Introduction
Overview
The rapid growth of the global economy has significantly improved the quality of life, leading to increased comfort for many However, this progress comes at a cost, as it often results in environmental destruction and negative impacts on human life Accompanying this development are serious societal issues, including natural disasters, pollution, resource depletion, discrimination, labor exploitation, and the proliferation of toxic products.
The urgent threat of environmental destruction caused by human actions raises critical questions about the wisdom of pursuing maximum profits at any cost As we face a potentially short future on Earth, it is essential to adopt a serious approach to responsible and sustainable development This concern has been prominent since 1953, leading to the evolution of the concept of Corporate Social Responsibility (CSR) in business practices.
Corporate Social Responsibility (CSR) has emerged as a significant global movement, particularly in Euro-American countries, where consumers increasingly prioritize not only product quality but also environmentally friendly production methods that promote community well-being and human health This shift has led to consumer boycotts of products like junk food, carbonated drinks, and fur items, pushing companies to adopt CSR initiatives as a core aspect of their business strategies Many organizations are now implementing programs focused on energy conservation, carbon emission reduction, recycling, solar energy utilization, water resource improvement, and community development projects, including building schools and research centers for epidemic diseases in developing nations Notable CSR leaders include companies like TNT, Google, Intel, Unilever, Coca-Cola, GE, Nokia, HSBC, Levi Strauss, Bayer, Dupont, Toyota, Sony, and Samsung.
In today's corporate landscape, the implementation of Corporate Social Responsibility (CSR) has led to significant achievements, including heightened employee satisfaction, reduced operating costs, and an enhanced public image Consequently, CSR has emerged as a crucial strategy for the sustainable development of businesses.
The state of Corporate Social Responsibility (CSR) in Vietnam is closely tied to the country's doi moi (renovation) policy and the impacts of globalization Since the adoption of a market-oriented socialist economy in December 1986, Vietnam has transitioned from a state-led to a market-driven economy, facing challenges from foreign investment and donor pressures Joining the World Trade Organization (WTO) has further accelerated this shift, highlighting the importance of CSR in promoting environmental and social sustainability As international compliance standards become more relevant, Vietnamese citizens are increasingly recognizing the significance of social responsibility, prompting the need for legal adaptations to align with these standards Although Vietnam lacks a formal CSR policy, the government has initiated CSR-related efforts through the Vietnam Agenda 21 sustainability strategy, signed in 2004 This strategy emphasizes sustainable development with a focus on balancing the needs of current and future generations, promoting training, workshops, and media outreach to enhance understanding and management of sustainability initiatives, while also advocating for increased international cooperation in this area.
In Asia, there is a growing interest in Corporate Social Responsibility (CSR), yet its overall development remains limited Notably, Vietnam has emerged as a country where concerns regarding CSR are rapidly gaining traction.
Corporate Social Responsibility (CSR) was initially introduced in Vietnam through the initiatives of multinational companies These companies have implemented various impactful CSR activities, such as Honda Vietnam's "I love Vietnam" campaign, Unilever's educational programs on personal hygiene for children in mountainous areas, and computer training initiatives like TOPIC64 by Microsoft, Qualcomm, and HP Additionally, VinaCapital and Samsung have supported congenital heart defect surgeries and victims of the Can Tho bridge collapse, while Western Union has launched vision rehabilitation programs for underprivileged children.
In Vietnam, domestic enterprises, particularly in the garment and footwear sectors, initially prioritized Corporate Social Responsibility (CSR) by focusing on worker treatment and ethical practices The Vietnam Business Links Initiative, established in the late 1990s, created a local code of conduct for the footwear industry and now hosts annual CSR Awards for the garment, textile, and marine products sectors Prominent corporations like Mai Linh, Duy Loi, ACB, Sacombank, and Kinh Do are also engaging in CSR initiatives to enhance their public image However, these efforts often lack depth and comprehensive implementation.
Many small and medium enterprises (SMEs) in Vietnam remain largely inactive regarding corporate social responsibility (CSR) issues, such as the controversies surrounding soy sauce 3MCPD, melamine-tainted milk, and petrol station fraud, which contribute to serious environmental pollution This lack of engagement reflects a misguided perception of CSR, leading Vietnamese companies to lose competitive advantages and degrade the business environment The core questions arise: Are managers unaware of CSR's significance for sustainable development, or do they lack guidance on how to implement it effectively? Thus, fostering a correct understanding of CSR is crucial for the growth and sustainability of businesses in Vietnam.
