Introduction
Overview
The rapid growth of the global economy has significantly improved the quality of life, making it more comfortable for many However, this progress has come at a cost, leading to environmental degradation and negative impacts on human life Accompanying this development are serious societal issues, including natural disasters, environmental pollution, resource depletion, discrimination, labor exploitation, and the proliferation of toxic products.
As humanity faces the imminent threat of environmental destruction, we must question the wisdom of prioritizing profit over sustainability Are we willing to accept a diminished future on Earth, or is it time to adopt a collective commitment to responsible and sustainable development? This critical inquiry has been at the forefront of business evolution since 1953, giving rise to the concept of Corporate Social Responsibility (CSR).
Corporate Social Responsibility (CSR) has emerged as a significant global movement, particularly in Euro-American countries, where consumers increasingly prioritize not only product quality but also environmentally friendly and socially responsible production methods This shift has led to widespread boycotts of products deemed harmful, such as junk food and fur items In response to social pressures, businesses are now integrating CSR initiatives into their core strategies, implementing programs focused on energy conservation, carbon emission reduction, and the use of recycled materials Additionally, many companies are investing in community development, such as building schools and research centers for epidemic diseases in developing nations, while enhancing employee working conditions Prominent CSR leaders include companies like Google, Unilever, Coca-Cola, and Toyota, showcasing a commitment to sustainable practices and community support.
The implementation of Corporate Social Responsibility (CSR) has led to significant successes for corporations worldwide, including increased employee satisfaction, reduced operating costs, and an enhanced public image As a result, CSR has become a crucial strategy for the sustainable development of businesses.
The state of Corporate Social Responsibility (CSR) in Vietnam is closely linked to the country's doi moi (renovation) policy and the influences of globalization, which began with the adoption of a market-oriented socialist economy by the Communist Party in December 1986 This shift from a state-led to a market-oriented economy has posed challenges for state-owned enterprises, particularly with the influx of foreign investment and pressure from donors Vietnam's accession to the World Trade Organization (WTO) further accelerated this transition, emphasizing the importance of CSR in promoting environmental and social sustainability As international compliance standards became more pressing, both citizens and the legal framework in Vietnam began to recognize the significance of social responsibility Although Vietnam lacks a formal CSR policy, the government addressed CSR-related issues through Vietnam Agenda 21, a sustainability strategy signed by the prime minister in 2004 This strategy prioritizes people-centered development, ensuring that current actions do not jeopardize future generations' well-being, and includes provisions for training, workshops, and media outreach to enhance understanding and management of sustainable development, while also promoting international cooperation.
Interest in Corporate Social Responsibility (CSR) is on the rise across Asia; however, the overall development of CSR practices remains relatively low Notably, Vietnam has emerged as a country where concerns regarding CSR are growing rapidly.
Corporate Social Responsibility (CSR) in Vietnam was initially introduced by multinational companies, showcasing impactful initiatives such as Honda Vietnam's "I love Vietnam" campaign, Unilever's educational programs for children's hygiene in mountainous areas, and Microsoft, Qualcomm, and HP's TOPIC64 computer training program Additionally, VinaCapital and Samsung have supported congenital heart defect surgeries and victims of the Can Tho bridge collapse, while Western Union has contributed to vision rehabilitation programs for underprivileged children.
In Vietnam, domestic enterprises, particularly in the garment and footwear sectors, have begun prioritizing 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 presents annual CSR Awards for the garment, textile, and marine products sectors Additionally, prominent corporations like Mai Linh, Duy Loi, ACB, Sacombank, and Kinh Do are actively engaging in CSR initiatives to enhance their public image However, these CSR efforts often lack depth and comprehensive impact.
Many small and medium enterprises (SMEs) in Vietnam remain largely inactive in addressing critical corporate social responsibility (CSR) issues, such as soy sauce contamination with 3MCPD, melamine-tainted milk, petrol station fraud, and severe environmental pollution This lack of engagement indicates a widespread misunderstanding of CSR, which ultimately undermines the competitive edge of Vietnamese businesses and deteriorates the overall business environment The question arises: are managers unaware of CSR's significance for sustainable development, or do they struggle to know how to initiate and implement effective CSR practices? Thus, fostering a correct understanding of CSR is both crucial and sensitive for the future of these enterprises.
