Management perception of the impact of corporate social responsibility on corporate reputation in vietnam

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  BÙI THỊ DIỄM NGA MANAGEMENT PERCEPTION OF THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON CORPORATE FINANCIAL PERFORMANCE AND CORPORATE REPUTATION IN VIETNAM MASTER THESIS HO CHI MINH CITY – 2013 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  BÙI THỊ DIỄM NGA MANAGEMENT PERCEPTION OF THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON CORPORATE FINANCIAL PERFORMANCE AND CORPORATE REPUTATION IN VIETNAM Subject: Master of Business Administrator Code: 06.34.01.02 MASTER THESIS SUPERVISOR: DR NGUYỄN THỊ NGUYỆT QUẾ HO CHI MINH CITY – 2013 I ACKOWLEDGMENT First of all, I would like to indicate my deep gratitude to Dr Nguyen Thi Nguyet Que, my promoter Throughout the entire research, she offered valuable advice, helpful guidance and comments as well as encouragement during difficult times I sincerely appreciate you, both personally and professionally I am also grateful to my classmates who were unfailingly kind, offered ongoing encouragement, and helped me whenever it was necessary In addition, I‟d like to send my special thanks to all of my colleagues- Ms Tien, Ms Loan, Ms Thu and my director- Ms Nguyen Vu Thanh Uyen at Dang Hung Chemical Company for your persistent support, encouragement Without your help, my dissertation couldn‟t be finished in time I will be forever indebted to my beloved family members, especially my parents and my parents-in-law They have supported me in a consistently loving manner I am especially grateful to my husband, Kim Do, for his love, thoughtfulness, and endless support Thanks for looking after our daughter- Lucie so well whenever I were busy and focus on this dissertation Lucie, thank you so much for your precious existence in my life! While it is true that you make my life increasingly busy Without you, my life would have no meaning at all Once again, I extend my profound thanks to all of you, as well as to others whose names are not mentioned here but who also contributed directly or indirectly to this thesis Bui Thi Diem Nga Ho Chi Minh City, 26 September, 2013 II COMMITMENT I certify that the ideas, analyses, and conclusions reported in this thesis “Management Perception Of The Impact Of Corporate Social Responsibility On Corporate Financial Performance And Corporate Reputation In Vietnam” are entirely my own effort The data was collected in reality and it has clear origins I also certify that the work is original and has not been previously submitted for any other award III TABLE OF CONTENT ACKOWLEDGMENT I COMMITMENT II LIST OF FIGURES VI LIST OF TABLES VII ABSTRACT .1 CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research Issues, Objectives & Questions 1.3 Research methodology 1.4 Significance of study 1.5 Structure of study CHAPTER 2: LITERATURE REVIEW: 2.1 Introduction 2.2 Concept of Corporate Social Responsibilities 2.2.1 Definition of Corporate Social responsibility 2.2.2 CSR components 11 2.3 Review of previous studies on CSR and organization performance 12 2.3.1 Related CSR and financial performance .13 2.3.2 Related to CSR and corporate reputation 15 2.4 Development of theoretical model and research hypothesis 21 2.4.1 CSR and Financial performance 22 IV 2.4.2 CSR and corporate reputation 25 2.5 Summary 28 CHAPTER 3: RESEARCH METHOD 29 3.1 Introduction: 29 3.2 Research design 29 3.3 Questionnaire development .31 3.3.1 Scale of independent variables 31 3.3.2 Scale of dependent variables 32 3.3.3 Translation of the Questionnaire 35 3.4 The pilot study 35 3.5 Main survey .36 3.5.1 Target population 36 3.5.2 Sample method .36 3.5.3 Sample size 37 3.5.4 Questionnaire administration .37 3.6 Methods of data analysis 38 3.7 Summary 40 CHAPTER 4: DATA ANALYSIS 41 4.1 Introduction .41 4.2 Descriptions of sample .41 4.3 Reliability and validity of the measurement scale .42 4.3.1 Reliability (Cronbach Alpha) .42 4.3.2 Exploratory factor analysis (EFA) 44 V 4.4 Testing the research model and the hypotheses .47 4.4.1 Testing correlations of constructs 48 4.4.2 Regression Analysis .51 4.4.3 Test the violations of assumptions in linear regression 58 4.5 Conclusion 58 CHAPTER 5: CONCLUSION AND IMPLICATION 60 5.2 Discussion of findings 60 5.2.1 The impact of CSR activities in term of employee responsibilities on financial performance and corporate reputation 61 5.2.2 The impact of CSR activities in term on community responsibilities on financial performance and corporate reputation 62 5.2.3 The impact of CSR activities in term of customer responsibilities on financial performance and corporate reputation 63 5.2.4 The impact of CSR activities in term of environment responsibilities on financial performance and corporate reputation 64 5.3 Practical implications and contribution of study 64 5.4 Limitation and future research 66 5.5 Conclusion 67 LIST OF REFERENCE 67 APPENDIX A 73 APPENDIX B 78 APPENDIX C 81 APPENDIX D 83 VI LIST OF FIGURES Figure Description Page Figure 2.1 Research Model 28 Figure 2.2 Research process 30 Figure 4.4 The revised research model 57 VII LIST OF TABLES Table Description Page Table 2.1 Definitions of CSR – academic research Table 2.2 Definitions of CSR based on representatives organizations Table 2.3 Abstract of CSR researches 17 Table 3.1 Items of variables in the study 33 Table 4.1 Sample characteristics 42 Table 4.2 Reliability of scales 43 Table 4.3 KMO and Barlett's Test of independent variables 45 Table 4.4 Rotated Component Matrix(a) 45 Table 4.5 Item-Total Statistics 46 Table 4.6 KMO and Bartlett's Test 47 Table 4.7 Rotated Component Matrixa 47 Table 4.8 Correlations of MLR (1) 49 Table 4.9 Correlations of MLR (2) 50 a Table 4.10 Variables Entered/Removed Table 4.11 Model Summary 51 Table 4.12 ANOVAa 52 Table 4.13 Coefficientsa (MLR -1) 52 Table 4.14 Model Summaryb 54 Table 4.15 ANOVA a 51 55 a Table 4.16 Coefficients Table 5.1 Research Purposes, Hypotheses and Results 55 61 ...MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  BÙI THỊ DIỄM NGA MANAGEMENT PERCEPTION OF THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON CORPORATE FINANCIAL... University of Economics We are conducting a Study on ? ?management perception of the impact of CSR on financial performance and corporate reputation in Vietnam? ?? We need your help by answering the following... (2009) A study of management perceptions of the impact of corporate social responsibility on organisational performance in emerging economies: The case of dubai Journal of Business Ethics,89(3),