how can corporate social responsibility (csr) effect company performance

HOW CAN CORPORATE SOCIAL RESPONSIBILITY (CSR) EFFECT COMPANY PERFORMANCE BY DINH THE ANH TUAN E0700074 Graduation Project Submitted to the Department of Business Studies HELP University College, in Partial Fulfillment of Requirements for The Degree of Bachelor of Business (Accounting) Hons OCTOBER 2011 Declaration of originality and word count I here by declare that the graduation project is based on my original work except for quotations and citations which have been duly acknowledged I also declare that it has not been previously or concurrently submitted for any other course/degree at help University College or other institutions The word count is 9850 words Dinh The Anh Tuan Date: 17/10/2011 Acknownledgement I would like to express gratitude towards Mr Pham Duc Hieu for their and guidance I would also like to thank ISVNU for this project support Abstract How can Corporate Social Responsibility (CSR) effect company performance By Dinh The Anh Tuan October 2011 Supervisor: Pham Duc Hieu Companies faced with complex market conditions, external effects and asymmetric information can lead to market failures and optimize profits In the literature, market failure can build the theoretical basis for the implementation of corporate social responsibility (CSR) of companies In fact, companies in competitive markets can use CSR as a management tool to gain more profitable through diversification Furthermore, the implementation of social responsibility requires the detection of future trends and developments that make the company more stable for the unexpected events Therefore, CSR can offer companies the chance to achieve higher profits they would receive without CSR In addition, CSR can lead to higher costs and thus the financial performance worse Many research are taken in which the method of study is quantitative or using the KLD data base In this study, I will examine the relationship of CSR and financial performance in different view and different method Those issues will be improved by the case of Vedan in Vietnam This is a very clear example of the relationship between CSR and Financial performance Table content Acknownledgement Abstract Table content Chapter 1: Introduction 1.1 Reason for choosing the subject: 1.3 Research question: 10 1.4 CSR in the world: 10 1.5 CSR in Viet Nam: 11 1.6 Structure of study: 12 Chapter 2: Literature review 13 2.1 Definition of CSR: 13 2.1.1 Historical definition of CSR 14 2.1.2 Content: 17 2.1.2.1 CSR with workers or employees: 18 2.1.2.2 CSR with stakeholders: 19 2.1.2.3 CSR with suppliers and customers: 19 2.1.2.4 CSR with community: 20 2.2 Financial performance: 21 2.2.1 Definition of financial performance: 21 2.2.2 Content: 21 2.2.2.1 Advantages of CSR and financial performance: 22 2.2.2.2 Disadvantages of CSR and financial performance: 25 2.3 Benefits and cost of CSR 26 2.3.1 Benefits of CSR: 26 2.3.2 Cost of CSR: 27 2.4 CSR and accounting performance: 28 2.4.1 How benefits are reflected in accounting 28 2.4.2 How costs are reflected in accounting: 29 2.5 How CSR can reduce the cost of the company: 30 2.5.1 Reduce operating cost: 30 2.5.2 Reduce financial cost: 30 Chapter 3: Methodology: 32 3.1 Research methodology: 32 3.1.1 Quantitative methodology: 32 3.1.1.1 Advantages of quantitative method: 32 3.1.1.2 Disadvantages of quantitative method: 33 3.1.2 Qualitative methodology: 33 3.1.2.1 Advantages of qualitative method: 33 3.1.2.2 Disadvantages of qualitative method: 34 3.2 Data collection: 35 3.2.1 Primary data: 35 3.2.2 Secondary data: 37 3.3 Measurement: 38 Chapter 4: Analysis 40 Chapter 5: Conclusion 44 REFERENCE: 45 Chapter 1: Introduction 1.1 Reason for choosing the subject: In this section, I would like to introduction something about the corporate social responsibility (CSR) CSR has emerged as the business issue of the 21st century and has been studied for over 50 years However, academics not have a consensus on its definition (Wood, 1991; Carroll, 1991) and it has been frequently assigned to the field of business ethics and conduct Publications, definitions and references to CSR started as early as the 1950s One of the pioneer books on the topic of CSR was written by Howard in 1953, titled the "Social Responsibilities of the Businessman" This was one of the pioneer books on social responsibility for businesses and highlighted a company's role beyond the financial benefits Today, social responsibility is not a new problem for the theory of firms and countries around the world where the only thing to discuss here is the theory that has been "doing" and what well it was useless CRS is very interested in the developed countries by the business community see it as investment creates significant profit (after all the same, according to Philip Kotler, the supreme goal of a business entity is profit ) Speaking to this apparent logic of the problem is investment - profitability, "the property" long giant that is building up day Defining social responsibility of business can be broken down into specific actions with objects are employees, shareholders, suppliers, customers, and communities CSR is an important issue which concerns about the ethics, the society, the natural environment, the employees and also working environment as a whole in which how the firm behave On September 13, 1970, in the New York Times, Milton Friedman wrote: ―There is one and only one social responsibility of business— to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.