Introduction
Overview
The rapid growth of the global economy has significantly improved the quality of life, yet it has also led to severe environmental degradation and social issues This development is marred by challenges such as natural disasters, pollution, resource depletion, discrimination, labor exploitation, and the proliferation of toxic products, highlighting the need for sustainable practices that prioritize both human well-being and ecological health.
As humanity faces the imminent threat of environmental destruction, we must question the wisdom of prioritizing profit over sustainability Is it acceptable to accept a diminished future on our planet, or is it time to adopt a collective commitment to responsible and sustainable development? This critical issue has been a focal point since 1953, giving rise to the concept of Corporate Social Responsibility (CSR) in business practices.
Corporate Social Responsibility (CSR) has emerged as a significant global movement, particularly in Euro-American countries where consumers are increasingly concerned about not just product quality, but also environmentally friendly production methods that prioritize community welfare and human health This shift has led to widespread boycotts of products like fast food, carbonated drinks, and fur items In response to social pressures, businesses are now prioritizing CSR initiatives, often developing comprehensive strategies to address these concerns Many companies are implementing programs focused on energy conservation, reducing carbon emissions, utilizing recycled materials, harnessing solar energy, enhancing water resources, and contributing to community development through initiatives like building schools and epidemic research centers in developing nations.
Leading companies in corporate social responsibility (CSR), such as TNT, Google, Intel, Unilever, Coca-Cola, GE, Nokia, HSBC, Levi Strauss, Bayer, Dupont, Toyota, Sony, and Samsung, are dedicated to enhancing their employees' working environments while also supporting the well-being of surrounding communities.
In today's corporate landscape, the effective implementation of Corporate Social Responsibility (CSR) has led to significant achievements, including heightened employee satisfaction, reduced operating costs, and an improved public image Consequently, adopting CSR strategies has become essential for the sustainable development of businesses.
The state of Corporate Social Responsibility (CSR) in Vietnam is closely tied to the country's doi moi (renovation) reforms and the impact of globalization, which began with the adoption of a market-oriented socialist economy by the Communist Party in December 1986 This shift has transformed Vietnam from a state-led economy to a more market-driven one, introducing challenges for state-owned enterprises amid foreign investment and international pressure Joining the World Trade Organization (WTO) further accelerated this transition, highlighting the importance of CSR in promoting environmental and social sustainability As Vietnamese firms faced international compliance standards, public awareness of social responsibility increased, prompting the need for legal adaptations to align with global expectations Although Vietnam lacks a formal CSR policy, the government has begun addressing CSR issues through the Vietnam Agenda 21 sustainability strategy, signed by the prime minister in 2004 This strategy emphasizes sustainable development centered on people, advocating for environmental protection alongside human benefits, and aims to balance the needs of current and future generations It also includes provisions for training, workshops, and media outreach to enhance understanding and management of sustainable development, while encouraging international cooperation in this area.
In Asia, there is a growing interest in Corporate Social Responsibility (CSR), although its development remains relatively low across the region Notably, Vietnam has experienced a rapid increase in awareness and concerns surrounding CSR practices.
Corporate Social Responsibility (CSR) was initially brought to Vietnam through the initiatives of multinational companies, showcasing impactful programs such as Honda Vietnam's "I Love Vietnam" campaign, Unilever's educational initiatives on personal hygiene for children in mountainous areas, and technology training programs like TOPIC64 by Microsoft, Qualcomm, and HP Additionally, VinaCapital and Samsung have supported surgeries for congenital heart defects and victims of the Can Tho bridge collapse, while Western Union has focused on vision rehabilitation for underprivileged children.
In Vietnam, domestic enterprises, particularly in the garment and footwear sectors, have increasingly prioritized Corporate Social Responsibility (CSR), focusing on worker treatment and ethical practices The Vietnam Business Links Initiative, established in the late 1990s, created a local code of conduct for the footwear industry and now hosts annual CSR Awards for the garment, textile, and marine products sectors Prominent corporations like Mai Linh, Duy Loi, ACB, Sacombank, and Kinh Do are also engaging in CSR initiatives to enhance their public image However, these efforts often lack depth and comprehensive impact.