Problem statement
Corporate Social Responsibility (CSR) in Vietnam is interpreted in various ways, and not all CSR initiatives by Vietnamese organizations achieve success The perception of CSR among employees is becoming increasingly significant, as they recognize the growing responsibilities of companies towards society Consequently, CSR is now viewed as a crucial consideration for employees in the workplace.
The research conducted by Claydon and Doyle (1996) highlights the critical role of employee power in fostering organizational engagement Complementing this, Greenwood (2007) identifies employees as the most prominent internal stakeholders, suggesting they wield significant influence in stakeholder engagement Consequently, the perceptions of both managers and employees regarding Corporate Social Responsibility (CSR) are vital for companies, as these perceptions shape employee attitudes and behaviors in the workplace.
Recent studies have explored the link between employees' perceptions of Corporate Social Responsibility (CSR) and various aspects of job satisfaction globally However, there is a notable gap in research focusing on the relationship between employees' CSR perceptions and job satisfaction specifically in Vietnam.
The main objective of this research is to observe the relationship between employees’
CSR perception and employees’ satisfaction of Vietnamese firms in Ho Chi Minh City (HCMC)
Thus, this research is to answer two questions:
Is there any relation between between employees’ CSR perception and employees’ satisfaction of Vietnamese firms in HCMC?
How employees’ CSR perception affects on their satisfaction at work?
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 key commercial hub in Vietnam that attracts significant and emerging industries.
Research Structure
The article outlines the research process, beginning with the identification of problems, objectives, and scope Chapter 2 focuses on the literature review, which establishes the theoretical concepts and conceptual framework that underpin the research, along with the development of hypotheses for testing Chapter 3 details the research methodology, including the research approach, design, measurement scales, questionnaire development, and data analysis methods Chapter 4 presents the data analysis results, including statistical analysis and discussions on the theoretical and managerial implications of the findings Finally, Chapter 5 offers conclusions, addresses research limitations, and provides recommendations for future studies.
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 also safeguarding and supporting 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 span from "corporate philanthropy" to "business ethics."
Corporate Social Responsibility (CSR) lacks a singular, definitive explanation, despite extensive theoretical and practical discussions surrounding the concept Generally, CSR involves making business decisions that align with ethical values, legal compliance, and respect for individuals, communities, and the environment According to Jones (1980), CSR is the belief that corporations have obligations to societal groups beyond just shareholders and legal or contractual requirements Additionally, Kotler and Lee provide further insights into the multifaceted nature of CSR.
(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, the local community, and society to enhance quality of life Additionally, Wood describes CSR as the integration of social responsibility principles, responsive processes, and related policies and programs, reflecting a firm's relationship with society.
Corporate Social Responsibility (CSR) encompasses how companies manage their operations to positively impact society while aligning with their business goals According to Baker (2003), CSR is integral to fostering beneficial relationships between businesses and the communities they serve The World Bank (2002) emphasizes that businesses have a responsibility to promote sustainable economic development by collaborating with employees, their families, and the local community, ultimately enhancing livelihoods and driving mutual growth.
Corporate Social Responsibility Theories
Stakeholder theory plays a crucial role in shaping corporate decisions and motivating investments in Corporate Social Responsibility (CSR) This theory posits that an organization's success is closely linked to its ability to align its goals with those of its diverse stakeholders By addressing stakeholder needs, companies foster trust and loyalty, leading to stronger relationships Consequently, an increasing number of corporations are adopting socially responsible practices and policies to meet stakeholder expectations effectively.
In this study, CSR concept from Turker (2009) is adopted Turker (2009) defined CSR as below
“CSR as corporate behaviors, which aim to affect stakeholders positively and go beyond its economic interest”
Stakeholders consist of shareholders and investors, employees, customers, suppliers, governmental organizations, trade associations, environmental groups, and members of the community where a company operates
2.2.2 Caroll’s CSR conceptualization - Carroll’s CSR Pyramid
In 1979, Carroll introduced the four categories of Corporate Social Responsibility (CSR) in his paper on corporate social performance, which he organized into layers: economic, legal, ethical, and discretionary responsibilities He emphasized that these categories serve to categorize motives or actions primarily into one of the four types Additionally, Carroll's ordering and weighting of these categories were intended to illustrate their fundamental role in the evolution of CSR's significance.
Initially, the framework adopted a retrospective developmental perspective, highlighting that the evolution of business has historically focused first on economic and legal considerations, followed by a growing emphasis on ethical and discretionary factors.