‖ The Australian Government Corporations and Markets Advisory Committee: Corporate Social Responsibility Discussion Paper (2005) emphasizes that ―as companies‘ play a prominent role in contemporary society, the relationship that exists between a company and society is an important community issue Through the provision of goods and services, companies have substantial power to impact society Correspondingly, a firm‘s CSR suggests whether this impact is positive or negative Thus CSR is a particularly relevant issue for evaluating firms from a community perspective.‖ The Economist Intelligence Unit (2005: 5) global survey reported that in 2000, 54% of corporate executives regarded corporate social responsibility as ‗central‘ or ‗important‘ to their corporate decision-making In 2005 this response grew to 88% This shows that firms are more and more increasingly focusing on CSR Therefore it is essential to look at whether investment in CSR is associated with higher or lower financial performance So I chose this topic to demonstrate the importance of CSR in the business, especially effect financial performance 1.2 Problem statement CSR can make a lot of benefits to companies, CRS is the best interests of the developed countries of the enterprise are considered investments generate significant profits as: Reduce costs and increase productivity, businesses can save money by producing cleaner For example, a business major packaging producers in Poland has saved $ 12 million within five years thanks to the installation of new equipment, thereby reducing water use by 7%, 70% of the amount of 87% of waste water and emissions Or increase revenues, investment to support local economic development can create a better workforce, provide cheaper and more reliable, and thus increase sales To raise brand value and reputation of the company, CSR can help companies increase brand value and reputation significantly Reputable companies to help increase sales, attract partners, investors, and employees Attract good workers, Qualified labor resources is the decisive factor productivity and product quality in developing countries, a large amount of labor, but labor force of high quality is not much; thus attracting and keeping qualified staff is good and the commitment is a challenge for businesses These businesses pay fair and equitable, giving employees training opportunities, health insurance and pure environment is capable of attracting and retaining good employees CSR can also make the company the financial deficit One of the important limitation to a program of corporate social responsibility is the cost to the company Efforts such as sponsoring events, charitable donations, contributions and commitment to the product of voluntary environmental standards all the costs that the company is difficult to implement in the short term return Although long-term positive impact of a company's image is improved, it is impossible for companies to measure the value of corporate responsibility, instead of taking costs out of its profits This means less money for shareholders and less money to invest back into the company for future growth It has also places the company to invest heavily in corporate responsibility at a disadvantage competing against other companies 1.3 Research question: What is the CSR? Definition of financial performance? Advantages and disadvantages of CSR and financial performance? What are the benefits and cost of CSR? How benefits and cost are reflected in accounting? How CSR can reduce the cost of the company? 1.4 CSR in the world: Today, in the current economy is facing many difficulties, CSR still plays an important role in the maintenance and development of the company, examples of intel At the last meeting of the Asian CSR Forum, Intel has indicated that only the public's trust business for just under 60% This is a significant decline in public trust for enterprises, because the Center examine social responsibility of business Svetlana Boston College, USA, about ten years ago, people still great confidence in the ability of sustainable development of the market will play an important role in the sustainable development of society in general Besides the drop in confidence, the economic crisis is no small impact on the public purse for sustainable products, the market share of these products which have a good position before the crisis, but were significantly reduced after the financial crisis Typically, M & S is a pioneer in CSR activities and quality products and sustainable high, were 44% profit drop in half a year (data from 11/2008, PR Week, UK) in Meanwhile, capital is a retail system products using the very short life cycle, leading to consequences that large amounts of waste from clothing products to be reused will be discharged into the environment but Primark has announced 17% increase in annual profit Because of a significant drop in revenue and profit by the change-oriented consumers from sustainable 10 Chapter 3: Methodology: 3.1 Research methodology: 3.1.1 Quantitative methodology: ―Quantitative methods are research techniques that are used to gather quantitative data — information dealing with numbers and anything that is measurable.