Many small and medium enterprises in Vietnam remain largely inactive regarding corporate social responsibility (CSR) issues, including concerns like soy sauce contamination, melamine-tainted milk, petrol station fraud, and severe environmental pollution This lack of engagement reveals a fundamental misunderstanding of CSR, which ultimately undermines their competitive edge and deteriorates the business environment The key questions arise: Are managers unaware of CSR's significance for sustainable development, or do they lack guidance on how to initiate and implement CSR practices? Thus, enhancing the perception of CSR is crucial and requires careful attention.
Problem statement
Here is a rewritten paragraph that captures the essence of the original text while adhering to SEO rules:In Vietnam, Corporate Social Responsibility (CSR) is a multifaceted concept, with varying perceptions among the public Despite the efforts of Vietnamese organizations, not all CSR initiatives yield desired outcomes, underscoring the significance of public perception over operational strategies As employees become increasingly aware of the expanding social obligations of firms, they now consider CSR a crucial aspect to be taken into account, highlighting its growing importance in the corporate landscape.
Research by Claydon and Doyle (1996) highlights the crucial role of employee empowerment in fostering organizational engagement Greenwood (2007) further identifies employees as key internal stakeholders, possessing significant influence in stakeholder engagement Consequently, the perceptions of managers and employees regarding Corporate Social Responsibility (CSR) are vital, as they directly impact employee attitudes and behaviors in the workplace.
Recent studies globally have explored the link between employees' perceptions of Corporate Social Responsibility (CSR) and various facets of job satisfaction However, there is a notable gap in research regarding this relationship specifically within the context of Vietnam.
The main objective of this research is to observe the relationship between employees’ CSR perception and employees’ satisfaction of Vietnamese firms in Ho Chi Minh City (HCMC).
Thus, this research is to answer two questions:
Is there any relation between between employees’ CSR perception and employees’ satisfaction of Vietnamese firms in HCMC?
How employees’ CSR perception affects on their satisfaction at work?
Research Scope
This research mainly focus on identifying the key CSR factors influencing employees’ satisfation of Vietnamese firms The target interviewees are employees and managers (middle and low level managers).
Quantitative research will focus exclusively on companies in Ho Chi Minh City (HCMC), a vital commercial hub in Vietnam known for attracting key and emerging industries.
Research Process
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 5Conclusion and Recommendations to propose the conclusions on the research,limitations and recommendations (if any).
Literature Review
The concept of Corporate Social Responsibility
Corporate Social Responsibility (CSR) emphasizes that businesses should extend their obligations beyond merely maximizing short-term profits to include the protection and enhancement of society and the environment However, the implementation of CSR remains contentious due to the lack of a consistent definition and universally accepted measurement methods Various studies have sought to define "corporate responsibility," offering interpretations that range from "corporate philanthropy" to "business ethics."
Corporate Social Responsibility (CSR) lacks a universally accepted definition, despite extensive theoretical and practical discussions surrounding the concept Generally, CSR involves making business decisions that align with ethical values, adhere to legal standards, and show respect for individuals, communities, and the environment According to Jones (1980), CSR encompasses the belief that corporations have obligations to various societal groups beyond just shareholders and legal requirements Additionally, Kotler and Lee provide further insights into the definition of CSR, emphasizing its broader implications for corporate accountability.
(2005), who defined CSR as “a commitment to improve community well-being through discretionary business practices and contributions of corporate resources”.
The World Business Council for Sustainable Development (WBCSD) defines Corporate Social Responsibility (CSR) as a company's commitment to fostering sustained economic development by collaborating with employees, their families, local communities, and society to enhance quality of life Additionally, Wood describes CSR as the integration of social responsibility principles and processes within a business organization.
In this study, CSR concept from Turker (2009) is adopted Turker (2009) defined CSR as below
Corporate Social Responsibility (CSR) encompasses corporate behaviors designed to positively impact stakeholders while extending beyond mere economic interests It involves social responsiveness and includes various policies, programs, and measurable outcomes that reflect the firm’s relationship with society.