In 1991, Carroll introduced his CSR model in the form of a pyramid, emphasizing that various responsibilities have historically existed but gained prominence recently, particularly in ethical and philanthropic areas He argued that economic performance serves as the foundational element that supports all other responsibilities within the model.
The manager should recognize that various types of obligations exist in a state of constant tension with one another, highlighting that these components, while not mutually exclusive, interact dynamically within the management framework.
Figure 2.1 The Pyramid of Corporate Social Responsibility (Carroll, 1991)
Carroll (1999) appeared to briefly retract his dubious equating of philanthropy with corporate citizenship and to abandon his pyramid concept by reconceiving his model as
“the four faces of corporate citizenship”, but soon returned to his original construct
Carroll has revisited his 1991 CSR pyramid, now integrating the concept of stakeholders In this updated model, economic responsibility emphasizes the necessity of fulfilling obligations dictated by global capitalism Legal responsibility mandates that companies adhere to the requirements set forth by global stakeholders Ethical responsibility focuses on meeting the expectations of these stakeholders, while philanthropic responsibility encourages organizations to act in accordance with the desires of global stakeholders.
Previous research about Corporate Social Responsibility and Employees’
Albdour & Altarawneh (2012) explore how internal perceptions of Corporate Social Responsibility (CSR) influence employee engagement Their research focuses on five key CSR factors: training and education, human rights, health and safety, work-life balance, and workplace diversity The study reveals that these CSR elements significantly enhance both job engagement and organizational engagement among employees.
A comprehensive study by Duyu Turker in 2009 established a valid and reliable measure of Corporate Social Responsibility (CSR) that addresses the responsibilities of businesses to various stakeholders This measure was created through a systematic scale development process, resulting in a robust CSR scale.
This research identifies 42 observation variables categorized into four key elements of Corporate Social Responsibility (CSR): CSR towards employees, customers, government, and society, including other stakeholders Building on Duyu Turker's (2009) previous research, the study employs these four factors to effectively measure CSR perception.
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 perceptions and both job satisfaction and organizational justice To assess these perceptions, the authors utilized Turker’s CSR scale.
And the model as below
Internal CSR organizationa l engagement human rights health and safety work life balance workplace diversity
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 CSR initiatives enhance employees' self-image and morale by aligning their personal identities with the values of the corporation.
Social identity theory posits that employees and stakeholders develop favorable perceptions of an organization when they align with its goals (Peterson, 2004) Implementing effective CSR strategies can enhance these perceptions, as employees view their organization more positively when it actively addresses social issues in an ethical way (Brown and Dacin, 1997; Hosmer, 1995) Research by Vlachos et al (2010) highlights a strong link between salespersons' views on their company's CSR efforts and their job satisfaction Furthermore, a recent study in the hospitality sector indicates that various aspects of CSR significantly boost employees' 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 encompasses a business's obligation to society, highlighting the importance of 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 shows that a strong customer orientation among employees leads to increased job satisfaction This relationship is supported by reciprocal behaviors and mutual support, as highlighted by Hoffman and Ingram (1992), who found a positive correlation between customer-oriented behaviors and job satisfaction Additionally, Motowidlo (1984) also noted that customer orientation is linked to higher levels of job satisfaction.
H3: There is a positive impact of CSR to government on Employees’ satisfaction
Based on study by Tziner, Bar, Oren and Kadosh (2011), a significant positive relationships were found between CSR to government and employees’ job satisfaction
Especially, the research of Choong-Ki, Hak-Jun, Hye-Mi, Seoki, Bernhard (2012) also found a significant and positive effect from legal CSR dimension on employees’ job satisfaction
Social responsibility (CSR) extends beyond mere legal compliance, as highlighted by Sim (2003), who distinguishes between "social responsibility" and "legality." While legal obligations form a critical aspect of CSR, as noted by McGuire (1963) and Davis (1973), CSR encompasses actions that surpass the requirements set by law.
H4: There is a positive impact of CSR to society, environment, generations and NGOs on Employees’ satisfaction
Philanthropic responsibility means to “do what is desired by global stakeholders”
(Caroll, 2004) And according to Choong-Ki, Hak-Jun, Hye-Mi, Seoki, Bernhard
(2012), philanthropic CSR make a positive impact on organizational trust and job satisfaction
Besides, a significant positive relationship were found between CSR to social, other stakeholders and employees’ job satisfaction (Tziner, Bar, Oren and Kadosh, 2011)
Despite the fact that CSR is one of the most prominent concepts in the literature, it still difficult to give a precise and commonly accepted definition According to Bowen
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 an organization’s objectives, highlighting their direct or indirect interest in the company Consequently, CSR plays a crucial role in addressing the needs of society and various stakeholders.
