A study on the effect of csr activities on customer loyalty the case of shinhan bank’s in vietnam

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - CHO KWANGMAE A STUDY ON THE EFFECT OF CSR ACTIVITIES ON CUSTOMER LOYALTY: THE CASE OF SHINHAN BANK’S IN VIETNAM ẢNH HƯỞNG CỦA TRÁCH NHIỆM XÃ HỘI DOANH NGHIỆP ĐẾN LÒNG TRUNG THÀNH CỦA KHÁCH HÀNG NGHIÊN CỨU ĐIỂN HÌNH TẠI NGÂN HÀNG SHINHAN BANK VIỆT NAM LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - CHO KWANGMAE A STUDY ON THE EFFECT OF CSR ACTIVITIES ON CUSTOMER LOYALTY: THE CASE OF SHINHAN BANK’S IN VIETNAM ẢNH HƯỞNG CỦA TRÁCH NHIỆM XÃ HỘI DOANH NGHIỆP ĐẾN LÒNG TRUNG THÀNH CỦA KHÁCH HÀNG NGHIÊN CỨU ĐIỂN HÌNH TẠI NGÂN HÀNG SHINHAN BANK VIỆT NAM Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN NGỌC THẮNG HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date 25/06/2019 ACKNOWLEDGEMENT Firstly, I would like to make the most of this opportunity to thank my company, Shinhna Bank which has given me a lucky chance to study at HSB In addition, they have also reassured me all the time through their knowledge and experiences in order to accomplish this project Secondly, I would like to thank my wife who always supports me and takes care of children without my help in South Korea Thirdly, I would like to show my sincere gratitude to Assoc Prof Dr Nguyen Ngoc Thang for his enthusiastic support throughout the process of composing this project Without his valuable advices, I would not be able to accomplish the project with a clear orientation Lastly, big thanks to all my colleagues at work, all my friends at HSB, especially all HSB - MBA15 classmates, who have supported me with laughter and joy, and comforted me when I was depressed Owing to the fact that limited time and ability so it can not avoid some mistakes in my research topic I look forward to receiving comments from lecturers and colleagues in order have more accomplished and better achieved of research result and application in my career Thank you again for those who have supported me, and best wishes to all Date: 6th June, 2019 Cho Kwang mae TABLES OF CONTENTS LIST OF TABLES i LIST OF FIGURES ii INTRODUCTION .1 CHAPTER 1: THEORETICAL BACKGROUND 1.1 Concepts of Corporate Social Responsibility 1.1.1 Concept of Corporate Social Responsibility .8 1.1.2 The scope of corporate social responsibility (CSR) 11 1.1.3 The Significance and Importance of Corporate Social Responsibility (CSR) .16 1.2 Advanced research of Corporate Social Responsibility(CSR) 18 1.3 Definition and Advanced research of Customer Trust .20 1.4 Concepts of Resistance to Negative Information and Advanced research 23 1.5 The Concept of Customer Loyalty and Advanced research 26 CHAPTER 2: ANALYSIS OF SHINHAN BANK`S CSR AND ITS EFFECT ON CUSTOMER LOYALTY IN KOREA .29 2.1 Research Methodology .29 2.1.1 Research Model .29 2.1.2 Research Hypothesis .29 2.2 Survey Design 35 2.2.1 Sample Design 35 2.2.2 The composition of the questionnaire .35 2.2.3 Operational definition and measurement of variables 36 2.3 General characteristics of a sample 40 2.4 Reliability and Feasibility Analysis 41 2.4.1 Reliability analysis 41 2.4.2 Confirmatory Factory Analysis .43 2.4.3 Evaluating a measurement model 44 2.5 Correlation analysis 47 2.6 The verification of the theory of research 48 2.6.1 