Corporate Social Responsibility (CSR) encompasses how companies manage their business processes to positively impact society, as noted by Baker (2003) The World Bank (2002) emphasizes that CSR involves businesses' obligations to foster sustainable economic development through collaboration with employees, their families, and the local community, ultimately enhancing livelihoods and promoting beneficial outcomes for both business and society.
Corporate Social Responsibility Theories
Stakeholder theory significantly influences corporate decisions and motivates investments in Corporate Social Responsibility (CSR), as it emphasizes that an organization’s success is closely tied to aligning its goals with those of its stakeholders By meeting stakeholder expectations, companies foster trust and loyalty, leading to a stronger relationship with their stakeholders Consequently, an increasing number of corporations are adopting socially responsible practices and policies to effectively address stakeholder demands.
Stakeholders consist of shareholders and investors, employees, customers, suppliers, governmental organizations, trade associations, environmental groups, and members of the community where a company operates.
2.2.2 Caroll’s CSR conceptualization - Carroll’s CSR Pyramid
In his 1979 paper on corporate social performance, Carroll introduced four key categories of Corporate Social Responsibility (CSR): economic, legal, ethical, and discretionary responsibilities He emphasized that these categories serve to classify motives and actions, highlighting their distinct roles The hierarchical arrangement of these responsibilities suggests their significance in the evolution of CSR's importance.
Initially, the framework adopted a retrospective developmental perspective, highlighting that the evolution of business has shown a progression from an early focus on economic and legal factors to a more recent emphasis on ethical and discretionary considerations.
Carroll's CSR model, introduced in 1991, is depicted as a pyramid, illustrating the relative weighting of different responsibilities The model acknowledges that economic, ethical, philanthropic, and legal responsibilities have always coexisted, but notes a recent shift in emphasis towards ethical and philanthropic functions The pyramid is grounded in the idea that economic performance is the foundation that supports all other responsibilities, with dependence being a key rationale While the components are interconnected, they are also in a state of constant tension, requiring managers to balance competing obligations.
Figure 2.1 The Pyramid of Corporate Social Responsibility (Carroll, 1991)
Carroll (1999) appeared to briefly retract his dubious equating of philanthropy with corporate citizenship and to abandon his pyramid concept by reconceiving his model as
Carroll revisited his 1991 CSR pyramid, integrating the concept of stakeholders into the framework of corporate citizenship He defined economic responsibility as fulfilling the requirements of global capitalism, while legal responsibility emphasizes meeting the expectations of global stakeholders Ethical responsibility involves adhering to the expectations set by these stakeholders, and philanthropic responsibility focuses on fulfilling the desires of global stakeholders.
Previous research about Corporate Social Responsibility and Employees’ satisfaction 10
Albdour & Altarawneh (2012) explore how internal perceptions of Corporate Social Responsibility (CSR) influence employee engagement The study focuses on five key CSR factors: training and education, human rights, health and safety, work-life balance, and workplace diversity Findings reveal that these CSR elements positively affect both job engagement and organizational engagement among employees.
11 job engagement training and education
Internal CSR health and safety
+ organizationa l engagement work life balance workplace diversity
Duyu Turker's 2009 study established a comprehensive and reliable measure of Corporate Social Responsibility (CSR) that addresses a business's obligations to various stakeholders This scale was developed through a systematic process and includes 42 observation variables categorized into four key elements: CSR towards employees, customers, government, and society, as well as other stakeholders The research applies these four factors to effectively assess CSR perceptions.
A study conducted by Aharon Tziner, Yaki Bar, Lior Oren, and Gal Kadosh (2011) explores the relationship between employees' perceptions of corporate social responsibility (CSR) and their levels of job satisfaction and organizational justice The findings indicate a positive correlation between employees' CSR perception and both job satisfaction and organizational justice The research utilizes Turker's CSR scale to assess employees' perceptions of CSR.
