Ảnh hưởng của trách nhiệm xã hội doanh nghiệp đến sự gắn kết nhân viên nghiên cứu lĩnh vực ngân hàng tại thành phố hồ chí minh TTTA

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY TRAN THI NHINH IMPACT OF CORPORATE SOCIAL RESPONSIBILITY DIMENSION ON EMPLOYEE EMGAGEMENT: BANKING SECTOR IN HO CHI MINH CITY Major: Business Administration Code: 93.40.10.1 ABSTRACT OF THESIS Ho Chi Minh City - 2021 The research was completed at: Supervisor: Dr Tran Dang Khoa Dr Nguyen Van Tan Reviewer 1: …………………………………… Reviewer 2: ……………………………… Reviewer 3: …………………………………… The dissertation will be defended in front of thesis scoring council at Time … hour … day … month … year … The dissertation can be found at the library: …… .……………………………………… PUBLISHED SCIENTIFIC WORKS Tran Thi Nhinh (2020), Impact of corporate social responsibilities dimensions on employee engagement through mediating variable of organizational trust, tạp chí cơng thương, 2(2), 219-224 Trần Thị Nhinh (2020), Ảnh hưởng trách nhiệm xã hội doanh nghiệp đến gắn kết nhân viên thông qua vai trò trung gian niềm tin tổ chức: Kết thực nghiệm, tạp chí cơng thương, 8(4), 132-138 Trần Thị Nhinh (2020), Ảnh hưởng trách nhiệm xã hội doanh nghiệp đến gắn kết nhân viên vai trò điều tiết danh tiếng tổ chức, tạp chí cơng thương, 12(5),152-160 Tran Thi Nhinh, Tran Dang Khoa, Nguyen Van Tan (2020), Impact of Corporate Social Responsibilities Dimensions on Employee Engagement through Mediating Variables: Organizational Trust and Job Satisfaction, Vietnam, International conference on business and finance, 2, 316-333 Tran Thi Nhinh, Tran Dang Khoa, Nguyen Van Tan (2020), Impact of Corporate Social Responsibilities Dimensions on Employee Engagement under the Moderating Variable: Job Autonomy Level, Vietnam, International conference on business and finance, 2, 334352 CHAPTER 1: OVERVIEW 1.1 Research problem 1.1.1 Practical context Vietnam is increasingly integrating into the world economy, so businesses must respect and comply with international laws In competition, CSR needs more attention, and the banking sector plays an important role in the country's economy Especially in banking sector, the product are services, reputation and trust issues are of great concern (Perez et al., 2013) Employees are the main internal stakeholder of the organization, who are directly involved in CSR activities and influence this success (Van Buren III, 2005) According to the financial statements of banks on the HR fluctuations and the performance of bank staff in 2017, 2018 and 2019, it shows that the human resources situation in the banking sector has many fluctuations, and work performance of bank staff is not high 1.1.2 Theoretical context Domestic studies on CSR's impact on employee engagement are still very limited, as there are only a few studies on HR policies and interests of employees (Nguyen Ngoc Thang, 2010; Often, 2013), stakeholders (Pham Long Chau, 2014) These studies have not really gone into research on employee's perceptions of CSR's impact on employee engagement CSR needs to be given a lot of attention in the banking sector, because banks are more likely to suffer from reputational risk than other businesses and more susceptible to negative reactions from stakeholders (Thompson and Cowton, 2004), and the reputation of banks is based on their CSR programs (Poolthong and Mandhachitara, 2009) Most of the previous studies were done in Western contexts (Soni and Mehta, 2018) and lack of knowledge about employee engagement in CSR in developing countries like Vietnam 1.2 Research objectives Test the mediating role of organizational trust and job satisfaction in the impact between CSR and employee engagement Discover the moderating role of corporate reputation on the relationship between CSR and organizational trust, and the relationship between CSR and job satisfaction Discover the moderating role of job autonomy level on the relationship between organizational trust and employee engagement, and the relationship between job satisfaction and employee engagement 1.3 Objects and scope of the research The research objects are CSR, organizational trust, job satisfaction, employee engagement, corporate reputation, job autonomy level Theoretical scope: This thesis focuses on CSR and its results, namely: organizational trust, job satisfaction, employee engagement, corporate reputation, job autonomy level in the banking sector The study is based on the employee’s perception and managers of the above concepts The survey scope: The study conducted a survey of employees and managers but did