Research indicates a disparity between managers' and employees' perceptions of Corporate Social Responsibility (CSR) Managers often view CSR initiatives as beneficial for enhancing the company's reputation and profitability, with a particular emphasis on external CSR activities.
A study by Leonidas, Mary, Theofilos, and Amalia (2012) reveals that many companies implement internal management functions to carry out Corporate Social Responsibility (CSR) programs focused on societal, environmental, and employee welfare Managers recognize the various benefits of CSR activities, and those who advocate for external communication and evaluation by a national agency generally support the institutionalization of CSR.
Employees’ concern should be higher regarding internal CSR, whereas managers should consider both dimensions as equally important (Brammer et al, 2005)
According to Tamm, Eamets, Motsmees (2010), managers’ and employees’ assessments of external CSR are closer to each other than their assessments of internal CSR
Fifure 2.2 The proposal research model
Corporate Social Responsibility (CSR) significantly enhances employee satisfaction by fostering a positive workplace culture Moreover, CSR initiatives not only benefit employees but also improve customer perceptions, leading to increased loyalty and satisfaction Additionally, CSR practices create a favorable relationship with government entities, which can further bolster employee morale and satisfaction.
H4: There is a positive impact of CSR to society, environment, generations and NGOs on Employees’ satisfaction
CSR to society and other stakeholders job satisfaction
Chapter 2 presents the literature review on CSR and proposed the conceptual model, hypotheses for the factors influence employees’ satisfaction of Vietnamese firms in HCMC This chapter discusses about the research methods with four parts: Research process, Measurement Scale, Data collection and Data analysis methods
Following the identification of research problems and objectives, a literature review on Corporate Social Responsibility (CSR) and its measurement scales was performed This review aimed to explore the key factors influencing CSR and employee satisfaction Consequently, a conceptual model was proposed, along with hypotheses relating to CSR and employee satisfaction specifically within Vietnamese firms in Ho Chi Minh City.
A conceptual model has been developed from a literature review on Corporate Social Responsibility (CSR) and employee satisfaction, focusing on four key CSR factors that influence employee satisfaction in Vietnamese firms in Ho Chi Minh City A draft questionnaire was created by consolidating insights from previous studies on this topic To ensure research quality, both qualitative and quantitative methods were employed, structured in two phases: a pilot survey followed by a main survey Subsequently, measurement scales and pilot questionnaires addressing CSR and employee satisfaction were prepared during the qualitative research phase.
A qualitative research study was conducted using a preliminary questionnaire and in-depth interviews with key employees and managers (both middle and low-level) in Vietnamese firms This initial phase helped establish the sample size for the research.
A qualitative study was conducted through face-to-face interviews for this research, targeting 440 employees and managers from various organizations in Ho Chi Minh City (HCMC) The primary methods employed for data collection included direct and online surveys, with data gathered over a two-week period.
Following the interviews, 410 questionnaires were distributed; however, only 391 were suitable for analysis due to incomplete responses After verifying the accuracy and quality of the data, it was imported into SPSS software for further analysis.
Data Collection
Primary data was gathered through face-to-face interviews using traditional hard copy surveys, as well as online surveys distributed via email to participants The respondents included employees and managers from Vietnamese companies located in Ho Chi Minh City.
The extant literature, international business journals, articles, books, and professional newspapers are useful sources of relevant information contributing tho the research
The internet information from the business or expertise websites are also the valuable sources for collecting related information to this research.
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:
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 of various Vietnamese companies through in-depth interviews to evaluate its content and identify any errors Subsequently, quantitative research was conducted during the pilot phase, involving face-to-face interviews with 14 randomly selected participants from targeted Vietnamese companies in Ho Chi Minh City, serving as a final test before the official survey launch.
This article explores the impact of various independent factors, including Corporate Social Responsibility (CSR) towards employees, society, government, and customers, on employee satisfaction within Vietnamese firms located in Ho Chi Minh City Through in-depth interviews, the study aims to uncover how these CSR dimensions influence employee contentment in the workplace.