‖ In this study, quantitative methods are used to verify, which of such hypotheses, which were proposed, are true I used in this study statistics, tables and graphs present the results of these methods 3.1.1.1 Advantages of quantitative method:  Allowing for a larger study, involving a larger number of subjects, and enhance the generalization of the results  May allow objective and accurate results In general, quantitative methods are designed to provide a summary of data supporting an overview of the phenomenon being studied To this, quantitative research usually involves few variables and many cases, and using the procedures as prescribed to ensure the validity and reliability  Using standards means that research can be replicated, and then to analyze and compared with same research Quantitative methods allow us to summarize the big information resources and create favorable conditions for comparison between categories, with time  Personal bias can be avoided researchers keep a distance from the participants and use their object is not known 32  3.1.1.2 Disadvantages of quantitative method:  Collect a data set much more narrow and sometimes superficial  Results will be limited as they provide numerical descriptions rather than detailed accounts and general accounts not offer to build awareness of human  This research is usually done in a natural environment and artificial, to a level of control can be applied to perform This level of control can often not be in place in the laboratory results actually produced the world as opposed to real-world results  In addition preset answers will not necessarily reflect how people really feel about a subject and in some cases might just be the closest match  The development of standard questions by the researchers could lead to biased "structure" and wrong representation, where the data actually reflect their views instead of participants 3.1.2 Qualitative methodology: ―The qualitative method investigates the why and how of decision making, not just what, where, when.‖ Qualitative methods are used in this project in order produce information only on the particular cases studied 3.1.2.1 Advantages of qualitative method:  Provides depth and detail : looks deeper than analysing ranks and counts by recording attitudes, feelings and behaviours  Creates openness: encouraging people to expand on their responses can open up new topic areas not initially considered 33  Simulates people's individual experiences: a detailed picture can be built up about why people act in certain ways and their feelings about these actions  Attempts to avoid pre-judgements: if used alongside quantitative data collection, it can explain why a particular response was given 3.1.2.2 Disadvantages of qualitative method:  Usually fewer people studied: collection of qualitative data is generally more time consuming that quantitative data collection and therefore unless time, staff and budget allows it is generally necessary to include a smaller sample size  Less easy to generalise: because fewer people are generally studied it is not possible to generalise results to that of the population Usually exact numbers are reported rather than percentages  Difficult to make systematic comparisons: for example, if people give widely differing responses that are highly subjective  Dependent on skills of the researcher: particularly in the case of conducting interviews, focus groups and observation In my project, I used quantitative method 34 3.2 Data collection: To make the results accurate and reliable for this study, it is necessary to use both secondary data and primary data 3.2.1 Primary data: After having gained some insight into the problems of this project by collecting secondary data, I started searching the data as sent questionnaires, direct observation and interviews the people involved One of the advantages of primary data collection is to provide appropriate information in accordance with the requirements of the subject Observation method: Observation method is controlled to record the events or the behavior of humans This method is often used in combination with other methods to cross-check the accuracy of data collected Direct observation are observations when the event is taking place Indirect observations are conducted to observe the results or effects of the behavior, not directly observable behavior Tools observed: use senses to observe human subjects research Mail interview method: Send a questionnaire was prepared, together with stamped envelopes to people who want a postal survey If everything goes smoothly, subject to investigation will answer the questionnaire and return it the investigating agencies and by mail Apply when we need to face difficult questions, because they are too far, or they live too dispersed, or they live in very difficult areas dedicated to, or the business they want to catch the mail protection Register and when to investigate the problem of hard to say, privacy; the issues to be investigated is extremely attractive for the 35 interviewee ; When problems need to be investigated with reference to specific searching I increased the response rate by: Notice to the respondent: Use a postcard notice approximately five days before sending the questionnaire In particular specify: your name recipient (specify position) and reporting purposes Or use a letter or phone notice Prepared envelopes: Envelope to formal fine paper, printed with name and full name which sent the recipient's address On the bold words: This is an investigation we have reported to you As the case may be in or not in the company name because we need to investigate the psychological well where recipients Prepared to stimulate radiation thu.Buc mail recipients