affect of employee perception of csr and human resources management on engagement of employee in ho chi minh city

4 ABSTRACT The main purpose of the topic is to investigate the impact of employee perception of Corporate Social Responsibility CSR on employee engagement, with the involvement of the me

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BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ TP.HCM

NGHIÊN CỨU KHOA HỌC

Affect of employee perception of CSR and Human Resources Management on Engagement of Employee

in Ho Chi Minh City

GVHD: TS Cao Quốc Việt

THÀNH VIÊN NHÓM 9 :

1 Nguyễn Thị Vân Anh - 31211026939 2 Nguyễn Ngọc Ngân - 31211022679 3 Lê Tuấn Thịnh - 31211025036 4 Lê Loan Dung - 31211025105 5 Đào Trần Phương Dung - 31221020708

TP H ồ Chí Minh, ngày 29 tháng 12 năm 2023

1.5 Research Scope and Subjects 6

CHAPTER 2: LITERATURE REVIEW 7

2.1 Social Identity Theory 7

2.2 Hypothesis and research model 8

2.2.1 Employee engagement 8

2.2.2 Employee perception of CSR 9

2.2.3 Organizational identification 10

2.3 Overview and summary of the previous finding 10

CHAPTER 3: RESEARCH METHODOLOGY 1

3 ACKNOWLEDGMENTS

On behalf of Team 9, we sincerely thank Mr Viet Quoc Cao for your invaluable instruction during the Business Research Methods course Your clear explanations, patient guidance and structured approach to the research process significantly aided our understanding and equipped us with the necessary skills to conduct independent research effectively

We appreciate your willingness to answer our questions thoroughly and provide individual feedback that allowed us to refine our research methodologies Your dedication to our academic development is evident in your detailed course structure and the resources you provided, which undoubtedly contributed to our successful completion of the course

Furthermore, your passion for research transcended the textbook and ignited a genuine curiosity within us You adeptly weaved personal experiences and real-world applications into the curriculum, demonstrating the tangible impact of rigorous research and its capacity to inform sound business decisions This practical perspective motivated us to delve deeper into the subject and explore its potential contributions to our respective fields

As a result of your instruction, Team 9 now possesses a solid foundation in research methodology and the confidence to undertake independent research projects We are grateful for the knowledge and skills you have imparted, which will undoubtedly prove valuable in our future endeavors

We wish you continued success in your academic pursuits and express our appreciation for your contribution to our learning

Team 9 sincerely appreciates your guidance

4 ABSTRACT

The main purpose of the topic is to investigate the impact of employee perception of Corporate Social Responsibility (CSR) on employee engagement, with the involvement of the mediating variable of organizational identification in Ho Chi Minh City

Based on the Social Identity theory combined with quantitative research, the research team has identified three factors: employee perception of CSR, organizational identification and employee engagement and their interrelationships However, to date, there has been no study discussing the relationship between these three variables, so the team has undertaken to address this gap

The research methodology used by the team to validate the measurement model and research framework includes preliminary research and formal research Qualitative preliminary research was conducted through group discussions with 15 employees from various companies to adjust the measurement scales of constructs to fit the Vietnamese market The formal research was carried out through a quantitative survey questionnaire involving over 300 employees in Ho Chi Minh City, Vietnam

Finally, the research team will present the conducted research plan CHAPTER 1: OVERVIEW

1.1 Research Problems

Competitiveness in the market and achieving high sales results are among the top priorities for companies (Stefanov et al., 2023) Though there are diverse strategies for attaining organizational objectives, enhancing employee engagement emerges as notably significant Employees who are fully engaged in their work demonstrate “a pleasant, satisfying work-related frame of mind marked by vigor, devotion and absorption” (Schaufeli, Bakker and Salanova, 2006) As a result, highly engaged employees are less likely to resign from their positions, more inclined to go the extra mile for their customers, demonstrate increased productivity at work, experience lower

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Previous studies show that a contributory construct driving employee engagement is Corporate Social Responsibility (CSR), as, over the past couple of decades, CSR has garnered considerable attention from both academics and professionals worldwide Organizations across the globe have integrated CSR into their corporate practices (Buertey et al., 2020) Today, businesses consider CSR as a fundamental element of their strategies to achieve a competitive edge in the market (Latif and Sajjad, 2018)

Employee engagement (EE) has a significant influence on both employees' performance and organizational output, as highlighted by Christian, Garza and Slaughter (2011) and engaged employees possess a clear understanding of the organization's objectives and excel in their roles (Farrukh et al., 2019) When employees perceive their role as meaningful within a socially responsible company, it motivates them to go above and beyond to achieve organizational goals, as suggested by Aguinis and Glavas (2019)

In the aggregate, it is clear that CSR initiatives are a strong predictor of EE, as employees are eager to be affiliated with organizations that positively impact socie ty, as emphasized by Rupp et al., (2018)

1.2 Research Question

To determine the relationship between employee perception of CSR, organizational identification and employee engagement, we conduct the research based on three questions:

+ How does employee perception of CSR affect employee engagement?