not include the board of directors and owners of banks VIB, BIDV, SACOMBANK, VIETCOMBANK, ACB in the city Ho Chi Minh City, Vietnam Time frame: Its data were collected from 2016 to 2019 1.4 Research Methods This study combines qualitative and quantitative methods The process is conducted in two steps: preliminary and primary Detailed research steps are presented in chapter 1.5 New contributions of the study This study studies CSR and employee engagement in the context of the banking sector in Vietnam, a developing country, in a transition economy and restructuring Therefore, the research results add to the CSR theory, the employee engagement theory The study discovers the moderating impact of corporate reputation on the relationship between CSR and organizational trust, and the relationship between CSR and job satisfaction, which is also a new contribution of the study The study discovers the moderating impact of job autonomy level on the relationship between organizational trust and employee engagement, and the relationship between job satisfaction and employee engagement, this is also a new contribution of the study The study examines the mediating role of organizational trust and job satisfaction in the impact between CSR and employee engagement in the banking context in Vietnam The study will adjust the scale of the concepts to suit the research market in Vietnam and test the measurement model This result can help the next researches to use the scale to serve their research 1.6 Structure of the thesis The study includes five chapters: Chapter 1: Overview; Chapter 2: Theoretical Foundations and Research Models; Chapter 3: Research Methodology; Chapter 4: Research results and discussions; Chapter 5: Conclusions CHAPTER 2: THEORETICAL FOUNDATIONS AND RESEARCH MODELS 2.1 CSR 2.1.1 Outline of stakeholders Thomas and Lee (1995) introduced the model of enterprises stakeholders including: employees, customers, investors, governments, associations, etc According to Carroll (1999), stakeholders should be considered in CSR orientation to include employees, customers, owners, local communities, and society For each stakeholder, an enterprise has different economic, legal, ethical and charitable responsibilities Due to limited resources, enterprises cannot fully fulfill all of the above responsibilities at once, so the implementation of their corporate social responsibility will have to change from time to time based on the results of ranking the importance and urgency of each stakeholder request In this study, research focuses on employee perception of corporate social responsibility 2.1.2 Consequences of CSR by stakeholders From the consequences of CSR according to stakeholders (Bhattacharya and Sen, 2003), CSR for employees is job satisfaction, pride, organizational trust, loyalty or propaganda In this study, we are interested in how to implement CSR in banks to create satisfaction and organizational trust of employees working in banks more 2.2 Employee engagement (EE) 2.2.1 Outline employee engagement Bakker and Schaufeli (2008) say that job engagement can be defined as a positive, satisfied, work-related state of happiness In fact, engagement comes from a positive spirit emphasize the need to investigate and find out the specific efficiency of these characteristics, status, and employee positive behavior toward the organization (Bakker and Schaufeli, 2008) 2.2.2 Causes of employee engagement Following the employee engagement model (Robinson et al., 2004) and the engagement model of the Institute Employment Studies (2003) provides a model of employee engagement, clainm that job satisfaction has a positive impact on employee engagement In addition, following the employee engagement model (Penna, 2007), and (Hughes and Rog, 2008; Mone and London, 2009; Gallup, 2011; Covey, 2009; Mone et al., 2011; Schroeder Saulnier, 2010) claim that organizational trust has a positive impact on employee engagement 2.3 Stakeholder theory The concept of stakeholders is defined by Freeman (1984) as any group or individual that can influence or be affected by the achievement of company goals The role of the main stakeholder group is gaining increasing attention, because of its impact on the results of operations of the organization Employees are the main internal stakeholders, who not only benefit from CSR activities, they can also greatly influence the implementation and success of CSR programs, employees are more likely to actively experience the CSR program when they are directly involved in the process (Van Buren III, 