Path analysis result 48 2.6.2 The verification of the theory of research .48 2.7 Discussion and Implication of Research 50 CHAPTER 3: THE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES OF SHINHAN BANK 52 3.1 Economic Corporate Social Responsibility of Shinhan Bank 52 3.1.1 Product that puts customer revenue first 52 3.1.2 Customized solution based on big data & Transform digital channels and services 52 3.1.3 Customer-centric management .53 3.1.4 Financial Consumer Information Protection 55 3.2 Legal Corporate Social Responsibility of Shinhan Bank 56 3.3 Ethical Corporate Social Responsibility of Shinhan Bank 56 3.3.1 Implementation of strict ethics compliance principles 56 3.3.2 Internal Control and Insider Reporting System 57 3.3.3 Anti-mononey lundering system .57 3.4 Charitabal Corporate Social Responsibility of Shinhan Bank 58 3.4.1 Social contribution activities/ Sponsorship .58 3.4.2 Support for small business owners / small businesses 59 3.4.3 Financial support for low-income people/financial education 60 3.4.4 Expending eco-friendly work services 61 3.4.5 Development of eco-friendly financial products 62 CONCLUSION 63 REFERENCES 65 SURVERY 69 LIST OF TABLES Table 1.1: Definition of Corporate Social Responsibility Table 1.2: Different Concepts of Academies for Social Responsibility 10 Table 1.3: Definition of Corporate social responsibility of Carroll 14 Table 5.1: Data analysis procedure and analysis method 35 Table 5.2: The composition of the questionnaire 36 Table 6.1: General characteristics of a sample 40 Table 6.2: Reliability Analysis of Each Research Unit 42 Table 6.3: Measurement Model Analysis Results 44 Table 6.4: Correlation analysis results 47 Table 6.5: Result of the verification of the theory of research 48 Table 2.1: Shinhan Financial Group's client complaint handling .54 Table 2.2: Customer personal information leakage status in Korea 55 Table 2.3: Strengthen ethics education .57 Table 2.4: Current status of volunteer activities of Shinhan bank 58 Table 2.5: Low-interest small business loans 60 Table 2.6: Support for disabled companies .60 Table 2.7: Financial support for low-income people 61 Table 2.8: Shinhan Bank Energy Usage 62 i LIST OF FIGURES Figure 1.1: Carroll's Corporate Social Responsibility (CSR) Pyramid Materials: Carroll, A B (1979), "A Three-dimensional Conceptual Model of Corporate Performance", Academy of Management Review, vol 13 Figure 1.2: Kang's analysis level, business entity, and corporate responsibility model 15 Figure 1.3: Firm’s Sustainable Competitiveness Pyramid, Source: Hoang Dinh Phi, 2015 16 Figur 4.1: Research Model 29 Figure 6.1: Path analysis result 48 Figure 2.1: Percentage of deposits subscribed by mobile in Shinhan bank 53 Figure 2.2: Customer Satisfaction of Shinhan Bank(three research companies) 54 Figure 2.3: Shinhan Bank's Greenhouse gas emissions 62 ii INTRODUCTION Background Information and Rationale After several crises around the world, capital markets and consumer markets have lost confidence in efficiency As a result, managers face the challenge of improving corporate image or reliability (Marin & Ruiz, 2007), to solve the problem of such a decline in reliability, companies are focusing on and strengthening corporate social responsibility (CSR) Corporate social responsibility