The reliability coefficient Cronbach's alpha and Exploratory Factor Analysis (EFA) were utilised to screen the conceptual measurement scales in the study The statistical data processing software SPSS was used throughout the entire research process

1.5 Research Scope and Subjects

This research is conducted in Ho Chi Minh City from November 2023 to January 2024

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The research focuses on employees working in companies in Ho Chi Minh City with diverse age groups and genders Their positions are diverse, ranging from high-level and mid-level management to basic employees to assess influence across job levels

CHAPTER 2: LITERATURE REVIEW 2.1 Social Identity Theory

The purpose of this research is to analyze the dynamics between how employees view corporate social responsibility (CSR), how they see their organization's identification and their level of engagement at work (EE), using the framework of social identity theory (SIT) Prior studies from Chaudhary (2018) and Zhang, Di Fan and Zhu (2014) provide a foundation for the argument that CSR initiatives have the potential to influence employee behavior positively by promoting a sense of belonging within the organization - employees tend to feel proud when they are part of organizations that advocate for values they resonate with

SIT explains that individuals classify themselves as members of various social groups (Tajfel and Turner, 1985; Abrams and Hogg, 1988) and these affiliations substantially inform their self-assessment and identity - this includes the groups formed in their professional settings (Ashforth & Mael, 1989; Brammer, Millington, & Rayton, 2007) Furthermore, by engaging in a comparative analysis of their group with others, individuals aim to heighten their sense of self-worth (Tajfel and Turner, 1985; Ashforth and Mael, 1989) Thus, SIT infers that people tend to attach themselves to organizations that enjoy positive social recognition (Tajfel and Turner, 1985), boosting their self-regard and personal identity (Tajfel and Turner, 1985; Abrams and Hogg, 1988)

The linkage between being part of well-regarded organizations and employee pride is clear; such affiliation develops their sense of self (de Roeck et al., 2014; Chaudhary, 2018) Employees yearn to be unique and being a member of such enterprises aligns with this psychological need (Turker, 2009) Meeting these needs leads to a stronger bond with the organization, which translates into heightened levels of employee engagement Collectively, CSR practices are pivotal in influencing employee attitudes,

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shaping perceptions and particularly in fostering an environment conducive to active engagement - all through the cultivation of robust organizational identification To dissect this intricate connection further, this study draws upon SIT to elucidate the interplay between employee perceptions of CSR, perceived organizational identification and employee engagement

2.2 Hypothesis and research model 2.2.1 Employee engagement

The concept of employee engagement has been defined and examined by various researchers According to the Institute for Employment Studies (IES), employee engagement is defined as the level of commitment and effort that employees dedicate to the organization Specifically, employee engagement is the extent to which employees commit to the organization and are motivated to contribute their best efforts However, Gallup's definition emphasizes involvement and dedication, stating, "Employee engagement is the emotional commitment employees have to their work, the organization, management and colleagues" (Sorenson, 2013)

Considering Edgar Schein's viewpoint, he defines employee engagement as "the degree to which an individual feels integrated with the organization and identifies with it" (Schein, 1985) This definition emphasizes the integration and identification of employees with the organization

According to Schein, this relationship is built through formal information, informal information and the employee's personal experience in the workplace Formal information includes documents such as employee handbooks and internal communication materials, while informal information results from interactions with colleagues and superiors The employee's personal experience also contributes to shaping their perception of the organization's values For Schein, employee engagement is not just a state but also a positive process that helps employees build deep relationships with the organization This can contribute to a profound understanding of how the organization can use factors such as CSR to promote employee engagement

9 2.2.2 Employee perception of CSR

Before going deeper into the research, it is essential to clarify the meaning of corporate social responsibility (CSR) CSR refers to “the social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of organizations at a given point in time” (Carroll, 1979) Economic responsibility expresses that society expects businesses to create and sell goods and services at a profit Legal responsibility refers to expectations of businesses to be active within the confines of law Ethical responsibility demands businesses uphold moral behavior, even without codified laws Discretionary responsibility encourages businesses to go the extra mile as good corporate citizens This voluntary engagement takes many forms, from supporting local communities to addressing environmental concerns and reflects a commitment to societal well-being that transcends mere economic self-interest (Duthler and Dhanesh, 2018)