2005) 2.4 Social identity theory Social identity theory was originally proposed by (Tajfel and Turner, 1979) According to the social identity theory, an organization's participation in CSR promotes the employee's identity with their company, the identification will lead to a positive response to the CSR (O ' Reilly and Chatman, 1986; Rodrigo and Arenas, 2008) According to Dutton et al (1994), the social identity theory would predict a detrimental effect on employees' work attitudes because employee self-esteem could be adversely affected by association, their organization 2.5 Social exchange theory The social exchange theory emphasizes that social behavior is the result of an exchange process (Blau, 1964) Specifically, if the employee feels happy when they are working in their organization, they are likely to actively support their organization as a social exchange According to social exchange theory of Blau (1964), trust is built through the process of emotional exchange between employees and managers 2.6 Signaling theory Signal theory says that the company's strategic decisions are signals sent by the company to various stakeholders to shake up the asymmetry This theory emphasizes building, maintaining, and protecting reputation on the basis of the expected organization's image (Walker, 2010) 2.7 Related studies Signal theory says that the company's strategic decisions are Recent studies on the impact of CSR on employee engagement are also of interest to researchers (Albdour and Altarawneh, 2012; Potdar et al., 2018; Claxton et al., 2014; Ali and Ali, 2011; Azim et al, 2014; Esmaeelinezhad et al, 2015; Glavas, 2016; Duthler and Dhanesh, 2018; Obeidat, 2016; Gupta, 2017; Chaudhary, 2017; Farrukh et al, 2020; Rupp et al., 2018) In addition, a number of studies suggest that there exists a significant positive relationship between CSR and organizational trust (Lee et al., 2013; Wang et al, 2014; Archimi et al., 2018; Tourigny et al., 2019) Next, (Valentine and Fleischman, 2008; Khan et al, 2018; Asrar-ul-Haq et al., 2017; Boğan et al., 2018) show a direct correlation between CSR levels and employee satisfaction In addition, studies of CSR, employee engagement, and corporate reputation (Flavian et al., 2005; Ali and Ali, 2011; Ali, Khan and Rehman, 2013) In addition, studies on CSR, employee engagement, and job autonomy level (Yong et al., 2013; Van Dorssen-Boog et al., 2020; Gözükara and Simsek, 2016, Akram et al., 2013; Lin and Ping, 2016) 2.8 Research model 2.8.1 Research concepts CSR concept This thesis has inherited the CSR concept stated by Freeman (1984), CSR is organizations that need to be concerned with 10 evaluate their CSR activities Several empirical studies have shown that organizational equity perceptions positively predict employee engagement (Saks, 2006; Maslach, 2001) In addition, Saks (2006) states that when employees have a high level of equitable awareness of organizations, they are more likely to feel obligated to the job by including more of their roles in their work and employee engagement cannot be too high if they not see the responsibility of the organization H1: CSR has a positive influence on employee engagement 2.8.2.2 The impact of CSR on organizational trust Vlachos et al (2010) identified a positive relationship between salespeople's perception of CSR activities and organizational trust Next, Lee et al (2012) also showed that many aspects of CSR have a positive, significant effect on employee organizational trust On the basis of social identity theory Tajfel and Turner (1979) It is an integrated theory of perception of the psychological basis of discrimination between groups Jones (2010) argues that pride in working for a socially responsible organization increases employee confidence and improves their self-esteem H2: CSR has a positive influence on organizational trust 2.8.2.3 The impact of CSR on job satisfaction Previous studies on CSR, CSR initiatives will bring benefits that satisfy the needs of employees and can therefore affect satisfaction and other attitudes at work ( Tuzzolino and Armandi, 1981; Bhattacharya et al., 2009; Shen and Jiuhua Zhu, 2011) 11 Based on the theory of social identity of Tajfel and Turner (1979), has given a reasonable explanation of the impact of CSR on employee's positive attitude (Peterson, 2004; Brammer et al., 2007; Turker, 2009b) H3: CSR has a positive influence on job satisfaction 2.8.2.4 The impact of organizational trust on employee engagement According to Mone, Eisinger, Guggenheim, Price, and Stine (2011) citing that Mone and