interviewer and added one more factor:
Law and law enforcement into the questionnaire After qualitative research, with the
advice of the experts and the proposed research model, the author has edited the formal
research model, including four influencing factors, the research hypothesis is rewritten
as follows:
H1: External strategic planning positively affects the CSR implementation of
enterprises in Vinatex
H2: Internal strategic planning positively affects the CSR implementation of
businesses in Vinatex
H3: The higher the law and law enforcement, the higher the level of CSR
implementation of enterprises in Vinatex
H4: The higher the level of enterprise implementation of humanistic culture,
the higher the level of CSR implementation of enterprises in Vinatex
Figure 3.2: Official research model
Source: from the review and qualitative research of the author
The official questionnaire, after receiving the advice of experts, is used as a formal questionnaire in quantitative research (Table 3.3) Thus, after the revision, the official questionnaire consists of four independent variables, one dependent variable and a total of 24 observed variables Inside: Independent variables External strategic planning has 6 observed variables, from BN1 to BN6; Independent variables Inner strategic planning has 5 observed variables, from BT1 to BT5; Independent law and law enforcement variables have 4 observed variables, from PL1 to PL4; Independent variable Human culture of enterprises has 4 observed variables, from VH1 to VH4; Dependent variable Implementing CSR has 5 observed variables, from TN1 to TN5 Regression model describes the influencing factors of CSR implementation of enterprises of Vinatex: Y = βo + β1 * X1 + β2 * X2 + + β4 * X4 + e
3.3 Design of quantitative research
3.3.1 Determine sample size
In this study, the author used the sampling theory of Hair et al (Hair, 1998), with a questionnaire consisting of 24 scales, the minimum of this study is 24x5 = 120 votes However, due to the total number of enterprises in Vinatex only 110 units, the author conducted information collection from 110 enterprises of Vinatex, each enterprise issued 03 votes, the result was 322 votes, including 04 votes due to the lack
of information, the total number of valid votes was 318 votes and of 106 enterprises
of Vinatex Results after 04 times of exploratory factor analysis (EFA) have excluded
03 scales of independent variables, so the study has only a total of 21 scales, with 106 enterprises surveyed so the sample size is still guaranteed Reliability in exploratory factor analysis
Control variable:
Number of employees Revenue Number of years of
Planning external orientation strategy Planning internal orientation strategies
Implementing social responsibilities of enterprises of Vinatex Humanistic culture of
Law and law enforcement
Trang 73.3.2 Method of processing data
EFA discovery factor analysis; Conducting to verify the reliability of the scale by
Cronbach's Alpha technique ; Data analysis statistical; Frequency analysis ; Regression
analysis
3.4 Methods to assess the status of implementing social responsibility and
factors affecting the implementation of social responsibility in enterprises of
Vinatex
3.4.1 Method of assessing the status of CSR implementation in enterprises of
Vinatex
Evaluate "The status of CSR implementation of enterprises in Vinatex" according to
the following formula: Mean Y = (MeanTN1 + MeanTN2 + MeanTN3 + MeanTN4 +
MeanTN5) / 5 Inside: Mean Y: The average score of "CSR implementation status of Vinatex
enterprises "
3.4.2 Methods to assess the status of factors affecting the implementation of CSR
in enterprises of Vinatex
The influencing factors are also evaluated with the scale of 5 levels, the value of the
factors is calculated by the average of the observed variables and also divided into 5 ranges
corresponding to 5 levels from low to High and each width is about 0.8 units At that time,
the author will base on the above levels to make comments, assessments and conclusions
about the situation of factors affecting the implementation of CSR in Vinatex enterprises
CHAPTER 4 RESEARCH RESULTS 4.1 Current status of implementing social responsibility at Vietnam Textile Corporation
4.1.1 General introduction about Vietnam Textile Corporation
History of formation and development The Group has completed
equitization and moved to operate as a joint stock company from January 29, 2015 Vinatex is comprised of a parent company, research and training units and 110
subsidiaries and associates which are joint stock companies Vinatex's main business Manufacturing, trading, importing and exporting, investing in fashion
textiles, raw materials, accessories, materials, equipment, spare parts, chemicals, dyes, equipment and spare parts for textile and garment industry; technology transfer for weaving, yarn, dyeing, industrial sewing, mechanical engineering, maintenance and management of textile companies; Service of inspection, testing, quality inspection of textile products and raw materials, cotton varieties, plant varieties
Vinatex's development strategy to 2020 Vinatex focuses on developing towards
specialization and modernization, creating a leap in added value of textile and garment products through the implementation of three programs of high quality cotton weaving, fabric weaving and training Human resources are decisive to the sustainable and long-term development of Vietnam Textile and Garment industry