Research Model
H1: There is a positive impact of CSR to employees on Employees’ satisfaction
Employees' perceptions of Corporate Social Responsibility (CSR) positively influence organizational trust and job satisfaction This is because CSR initiatives enhance employees' self-image and morale, fostering a connection between their personal identities and the corporation's values.
Social identity theory indicates that employees and stakeholders are more likely to view an organization positively when they feel aligned with its goals (Peterson, 2004) Effective corporate social responsibility (CSR) strategies can enhance employees' perceptions of their organization (Brown and Dacin, 1997), while stakeholders tend to trust companies that address social issues ethically (Hosmer, 1995) Additionally, research by Vlachos et al (2010) shows a positive correlation between salespersons' perceptions of their company's CSR and their job satisfaction In the hospitality sector, recent studies highlight that various aspects of CSR significantly boost employee job satisfaction (Lee et al., in press).
H2: There is a positive impact of CSR to customers on Employees’ satisfaction
According to Carroll (1999), economic viability involves businesses fulfilling their responsibilities to society by producing goods and services that meet customer demands and expectations.
The relationship between job satisfaction and customer orientation has been explored in several studies (e.g., Donavanet al., 2004; Hoffman and Ingram, 1992; Pettijohn et al.,
Research from 2007 demonstrates that increased customer orientation among employees is linked to greater job satisfaction This conclusion aligns with social exchange theory, which suggests that individuals are motivated to engage in positive interactions based on reciprocal benefits.
Research by Hoffman and Ingram (1992) highlights that reciprocal behaviors in the workplace, particularly customer-oriented actions, significantly enhance job satisfaction Furthermore, Motowidlo (1984) supports this notion, indicating a strong link between customer orientation and increased job satisfaction among employees.
H3: There is a positive impact of CSR to government on Employees’ satisfaction
Research by Tziner et al (2011) indicates a strong positive correlation between corporate social responsibility (CSR) towards the government and employees' job satisfaction Additionally, the study conducted by Choong-Ki et al (2012) highlights a significant positive impact of the legal dimension of CSR on employee job satisfaction.
Social responsibility (CSR) transcends mere legal compliance, as highlighted by Sim (2003), who emphasizes that legality and social responsibility are distinct concepts CSR encompasses actions that extend beyond legal requirements, reinforcing the notion that fulfilling legal obligations is a crucial aspect of corporate social responsibility, as noted by McGuire (1963) and Davis (1973).
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.
A significant positive relationship exists between Corporate Social Responsibility (CSR) and job satisfaction among employees, as well as with other stakeholders (Tziner, Bar, Oren, and Kadosh, 2011) Although CSR is a widely discussed concept in literature, providing a clear and universally accepted definition remains challenging, as noted by Bowen.
In 1953, a pioneering scholar defined Corporate Social Responsibility (CSR) as the pursuit of policies and actions aligned with societal objectives and values Carroll (1991) emphasized the natural connection between CSR and an organization’s stakeholders Expanding on this, Freeman (1984) described stakeholders as groups or individuals who can influence or are influenced by the organization's goals, highlighting their direct or indirect interest in the company Consequently, CSR plays a crucial role in benefiting both society and stakeholders, underscoring its importance in organizational practices.
Research indicates a disparity between managers' and employees' perceptions of corporate social responsibility (CSR) Managers tend to view CSR initiatives as beneficial for enhancing the company's reputation, placing greater emphasis on external CSR activities (Jeremy Galbreath, 2009).
Research by Leonidas, Mary, Theofilos, and Amalia (2012) reveals that many companies implement CSR programs primarily focused on societal, environmental, and employee-related initiatives through their internal management functions Additionally, managers recognize various advantages associated with CSR activities Notably, those who advocate for external communication and evaluation of CSR by a national agency exhibit a strong positive perspective towards the institutionalization of CSR practices.
Employees should prioritize internal corporate social responsibility (CSR), while managers must view both internal and external CSR as equally significant (Brammer et al., 2005) Research by Tamm, Eamets, and Motsmees (2010) indicates that the evaluations of external CSR by managers and employees tend to align more closely than their views on internal CSR This alignment can influence overall job satisfaction within the organization.
