The thesis aims at building a factor model affecting corporate social responsibility (CSR) implementation in businesses; scale test of factors affecting CSR implementation; Conclusion on the trend and the influence of the factors on the implementation of CSR in enterprises of Vietnam National Textile and Garment Group as a basis for proposing policy implications and solutions to enhance the performance of responsibilities. society at the unit.
1.1 CHAPTER GENERAL INTRODUCTION TO THE STUDY Galbreath Jeremy (2010), ”Drivers of Corporate Social Responsibility: The Role of Formal Strategic Planning and Firm Culture”, British Journal of Management, Vol 21, pp.511–525 Maignan, i & Ferrell, O C 2000 Measuring Corporate Citizenship in Two Countries: The Case of the United States and France Journal of Business Ethics, Vol 23, No 3, pp 283-297 Maignan, i & Ferrell, O C 2004 Corporate Social Responsibility and Marketing: An Integrative Framework Journal of the Academy of Marketing Science, Vol 32, Issue 1, pp 3–19 Mcwilliams, A., Siegel, D & Wright, P 2006 Corporate social responsibility: Strategic implications Journal of Management Studies, Vol.43, No.1, pp.01-18 In addition, there are many other studies that the graduate student does not mention in the scope of this content In general, no study has analyzed the factors affecting the implementation of CSR in Vietnam Textile and Garment Group based enterprises in a systematic and comprehensive way Therefore, it can be affirmed that this is an independent and serious study project, without duplication and copy, and as a new field of both theory and practice that needs to be studied 1.2 Objectivesof the thesis • Overall objectives: - Build a model of factors affecting the implementation of CSR in Vietnam Textile and Garment Group based enterprises - Test the scale of factors affecting the implementation of CSR in Vietnam Textile and Garment Group based enterprises - Make a conclusion on the direction and degree of influence of factors on the implementation of CSR in Vietnam Textile and Garment Group based enterprises as a basis for proposing policies and solutions to enhance the implementation of social responsibilities at the unit • Detailed objectives: - Select CSR definition and implement CSR to conform business context and conditions in Vietnam Textile and Garment Group based enterprises - Assess the status of CSR implementation in Vietnam Textile and Garment Group based enterprises - Develop theoretical models and test factors affecting the implementation of CSR in Vietnam Textile and Garment Group based enterprises - Give implications and make suggestions for the State, Vietnam Textile and Garment Group based enterprises in the process of review and evaluation, Inspiration to start the study From the economists' point of view, the ultimate responsibility of an enterprise is to maximize profits and create value for shareholders (Friedman, 1970) Therefore, finance is the only motivation to promote the activities of an enterprise Today, that concept has given way to the business method of the enterprise for not only using its resources to serve the interests of shareholders but paying attention to the stakeholders as well as having to be run from a moral point of view This broader thinking is called “Corporate SocialResponsibility - CSR” (Freeman, 1984) Vinatex is one of the enterprises that make a great contribution to the economy In particular, the industry uses a lot of unskilled workers; the production process of textile enterprises directly has an impact on the environment; the level of competition in the domestic and world market is high, subjected to many barriers when exporting goods to the US, EU, Japan, Korea and other countries However, implementing CSR in Vinatex based enterprises still reveals limitations, existences and shortcomings Many enterprises have not really actively explored the factors affecting the motivation to implement CSR, there are still many enterprises doing it due to the enforcement of the legal system, due to pressure from related parties or implementing this action but violating other areas, which leads to low competitiveness, not-yet-built reputation to convince consumers' beliefs, partners, community and society In order for enterprises in Vinatex to actively implement CSR, it is necessary to determine the factors affecting the CSR implementation of enterprises Therefore, it is necessary and meaning for selection of study on CSR with the title “Factors affecting the CSR implementation of Vietnam Textile and Garment Group based enterprises” Regarding the overview of CSR study, CSR implementation and factors affecting the CSR implementation have been studied by many authors and many domestic and foreign enterprises