Problem statement
Corporate Social Responsibility (CSR) in Vietnam is interpreted in various ways, and not all CSR initiatives by Vietnamese organizations achieve success The perception of CSR among employees is increasingly significant, as they recognize the expanding responsibilities of companies towards society Consequently, CSR has become a critical issue for employees to consider in the workplace.
Research by Claydon and Doyle (1996) highlights the critical role of employee power in fostering organizational engagement Likewise, Greenwood (2007) identifies employees as key internal stakeholders, possessing significant influence in stakeholder engagement Consequently, the perceptions of both managers and employees regarding Corporate Social Responsibility (CSR) are vital, as they shape employee attitudes and behaviors within the workplace.
Recent studies have explored the connection between employees' perceptions of Corporate Social Responsibility (CSR) and various aspects of job satisfaction globally However, there is a notable gap in research regarding the relationship between employees' CSR perceptions and job satisfaction specifically in Vietnam.
The main objective of this research is to observe the relationship between employees’ CSR perception and employees’ satisfaction of Vietnamese firms in Ho Chi Minh City (HCMC)
Thus, this research is to answer two questions:
Is there any relation between between employees’ CSR perception and employees’ satisfaction of Vietnamese firms in HCMC?
How employees’ CSR perception affects on their satisfaction at work?
Research Scope
This research mainly focus on identifying the key CSR factors influencing employees’ satisfation of Vietnamese firms The target interviewees are employees and managers (middle and low level managers)
Quantitative research will focus exclusively on companies located in Ho Chi Minh City (HCMC), a key commercial hub in Vietnam that attracts significant and emerging industries.
Research Structure
Chapter 1 Introduction to introduce the research background, the research problem
The article outlines the research process, beginning with the identification of problems, objectives, scope, and methodology Chapter 2 focuses on the literature review, establishing the theoretical concepts and conceptual framework that underpin the research, alongside the development of testable hypotheses Chapter 3 details the research methodology, including the research approach, design, measurement scales, questionnaire development, and data analysis methods Chapter 4 presents the results of the research, including statistical analysis and discussions on the theoretical and managerial implications of the findings Lastly, Chapter 5 offers conclusions, addresses limitations, and provides recommendations for future research.
Literature Review
The concept of Corporate Social Responsibility
Corporate Social Responsibility (CSR) emphasizes that businesses should extend their obligations beyond merely maximizing short-term profits to include the protection and enhancement of society and the environment However, the implementation of CSR remains contentious due to the lack of a consistent definition and universally accepted measurement methods Various studies have sought to define corporate responsibility, offering perspectives that range from corporate philanthropy to business ethics.
Corporate Social Responsibility (CSR) lacks a singular, definitive explanation, despite extensive discussions in both theory and practice Generally, CSR encompasses business decisions grounded in ethical values, adherence to legal standards, and consideration for individuals, communities, and the environment According to Jones (1980), CSR is the belief that corporations have responsibilities to societal groups beyond just shareholders and legal obligations Additionally, Kotler and Lee provide further insights into the concept of CSR.
(2005), who defined CSR as “a commitment to improve community well-being through discretionary business practices and contributions of corporate resources”
The World Business Council for Sustainable Development (WBCSD) defines Corporate Social Responsibility (CSR) as a company's commitment to fostering sustained economic development by engaging with employees, their families, and the local community to enhance quality of life Additionally, Wood describes CSR as the framework of a business's social responsibility principles, responsiveness processes, and policies that shape its interactions with society and influence observable outcomes.
Corporate Social Responsibility (CSR) involves how companies manage their business processes to create positive societal impacts, as highlighted by Baker (2003) According to the World Bank (2002), CSR encompasses the responsibilities of businesses to foster sustainable economic development by collaborating with employees, their families, and the local community, ultimately improving livelihoods and driving mutual benefits for both society and business growth.
Corporate Social Responsibility Theories
Stakeholder theory plays a crucial role in shaping corporate decisions and driving investment in Corporate Social Responsibility (CSR) This theory posits that an organization's success is closely linked to its ability to align its goals with those of its stakeholders By addressing stakeholder needs, companies can foster trust and loyalty, leading to stronger relationships Consequently, an increasing number of corporations are adopting socially responsible practices and policies to meet stakeholder expectations effectively.