Moderator: Position (Employees and Managers)
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
CSR to society and other stakeholders H4
Research Methodology
Research Process
Following the identification of research problems and objectives, a literature review on Corporate Social Responsibility (CSR) and its measurement scales was conducted to explore the key factors influencing CSR and employee satisfaction This led to the development of a conceptual model and hypotheses regarding the relationship between CSR and employee satisfaction in Vietnamese firms located in Ho Chi Minh City.
The literature review on Corporate Social Responsibility (CSR) highlights its significant impact on employee satisfaction within Vietnamese firms in Ho Chi Minh City A conceptual model has been developed, identifying four key CSR factors that influence this satisfaction To ensure the research's robustness, a draft questionnaire was created by synthesizing insights from previous studies The research employs both qualitative and quantitative methods, structured in two phases: a pilot survey followed by a main survey Subsequently, measurement scales and pilot questionnaires focusing on CSR and employee satisfaction were meticulously prepared for qualitative analysis.
A qualitative research study was conducted using a preliminary questionnaire and in-depth interviews with key employees and middle to low-level managers in Vietnamese firms This initial phase involved pilot interviews to refine the approach, ultimately leading to the determination of an appropriate sample size for the research.
Assessing the reliability and validity of data
Exploratory Factor Analysis Cronbach’s reliability cofficient
A qualitative study was conducted through face-to-face interviews as part of the main survey, involving 440 employees and managers from various organizations in Ho Chi Minh City (HCMC) The primary data collection methods included direct and online surveys, with all data gathered over a two-week period.
Out of 410 questionnaires distributed, 391 were deemed usable for analysis due to incomplete responses Following a thorough quality check, the data was imported into SPSS software for further analysis.
This research employed Exploratory Factor Analysis (EFA) and Cronbach's alpha to validate questionnaires and assess the reliability of measurement scales Additionally, Standard Multiple Regression was utilized for hypothesis testing The research methodology is illustrated in the accompanying figure.
The research steps of this research consist of seven steps:
Step 1: Initial research model and the draft questionnaire
The literature review informed the development of a conceptual model and initial hypotheses regarding corporate social responsibility (CSR) and employee satisfaction Additionally, a draft questionnaire was created, utilizing various measurement scales from previous research to ensure comprehensive evaluation.
Step 2: Questionnaire refinement by qualitative pilot research
In the initial phase of this research, qualitative analysis was performed using a preliminary questionnaire and pilot interviews through in-depth methods This stage involved three employees and two middle-level managers from various Vietnamese firms, who are acquaintances of the author, to evaluate the adequacy of the measurement scales, conceptual model, and questionnaire Following this assessment, the appropriate sample size was determined.
Step 3: Quantitative pilot research for the clarity of questionnaire testing
A quantitative pilot study was conducted using face-to-face interviews to assess the interviewees' comprehension of both the questionnaire content and the measurement scales This phase involved 14 participants, including employees and managers from Vietnamese companies in Ho Chi Minh City The feedback gathered was crucial for refining the questionnaire, ensuring that the majority of pilot interviewees understood the survey The revised questionnaire served as the final version for the main survey.
A total of 360 hard copy questionnaires were distributed to interviewees, alongside an additional 180 questionnaires sent through an online survey Ultimately, 410 responses were received, with 391 questionnaires deemed suitable for data analysis.
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
The KMO index was greater than 0.6 (the range from 0 to 1)
Consequently, the hypotheses model was modified.
The Cronbach Alpha Analysis method evaluates the reliability of measurement scales by examining the consistency of internal variables within the same factors A scale is deemed reliable when the Cronbach Alpha coefficient exceeds 0.7.
The Standard Multiple Regression was used for the hypotheses testing.
Data Collection
Primary data was gathered through face-to-face interviews using traditional paper surveys, as well as an online survey distributed via email to participants The respondents included employees and managers from various Vietnamese firms located in Ho Chi Minh City.