London (2010) "found that having a manager that employees can trust is a key driver of engagement" A higher level of trust is expected to lead to a more positive attitude, a higher level of cooperation and a higher level of efficiency (Dirks and Ferrin, 2001) Based on the theory of social exchange Blau (1964) H4: Organizational trust has a positive influence on employee engagement 2.8.2.5 The impact of job satisfaction on employee engagement Djoemadi et al (2019) argue that employee engagement is primarily driven by employee satisfaction with their working conditions, job relationships and advancement Based on the theory of social exchange Blau (1964) H5: Job satisfaction has a positive influence on employee engagement The mediating role of organizational trust between CSR and employee engagement Previous studies have shown a positive relationship between CSR and organizational trust (Lamberti and Lettieri, 2009), between organizational trust and job engagement (Chughtai and 12 Buckley, 2008; Lin, 2010) and between organization trust and the cooperative behavior of its employees (Wong et al., 2006) Based on the theory of social exchange (Whitener et al., 1998) shows that belief in the fact that an organization engaged in CSR activities creates a positive impression of benevolence in the mind of humanity, this motivates them to respond with positive attitudes and behaviors Memon et al (2020) examined the relationship between CSR and employee engagement through an organizational trust mediation role based on exchange theory The mediating role of job satisfaction between CSR and employee engagement On the basis of exchange theory, an employee has a satisfied mental state, and he will participate more enthusiastically in his work role and organizational role Saks (2006) observed a significantly positive relationship between employee engagement (both job and organization) and job satisfaction, organizational commitment and employee's collaborative behavior with the organization as well as a significant negative relationship to intent to quit Additionally, Albdour and Altarawneh (2012) observed a significant positive relationship between internal CSR and work engagement, organizational engagement but their study did not consider any mediating factor However, given the mediating role of job satisfaction between CSR and employee collaborative behavior in the organization, this study envisions a similar role for job satisfaction between CSR and employee engagement with work and organization 2.8.2.6 The moderating role of corporate reputation to the relationship CSR and organizational trust 13 Corporate responsibility has been identified as an important aspect of corporate reputation (Schnietz and Epstein, 2005) and corporate social responsibility is a key factor responsible for improving reputation (McGuire et al et al, 1988; de QuevedoPuente et al., 2007; Beurden and Gossling, 2008) If the organization takes action that leaves a good impression, the employee's trust in the organization will be high, because respected organizations are also trustworthy If reputation is damaged, trust will also be compromised (Gainess-Ross, 2008: p 23; Yang, 2007: pp 113-115; Robinson, 2008: 14; Argüden, 2003: p 33) Based on signal theory used in studies about reputation to explain how the strategic choices and actions of signaling organizations are then used by various stakeholders to creating an impression of institutions (Basdeo et al., 2006) H6: corporate reputation moderating the relationship between CSR and organizational trust 2.8.2.7 The moderating role of corporate reputation to the relationship CSR and job satisfaction Previous studies have suggested that reputation reflects employee perceptions and their expectations of the organization Therefore, the employee's interests are very important and will create a positive atmosphere in the organization (Haywood, 2005: p 21; Watson, 2007: p 371; Solmaz, 2006: p 66) Social identity theory will predict a detrimental effect on employees 's work attitudes because employees' self-esteem can be adversely affected by their associations or organizations Therefore, it may be reasonable to assume that employees generally expect their organization to have a positive reputation 14 on social issues, performing good CSR performance on stakeholders, and their work attitude will be affected by their assessment of how well the organization meets expectations, then they feel more satisfied at work H7: corporate reputation moderating the relationship between CSR and job satisfaction 2.8.2.8 