such as: Caroll A.B., (1991), The Pyramid of CSR: Toward the Moral Management of Organizational Stakeholders, Management of Organizational Stakeholders, Business Horizons, pp.39-48 Caroll A.B., (1979), A Three-Dimensional Conceptual Model of Corporate Performance Academy of Management Review, No.4, pp.497-505 Davis, K 1973 The case for and against business assumption of social responsibilities Academy of Management Journal, Vol.16, pp 312-322 Friedman, M (1970), The social responsibility of business is to increase its profits, York Times Magazine, pp 32-33, 122-124 3 determination of the priority order of influencing factors and further improvement of the importance of CSR implementation 1.3 Main research questions of the thesis • Questions 1: What factors affecting the CSR implementation of Vietnam Textile and Garment Group based enterprises? • Questions 2: How is the impact of factors on the CSR implementation of Vietnam Textile and Garment Group based enterprises? • Questions 3: What recommendations should be given to entities when the factors are assessed to affect the CSR implementation of Vietnam Textile and Garment Group based enterprises? 1.4 Subject and scope of the study • Subject of the study: The subject of the thesis is the factors affecting the implementation of CSR of Vinatex based enterprises • Scope of study: Including Vinatex based enterprises, the data used in the study which were collected mainly in the period from 2016 - 2019 • Summary of research methods : Qualitative research by collecting information from articles, industry journals, magazines, Internet, newsletters and data from the General Statistics Office, on the website and quantitative research applying the method of collecting random data with cascaded non probability from Vinatex based enterprises 1.5 New contributions of the study About the theory: The thesis has clarified the concept of CSR and CSR implementation of enterprises; Verify the appropriateness and specificity of the model and propose the influencing factors including: (1) Plan external orientation strategies, (2) Plan internal orientation strategies, (3) Law and law enforcement, (4) Humanistic culture of enterprises In which, the factor “Law and law enforcement” was newly built by the author in the model; Being the first study in Vietnam to apply quantitative research to a field that is difficult to quantify as the humanistic culture of enterprises with CSR implementation About the practice: (1) The thesis has evaluated the actual situation of CSR implementation and the status of factors affecting the implementation of social responsibility of Vinatex based enterprises (2) The thesis verifies the reliability of research concepts and scales in the model (3) The thesis finds the factor “Law and law enforcement” positive to affect the implementation of CSR of Vinatex based enterprises (4) The thesis has proposed some policy implications for Vinatex based enterprises and recommendations to the State to promote textile and garment enterprises to implement CSR better and better 1.6 Structure of the thesis The thesis is organized into chapters, presented in 118 pages, with 31 tables, figures, diagrams, illustrations, conclusions and reference lists Chapter 1: General introduction about the study Chapter 2: Research overview, gaps and research models Chapter 3: Research Methods Chapter 4: Research results Chapter 5: Conclusions and recommendations CHAPTER RESEARCH OVERVIEW, GAPS AND RESEARCH MODELS 2.1 Some common issues about implementing CSR 2.1.1 History of formation and development of CSR CSR of the 1950s: Represented by the study of Bowen (1953), CSR belonged to business people; 1960s: Develop CSR understanding and search for appropriate reasoning system, typically Davis (1960), McGuire (1963) with the thought towards the response of related subjects in society; 1970s: It appears the argument between the two schools is that “representative” administration is Milton Friedman (1970), enterprises only take their responsibilities to maximize profits and “multi-party” management, the enterprises must be aware of the impacts on society and must be responsible for their own behaviors; 1980s: Prominently, Freeman (1984), emphasizing the influence of subjects related to the CSR implementation of enterprises and the relationship between CSR and the performance of enterprises; 1990s: Wood and Carroll (1999), CSR is a strategic tool, so it is necessary to integrate CSR into corporate strategy; 2000s: Porter & Kramer (2002), Kotler & Lee (2005) emphasize CSR strategy as a competitive advantage of enterprises 2.1.2 Benefits of CSR implementation CSR implementation will help enterprises: Reduce costs and improve labor productivity; Enhance the brand