is to demonstrate business management activities, exchange with stakeholders, and corporate activities related to society and the environment that arise from pursuing sustainable businesses (Carroll, 1999) Nevertheless, in the '90s, the corporate social responsibility began to be used pragmatically as a business term (Carroll, 1999) Over the past decade, in most industries, companies have invested and made efforts to develop corporate social responsibility with the aim of improving the intangible characteristics of the brand image (McDonald & Rundle - Thiele, 2008) For example, 90 percent of Fortune 500 companies already carry out their social responsibilities and more than 80 percent of them post their activities on their websites This trend is expanding to most developed countries or to many developing countries (KPMG, 2011) The company's ability to improve the company's image, reputation and trust depends on the degree to which the company's social responsibility is consistent with its stakeholders' expectations for the sector (form) of corporate social responsibility performed by the company (Dawkins & Lewis, 2003; McDonald's & Hung Lai, 2011) In this regard, scholars said that resources should be distributed not only to society but also to stakeholders such as customers, employees, investors, suppliers, strategic partners, and governments (Poolthong & Mandachita, 2009) This is because when stakeholders' expectations of corporate social responsibility coincide, firms can generally increase their friendly attitudes from stakeholders (Vassilikopoul, Siomucos, & Mylonakis, 2005) Conversely, failure to get stakeholders to understand the means of corporate social responsibility results in 안녕하십니까? 바쁘신 가운데 본 설문에 응해 주심에 깊은 감사를 드립니다 본 설문조사를 석사학위 논문이 CSR 활동이 고객 충성도에 미치는 영향에 대핚 연구: 신핚베트남은행 사례에 대핚 연구를 수행하기 위해 작성되었습니다 응답하신 내용은 모두 귀중핚 연구 자료가 될 것이며, 특정 응답자의 개인적인 내용이 별도로 평가되지 않고, 조사결과는 학문적인 연구자료로만 이용될 것입니다 바쁘시겠지만 본 설문에 응답해주시면 저의 연구에 많은 도움이 되리라 생각됩니다 본 설문은 무기명으로 처리되며, 조사결과의 완성도를 높이기 위해, 모든 설문 문항에 빠짐없이 솔직하게 응답해주시면 대단히 감사하겠습니다 설문의 응답에는 옳고 그름이 없으며, 단지 귀하께서 평소 생각하고 느끼고 계신 그대로를 답변해 주시면 대단히 고맙겠습니다 감사합니다 2018 년 12 월 일 ~ 12 월 31 일 1.기업의 사회적 책임(CSR) 대한 질문입니다 경제적 CSR 70 전혀 매우 그렇지 그렇다 않다 나의 주거래 은행은 고객 불만에 대처하는 체계를 7 7 7 구축하고 있다 나의 주거래 은행은 상품의 질을 지속적으로 개선하고 있다 나의 주거래 은행은 고객 만족을 경영성과 지표로 사용한다 나의 주거래 은행은 고용창출을 위해 노력한다 나의 주거래 은행은 원가절감에 노력한다 나의 주거래 은행은 직원들에게 만족스러운 급여 지급을 위해 노력한다 나의 주거래 은행의 경영진은 은행의 장기 경영전략을 가지고 있다 전혀 법률적 CSR 매우 그렇지 그렇다 않다 나의 주거래 은행의 경영진들은 은행 업무의 71 법률적인 사항에 대하여 알고 있다 나의 주거래 은행의 모든 활동은 법률을 준수하여 7 7 7 추진한다 나의 주거래 은행의 모든 법률적 계약의 의무는 철저히 이행된다 나의 주거래 은행의 경영진은 법률을 준수하려고 노력한다 나의 주거래 은행은 직원의 고용에 관한 제반 규정을 준수한다 나의 주거래 은행은 직원들을 공평하게 채용하는 프로그램(예: 나이, 성별, 종교, 학벌등)을 가지고 있다 나의 주거래 은행은 직원들의 보상과 승진에 대한 차별을 방지하는 내부규정이 마련되어 있다 각 설문 항목에 대한 고객님께서 느끼시는 정도를 체크(V)해 주십시오 2.기업의 사회적 책임(CSR) 대한 질문입니다 72 전혀 윤리적 CSR 매우 그렇지 그렇다 않다 나의 주거래 은행은 전반적인 윤리강령을 가지고 있다 7 7 7 나의 주거래 은행은 과장광고나 허위광고를 하지 않는다 나의 주거래 은행의 경영진은 은행이 사회에 끼칠 부정적인 영향에 대하여 항상 주시한다 나의 주거래 은행은 신뢰를 중시한다 나의 주거래 은행은 직원평가에 은행 거래처나 협력업체에 대한 공정한 업무 처리가 평가지표이다 나의 주거래 은행은 부패나 성추행 등 비리에 대하여 투명경영을 한다 나의 주거래 은행은 직원들에게 고객들의 요청에 충분하고 정확한 정보를 제공하기를 요구하고 있다 자선적 CSR 73 전혀 매우 그렇지 그렇다 않다 나의 주거래 은행의 직원들은 다른 은행과 비교하여 높은 7 7 7 급여를 받고 있다 나의 주거래 은행은 직원들에게 추가적인 교육기회를 많이 부여한다 나의 주거래 은행은 종업원들이 자원봉사 등 사회활동을 하는 것을 장려한다 나의 주거래 은행은 은행방침에 유연성이 있어 직원들의 개인적인 