completed the questionnaire and return it The letter must be in pretty formal, colored individuals, to avoid creating the impression that in a series of letters to send to anyone Start message is a call for help, mentioned the importance of the problem to convince them to respond Letters refer briefly to the purpose of research, highlight the importance of the subject was asked, promised benefits if they participate (for example they will send table summarizes the survey results), and finally referred to the simple questionnaire, and short time to respond Using stimulus material: Sometimes even a small gift as a writer, a beautiful card with a message Can be numbered on a letter to the respondent to participate in the lottery winners when answered Monitoring the response: Approximately to days after sent a questionnaire, sent a postcard to remind Using a new letter to call for answers, together with a questionnaire and stamped envelope reply, sent about to weeks after the questionnaire was sent first, to prevent the object busy work or go on leave 36 Telephone interview method: I conducted the interview subjects surveyed by telephone by a questionnaire prepared Applied when the sample includes many objects are agencies or enterprises, or those with high incomes (because they all have phones) or distributed objects scattered research in many areas, the interview with your lower cost phone interview by mail Personal interviews method: I went directly to the object under investigation to interview a questionnaire was prepared Apply to study complex phenomena, need to collect more data when you want to poll the audience through a brief question and can answer quickly, Probability sampling method: Selected samples that were selected for the ability to sample all of the master unit are the same This is the best method so that we can choose a sample capable of delegates overall As can be calculated by sampling error, so that we can apply the methods of statistical estimation, hypothesis testing in statistical data processing to derive large sample results the overall general 3.2.2 Secondary data: Secondary data is data collected by others, use for other purposes may be the purpose of our study Secondary data is data could not handle (also known as raw data) or data processing Thus, secondary data is not directly due to the research collection I use the following data sources for research: Reports of government departments and agencies of data and statistics on social and economic situation The research reports of the agencies, institutes, universities 37 Articles published in scientific journals or other professional and academic journals provide relevant Teaching materials or other scientific publications related to research problems 3.3 Measurement: Measurement of financial performance of the firm: Although measuring financial performance is considered a simpler task, it also has it specific complications There is little consensus about which measurement instrument to apply Many researchers use market measures (Alexander and Buchholz, 1978; Vance, S C., 1975), others put forth accounting measures (Waddock and Graves 1997; Cochran and Wood 1984) and some adopt both of these (McGuire, J B., Sundgren, A., Schneeweis, T., 1988) The two measures, which represent different perspectives of how to evaluate a firm‘s financial performance, have different theoretical implications (Hillman and Keim, 2001) and each is subject to particular biases (McGuire, Schneeweis, & Hill, 1986) The use of different measures, needless to say, complicates the comparison of the results of different studies In other words, accounting measures capture only historical aspects of firm performance (McGuire, Schneeweis, & Hill, 1986) They are subject, moreover, to bias from managerial manipulation and differences in accounting procedures (Branch, 1983; Brilloff, 1972) Market measures are forward looking and focus on market performance They are less susceptible to different accounting procedures and represent the investor‘s evaluation of the ability of a firm to generate future economic earnings (McGuire, J B., A Sundgren, and T Schneeweis, 1988) But the stock-market-based measures of performance also yield obstacles (McGuire, Schneeweis, & Branch, 38 1986) According to Ullmann (1985), for example, the use of market measures suggests that an investor‘s valuation of firm‘s performance is a proper performance measure (McGuire, J B., Sundgren, A., Schneeweis, T., 1988) This study used accounting variable which are operating ROA (return on total asset), ROE (return on equity), equity capital ratio (ECR) (equity capital/total capital), and return on sale (ROS) to measure financial performance of the firm Return on Assets (ROA) = Return on Equity (ROE) = Return on sale(ROS) = Net Income Total Sales Net Income Shareholde r Equity Net Income (before tax) Total Sales 39 Chapter 4: Analysis As noted above, we will take as a specific example vedan company The Vedan Vietnam Limited Joint Stock Company, a wholly Taiwanese-invested firm, was established under an investment licence granted by the Ministry of Planning and Investment in August 1991 In early 1993, Vedan Vietnam constructed flour and seasoning powder factory at the Go Dau Industrial Zone in Phuoc Thai commune, Long Thanh district, Dong Nai province Since the factory became operational, its surrounding environment has become polluted seriously In December 1994, the Prime Minister instructed the Dong Nai