A study of employee perception of internal CSR and employee commitment in VNPT technology company

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - TRẦN THẾ HÙNG A STUDY OF EMPLOYEE PERCEPTION OF INTERNAL CSR AND EMPLOYEE COMMITMENT IN VNPT TECHNOLOGY COMPANY NGHIÊN CỨU VỀ CẢM NHẬN CỦA NHÂN VIÊN VỀ TRÁCH NHIỆM XÃ HỘI BÊN TRONG DOANH NGHIỆP VÀ CAM KẾT GẮN BĨ CỦA NHÂN VIÊN TẠI CƠNG TY VNPT TECHNOLOGY LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - TRẦN THẾ HÙNG A STUDY OF EMPLOYEE PERCEPTION OF INTERNAL CSR AND EMPLOYEE COMMITMENT IN VNPT TECHNOLOGY COMPANY NGHIÊN CỨU VỀ CẢM NHẬN CỦA NHÂN VIÊN VỀ TRÁCH NHIỆM XÃ HỘI BÊN TRONG DOANH NGHIỆP VÀ CAM KẾT GẮN BÓ CỦA NHÂN VIÊN TẠI CÔNG TY VNPT TECHNOLOGY 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 ACKNOWLEDGEMENTS After studying at the Hanoi School of Business (HSB) - Hanoi National University, with gratitude and respect, I would like to express my sincere thanks to HSB and all lecturers have been enthusiastic to guide, teach and create favorable conditions to help me during the process of learning, researching and completing the thesis In particular, I would like to express my deep gratitude to Assoc Prof Dr Nguyen Ngoc Thang, who directly guided and assisted me in the process of implementing the thesis Thank you very much for the sharing and encouragement of MBA15 - HSB students during the learning process as well as the process of implementing the topic I would also like to thank VNPT Technology Company and colleagues for facilitating me in the process of studying at HSB Finally, I would like to express my deep gratitude to my family, my wife and my two children for always encouraging and supporting during my studies at HSB Thank you very much! Hanoi, 25/06/2019 Tran The Hung CONTENT ABBREVIATION i LIST OF FIGURES ii LIST OF TABLES iii INTRODUCTION .1 Rationale Literature review Research Subject Research Objectives 5 Research Scope 6 Research methods 6.1 Data collection methods .6 6.2 Data analysis methods Research agenda CHAPTER THEORETICAL BACKGROUND .8 1.1 Theoretical basis for Corporate Social Responsibility (CSR) .8 1.1.1 Concept of CSR .8 1.1.2 Theory related to corporate social responsibility 11 1.1.3 Standards and tools for CSR management 15 1.1.4 Internal CSR 17 1.2 Employee Commitment .22 1.3 The linkage between internal CSR and organizational commitment 24 1.4 Research Hypothesis and Research Model 26 1.4.1 Research Hypothesis 26 1.4.2 Research Model 28 CHAPTER RESEARCH METHODS 30 2.1 Overview of VNPT Technology Company 30 2.2 Research Design 32 2.2.1 Research process 32 2.2.2 Research objects and scope of research 34 2.2.3 Data collection method 34 2.2.4 Sample and Measure .35 2.2.5 Data processing method .43 CHAPTER RESEARCH FINDING AND DISCUSSION 45 3.1 Summary of survey results .45 3.2 Descriptive statistics of variables 48 3.2.1 Descriptive statistics of Internal CSR variables 48 3.2.2 Descriptive statistics of Employee commitment variables .49 3.3 Evaluate the reliability of the scale 51 3.3.1 Cronbach’s Alpha analysis 51 3.3.2 Exploratory Factor Analysis (EFA) 53 3.3.3 Regression analysis and hypothesis testing 57 3.3.4 Hypothesises testing 62 3.3.5 Analysis of influence of the difference personal characteristics 63 3.3.6 Research finding and discussion 65 CONCLUSION, LIMITATION AND IMPLICATION 68 Conclusion 68 Limitation and Future Research 69 Implication and recommendation 