삶에 도움이 된다 나의 주거래 은행은 적절한 사회환원을 통한 기여를 한다 나의 주거래 은행은 환경보호를 위해 노력한다 나의 주거래 은행은 지역 기업이나 학교등과 파트너십을 형성한다 나의 주거래 은행은 스포츠나 문화활동을 지원한다 각 설문 항목에 대한 고객님께서 느끼시는 정도를 체크(V)해 주십시오 고객신뢰/ 고객충성도/ 부정적 정보에 대한 저항에 대한 설문입니다 74 전혀 고객신뢰 매우 그렇지 그렇다 않다 나의 주거래 은행은 믿을 만하다 7 7 7 나의 주거래 은행은 나에게 한 약속을 지킨다 나의 주거래 은행은 나에게 항상 정직하게 대한다 나의 주거래 은행이 제공하는 정보를 믿는다 나의 주거래 은행은 개인정보에 관한 것을 악용하지 않을 것이다 나의 주거래 은행은 앞으로도 기대에 어긋나지 않을 것이다 전혀 고객충성도 매우 그렇지 그렇다 않다 다른 은행에서 거래를 권유하여도 나는 주거래 7 은행을 계속 거래 할 것이다 나는 주거래 은행을 주위 사람에게 추천하고 싶다 나는 주거래 은행과 계속 75 거래를 유지해오면서 애착심이 높아졌다 나는 주거래 은행과 거래규모를 증가시킬 것이다 7 나의 주거래 은행의 장점은 고객들의 충성도가 높은 것이다 각 설문 항목에 대한 고객님께서 느끼시는 정도를 체크(V)해 주십시오 76 고객신뢰/ 고객충성도/ 부정적 정보에 대한 저항에 대한 설문입니다 전혀 부정적 정보에 대한 저항 매우 그렇지 그렇다 않다 나의 주거래 은행에 대한 부정적 정보는 그 은행에 대한 나의 일반적인 평가를 바꾸지 7 7 못할 것이다 나의 주거래 은행에 관한 부정적 정보가 있어도 나는 그 은행에 평가를 바꾸지 않을 것이다 나의 주거래 은행에 대한 부정적 정보는 나에게 아무런 영향을 미치지 않는다 나의 주거래 은행에 대한 부정적 정보는 은행을 생각하는 방식에는 아무런 영향이 없을 것이다 각 설문 항목에 대한 고객님께서 느끼시는 정도를 체크(V)해 주십시오 77 How are you? Thank you very much for responding to this survey while you are busy The study on the impact of CSR activities on customer loyalty is conducted by the Master's Degree thesis: A study on the case of Shinhan Vietnam Bank All of your responses will be valuable research materials, and no personal information will be assessed by any particular respondent, and the findings will be used only as academic research materials I'm sure you're busy, but I think it would be very helpful if you could answer this survey This survey will be treated as an unknown and will be completed in order to increase the level of completion of the survey results I would be very grateful if you could answer every question honestly and honestly There is no right or wrong answer to the survey, and I would appreciate it if you could just answer what you think and feel Thank you so much December 1st to December 31st, 2018 78 The question of Corporate Social Responsibility (CSR) It's not Economic CSR That's like that very true at all Shinhan Bank is building a system to deal with customers' 7 7 7 financial complaints Shinhan Bank is continually improving the quality of its financial products Shinhan Bank uses customer satisfaction as an indicator of business performance Shinhan Bank strives to create jobs Shinhan Bank strives to cut costs Shinhan Bank strives to provide satisfactory pay to its employees The senior management of Shinhan Bank has a long-term management strategy It's not Legal CSR That's like that very true at all The executives of Shinhan Bank know about the legal matters of banking 79 All activities of Shinhan Bank are carried out in accordance 7 7 7 with the law 10 Shinhan Bank's obligations under all legal contracts are fully fulfilled 11 The management of Shinhan Bank tries to abide by the law 12 Shinhan Bank is in compliance with all regulations regarding the employment of its employees 13 Shinhan Bank has a program to hire its employees fairly 14 Shinhan Bank has an internal regulation to prevent employees from discriminating against compensation and promotion Please check (V) the extent to which you feel about each survey item The question of Corporate Social Responsibility (CSR) It's not Ethical CSR That's like that very true at all 15 Shinhan Bank has overall ethical standards 16 Shinhan Bank does 7 not advertise in exaggeration