The moderating role of job autonomy level to the between organizational trust and employee engagement Previous research, has shown that employee engagement is not directly measured in terms of job autonomy level, even though employee creativity is determined by job autonomy level (Battistelli) et al., 2013) The higher level of trust in leadership leads to proactive behavior of frontline employees, encouraging them to use job autonomy level in daily work to find and improve the workflow system ( Nembhard and Edmondson 2006; Morrison and Phelps 1999); encourage employees to ask questions about existing ways of doing things and to share knowledge about different, possibly better ways of working (Siemsen et al., 2009) In addition, Fleishman and Harris (1962) argue that trust in leadership is related to the employee's trust in leadership, the leader's concern with the needs of the workplace In addition, Dirks and Ferrin (2001) argued that a higher level of trust is expected to lead to a more positive attitude, a higher level of cooperation, and a higher level of efficiency According to Carroll (1979), a mutual interest of two parties is based on the principles of the social exchange theory because if one person provides some benefit related to the other, then they 15 will give good response, employees have a high job autonomy level is giving employees autonomy in their work, they will trust the organization more, and more job engagement and organizational engagement H8: Job autonomy level moderating the relationship between organizational trust and employee engagement 2.8.2.8 The moderating role of job autonomy level to the between job satisfaction and employee engagement Previous studies, also showed that job autonomy level affects job satisfaction (Karasek, 1979; Parker and Wall, 1998; Singh, 2000; Parker, 2003) Studies on job satisfaction also show that employee's job satisfaction is related to employee engagement (Saks, 2006) Besides based on exchange theory, a common interest of both parties is based on the principles of social exchange theory because if one person provides some benefits related to another, then they will give the person good responses (Carroll, 1979), so employees with a high job autonomy level are giving employees autonomy in their work, they will be more job satisfaction, and more job engagement and organizational engagement H9: Job autonomy level moderating the relationship between job satisfaction and employee engagement Since then, the author has proposed the research model as follows: 16 Figure 2.5: Recommended theoretical research model (Source: author) CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research design The study was conducted in two steps: preliminary research and primary research Preliminary research was conducted by qualitative research and quantitative research Based on theoretical and hypothetical frameworks developed in Chapter 2, with in-depth interviewing techniques, discussion groups for exploration, development, adjustment the measurement scale in accordance with the characteristics of Vietnam A quantitative preliminary research was conducted by direct interviewing with 120 samples through a detailed questionnaire The Cronbach's alpha reliability and the Exploratory Factor Analysis (EFA) were used Primary study was conducted by quantitative method It uses direct interview technique with detailed questionnaire with employee and managers working at banks VIB, BIDV, SACOMBANK, VIETCOMBANK, ACB in Ho Chi Minh City It used convenience sampling with 520 samples The collected 17 data was measured by the Cronbach alpha reliability and the EFA Then, analyzed the CFA to measure all the research, measurement scales Finally, the theoretical model and hypotheses in the model were tested through the SEM, Bootstrap models 3.2 Measurement CSR scale The CSR scale used in this study is a quadratic, included four-components of Turker (2009a) Results of in-depth interviewing and group discussions, the CSR scale has three components (1) CSR for social and non-social stakeholders with observed variables CS1 to CS6, (2) CSR for employees with observed variables CE1 to CE6, (3) CSR for customers with observed variables CC1 to CC3, CSR for government has been eliminated Employee engagement scale The employee engagement scale used in this study is a quadratic, included three-components of Schaufeli and Bakker (2006) Results of focus group discussion, employee engagement scale remained components and observed variables: absorption with observed variables (CA1 to CA3), dedication