4.1.2 Viewpoint of implementing CSR in Vinatex
Improve the efficiency of intellectual property, in which strong textile and clothing brands are built, improve and develop the value of the brands in the Group and protect the environment for healthy competition; Considering CSR is a long-term strategy The CSR strategy approach plays an increasingly important role in the competitiveness of Vinatex's businesses, helping to create the value of enterprises, while gaining the trust and respect of consumers and partners private and social community in general; Responsibility for environmental, human and social issues is
at the core of sustainable development; improve CSR understanding and implementation to strengthen linkages with global supply chains in sustainable production; Long-term benefits of CSR are for internal enterprises, so building VHDN in the Group is a top priority VHDN and business ethics in the Group are thoroughly grasped through focusing on improving work relations to reduce accidents, reducing the rate of employees leaving, increasing labor productivity
4.1.3 Factors affecting the implementation of CSR in Vinatex enterprises
Planning a development strategy for a large economic group requires very careful preparation, considering many factors Internal factors such as the efficiency
Trang 8of production and business activities, the technology in use, the creativity of
employees, the corporate culture, the style of the leader and even the interests of the
investors /shareholders External factors such as the level of competition, product
quality, community concerns At the same time, the Group must perform well and
synchronously many tasks, so when planning strategies, Vinatex must allocate
balanced financial resources, facilities and people (Mr Le Nho Thoi)
Referring to the humanistic culture of enterprises, the representative of the
Group's Trade Union, Mr Le Nho Thieu said that “because of the way of
understanding and the way to practice CSR in businesses, there are many different
things to implement CSR in parallel Enterprises need to build and implement
VHDN, which will clarify the basic principles in the behavior In which ethics and
humanity issues of the leadership team and enterprises are considered a prerequisite
to affect the activities of CSR "" Human culture of leaders and enterprises is to listen
to prayer employee expectations, encouraging and rewarding employees reasonably,
spending time and supporting employees when facing difficulties ”
4.1.4 Implementing Corporate Social Responsibility in enterprises of Vinatex
The textile and garment industry is an important contributor to global issues
such as: economic growth, employment for workers, welfare for the community
(White et al., 2017) Producing garments creates negative impacts on the
environment and society such as: waste and pollution (excess cloth, fabric dyes,
toxins in the production of synthetic fabrics, pesticides in cotton and linen growing
), waste in consumption (fashion industry is considered one of the industries that
fosters the culture of consumerism and extravagant luxury, the negative impact on
human rights, wages and labor standards (especially in developing countries) (Ma et
al., 2015) In fact, the concept and implementation of CSR in Vietnam has developed
long before being introduced from Western countries (Tran and Jeppesen, 2016) and
has been taken care of by many businesses at different levels, in which there are some
textile enterprises such as:
4.1.4.1 Implementing Corporate Social Responsibility at Viet Tien Garment Joint
Stock Company
4.1.4.2 Implementation of Corporate Social Responsibility at Duc Giang Textile and
Garment Company Corporation
4.1.4.3 Implement CSR at May 10 Corporation - CTCP
4.1.5 Conclusions drawn
Experience in implementing CSR of Vinatex enterprises is as follows: The
implementation of CSR in enterprises is both a demand and a driving force for
sustainable development for businesses in the future Right from the deployment
stage, the perception of leaders about CSR is quite sufficient, they all view CSR as a valid passport to circulate goods to dominate the market in the region and the world The high determination of leaders has created a high diffusion to all members of the enterprise Implementing CSR in businesses is not only a slogan, but also concrete, meaningful and real values
Limitations in CSR implementation such as: Passive (due to compliance) and insufficient application of CoC and CoE codes of conduct The opportunities and advantages of CSR implementation have not been clearly seen, so the process of implementing CSR is still passive and coping, mainly focusing on enterprises doing exports, enterprises with foreign partners Even CSR in Vietnam is often excluded in many activities of enterprises and not set in line with economic objectives (Nguyen and Truong, 2016)
Main cause: Awareness and understanding of management levels on the implementation of CSR in some enterprises, some leaders and managers of the Group are limited and incomplete Enterprises facing difficulties in complying with CSR are because each importer has its own CoC standard set Financial resources to invest in technology innovation and R&D for improving product quality and environmental protection are not enough, so it cannot be deployed quickly
4.2 Current status of implementing social responsibility and factors affecting the implementation of CSR in Vinatex enterprises