or in falsehood 80 17 The management of Shinhan Bank always keeps an eye on the negative effects the bank has 7 7 on society 18 Shinhan Bank values trust 19 When Shinhan Bank evaluates its employees, its employees are evaluated by its employees by fair dealing with customers or suppliers 20 Shinhan corruption Bank cases corruption manages such and as sexual harassment transparently 21 Shinhan Bank requires employees to provide sufficient and accurate information to customers' requests It's not Charitable CSR That's like that very true at all 22 Employees of Shinhan Bank are getting higher salaries compared to other banks 23 Shinhan Bank provides many additional 7 educational opportunities for its employees 24 Shinhan Bank encourages employees to social work 81 such as volunteer work 25 Shinhan Bank is flexible in its banking policy, which helps 7 7 employees' personal lives 26 Shinhan Bank makes a proper contribution to society 27 Shinhan Bank strives to protect the environment 28 Shinhan partnership Bank forms with a local companies and schools 29 Shinhan Bank supports sports and cultural activities Please check (V) the extent to which you feel about each survey item Customer Trust/customer loyalty/resistance to negative information It's not Customer Trust That's like that very true at all 30 Shinhan Bank is trustworthy 31 Shinhan Bank keeps its promise to me 32 Shinhan Bank always treats me honestly 33 I believe in the information provided by Shinhan Bank 34 Shinhan Bank will not abuse personal information 82 7 7 35 Shinhan Bank will never fail to meet its expectations It's not Customer Loyalty That's like that very true at all 36 Even if other banks recommend me to business, I will continue to business with 7 7 Shinhan 37 I would like to recommend Shinhan Bank to people around me 38 As I have maintained my business with Shinhan Bank, I have become more attached to Shinhan Bank 39 I plan to increase the volume of business with Shinhan Bank 40 Shinhan Bank's advantage is that its customers are more loyal Please check (V) the extent to which you feel about each survey item 83 Customer confidence/customer loyalty/resistance to negative information It's not Resistance to negative information That's like that very true at all 41 The negative information of Shinhan Bank will not change my general assessment of 7 7 Shinhan Bank 42 Even if information I have negative about Shinhan Bank, I will not change my assessment to that bank 43 Negative information about Shinhan Bank does not affect me at all 44 The negative information of Shinhan Bank will not affect the way I think of my bank Please check (V) the extent to which you feel about each survey item 84 ... financial complaints 36 Shinhan Bank is continually improving the quality of its financial products Shinhan Bank uses customer satisfaction as an indicator of business performance Shinhan Bank... ethical standards Shinhan Bank does not advertise in exaggeration or in falsehood The management of Shinhan Bank always keeps an eye on the negative effects the bank has on society Shinhan Bank values... responsibility was 4.40 (standard deviation of 1.05), the average of legal CSRs was 4.41 (standard deviation of 0.98), the average of ethical CSRs was 4.46 (standard deviation of 0.99), and the average of