In this study, CSR concept from Turker (2009) is adopted Turker (2009) defined CSR as below
“CSR as corporate behaviors, which aim to affect stakeholders positively and go beyond its economic interest”
Stakeholders consist of shareholders and investors, employees, customers, suppliers, governmental organizations, trade associations, environmental groups, and members of the community where a company operates
2.2.2 Caroll’s CSR conceptualization - Carroll’s CSR Pyramid
In 1979, Carroll introduced a framework for corporate social responsibility (CSR) that categorizes responsibilities into four layers: economic, legal, ethical, and discretionary He emphasized that these categories serve to classify motives and actions, highlighting their distinct roles The hierarchy reflects the evolving significance of each responsibility within CSR, suggesting a foundational structure for understanding corporate obligations.
Initially, the framework adopted a retrospective developmental approach, highlighting that the evolution of business reflects an early focus on economic and legal dimensions, which later shifted towards ethical and discretionary considerations.
In 1991, Carroll introduced his Corporate Social Responsibility (CSR) model as a pyramid, emphasizing the historical significance of ethical and philanthropic responsibilities in recent years He argued that economic performance serves as the foundation for all other responsibilities and highlighted the interdependence of these components Carroll noted that while these obligations are not mutually exclusive, they often exist in a state of tension, providing managers with a framework to navigate their various responsibilities effectively.
Figure 2.1 The Pyramid of Corporate Social Responsibility (Carroll, 1991)
Carroll (1999) appeared to briefly retract his dubious equating of philanthropy with corporate citizenship and to abandon his pyramid concept by reconceiving his model as
Carroll revisited his 1991 CSR pyramid, now integrating the concept of stakeholders into its framework He defined economic responsibility as the obligation to "do what is required by global capitalism," while legal responsibility emphasizes the need for companies to "do what is required by global stakeholders." Ethical responsibility reflects the expectation to "do what is expected by global stakeholders," and philanthropic responsibility signifies the aim to "do what is desired by global stakeholders." This approach highlights the multifaceted nature of corporate citizenship.
Previous research about Corporate Social Responsibility and Employees’
Albdour & Altarawneh (2012) explore how employees' perceptions of internal Corporate Social Responsibility (CSR) influence their engagement levels The study focuses on five key CSR factors: training and education, human rights, health and safety, work-life balance, and workplace diversity Findings indicate that these CSR elements significantly enhance both job engagement and organizational engagement among employees.
Duyu Turker's 2009 study established a comprehensive and reliable measurement scale for Corporate Social Responsibility (CSR), addressing the obligations of businesses to various stakeholders This scale was developed through a systematic process and comprises 42 observational variables categorized into four key elements: CSR towards employees, customers, government, and society, along with other stakeholders The research effectively applies these four factors to assess CSR perception, ensuring a robust framework for evaluating a company's social responsibility.
A study conducted by Aharon Tziner, Yaki Bar, Lior Oren, and Gal Kadosh (2011) explores the relationship between employees' perceptions of Corporate Social Responsibility (CSR) and their levels of job satisfaction and organizational justice The findings indicate a positive correlation between employees' CSR perceptions and both job satisfaction and organizational justice To assess employees' CSR perceptions, the authors utilized Turker’s CSR scale in their research.
Internal CSR organizationa l engagement human rights health and safety work life balance workplace diversity
Research Model
H1: There is a positive impact of CSR to employees on Employees’ satisfaction
Employees' perceptions of Corporate Social Responsibility (CSR) significantly enhance organizational trust and job satisfaction This is because CSR initiatives boost employees' self-image and morale, aligning their personal identities with the values of the corporation (Lee et al., in press).
Social identity theory posits that employees and stakeholders develop positive perceptions of an organization when they feel aligned with its objectives (Peterson, 2004) Implementing effective CSR strategies can significantly enhance these perceptions, as employees are more likely to trust companies that address social issues ethically (Brown and Dacin, 1997; Hosmer, 1995) Furthermore, research indicates a positive correlation between salespersons' views on their company's CSR efforts and their job satisfaction (Vlachos et al., 2010) In the hospitality sector, recent findings highlight that various dimensions of CSR positively influence employee job satisfaction (Lee et al., in press).
H2: There is a positive impact of CSR to customers on Employees’ satisfaction
According to Carroll (1999), economic viability is a crucial responsibility of businesses, as it involves producing goods and services that meet customer demands and expectations This economic component highlights the role of businesses in contributing positively to society by fulfilling the needs of their customers effectively.