Department of Science-Technology and the Environment to investigate Vedan‘s polluting activities In June 1995, in a meeting with experts of the Environmental Agency and the Dong Nai Science-Technology and Environmental Department, Vedan‘s officials admitted the firm‘s violations and agreed to compensate people in Nhon Trach district VND7 billion, Long Thanh residents nearly VND4.5 billion, Can Gio district (HCM City) people over VND7 billion On September 16, 2002, the Ministry of Planning and Investment granted an amended investment licence, approving the transfer of duties and interests of the Taiwanese investor in Vedan Vietnam to the Singapore-based Burghley Enterprise Pte Ltd under a contract signed on August 5, 2002 In October 2004, residents in the districts of Nhon Trach and Long Thanh (Dong Nai) and Tan Thanh (Ba Ria-Vung Tau province) asked Vedan to compensate them for losses since the factory‘s waste water killed fish and shrimp worth around VND40 billion ($2.5 million) After three months lying in ambush, the environmental police caught Vedan, a Singapore-owned firm, red-handed directly discharging waste water into the Thi Vai River in the southern province of Dong Nai Director of the Dong Nai Department of Natural Resources and the Environment Le 40 Viet Hung said: ―Vedan used a two-way pumping system to discharge untreated waste water into the Thi Vai River This act is unacceptable We don‘t know when Vedan built this system This act is very serious; it is considered an environmental crime.‖ Mr Hung said in the past, inspectors of the Ministry of Natural Resources and the Environment found Vedan polluting the environment and this firm was fined Dong Nai fined Vedan three times, totalling more than VND20 million ($1,300) In mid 2006, the Environmental Protection Agency under the Ministry of Natural Resources and the Environment found Vedan directly discharging waste water into the Thi Vai River through three pipes Vedan was fined but it repeated its crime Colonel Luong Minh Thao, Vice Head of the Environmental Police Agency, confirmed Vedan‘s violation is very serious and it has caused Thi Vai‘s pollution Police laid in ambush for around months to collect evidence According to the Environmental Police Agency, before Vedan was caught, this firm was discharging around 50,000cu.m of waste water into the Thi Vai River a day On September 8, 2008, the Environmental Police Agency and inspectors of the Ministry of Natural Resources and the Environment caught Vedan discharging untreated waste water into the Thi Vai River In early September 2008, the Environmental Protection Department of Vietnam visited the Vietnam plant to inspect on related provisions and found that the environmental protection and resourcelization of production equipment of the plant had fallen behind the needs of its boosted production capacity This resulted in breaching certain wastewater discharge regulations In early October, the Vietnam government made the following three major decisions regarding the incident: 1) Vedan has to pay a US$16,000 fine according to the environmental protection ordinance 41 2) Vedan has to re-pay environmental fee totaling US$7,713,000 accrued since 2004 deemed appropriate by the Department 3) Wastewater discharged from the plant shall comply with environmental protection regulations, and Vedan shall duly submit a full environmental protection improvement proposal to the Environmental Protection Department for approval and implement the proposal afterwards Upon receipt of the formal notice, Vedan made an announcement on the above issue on October 2008 as obliged by the rules of the Hong Kong Stock Exchange immediately It set up an environmental protection emergency taskforce after the incident came to light to implement immediate and mid-term improvement measures Short-term improvements included enhancing the current wastewater treatment capability and quality, optimizing production processes, reducing wastewater discharge and lowering production capacity to ensure compliance with environmental protection standards yet continue production As for mid-term improvements, they included drawing up an improvement proposal based on ―3R‖ (waste reduction, reuse and recycling) entailing plans to install additional wastewater treatment equipment and expand the production facilities in the liquid and solid fertilizer plants The Group expects the major equipment for related works to be delivered around June in 2009 and installation and testing of them to be completed in the third quarter, and full scale production to resume in the fourth quarter Learning from the mistake, Vedan is determined to not only meet the legal requirements on environmental protection in Vietnam, but also excel those requirements and become an outstanding green manufacturer To this end, it has started implementing the ISO14001 environmental management system and expects to gain accreditation by the end of 2009 It aims to become a green enterprise capable 42 of continuously improving and protecting the environment by running an operation with contributing to the sustainability of environment and the society in mind Major impacts of the incident are: A US$16,000 fine and US$7,713,000 accrued environmental fee have to be paid and may be paid in two installments in 2008 and 2009 The fine has been paid in October 2008 Vedan paid approximately US$3,865,000 in December 2008, which was 50% of the discharge fee and will pay the rest in four installments in 2009 According