69 REFERENCES 71 APPENDIX APPENDIX QUESTIONARE (VIETNAMEASE) APPENDIX SAMPLE DESCRIPTION APPENDIX CRONBACH‟S ALPHA ANALYSE APPENDIX EXPLORATORY FACTOR ANALYSIS APPENDIX 5: CORRELATION ANALYSIS APPENDIX 6: REGRESSION ANALYSIS APPENDIX 7: TESTING THE DIFFERENCE BY PERSONAL CHARACTERISTICS ABBREVIATION AC : Affective commitment BSCI : Business Social Compliance Initiative CC : Continuance commitment CSR : Corporate social responsibility EFA : Exploratory Factor Analysis HS : Heathy and safety ILO : International Labor Organization LR : Labor relation NC : Normative commitment NGO : Non-governmental Organization OECD : Organization for Economic Co-operation and Development TD : Training and development TTF : Triple bottom line WB : Work-life balance WD : Workplace diversity i LIST OF FIGURES Figure A Framework for Analyzing the Relationship between Perception of employee of Internal Corporate Social Responsibility (CSR) and Employee Commitment Figure 1.1 Carroll‟s (1991) Four-Part Model of CSR Figure 1.2 Stakeholder theory of the firm (Crane and Matten, 2004) .13 Figure The three components of sustainability 14 Figure 1.4 Core subjects of CSR in ISO26000 17 Figure 1.5 Proposed research model 29 Figure 2.1 Research process .32 Figure 3.1 Gender distribution among 297 participants 45 Figure 3.2 Age distribution among 297 participants 45 Figure 3.3 Education distribution among 297 participants 46 Figure 3.4 Seniority distribution among 297 participants 47 Figure 3.5 Position distribution among 297 participants 47 Figure 3.6 The result of the study model of employee perception of internal CSR and employee affective commitment 59 Figure 3.7 The result of the study model of employee perception of internal CSR and employee continuance commitment 61 Figure 3.8 The result of the study model of employee perception of internal CSR and employee normative commitment 62 ii LIST OF TABLES Table 2.1 Observed variables of perception of Labor relation 36 Table 2.2 Observed variables of perception of Training and development38 Table 2.3 Observed variables of perception of Heath and safety .39 Table 2.4 Observed variables of perception of Workplace diversity 40 Table 2.5 Observed variables of perception of Work-life balance 41 Table 2.6 Observed variables of Employee Commitment Items 42 Table 3.1 Descriptive statistics of Perception of Internal CSR variables 48 Table 3.2 Descriptive statistics of Employee Commitment variables 50 Table 3.3 Result of Cronbach‟s Alpha analysis 51 Table 3.4 Result of EFA analysis for independent variables .53 Table 3.5 Result of EFA analysis for AC variables 55 Table 3.6 Result of EFA analysis for CC variables 55 Table 3.7 Result of EFA analysis for NC variables 56 Table 3.8 Correlation between variables 57 Table 3.9 Result of regression analysis for perception of internal CSR and affective commitment 58 Table 3.10 Result of regression analysis for perception of internal CSR and continuance commitment .60 Table 3.11 Result of regression analysis for perception of internal CSR and normative commitment 61 Table 3.12 Summary the result of Analysis of influence of the difference personal characteristics to employee commitment 65 iii INTRODUCTION Rationale Corporate social responsibility (CSR) is a concept that has been mentioned a lot in governance research and practice in developed countries in the past decades This term is known in Vietnamese businesses