The relationship between job satisfaction and customer orientation has been explored in several studies (e.g., Donavanet al., 2004; Hoffman and Ingram, 1992; Pettijohn et al.,
Research indicates that higher customer orientation among employees leads to increased job satisfaction This relationship is supported by reciprocal behaviors, where employees who benefit from a customer-focused environment report greater satisfaction in their roles Studies by Hoffman and Ingram (1992) reinforce this correlation, demonstrating that customer-oriented behaviors positively influence job satisfaction Additionally, Motowidlo (1984) highlights a clear association between customer orientation and overall job satisfaction.
H3: There is a positive impact of CSR to government on Employees’ satisfaction
Research by Tziner et al (2011) indicates a significant positive relationship between corporate social responsibility (CSR) towards government and employees' job satisfaction Additionally, a study by Choong-Ki et al (2012) highlights a notable positive impact of the legal dimension of CSR on employee job satisfaction.
Social responsibility (CSR) extends beyond mere legality, as highlighted by Sim (2003), who emphasizes that the two concepts are distinct CSR encompasses actions that surpass legal requirements, while definitions from McGuire (1963) and Davis (1973) recognize legal obligations as a crucial aspect of CSR.
H4: There is a positive impact of CSR to society, environment, generations and NGOs on Employees’ satisfaction
Philanthropic responsibility means to “do what is desired by global stakeholders” (Caroll, 2004) And according to Choong-Ki, Hak-Jun, Hye-Mi, Seoki, Bernhard
(2012), philanthropic CSR make a positive impact on organizational trust and job satisfaction
A significant positive relationship exists between Corporate Social Responsibility (CSR) and the job satisfaction of employees, as well as with other stakeholders (Tziner, Bar, Oren, and Kadosh, 2011) Although CSR is a widely discussed concept in academic literature, defining it precisely and achieving a universally accepted definition remains challenging, as noted by Bowen.
In 1953, one of the pioneering scholars defined Corporate Social Responsibility (CSR) as the pursuit of policies and actions that align with societal values and objectives Carroll (1991) emphasized the intrinsic connection between CSR and an organization’s stakeholders Expanding on this concept, Freeman (1984) described stakeholders as individuals or groups that can influence or are influenced by the organization's objectives, highlighting their direct or indirect interest in the company Thus, CSR plays a crucial role in balancing the interests of society and various stakeholders.
Previous research indicates a disparity between the concerns of managers and employees regarding Corporate Social Responsibility (CSR) Managers tend to view CSR initiatives as beneficial for enhancing the reputation and profitability of their organizations, often prioritizing external CSR activities.
A study by Leonidas, Mary, Theofilos, and Amalia (2012) reveals that many companies implement internal management functions to execute Corporate Social Responsibility (CSR) programs focused on society, the environment, and employees Additionally, managers recognize the benefits of CSR activities, and those who advocate for external communication and evaluation by a national agency exhibit a strong positive attitude toward the institutionalization of CSR.
Employees should prioritize internal corporate social responsibility (CSR), while managers must view both internal and external CSR as equally significant (Brammer et al., 2005) Research by Tamm, Eamets, and Motsmees (2010) indicates that managers and employees have more aligned views on external CSR compared to their differing perceptions of internal CSR.
Fifure 2.2 The proposal research model
H1: There is a positive impact of CSR to employees on Employees’ satisfaction
H2: There is a positive impact of CSR to customers on Employees’ satisfaction
H3: There is a positive impact of CSR to government on Employees’ satisfaction
H4: There is a positive impact of CSR to society, environment, generations and NGOs on Employees’ satisfaction
CSR to society and other stakeholders job satisfaction
Chapter 2 presents the literature review on CSR and proposed the conceptual model, hypotheses for the factors influence employees’ satisfaction of Vietnamese firms in HCMC This chapter discusses about the research methods with four parts: Research process, Measurement Scale, Data collection and Data analysis methods
Following the identification of research problems and objectives, a literature review on Corporate Social Responsibility (CSR) and its measurement scales was conducted to explore the factors influencing CSR and employee satisfaction This review led to the development of a conceptual model, along with hypotheses, focusing on the relationship between CSR and employee satisfaction in Vietnamese firms located in Ho Chi Minh City.