to Hong Kong Accounting Standards, the US$7,713,000 fee shall be recognized as a one-off fee incurred in 2008 As a result, profit of Vedan for the year was substantially squeezed with net profit decreased from US$14,138,000 to US$6,409,000 The accrued payment however accounted only for 2.1% of Vedan‘s asset valued at US$360,497,000, thus had not posed any material impact on Vedan‘s business operation or management The stock price and exchange stock of Vedan was severely reduced To comply with environmental protection regulations and ensure continuous production, Vedan ceased some production and cut down on others, leading to a drop in production capacity in the fourth quarter Vedan also activated its emergency supply chain and imported lysine as raw material for producing MSG However, with different environmental protection improvement plans gradually implemented, Vedan can not pick up expected production capacity to eventually in the second quarter of 2009 and full scale production to resume in the fourth quarter Vedan could not be able to maintain turnover for 2009 at about the same level as in 2008 Per the damage claims from farmers and fishermen allegedly affected in the incident, Vedan had the cases studied by lawyers who concluded that the claims had no ground because the claimants had no operation licenses or the claim period had expired 43 Chapter 5: Conclusion In short, in times of development today, csr always played a crucial role in the company, and the influence of csr to finance the company is very clear, in the essay I have seen intelligence by answering the question: What is the CSR? Definition of financial performance? Advantages and disadvantages of CSR and financial performance? What are the benefits and cost of CSR? How benefits and cost are reflected in accounting? How CSR can reduce the cost of the company? CSR research has generally neglected the accounting issues associated with measuring financial performance with accounting-based measures As discussed in this study, the accounting realization of CSR investment is likely to show up as depressed earnings in the year a firm increases its commitment to CSR After an initial period of depressed earnings, CSR is expected to reduce accounting earnings volatility and potentially increase overall levels of earnings Understanding the relationship between CSR and financial performance, and in particular, accounting performance, is important as large firms, in the US, and abroad, appear to be allocating significant resources to CSR Disclosures related to social and environmental performance are on the rise with some increased reporting requirements related to these issues being passed abroad Additionally, the case study of Vedan and Unilever in Vietnam will be examined in order to compare the social performance between them, and the outcome of that performance As analyzing in chapter 4, Vedan has faced with seriously damages after its scandal in Vietnam, the profit of Vedan in Vietnam, also in parent company was reduced suddenly 44 REFERENCE: Corporate Social Responsibility - organization, levels, definition, model, type, company, business, History http://www.referenceforbusiness.com/management/Comp-De/Corporate-SocialResponsibility.html#ixzz1amYxkShk http://www.csrnetwork.com/csr.asp http://en.wikipedia.org/wiki/Corporate_social_responsibility http://www.referenceforbusiness.com/management/Comp-De/Corporate-SocialResponsibility.html http://www.investopedia.com/terms/f/financialperformance.asp#ixzz1amrMbWfV Aupperle, K E, Carroll, A B, & Hatfield, J D (1985) An Empirical Examination of the Relationship Between Corporate Social Responsibility and Profitability Academy of Management Journal, 28(2), 446 Bae, B, & Sami, H (2005) The Effect of Potential Environmental Liabilities on Earnings Response Coefficients Journal of Accounting, Auditing & Finance, 20(1), 43-70 Center for Corporate Citizenship at Boston College State of Corporate Citizenship Report, 2005 Cochran, P L., & Wood, R A (1984) Corporate Social-Responsibility and Financial performance Academy of Management Journal, 27(1), 42-56 Friedman, M (1970) ‗The Social Responsibility of Business is to Increase its Profits‘, The New York TimesMagazine, 13 September 1970 Gardberg, N A., & Fombrun, C J (2006) Corporate Citizenship: Creating Intangible assets across institutional environments Academy of Management The Academy of Management Review,31(2), 329 45 Sauders, M, Lewis, P and Thornhill, A (2009) Research Methods for Business Students, 5th edn., Financial Times Prentice Hall, Harlow, page 47,48 Leedy, P D and Ormrod, J E (2010) Practical Research: Planning and Design, th edn., Pearson Prentice Hall, New Jersey, Page 13, 14, 17, 18,134,135,136 Aaronson, SA 2003, 'Corporate responsibility in the global village: The British role model and the American laggard', Business and Society Review, vol 108, no 3, pp.309-38 46 ... How can Corporate Social Responsibility (CSR) effect company performance By Dinh The Anh Tuan October 2011 Supervisor: Pham Duc Hieu Companies faced with complex market conditions, external effects... information can lead to market failures and optimize profits In the literature, market failure can build the theoretical basis for the implementation of corporate social responsibility (CSR) of... 2000, 54% of corporate executives regarded corporate social responsibility as ‗central‘ or ‗important‘ to their corporate decision-making In 2005 this response grew to 88% This shows that firms