value and reputation of enterprises; Increase revenue and new market access opportunities; Attract, retain good and skilled employees; Increase the loyalty and reduce the risk 2.1.3 Subjects of CSR implementation of enterprises Based on the definition of CSR of World Bank (WB, 2010) proposed by the Private Economic Development Group, CSR of enterprises must be associated with sustainable development Enterprises need to implement CSR for employees ; for consumers ; for the community and CSR towards the environment 2.2.Research overview on CSR in enterprises 2.2.1 Important concepts * CSR and CSR components Carroll's view (1979) seemed to receive the most consensus from researchers (Galbreath, 2010) According to Carroll, CSR included four main areas: responsibility for economic growth, law compliance, ethical issues and voluntary responsibility, finally It is the most important factor of responsibility for economic growth, second is the responsibility for the law compliance, followed by moral responsibility, finally voluntary responsibility (Carroll, 1979) According to Carroll, economic responsibility is the first and foremost responsibility of enterprises, which is a natural matter of nature, the enterprises are assumed to be responsible for producing goods and services that society desires, (Galbreath, 2010)then selling them for profit (Carroll, 1979) and thereby making economic growth in general (Galbreath, 2010) Legal responsibilities, the society expects the enterprises to fulfill economic tasks in legal frameworks, in other words, to meet economic and legal responsibilities simultaneously (Carroll, 1979, Galbreath, 2010) Moral responsibility Although both economic responsibility and legal responsibility represent a certain angle of moral responsibility (Carroll, 1979) However, moral responsibility still has differences that are expectations of society without being regulated into laws, requiring the enterprises to meet the requirements and standards higher than laws, (Carroll, 1979) which are the moral rules and those rules are to define behaviors considered as social behavior standards (Galbreath, 2010) The final aspect is voluntary responsibility , which is the responsibility that requires the compliance of enterprises to be the least, less than the moral responsibilities Volunteer responsibilities are the ones that are not obliged in the society, required by the law, not even morally harmless if not performed(Galbreath, 2010, Carroll, 1979) It can be charitable donation, training for those who are difficult to work, supporting drug addicts(Carroll, 1979), investing local welfare projects(Galbreath, 2010) * CSR and CSR implementation In this thesis, the author used the CSR concept of Maignan with his assistants, which was built on Carroll’s perspective on the composition of CSR, whereby “CSR of an enterprise is the level that it meets the economic, legal, ethical responsibilities and other voluntary responsibilities expected by many related people” (Maignan et al., 1999, Maignan and Ferrell, 2000, Maignan and Ferrell, 2001, Galbreath, 2010) In which, Maignan and his assistants believe that CSR is the level of meeting the requirements of society in general, thus, this concept implies the CSR implementation of enterprises In other words, the concept of CSR is also the concept of CSR implementation 2.2.2 Research orientations on the implementation of social responsibility in enterprises Studies often have two main orientations: CSR theoretical knowledge and communication, CSR publication Communication and CSR publication oriented studies often aim to understand the factors affecting the communication decision of enterprises, announcing the level of CSR implementation to related people (customers, social activists, State management agencies, etc) On the other hand, studies of CSR theory knowledge, are often more focused (Alcañiz et al., 2010), with the main concern of these studies is to find out which factors affect and are affected by the level of CSR implementation of enterprises Studies of this theoretical knowledge are divided into two branches Firstly, they are studies that pay attention to the factors motivating enterprises to implement CSR (input of CSR), as the studies of: (Schouten et al., 2014); (Zheng and Zhang, 2016) ; (Zheng and Zhang, 2016) ; (El-Bassiouny and Letmathe, 2018) ; (Khurshid et al., 2018) ; (Pasricha et al., 2018) ; (Shnayder and Rijnsoever, 2018) The second branch is the studiesthat focus on the outcome of CSR implementation (output of CSR), as the studies of: (Pérez and Bosque, 2013); (El-Kassar et al., 2017); (Wood et al., 2018) The objective is to understand the factors that have an impact on the CSR implementation of enterprises, the author chose an