with observed variables (ED1 to ED3), vigor with observed variables (V1 to V3) Organizational trust scale The organizational trust scale is a quadratic concept The results of group discussion are as follows: (1) reward expectations with observed variables; (2) psychological support with observed variables; (3) trust in management with 18 the original scale of observed variables, but the results of group discussion were adjusted only observed variables removed TM6 and TM7 variables; (4) management value, group discussion results, MV3 observed variable was adjusted and replaced the content with "My direct manager consulted group members when making important decisions affect us " Job satisfaction scale This study uses the job satisfaction scale developed by Brunswick and Jersey (2008) which includes observed variables The results of focus group discussion are as follows: keep the observed variables C1 to C7 Corporate reputation scale (M variable) This study uses the scale of Ponzi et al., (2011) has developed and tested a short form reputation reflectance measure called RepTrak that will be used to measure an organization's reputation The results of focus group discussion are as follows: corporate reputation scale unchanged with observed variables D1 to D4 Job autonomy level (N variable) The study uses a scale from the third European working conditions survey in 2000 and 2001 by the European Foundation to improve living and working conditions, a government agency of the European Union The results of focus group discussion are as follows: keep the same observed variables from G1 to G6 3.3 Measurement Validation Measuring reliability of the scale used the Cronbach alpha The results of the analysis showed that the scales of the research concepts are reliable with Cronbach’s alpha > 0.6 and the item- 19 total correlation coefficient > 0.5 following the exclusion these items scalers: RE5, PS3, PS8, TM2, TM5, C2, C3 The EFA outcomes showed that there are total factors is extracted at 72.823 > 60%, Eigenvalue = 1.053, KMO = 0.711 This proves that these scales will explains the research concepts In other words, the EFA model is appropriate and the research concepts are of distinct value The factor loadings of the items > 0.5, practical significance CHAPTER 4: RESEARCH RESULTS 4.1 Characteristics of samples Statistical sampling included 263 females, accounting for 50.6%; 257 males accounted for 49.4% The number of respondents aged 26-30 is the majority, 210 people make up 40.4%; Next is the group of people aged ≥ 36 with 119 people, accounting for 22.9% The group of people aged 31– 35, 103 people make up 19.8% The group of people aged ≤ 25, 88 people make up 16.9% In terms of experience: 0-5 years accounting for 56.7%, 6-10 years accounting for 30.0%, and over 11 years accounting for 13.3% Education level: university accounts for 75.2%, college accounts for 12.1% and postgraduate accounts for 11.7%, and intermediate level accounts for 1.0% The number of employees accounts for 82.5% and managers accounts for 17.5% They are people working in banks: VIETCOMBANK accounts for 20.2%, VIB accounts for 20%, BIDV accounts for 19.8%, SACOMBANK accounts for 19.6%, and ACB accounts for 20.4% In terms of income, the income over million VND / month, make up 63.7%; Next is from 6-8 million per month, make up 25.2%; Next < million per month, make up 11.2% 20 The number of married people accounts for 57.9% (301 people), and single people account for 42.1% (219 people) 4.2 The reliability and exploratory factor analysis Analysis results of Cronbach's alpha for primary research for quadratic concepts: CSR, organizational trust, and employee engagement show that had the item – total correlation coeffiencey > 0.5 and a high Cronbach's alpha coefficient > 0.6 There were eight factors extracted at 68.832> 60%, Eigenvalue = 1.011, KMO = 0.886 Thus, the concepts were well explained, or in other words, the EFA model is appropriate and the research concepts are worth distinguishing The factor loadings of the items were > 0.5, practical significance 4.3 Confirmatory Factor Analysis (CFA) CFA performed in the following order: CFA CSR concept; CFA organizational trust concept; CFA employee engagement concept and CFA the final measurement model The results showed that the scales are both valid and relevant to the market statistics 4.4 Theoretical Model Testing Figure 4.4: SEM results (standardized) (Source: results of running SEM model) 21 The unnormalized estimation result of the parameters is shown in Table 4.12 With the value of p