in the last 10 years through international organizations, multinational companies, some joint-venture companies, directly or indirectly investing in Vietnam In recent years, due to the requirements of foreign partners, along with the awareness of society, the need for international integration and sustainable development, CSR has been increasingly concerned CSR is no longer a new concept for Vietnamese firms However, activities on CSR in most companies are merely interpreted as charitable contributions, community sharing, environment or voluntary social work of enterprises CSR has not received adequate attention in the strategy and operation of many firms World Business Council (1998) define CSR "continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large” Today CSR is not only a charity or a respect for environmental protection but also involves many aspects, which are specifically concretized in ISO26000 including: Organizational governance, human rights concern, labor practices, environmental protection, fair operation practices, consumer issues, community involvement and development (ISO26000, 2010) Thus CSR not only expresses the external responsibility of the firms but also the elements that express the internal activities and internal responsibilities of the firms As a firm in the field of telecommunications, information technology, R&D and manufacturing telecom equipment, VNPT Technology Joint Stock Company, from inception, has determined the core value of the company as human resource Therefore, human resource management are particularly concerned by the leaders, Variables Entered/Removeda Model Variables Variables Entered Removed WB, WD, Method Enter TD, LR, HS b a Dependent Variable: CC b All requested variables entered Model R 529a Adjusted R Std Error of Square the Estimate R Square 280 267 442 ANOVAa Sum of Model Squares Mean df Square Regression 22.119 4.424 Residual 56.975 291 196 Total 79.095 296 a Dependent Variable: CC b Predictors: (Constant), WB, WD, TD, LR, HS F 22.595 Sig .000b Coefficientsa Model Unstandardized Standardized Collinearity Coefficients Coefficients Statistics B (Consta Std Error 612 307 LR 177 072 TD -9.884E-5 WD Beta t Sig Tolerance VIF 1.992 047 166 2.475 014 548 1.825 065 000 -.002 999 520 1.925 349 075 334 4.633 000 475 2.104 HS -.018 069 -.018 -.263 793 519 1.927 WB 233 077 175 3.042 003 744 1.343 nt) a Dependent Variable: CC Collinearity Diagnosticsa Variance Proportions Mode Dimensi Eigenvalu Condition (Consta l on e Index 1 5.961 1.000 00 00 00 00 00 00 011 22.858 22 02 14 06 05 18 010 24.676 01 00 59 21 09 03 009 25.606 01 44 01 02 39 03 005 36.290 04 36 05 70 44 13 004 37.938 73 18 21 01 02 63 a Dependent Variable: CC nt) LR TD WD HS WB Variables Entered/Removeda Model Variables Variables Entered Removed WB, WD, Method Enter TD, LR, HSb a Dependent Variable: NC b All requested variables entered Model R 690a R Square 476 Adjusted R Std Error of Square the Estimate 467 450 ANOVAa Sum of Model Mean Squares df Square F Regression 53.541 10.708 Residual 58.828 291 202 112.369 296 Total Sig .000b 52.970 a Dependent Variable: NC b Predictors: (Constant), WB, WD, TD, LR, HS Coefficientsa Unstandardized Standardized t BCoefficients Std Error Coefficients Beta (Consta -.501 312 -1.606 LR 097 073 076 1.330 nt) TD 228 066 203 3.444 WD 589 077 473 7.693 HS 018 070 015 252 WB 095 078 060 1.225 a Dependent Variable: NC