The existing literature, including international business journals, articles, books, and professional publications, serves as valuable resources for gathering pertinent information for this research Additionally, credible online sources from business and expert websites significantly contribute to the collection of relevant data.
Field Work Organization
In order to have valuable and reliable database, the sampling method shoud be executed carefully.
The target interviewees of this research are employees and managers of Vietnamese firms in HCMC.
According to Hair et al (2006), the sample size is considered as suitable for the reliability of the research should be 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 (kQ 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.
Prior to finalizing the questionnaire, a preliminary pilot version was distributed to key employees and managers from various Vietnamese companies through in-depth interviews to evaluate the content and identify any errors Following this, quantitative research was conducted during the pilot phase, involving face-to-face interviews with a randomly selected group of 14 targeted interviewees from Vietnamese companies in Ho Chi Minh City, serving as a final test before the official survey launch.
This study utilizes in-depth interviews to explore how various independent factors—specifically Corporate Social Responsibility (CSR) towards employees, society, government, and customers—impact employee satisfaction within Vietnamese firms located in Ho Chi Minh City.
The feedback from interviewees in the pilot study highlighted the need to revise the measurement scales and questionnaires They pointed out misunderstandings and duplicated issues among the variables, emphasizing the importance of enhancing clarity and ease of understanding in the questionnaire.
Measurement Scales
This research utilizes original factors derived from numerous prior studies, as referenced throughout the literature review The findings indicate that a multivariate measurement scale is the most suitable approach for this study.
The research identifies four independent factors of Corporate Social Responsibility (CSR) tailored to the Vietnamese context: CSR towards employees, CSR towards the government, CSR towards customers, and CSR towards society and other stakeholders To conduct the quantitative study, a Five-point Likert scale was employed in the survey questionnaire.
The research utilized a Five-point Likert scale, as established by Likert in 1932, to assess the levels of Corporate Social Responsibility (CSR) and employee satisfaction within Vietnamese firms located in Ho Chi Minh City The measurement scales employed for this study are detailed in the accompanying table.
CE01 Our company provides a wide range of indirect benefits to improve the quality of employees’ lives
CE02 The employees in our company receive a reasonable salary to maintain an acceptable quality of life
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
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, CE10 The management of our company is primarily concerned 2009 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
CC01 One of the main principles of our company is to provide high-qualityproducts to its customers
Adapted from Duygu Turker, CC02 Our prducts comply with the national and international 2009 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 requirement
CC06 Customer satisfaction is highly important for our company
CC07 Our company is responsive to the complain of its customers
CC08 Our company is known as a respected and trustworthy company
CG01 Our company always pays its taxes on a regular continuing basis
CG02 Our company complies with legal regulations completely and promtly
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, CS02 Our company participates in activities which aim to 2009 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, CS06 Our company make the investments to create a better life 2009 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 framework
CS19 Our company always avoids unfair competition
ES01 You satisfy with CSR to employee policies in this company
ES02 You satisfy with CSR to customer policies in this company
ES03 You satisfy with CSR to government policies in this company
ES04 You satisfy with CSR to society policies in this company
ES05 In general, You feel satisfied when working here
This research utilized various statistical methods, including standard deviation, frequency distribution, and variance, to analyze the data collected from questionnaires Data analysis was conducted using SPSS version 20.0 (Statistical Package for Social Science).
Descriptive statistics were employed to analyze interviewee evaluations based on gender, work experience, and enterprise ownership This analysis helped the researcher assess employees' and managers' awareness of Corporate Social Responsibility (CSR) and its impact on their satisfaction within Vietnamese organizations Key statistical measures, including minimum, maximum, mean, standard deviation, frequency, and percentage, were calculated from the collected data A Likert Scale, ranging from 1 (strongly disagree) to 5 (strongly agree), was utilized to gauge the degree of agreement among participants.