The feedback from interviewees in the pilot study is essential for refining the measurement scales and questionnaires They highlighted misunderstandings and overlapping issues among variables, aiming to enhance clarity and ease of comprehension in the questionnaire.
Measurement Scales
This research utilizes original factors derived from numerous prior studies, as referenced in the literature review The most suitable measurement scale for this study is identified as a multivariate scale.
The study identifies four independent factors tailored to the characteristics and culture of Vietnam: CSR towards employees, CSR towards the government, CSR towards customers, and CSR towards society and other stakeholders To conduct the quantitative analysis, a Five-point Likert scale was utilized in the survey questionnaire.
Questionnaires utilizing a Five-point Likert scale were developed to assess the level of Corporate Social Responsibility (CSR) and employee satisfaction in Vietnamese firms located in Ho Chi Minh City The measurement scales for the research model are presented in the following 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
2009 CE10 The management of our company is primarily concerned with employees’ needs and wants
CE11 The managerial decisions related with the employees are usually fair CE12 I believe that our company provides equal opportunities to all its employees
CC01 One of the main principles of our company is to provide high-qualityproducts to its customers
2009 CC02 Our prducts comply with the national and international standard
CC03 The guarantee extension of our products is the most advantageous choice in the market
CC04 Our company provides full and accurate information about its product to customers
CC05 Our company respects consumers’ right beyond the legal 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
2009 CS02 Our company participates in activities which aim to protect and improve the quality of the natural environment
CS03 Our company has the necessary equipment to reduce its negative environmental impact
CS04 Our company make a well-planned investments to avoid environmental degradation
CS05 Our company targets sustainable growth which considers future generations
2009 CS06 Our company make the investments to create a better life for future generations CS07 Our company make the investments to create employment opportunities for future generations
CS08 Our company emphasizes the importance of its social responsibilities to the society
CS09 Our company contributes to schools, hospitals, and parks according to the needs of the society
CS10 Our company contributes campaigns and projects that promote the well-being of the society
CS11 Our company endeavors to create employment opportunities
CS12 Our company conducts research and development projects to improve the well-being of the society in the future
CS13 Our company makes sufficient monetary contributions to charities
CS14 Our company encourages its employees to participate in voluntarily activities
CS15 Our company supports nongovernmental organizations working in problematic areas
CS16 Our company’s main principle is honesty in every business deeling CS17 Our company cooperates with its competitors in social responsibility projects
CS18 Our company competes with its rivals in an ethical 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
This company demonstrates a strong commitment to corporate social responsibility (CSR) in alignment with government policies, which enhances employee satisfaction Additionally, the company's CSR initiatives positively impact society, contributing to a fulfilling work environment Overall, employees express a high level of satisfaction while working here.
To analyze the data collected from the questionnaires, various statistical methods were employed, including standard deviation, frequency distribution, and variance The analysis was conducted using SPSS version 20.0 (Statistical Package for Social Sciences) to ensure accurate results.
Descriptive statistics were utilized to analyze interviewee evaluations based on gender, work experience, and enterprise ownership, aiding the researcher in assessing employees' and managers' awareness of Corporate Social Responsibility (CSR) and its impact on satisfaction within Vietnamese organizations Key metrics such as 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 employed to gauge the degree of agreement among respondents.
The Assessment of Scale Reliability measures the internal consistency of the constructed items in this research, evaluating the reliability of each variable within the measurement scales Additionally, the observed variables reflect the common construct.
The constructs with high reliability are those in which the items are highly inter- correlated It states that they are all measured with the same construct (Hair et al,
Reliability analysis is used for Cronbach’s alpha coefficient and item total correlation
The reliability coefficient of Cronbach’s alpha also illustrates how relation of the items in a set which are significantly correlated from one to another
A common value of Cronbach’s alpha for acceptable reliability is 0.7
Although this value is not an absolute standard but it can decrease to 0.6 in exploratory research (Hair et al, 1998)
When the Cronbach’s alpha is closer to 1, the internal consistency reliability is higher (Sekaran, 2003)
Variables with a Corrected Item-Total Correlation below 0.4 or an Alpha if Item Deleted that is lower than the overall Cronbach’s alpha should be excluded to enhance the reliability of the construct (Hair et al.).
3.4.5 Assessment of Scales’ Unidimensionality, Discriminant Validity and Convergent Validity
After assessing scale reliability, the Exploratory Factor Analysis (EFA) method is utilized to examine uni-dimensionality, discriminant validity, and convergent validity, aiming to uncover 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,
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.