Collinearity Diagnosticsa Model Mode Dimensi l Condition Eigenvalue on 5.961 011 010 009 005 004 a Dependent Variable: NC (Consta Index 1.000 nt).00 22.858 22 24.676 01 25.606 01 36.290 04 37.938 73 Sig .109 185 001 000 801 221 Collinearity Statistics Toleranc VIF e 548 520 475 519 744 Variance Proportions LR TD WD 00 00 00 02 14 06 00 59 21 44 01 02 36 05 70 18 21 01 1.825 1.925 2.104 1.927 1.343 HS WB 00 00 05 18 09 03 39 03 44 13 02 63 APPENDIX 7: TESTING THE DIFFERENCE BY PERSONAL CHARACTERISTICS I TESTING THE DIFFERENCE BY GENDER Group Statistics Gender AC CC NC N Mean Std Std Error Deviation Mean 183 3.91 569 042 114 3.80 549 051 183 3.58 524 039 114 3.51 505 047 183 3.55 627 046 114 3.51 600 056 Independent Sample T-test by Gender Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means AC Equal variances assumed Equal variances not assumed F Sig t 059 809 1.654 95% Confidence Interval of the Std Difference Sig Mean Error (2Differen Differe Lowe Uppe df tailed) ce nce r r 295 111 067 -.021 243 099 1.668 246.38 097 111 066 -.020 242 CC Equal variances assumed Equal variances not assumed NC Equal variances assumed Equal variances not assumed II 1.369 234 243 1.260 629 295 209 078 062 -.044 199 1.271 246.51 205 078 061 -.043 198 295 522 047 074 -.098 192 648 247.59 518 047 073 -.096 191 642 TESTING THE DIFFERENCE BY AGE Descriptives Std 95% Confidence Minimu Maximu Lower Upper Deviatio Error Interval for Mean m m AC 40 3.88 513 081 3.72 4.05 Bound Bound n 137 3.82 579 049 3.72 3.92 94 3.90 618 064 3.77 4.02 26 4.04 248 049 3.94 4.14 Tota 297 3.87 563 033 3.81 3.94 CC 1l 40 3.55 247 039 3.47 3.63 137 3.56 585 050 3.46 3.66 94 3.52 521 054 3.42 3.63 26 3.63 437 086 3.45 3.80 Tota 297 3.55 517 030 3.50 3.61 NC 1l 40 3.68 253 040 3.59 3.76 137 3.45 718 061 3.33 3.57 94 3.51 604 062 3.39 3.63 26 3.86 225 044 3.77 3.95 Tota 297 3.54 616 036 3.46 3.61 1: Underl25 years old, 2: From 25 to under 30 years old, 3: from 30 to under 40 years old, N 4: over 40 years old Mean Std Test of Homogeneity of Variances Levene Statistic df1 df2 Sig AC 4.746 293 003 CC 9.613 293 000 NC 19.674 293 000 Robust Tests of Equality of Means Statistica df1 df2 Sig AC Welch 3.431 106.236 020 CC Welch 353 95.851 787 NC Welch 12.312 119.208 000 a Asymptotically F distributed III TESTING THE DIFFERENCE BY EDUCATION Descriptives Std 95% Confidence Maximu Minimum Lower forUpper Deviatio Error Interval Mean m AC 3.94 307 116 Bound 3.65 Bound 4.22 4 n 210 3.94 558 038 3.87 4.02 48 3.61 582 084 3.44 3.78 4 32 3.79 508 090 3.60 3.97 Tota 297 3.87 563 033 3.81 3.94 CC 1l 3.94 451 170 3.52 4.36 210 3.56 558 038 3.48 3.63 48 3.53 497 072 3.39 3.67 32 3.50 073 013 3.47 3.53 Tota 297 3.55 517 030 3.50 3.61 NC 1l 3.80 358 135 3.46 4.13 210 3.56 639 044 3.47 3.65 48 3.32 670 097 3.13 3.52 32 3.65 251 044 3.56 3.74 Tota 297 3.54 616 036 3.46 3.61 1: college/intermediate graduates, 2: university, 3: graduate school, 4: high school l N Mean Std Test of Homogeneity of Variances Levene Statistic df1 df2 Sig AC 1.171 293 321 CC 10.246 293 000 NC 8.020 293 000 ANOVA Sum of Mean Squares AC Between df Square 4.501 1.500 Within Groups 89.478 293 305 Total 93.979 296 1.158 386 Within Groups 77.936 293 266 Total 79.095 296 3.186 1.062 Within Groups 109.183 293 373 Total 112.369 296 F Sig 4.913 002 1.451 228 2.850 038 Groups CC Between Groups NC Between Groups Robust Tests of Equality of Means Statistica df1 df2 Sig AC