The Assessment of Scale Reliability evaluates the internal consistency of the constructed items in this research, determining the reliability of each variable within measurement scales Observed variables reflect a common construct, with constructs exhibiting high reliability characterized by strong inter-correlations among items This indicates that they are all measuring the same underlying construct (Hair et al., 1998).
Reliability analysis employs Cronbach’s alpha coefficient and item total correlation to assess the consistency of a set of items The Cronbach’s alpha reliability coefficient indicates the degree of correlation among the items, demonstrating how significantly related they are to one 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).
To enhance the reliability of a construct, any variables with a Corrected Item-Total Correlation below 0.4 or an Alpha if Item Deleted exceeding the Cronbach’s alpha should be considered for exclusion (Hair et al., 1998).
3.4.5 Assessment of Scales’ Unidimensionality, Discriminant Validity and Convergent
Following the assessment of scale reliability, Exploratory Factor Analysis (EFA) is utilized to examine uni-dimensionality, discriminant validity, and convergent validity, which helps in determining 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).
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 outliers are used in this case, no significant impact of outlier.
Normality and linearity should be existed.
Total Manager Employee Male Female
Data Analysis
Sample Descriptive Statistic
A total of 440 questionnaires were distributed to employees and managers at various levels, resulting in 410 responses However, 11 responses were deemed invalid due to incomplete information, leaving 391 valid questionnaires for analysis This sample comprised 259 employees and 132 managers, providing valuable insights into the perspectives of both groups.
Table 4.1 Gender of respondents, Working experience, Enterprise ownership
State-owned Enterprise Private Enterprise
In term of gender of this survey, 52% of respondents are male and 48% of respondents are female.
Among 391 respondents, a significant majority of 76% have less than 5 years of work experience Additionally, 20% possess between 5 to 10 years of experience, while only 3% have worked for 10 to 15 years Notably, just 1% of the respondents have over 15 years of professional experience.
Among the respondents, 28% are affiliated with State-owned Enterprises, while 56% represent Private Enterprises Additionally, 16% of the respondents come from other sectors, including Joint Venture Enterprises and Non-Governmental Organizations.
Assessment and Refinement of Measurement Scales
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) is utilized to evaluate the validity of measurement scales, beginning with the Cronbach’s alpha test to determine reliability A Cronbach’s alpha value above 0.7 indicates strong reliability, while a value above 0.6 is deemed acceptable To enhance the reliability of the scales, variables with item-total correlations less than 0.3 are considered for removal.
The Exploratory Factor Analysis (EFA) is performed to assess the validity of measurement scales, utilizing the principal component extraction method alongside the varimax rotation technique For EFA to be considered valid, the Eigenvalue must exceed 1, and the total variance explained should be over 50%.
The reliability analysis revealed that all factors met the required standards, with Cronbach's alpha coefficients exceeding 0.7 Specifically, the alpha values were 0.871 for CSR to employees, 0.855 for CSR to customers, 0.862 for CSR to government, 0.936 for CSR to society and other stakeholders, and 0.841 for employee satisfaction Additionally, all item-total correlation values across the scales were above 0.3, indicating strong reliability.
The reliability test result in the following table will show the detail of the factors and variables which were reliable.
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
CSR to employee (12 items) - Cronbach’s alpha 0.871
CSR to customer (8 items) - Cronbach’s alpha 0.855
CSR to government (4 items) - Cronbach’s alpha 0.862
CSR to society and other stakeholders - Cronbach’s alpha 0.936
After refining the reliability of measurement scale, the Exploratory Factor Analysis (EFA) method conducted to test the validity of the measurement of scales.
The EFA testing results indicate that all independent factors have KMO values exceeding 0.7, with Bartlett’s Test Significance at 000, which is below the 0.05 threshold This confirms that the extracted variance satisfies the criteria for effective EFA testing.
Table 4.3 KMO and Bartlett’s Test KMO and Bartlett's Test
Bartlett's Test of df 903 Sphericity
The analysis revealed that four factors exhibited eigenvalues greater than 1, confirming the initial hypotheses The eigenvalues recorded were 13.993, 3.402, 2.690, 1.803, 1.632, 1.540, and 1.147, indicating a strong factor structure Additionally, the cumulative percentage explained 60.946% of the total variance, highlighting the significance of these factors in the construction.