A conceptual model exploring the impact of Corporate Social Responsibility (CSR) on employee satisfaction in Vietnamese firms in Ho Chi Minh City has been developed based on a comprehensive literature review The draft questionnaire was created by consolidating insights from previous studies on the topic To ensure research quality, both qualitative and quantitative methods were employed, encompassing two phases: a pilot survey followed by the main survey Subsequently, measurement scales and pilot questionnaires focusing on CSR and employee satisfaction were prepared during the qualitative research phase.
A qualitative research study was conducted using a preliminary questionnaire and pilot interviews with key employees and managers at various levels within Vietnamese firms In-depth interviews were utilized to gather insights, which subsequently informed the determination of the sample size for the research.
Data Collection
Primary data was gathered through face-to-face interviews using traditional hard copy surveys, as well as online surveys distributed via email to participants The interviewees included both employees and managers from Vietnamese firms located in Ho Chi Minh City.
The existing literature, including international business journals, articles, books, and professional newspapers, serves as valuable resources for research Additionally, information from reputable business and expert websites on the internet significantly contributes to gathering relevant data for this study.
Field Work Organization
In order to have valuable and reliable database, the sampling method shoud be executed carefully
The target interviewees of this research are employees and managers of Vietnamese firms in HCMC
According to Hair et al (2006), the sample size is considered as suitable for the reliability of the research should be n ≥ 100 and n ≥ 5k (where k is equal to the number of variables)
Therefore, in this study the minimum sample size for this research is n = 5 x 51 = 255 (kQ is the number of variables)
Otherwise, Tabachnick & Fidell (2001) illustrated the minimum sample size which is required for the multiple regressions should be:
There are four independent factors in thi study And the minimum sample size is required for the multiple regressions: n ≥ 50 + (8 x 4) = 82
Consequently, the minimum size for this research is 82
Finally, the sample size is used for this research was 391 While the sent back questionnaires are 410, there were 440 questionnaires sent out to the interviewees
Prior to finalizing the questionnaire, a preliminary pilot version was distributed to key employees and managers in various Vietnamese companies through in-depth interviews to evaluate its content and identify any errors Following this, quantitative research was conducted during the pilot phase, involving face-to-face interviews with 14 randomly selected participants from targeted Vietnamese companies in Ho Chi Minh City, serving as a final test before the official survey launch.
This study utilizes in-depth interviews to explore how various independent factors—such as Corporate Social Responsibility (CSR) towards employees, society, government, and customers—impact employee satisfaction in Vietnamese firms located in Ho Chi Minh City.
Feedback from interviewees in the pilot study highlighted the need to revise measurement scales and questionnaires They pointed out misunderstandings and duplicated issues between variables to enhance clarity and ease of understanding in the questionnaire.
Measurement Scales
This research incorporates original factors derived from numerous prior studies, as cited in the literature review The findings indicate that a multivariate measurement scale is the most suitable approach for this study.
The study identifies four independent factors tailored to the characteristics and culture of Vietnam: CSR towards employees, CSR towards the government, CSR towards customers, and CSR towards society and other stakeholders To conduct the quantitative research, a Five-point Likert scale was utilized in the survey questionnaire.
Questionnaires utilizing a Five-point Likert scale were developed to assess the levels of Corporate Social Responsibility (CSR) and employee satisfaction within Vietnamese firms in Ho Chi Minh City The measurement scales for the research model are detailed in the accompanying table.