There are numerous studies have reported that employee perceptions of CSR have a positive impact on employee engagement (Duthler and Dhanesh, 2018; Ali et al., 2020) By aligning with employees' deontic (moral) concerns for others (Folger, 1998, 2001), CSR initiatives can tap into a deep-seated need for purpose and meaning in work, which helps improve employee engagement However, there was a contradiction because the effect of CSR perceptions on employee engagement was also proven to be negative (Hammon, Gillis and Icenogle, 2022)

The relationship between employee perceptions of CSR and organizational identification was not researched much in previous literature Employee perceptions of CSR were examined to positively affect organizational identity (Hammon, Gillis and Icenogle, 2022) Employee perceptions of CSR contribute to enhancing employees’ perception of the organization’s external prestige, leading to increases in their pride in organizational membership and willingness to bask in its reflected story through a better level of organizational identification (De Roeck, El Akremi and Swaen, 2016)

H1a: Employee perceptions of CSR have a significant impact on employee engagement

For individuals, organizational identification provides a sense of identity and identification (Ashforth and Mael, 1989; Van Knippenberg and Van Schie, 2000), whereby they identify themselves with the organization as a social entity (Edwards and Peccei, 2007) This can be seen as an emotional and cognitive bond between the organization and the individual, where the individual's identity includes membership in the organization, thus leading to desired attitudes and behaviors The stronger an individual's identification with their organization, the more likely they are to act in accordance with the organization's goals and expectations (Dutton, Dukerich and Harquail, 1994)

self-H2: Organizational identification has a significant impact on employee engagement

2.3 Overview and summary of the previous finding

The table listed below describes the 8 latest studies related to the mutual influence of three factors: organizational identification, employee perception of CSR and employee engagement For convenience in evaluation and analysis, the author group divided the content into 12 parts: (1) Year of publication, (2) Name of paper, (3) Authors, (4) Theories, (5) Research Methodology, (7) Independent variables denoted as

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X1 to X4, (8) Mediator denoted as M1 and M2, (9) Dependent variables denoted from Y1 to Y2, (10) Hypotheses, (11) Hypothesis results In the results in section (11), the author group presents the correlation direction (indicated as "+" and "-") between variables, whether the proposed hypotheses are supported or not, tested through the p-value or critical value If this value is less than 0.05, the hypothesis has statistical significance; otherwise, it will be rejected

Through these 8 related studies, it can be observed that there are numerous investigations into the reciprocal relationships between perceived employee of CSR and organizational identification, organizational identification and employee engagement and employee engagement and perceived employee of CSR However, there is still no formal study on the mutual influence and the degree of impact among these three factors Additionally, the level of consistency in the relationships across studies is inconsistent, even conflicting, requiring further verification in subsequent research Based on the measures and theoretical foundations of these studies, the group constructs a theoretical framework and proposes a model and hypotheses in the following sections.

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o Year Name of paper Authors pus Theories Sample variable Mediator variables Hypotheses

1 2018 Corporate socialresponsibility and employee engagement: The moderating role of CSR‐specific relative autonomy and individualism

Rupp D.E., Shao R., Skarlicki D.P., Paddock E.L., Kim T.Y., Nadisic

Q1 Self‐determination theory with cross‐cultural theory

Participants were full‐time employees (N = 673) enrolled in part‐time MBA programs in Canada, China (mainland), France, Hong Kong, and Singapore

X1: Employee CSR Perceptions (CSRP)

M1: Specific Relative Autonomy

CSR-M2: Employee Individualism (EI)

Y1: Work Engagement (WE)

H1: Employees' CSR‐RA moderates the positive relationshipbetween employees' CSR perceptions and work engagementsuch that relationship is stronger when employees perceive higher (as opposed to lower) CSR‐RA H2: A three‐way interaction among employees' CSR perceptions, CSR‐RA, and individualism predicts work engagement, such that the amplification effect of employees' CSR‐RA on the CSR perceptions– work engagement relationship is stronger for those higher (as opposed to lower) in individualism.

2 2020 Corporate socialresponsibility and employee performance: The mediating role of employee engagement in the manufacturing sector of Pakistan

Ali H.Y., Asrarul-Haq M., Amin , S.Noor S., Haris- -ulMahasbi M., Aslam M

Q1 Social identity theory (SIT)

The sample of the present study consisted of employees working in the manufacturing companies of Pakistan

X1: Corporate social responsibility (CSR) X2: Employee engagement (EE)

M1: Employee engagement (EE)

Y1: Employee performance (EP)

H1: CSR has a positive associatiowith employee performance H2: CSR has a positive associatiowith employee engagement H3: Employee engagement mediates CSR-EP association"