Table 4.4 Total Variance Explained Total Variance Explained
Extraction Method: Principal Component Analysis.
In the Rotated component matrix, the loading of the variables on the seven independent factors were chosen.
The value of each variable in each component should be more than 0.4 to show a strong correlation in that component and higher than other values more than 0.25.
Following the Exploratory Factor Analysis (EFA), 11 variables were eliminated due to not meeting the testing criteria, specifically CS8, CS9, CS11, CS16, CS17, CC8, CE1, CE2, CE3, CE7, and CE8 Consequently, the scales were reduced from 43 items to 32 items and reorganized into 7 distinct groups, as illustrated in the table below.
Component Initial Eigenvalues Extraction Sums of Squared
Rotation Sums of Squared Loadings
The study reveals significant shifts in the perceptions of interviewees regarding various factors, diverging from initial hypotheses and existing theories This indicates that respondents believe these factors play a crucial role in influencing employee satisfaction Following exploratory factor analysis (EFA), the Corporate Social Responsibility (CSR) factor related to society and stakeholders was further delineated into three distinct areas: environment, society, and competition Additionally, the CSR factor concerning employees was refined into two specific categories: employee life and development opportunities In contrast, the CSR factors related to customers and government showed minimal changes.
The CS factor is not disordered but rather consists of rearranged elements from a larger group into smaller, coherent categories According to Stakeholder Theory, stakeholders include shareholders, employees, customers, suppliers, governmental organizations, trade associations, environmental groups, and local community members Therefore, categorizing the CS factor into three specific areas—CSR to the environment, CSR to society, and CSR to competition—enhances clarity and precision Research by Duyu Turker (2009) further supports this division, indicating that the "CSR to stakeholders" factor encompasses CSR to society, the natural environment, future generations, and non-governmental organizations.
A study by Albdour and Altarawneh (2012) identifies key components of internal Corporate Social Responsibility (CSR) for employees, including training and education, health and safety, human rights, work-life balance, and workplace diversity Consequently, it is appropriate to categorize the CSR to employees into two distinct factors: "employee life," which encompasses work-life balance, safety, and health policies, and "development opportunities," which focuses on training, education, and workplace diversity This division enhances specificity in understanding employee-centric CSR initiatives.
Finally, 4 original factors are regroup into 7 factors after EFA is reasonable and acceptable.
Variables in factors are grouped again as below
CSR to environment and generation (CEG): CS01, CS02, CS03, CS04, CS05.
(“Generation” means future descendants/ future generation)
CSR to society (CTS): CS09, CS10, CS12, CS13, CS14, CS15
CSR to customer (CTC): CC01, CC02, CC03, CC04, CC05, CC06, CC07
CSR to employee life (CEL): CE09, CE10, CE11, CE12
CSR to government (CTG): CG01, CG02, CG03, CG04
CSR to employee development opportunity (CED): CE04, CE05, CE06
CSR to competition (CCO): CS18, CS19
New 7 factors are checked on reliability again because old groups were broken and the old value of reliability is not qualified any more The Cronbach’s alpha values of all the factors over 0.7 and qualified.
Table 4.6 Cronbach’s Alpha for new factors
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
CSR to environment and generation (7 items) - Cronbach's Alpha 902
CSR to society (6 items) - Cronbach's Alpha 901
CSR to customer (7 items) - Cronbach's Alpha 845
CSR to employee life (4 items) - Cronbach's Alpha 810
CSR to government (4 items) - Cronbach's Alpha 862
CSR to employee development opportunity (3 items) - Cronbach's Alpha 767
CSR to competition (2 items) - Cronbach's Alpha 785
4.2.2.2The dependent factor: Employees’ satisfaction
The KMO value for the employees’ satisfaction factor is 0.762 which is greater than 0.6 and the Bartlett’s Test of Sphericity value is significant at the Sig value is 000 (