4.2.1 Results of analyzing the factors of discovering EFA of factors affecting the implementation of social responsibility of enterprises in Vinatex
Table 4.1: Summary table of factors for factor analysis 1st
Times
Total observed variables
Number
of observed variables excluded
KMO coefficient Sig
The wrong way
Number
of factors that can
be analyzed
Source: Results of data processing on SPSS software
Through the data table shows, KMO coefficient = 0.761 satisfies condition 0.5
<KMO<1 and the value of Sig.=0.000 (Table 4.1), therefore, the factors are consistent with survey data and observed variables are linearly correlated with representative factors The total variance explained in the first EFA analysis of 19 scales in the study has a variance value of 77,016% with a stop of the Eigenvalues factor of 1.015 (Table 4.2)
Table 4.3: Summary of coefficients when analyzing factor 2
Trang 9Times
Total
observed
variables
Number of observed variables excluded
KMO coefficient Sig
The wrong way
Number of factors that can be analyzed
Source: Results of data processing on SPSS software
From the data table, the KMO coefficient = 0.768 satisfies the condition 0.5
<KMO<1 and the value of Sig.=0.000, the total number of observed variables is 18, the
number of excluded variables is 1, the variance value is 75.212 and the number of
distributive factors Volume is 6 The total variance explained in the second EFA analysis
of the 18 scales in the study has the extract variance value of 75.212% with the stop of the
Eigenvalues factor of 1,024 (Table 4.4)
Table 4.5: Summary of coefficients when analyzing the 3rd factor
Times
Total
observed
variables
Number
of observed variables excluded
KMO coefficient Sig
The wrong way
Number
of factors that can
be analyzed
Source: Results of data processing on SPSS software When conducting the 3rd EFA analysis, the KMO coefficient = 0.778 and the value
of Sig = 0.000, the total number of observed variables is 17, the number of excluded
variables is 1, the variance value is 72,400 and the number of distributive factors Volume is
5 The total variance explained in the 3rd EFA analysis of 17 scales in the study has a
variance value of 72,400% with a stop of Eigenvalues of 1.026 (Table 4.6)
Table 4.7: Summary of factors when analyzing factor 4
Times
Total
observed
variables
Number of observed variables excluded
KMO coefficient Sig
The wrong way
Number of factors that can
be analyzed
Source: Results of data processing on SPSS software
When conducting the 4th EFA analysis, the KMO coefficient = 0.779 and Sig
value = 0.000, the total number of observed variables is 16, the number of observed
variables is 1, the variance is 69,922 and the number of factors The analysis is 4 The
total variance explained in the fourth EFA analysis of 16 research scales has a variance value of 69,922% with a stop of Eigenvalues of 1,389 (Table 4.8)
Thus, after collecting data and analyzing, factors affecting the implementation of social responsibility in enterprises of Vinatex are suitable with the theoretical model In order to be able to conduct further application research steps, the factors affecting the implementation of social responsibility in enterprises of VN Textile and Garment Group are re-encoded concepts and scales (table 4.9)
4.2.2 Reliability testing of scale of factors affecting the CSR implementation in Vinatex based enterprises
The scale of “strategic planning for external orientation” factor with Cronbach's Alpha coefficient is 0.833> 0.6, satisfactory The scale of “strategic planning for internal orientation” factor with 04 observations and Cronbach's Alpha coefficient reached 0.749> 0.6 and correlation coefficient of the total of four observed variables is greater than 0.3, Cronbach's Alpha coefficients if the observed variables are smaller than 0.749, so this is a good and appropriate scale The scale of “Law and law enforcement” factor with Cronbach's Alpha coefficient reached 0.774> 0.6 is a suitable scale The scale of “Human culture of enterprises” factor has Cronbach's Alpha coefficient of 0.931> 0.6 and has Cronbach's Alpha coefficient if the omitted variables of the component observed variables are less than 0.931, the correlation coefficient of the total variable of Observations are also greater than 0.3 so there is no benefit to turn and the scale is appropriate The scale of factor
"Implementing CSR" with Cronbach's Alpha coefficient is 0.845> 0.6 and Cronbach's Alpha coefficient if all variables of the 03 observations are smaller than 0.845, as well as the total correlation coefficients of the component variables greater than 0.3 Therefore, this is a good, reliable and appropriate scale
In summary, the results of testing the reliability of the influence factor scale show that all indicators have Cronbach's coefficient Alpha > 0.6, indicating that the above criteria are reliable, preferable to be used in the analysis of factor All four factors proposed in the theoretical model are the main components having an influence on the CSR implementation
of Vinatex based enterprises that are retained in the analysis model
4.2.3 Descriptive statistics on the implementation of social responsibility and factors affecting the CSR implementation in Vinatex based enterprises
4.2.3.1 Descriptive statistics on the CSR implementation in Vinatex based enterprises
The average value of the factor reached 3.7774 points and the average value of the scales ranged from 3,675 - 3,870 points, all of which belong to level 4 (Agree)