Data Analysis
Sample Descriptive Statistic
A total of 440 questionnaires were distributed to employees and low to middle-level managers, resulting in 410 responses After excluding 11 invalid replies due to incomplete information, 391 valid questionnaires remained, comprising 259 employees and 132 managers.
Table 4.1 Gender of respondents, Working experience, Enterprise ownership
Others (Joint Venture Enterprise, Non Government Organization)
In term of gender of this survey, 52% of respondents are male and 48% of respondents are female
Among 391 respondents surveyed about their work experience, 76% have less than 5 years of experience, while 20% have between 5 to 10 years, and 3% fall within the 10 to 15-year range Only 1% of respondents, or 5 individuals, have over 15 years of experience.
Among the respondents, 28% are affiliated with State-owned Enterprises, while 56% represent Private Enterprises Additionally, 16% of the respondents are from other types of organizations, including Joint Venture Enterprises and Non-Governmental Organizations.
4.2 Assessment and Refinement of measurement scale
In this part of this research, the measurement scales are assessed and refined by two following methods:
Cronbach’s alpha to test the reliability of measurement scales
Exploratory factor analysis (EFA) is employed to evaluate the validity of measurement scales, starting with the Cronbach’s alpha test to assess their reliability A Cronbach’s alpha value above 0.7 is considered ideal, while values above 0.6 are deemed acceptable To enhance the reliability of the scales, variables with an item-total correlation below 0.3 are considered for removal.
The Exploratory Factor Analysis (EFA) is essential for validating measurement scales, utilizing the principal component extraction method alongside varimax rotation For EFA to be considered valid, the Eigenvalue must exceed 1, and the total variance explained should be greater than 50%.
The reliability analysis revealed that all factors met the required standards, with Cronbach's alpha coefficients exceeding 0.7, indicating strong reliability 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, further supporting the robustness of the measures.
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
4.2.2 Exploratory Factor Analysis (EFA) 4.2.2.1 The independent factors
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 the KMO values for all independent factors exceed 0.7, with Bartlett’s Test Significance at 000, which is below the 0.05 threshold This confirms that the extracted variance meets the necessary criteria for effective EFA testing.
Table 4.3 KMO and Bartlett’s Test KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
The analysis revealed that four factors had 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 in the construction.
Besides, the percentage of cumulative has explained of the 60.946% of the variances
Component Initial Eigenvalues Extraction Sums of Squared
Rotation Sums of Squared Loadings
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 removed due to not meeting the testing criteria, specifically CS8, CS9, CS11, CS16, CS17, CC8, CE1, CE2, CE3, CE7, and CE8 Consequently, the scales were condensed from 43 items to 32 items, reorganized into 7 distinct groups, as illustrated in the table below.
There are several changes in factors This means the perception of interviewees about some variables is different from the hypotheses of the study and some previous theory
The recent changes in employee satisfaction factors highlight respondents' perceptions, revealing a more nuanced understanding of Corporate Social Responsibility (CSR) Following exploratory factor analysis (EFA), the CSR to society and other stakeholders (CS) factor has been refined into three distinct areas: environment, society, and competition Meanwhile, the CSR to employees (CE) factor has been categorized into two specific aspects: employee life and development opportunities In contrast, the factors related to CSR to customers (CC) and CSR to government (CG) remain largely unchanged.
In the context of the CS factor, elements are not disordered but rather organized from a larger group into smaller, more manageable categories Stakeholder theory identifies various stakeholders, including shareholders, employees, customers, suppliers, governmental organizations, trade associations, environmental groups, and community members Therefore, categorizing the CS factor into three distinct areas—CSR to the environment, CSR to society, and CSR to competition—enhances specificity and accuracy Additionally, research by Duyu Turker (2009) indicates that the "CSR to stakeholders" factor encompasses CSR towards society, the natural environment, future generations, and non-governmental organizations.
According to Albdour and Altarawneh (2012), internal corporate social responsibility (CSR) for employees encompasses key areas such as training and education, health and safety, human rights, work-life balance, and workplace diversity This study suggests that it is appropriate to categorize CSR to employees into two distinct factors: "employee life," which focuses on work-life balance and health and safety policies, and "development opportunities," which emphasizes training, education, and workplace diversity This division allows for a more specific understanding of employee-related 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
CS06, CS07 (“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
4.2.2.2 The 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 (