Welch 4.447 27.126 012 CC Welch 2.657 26.375 069 NC Welch 3.871 27.578 020 a Asymptotically F distributed IV TESTING THE DIFFERENCE BY SENIORITY Descriptives N AC CC NC Tota 1l Tota 1l Tota 56 112 66 63 297 56 112 66 63 297 56 112 66 63 297 Mean 3.88 3.78 3.82 4.09 3.87 3.55 3.54 3.44 3.70 3.55 3.43 3.51 3.42 3.80 3.54 Std Std Deviatio 608 n 565 600 412 563 564 491 579 416 517 622 623 648 487 616 Error 081 053 074 052 033 075 046 071 052 030 083 059 080 061 036 95% Confidence Minimum Maximum Lower Interval for Upper Mean 3.72 Bound 4.04 Bound 3.67 3.88 3.67 3.97 3.99 4.19 3.81 3.94 3.39 3.70 3.45 3.64 3.29 3.58 3.60 3.81 3.50 3.61 3.26 3.60 3.39 3.62 3.26 3.58 3.68 3.93 3.46 3.61 l Test of Homogeneity of Variances Levene Statistic df1 df2 Sig AC 4.275 293 006 CC 3.476 293 016 NC 2.885 293 036 ANOVA Sum of Squares AC Between Groups 4.251 Mean df Square 1.417 F 4.627 Sig .004 CC Within Groups 89.728 293 Total 93.979 296 2.314 771 Within Groups 76.781 293 262 Total 79.095 296 6.119 2.040 Within Groups 106.250 293 363 Total 112.369 296 Between 306 2.943 033 5.625 001 Groups NC Between Groups Robust Tests of Equality of Means Statistica df1 df2 Sig AC Welch 6.660 144.248 000 CC Welch 3.409 141.983 019 NC Welch 7.264 145.173 000 a Asymptotically F distributed V TESTING THE DIFFERENCE BY POSISION Descriptives N AC CC Tot 1al 71 147 41 34 297 71 147 Mean 3.93 3.77 4.16 3.81 4.04 3.87 3.55 3.51 Std Std Deviatio 500 n 622 395 503 214 563 398 547 Error 059 051 062 086 107 033 047 045 95% Confidence Minimu Maximum Lower forUpper Interval Mean m 3.81 Bound 4.04 Bound 3.67 3.88 4.04 4.29 3.64 3.99 3.69 4.38 4 3.81 3.94 3.45 3.64 3.42 3.59 NC Tot 1al Tot 41 34 297 71 147 41 34 297 3.67 3.58 4.11 3.55 3.49 3.43 3.78 3.71 4.32 3.54 659 332 643 517 554 673 546 353 539 616 103 057 321 030 066 056 085 060 270 036 3.46 3.46 3.08 3.50 3.36 3.32 3.60 3.59 3.46 3.46 3.87 3.70 5.13 3.61 3.63 3.54 3.95 3.83 5.18 3.61 2 5 5 5 5 5 al Test of Homogeneity of Variances Levene Statistic df1 df2 Sig AC 2.870 292 023 CC 7.987 292 000 NC 5.611 292 000 ANOVA Sum of Squares AC Between Mean df Square 5.241 1.310 Within Groups 88.738 292 304 Total 93.979 296 2.108 527 Within Groups 76.987 292 264 Total 79.095 296 7.789 1.947 Within Groups 104.580 292 358 Total 112.369 296 F Sig 4.312 002 1.998 095 5.437 000 Groups CC Between Groups NC Between Groups Robust Tests of Equality of Means Statistica df1 df2 Sig AC Welch 5.984 23.930 002 CC Welch 1.261 21.197 316 NC Welch 6.160 21.640 002 a Asymptotically F distributed Report Gender LR TD WD HS WB Mean 3.99 3.84 3.96 4.04 4.05 N 183 183 183 183 183 Std .538 622 486 518 423 Mean 4.02 3.87 3.91 3.97 3.91 N 114 114 114 114 114 Std .387 406 510 524 311 4.00 3.85 3.94 4.01 4.00 N 297 297 297 297 297 Std .485 548 495 521 389 Deviation Deviation Total Mean Deviation ... organizational commitment of employees in the world and in Vietnam Since then, comparing analytical frameworks, assessing the impact of internal CSR awareness on the employee commitment and proposing an... expanding human capabilities and functioning, thus enabling women and men to lead long and health lives, to be knowledgeable and to have a decent standard of living Human development also includes... organizational commitment: health and safety, human rights, training and education, work life balance and workplace diversity Results showed that all internal CSR dimensions are significantly and