From the above results, in general, enterprises of Vinatex have a sense of self-awareness in implementing CSR at all levels of responsibility In particular, the
Trang 10implementation of economic CSR is always paid attention to best perform On the other
hand, enterprises belonging to Vinatex are not too dependent on the provisions of the law
when implementing economic responsibilities, implementing the legal responsibilities of
enterprises under Vinatex despite being relatively good but also need to be more concerned,
because it is the compulsory nature that businesses need to comply with In addition, ethical
responsibilities and voluntary responsibilities have also been paid great attention and
voluntary by enterprises of Vinatex with average values of 3,825 points and 3,802 points In
addition, the implementation of CSR of Vinatex enterprises is also reflected in the behavior
that always strives to best meet the needs of consumers Thus, it can be said that the
awareness of CSR implementation of enterprises in Vinatex is relatively high and highly
voluntary
4.2.3.2 Factor Statistics of strategic planning for external orientation
The observed variables are evaluated at the average level with the average value of
the factor reaching 3.0164 points (at level 3, Half agree, half disagree) and the average value
of observations fluctuates in the range of 2,831 - 3,195 points In particular, the highest scale
is BN1 with the highest value achieved 3,195 points, while the lowest scale BN2 has an
average value of 2,831 points This result shows that the external environmental issues are
not really clear to strategic planning of enterprises of Vinatex
4.2.3.3 Factor Statistics of strategic planning for internal orientation
The observed variables are evaluated at a relatively high level with the average value
of the factor reaching 4.1455 points (at level 4, Agree, and this level also approaches level
5) and the average value of observations is also relatively equal and range from 4,064 to
4,264 points In particular, the highest scale is BT1 with a very high value of 4,264 points,
this shows that enterprises of Vinatex have always appreciated and carefully considered the
internal factors when conducting strategic planning comb
4.2.3.4 Factor Statistics of Law and law enforcement
Vinatex based Enterprises highly appreciate the role of the factor "Law and law
enforcement" on the implementation of CSR of enterprises when the average value of this
factor reaches 4,258 points (Level 5, Very agree) and the price The average value of the
scales is also high and ranges from 4,221 - 4,308 points The enterprises of Vinatex perform
CSR well, the role of "Law and law enforcement" is essential
4.2.3.5 Factor Statistics of human culture of enterprises
The average value of the factor reached 2.4643 points (Level 3, half agree, half
disagree), in which there are 03 scales with average value of level 3 (Half agree, half
disagree) and one ladder measured at level 2 (less agree) In enterprises of Vinatex, human
culture is not really appreciated, the needs of individuals in businesses are less concerned so
the resolution of conflicts and problems in enterprises is not really constructive build
4.3 Current situation of the impact of the factors affecting CSR implementation
in Vinatex based enterprises
4.3.1 Verification of normal distribution data
The analytical results show that the skewness of all observed variables for factors affecting the implementation of CSR in enterprises of Vinatex are between 3 and 3 Therefore, it can be concluded that the data collected on the factors affecting the implementation of CSR in enterprises of Vinatex follow the normal distribution rules, the variables in the model are linear and can be used used to conduct linear regression analysis
4.3.2 Testing research model by multiple regression analysis
Regression analysis aims to test the dependence of CSR implementation on enterprises of Vinatex on those factors Simultaneously, the regression model can also help determine the role of each factor affecting the implementation of CSR in enterprises of Vinatex The value of the factors used to run regression is the average of the observed variables
4.3.3 Consideration of the correlation matrix
Before conducting multiple regression analyzes, the linear correlation between variables should be considered Through the correlation coefficient between the variable "Implementation of CSR in enterprises of Vinatex" with independent variables (Table 4.17), it can be concluded that the independent variables can be included in the model to explain the implementation of CSR at the Enterprises of Vinatex In addition, the correlation coefficients between independent variables are significant, so the relationship between these variables needs to be considered carefully in multiples of linear regression to avoid multicollinearity
4.3.4 Detection of violations assuming regression models
Next in the analysis, it is necessary to verify the assumptions of the regression model including normal distribution residuals, no correlation relationship between independent variables (multicollinearity) Thus, the construction of a linear regression model between the dependent variable (TN) and the independent variables is perfectly appropriate (See Appendix)
4.3.5 Develop research model to implement CSR in enterprises of Vinatex by multiples regression method
Table 4.18: Regression results table of the model of CSR implementation in
Vinatex based enterprises Model Summary b