input based approach, which is to focus on which factors affect the CSR implementation of enterprises for his/her thesis 2.2.3 Theory is used in studies of social responsibility implementation 2.2.3.1 Theory of management of Freeman's related parties According to Freeman, related parties are “any group or individual that is affected by or can affect the organization's objectives” (Freeman and McVea, 2001) The related parties can be shareholders, employees, customers, suppliers, communities and other groups (Freeman and McVea, 2001) CSR of enterprises in the economy requires the connection of business activities with social, economic and environmental expectations of related parties (Kanji and Chopra, 2010) According to Freeman, it is the study on CSR that emphasizes the role of related parties and builds good relationships with these groups and individuals to ensure the long-term success of enterprises (Freeman and McVea, 2001) Along with the strong development of social movements, enterprises are less concerned about related parties suffered heavy losses So more and more enterprises integrate the management of related parties through the implementation of CSR on their operational goals (Freeman and McVea, 2001) This view of Freeman received the approval of a number of researchers, typical of studies that follow this orientation, such as: (Clarkson, 1995); (Decker, 2004); (Maignan and Ferrell, 2004)… 2.2.3.2 Carroll's CSR Pyramidal Model Carroll has produced four concepts that constitute CSR, including: economic responsibility, legal responsibility, moral responsibility and volunteer responsibility Inheriting Carroll's model, Maignan with assistants have taken a view of many other researchers' support, which is consistent with actual CSR measurement requirements, four components of CSR that play the same role(Maignan et al., 1999, Maignan and Ferrell, 2000, Galbreath, 2010) At the same time, Maignan and his assistants also provide a definition of CSR, create a solid theoretical basis for future research (Galbreath, 2010) Many researchers have used Carroll's CSR Pyramidal Model in their studies of implementing CSR in different fields, in different cultures, such as: (Wartick and Cochran, 1985); (Maignan et al., 1999); (Joyner and Payne, 2002); (Schwartz and Carroll, 2003); (Galbreath, 2010)… 2.2.3.3 In combination with using both Carroll's CSR Pyramid Model theory and Freeman's related parties management The thesis inherits the theoretical foundations of both fundamental theories, with the core being Carroll's CSR Pyramid Model of the components of CSR implementation(Carroll, 1979), adapted the role of these components in overall by Maignan and his assistants(Maignan et al., 1999, Maignan and Ferrell, 2000) The factors affecting the implementation of CSR are based on Freeman's management theory of related parties Most of Carroll's CSR Pyramid Model-based research approaches follow this orientation ( (Maignan et al., 1999) ; (Maignan and Ferrell, 2000) ; (Maignan and Ferrell, 2001) ; (Joyner and Payne, 2002) ; (Schwartz and Carroll, 2003) ; (Galbreath, 2010) ) The author decided to choose Carroll’s model and the adjusted definition of Maignan with his assistants on the implementation of CSR, combined with Freeman's related parties management theory in research as his theoretical foundation 2.2.4 Overview of factors affecting CSR implementation 2.2.4.1 Strategic planning Related parties, such as customers, suppliers, social organizations, management agencies, shareholders, employees, etc who desire or put pressure on the implementation of CSR of enterprises by requesting enterprises must strengthen strategic planning towards them(Galbreath, 2010, Carroll and Hoy, 1984) Through the environmental assessment by both inside and outside manner, enterprises will strengthen the implementation of some non-market issues, such as: CSR based behavior to the community and the natural environment (Fineman and Clarke, 1996) Enterprises develop studies on the business environment, then embody in their strategic orientation and at the same time provide appropriate responses by implementing CSRs (Galbreath, 2010, Carroll and Hoy, 1984, Burke and Logsdon, 1996) Strategic planning is considered under two important trends: Strategic planning for internal orientation and strategic planning for external orientation, these are also two important components of strategic planning (Galbreath, 2010, Kalyar et al., 2012) The study of Kalyar et al (2012) on the sample 172 concluded by senior manager in Pakistan, the orientation strategy within the influence is stable and strong (stronger than the external strategic orientation) to the level of CSR performance of enterprises, with a standardized coefficient β = 392, p