CE01 Our company provides a wide range of indirect benefits to improve the quality of employees’ lives
CE02 The employees in our company receive a reasonable salary to maintain an acceptable quality of life
CE03 Our company policies provide a safe and healthy working environment to all its employees
CE04 Our company supports employees who want to acquire additional education
CE05 There are sufficient numbers of opportunities to develop my skills in my current job
CE06 Our company policies encourage the employees to develop their skills and careers
CE07 Company usually make change for employees take care health
CE08 Company does right guarantee policies for employees Newly developed
CE09 Our company implements flexible policies to provide a good work & life balance for its employees
2009 CE10 The management of our company is primarily concerned with employees’ needs and wants
CE11 The managerial decisions related with the employees are usually fair CE12 I believe that our company provides equal opportunities to all its employees
CC01 One of the main principles of our company is to provide high-qualityproducts to its customers
2009 CC02 Our prducts comply with the national and international standard
CC03 The guarantee extension of our products is the most advantageous choice in the market
CC04 Our company provides full and accurate information about its product to customers
CC05 Our company respects consumers’ right beyond the legal requirement
CC06 Customer satisfaction is highly important for our company
CC07 Our company is responsive to the complain of its customers
CC08 Our company is known as a respected and trustworthy company
CG01 Our company always pays its taxes on a regular continuing basis
CG02 Our company complies with legal regulations completely and promtly
CG03 Our company tries to help the government in solving social problems CG04 Our company acts legally on all matter
CSR to society and other stakeholders
CS01 Our company implements special programs to minimize its negative impact on the natural environment
2009 CS02 Our company participates in activities which aim to protect and improve the quality of the natural environment
CS03 Our company has the necessary equipment to reduce its negative environmental impact
CS04 Our company make a well-planned investments to avoid environmental degradation
CS05 Our company targets sustainable growth which considers future generations
2009 CS06 Our company make the investments to create a better life for future generations CS07 Our company make the investments to create employment opportunities for future generations
CS08 Our company emphasizes the importance of its social responsibilities to the society
CS09 Our company contributes to schools, hospitals, and parks according to the needs of the society
CS10 Our company contributes campaigns and projects that promote the well-being of the society
CS11 Our company endeavors to create employment opportunities
CS12 Our company conducts research and development projects to improve the well-being of the society in the future
CS13 Our company makes sufficient monetary contributions to charities
CS14 Our company encourages its employees to participate in voluntarily activities
CS15 Our company supports nongovernmental organizations working in problematic areas
CS16 Our company’s main principle is honesty in every business deeling CS17 Our company cooperates with its competitors in social responsibility projects
CS18 Our company competes with its rivals in an ethical framework CS19 Our company always avoids unfair competition
ES01 You satisfy with CSR to employee policies in this company
ES02 You satisfy with CSR to customer policies in this company
ES03 You satisfy with CSR to government policies in this company ES04 You satisfy with CSR to society policies in this company
ES05 In general, You feel satisfied when working here
To analyze the data collected from the questionnaires, various statistical methods were employed, including standard deviation, frequency distribution, and variance The analysis was conducted using SPSS version 20.0 (Statistical Package for Social Science) to ensure accurate results.
Descriptive statistics were utilized to assess interviewee evaluations based on gender, work experience, and business ownership, aiding the researcher in gauging employee and manager awareness of Corporate Social Responsibility (CSR) and its impact on satisfaction within Vietnamese organizations Key statistical values such as minimum, maximum, mean, standard deviation, frequency, and percentage were derived from the collected data A Likert Scale ranging from 1 (strongly disagree) to 5 (strongly agree) was employed to measure the degree of agreement among participants.
The Assessment of Scale Reliability measures the internal consistency of constructed items in this research, evaluating the reliability of each variable within the measurement scales Observed variables reflect the common construct, with high reliability indicated by items that are highly inter-correlated, confirming they measure the same underlying construct (Hair et al.).
Reliability analysis employs Cronbach’s alpha coefficient and item-total correlation to assess the consistency of a set of items The reliability coefficient, represented by Cronbach’s alpha, indicates the degree of correlation among the items, demonstrating how significantly related they are to one another.
A common value of Cronbach’s alpha for acceptable reliability is 0.7
Although this value is not an absolute standard but it can decrease to 0.6 in exploratory research (Hair et al, 1998)
When the Cronbach’s alpha is closer to 1, the internal consistency reliability is higher (Sekaran, 2003)
Variables with a Corrected Item-Total Correlation below 0.4 or an Alpha if Item Deleted greater than the Cronbach's alpha should be excluded to enhance the reliability of the construct (Hair et al.).
3.4.5 Assessment of Scales’ Unidimensionality, Discriminant Validity and Convergent Validity
Following the assessment of scale reliability, the Exploratory Factor Analysis (EFA) is employed to examine uni-dimensionality, discriminant validity, and convergent validity, aiming to determine the number of underlying factors.
Uni-dimensionality considers the strong realtion of all the items in a scale (Hair et al, 1998)
Discriminant validity is started as the items in one single construct hang together and the items are negatively associated with the opposite construct (Neuman,
Convergent validity assesses the degree in which two measurements of the same concept are correlated (Hair et al, 1998)
The main task of statistic analysis is applied in the multiple linear regressions in order to study the correlation and measure the prediction level of 4 independent varaiables on
1 dependent varaible The multiple regressions alnalysis is applied to test the conceptual model and its hypotheses
According to Pallant (2005), the summaries of Multi Regression Analysis are:
The appropriate sample size is: n > 50 + 8m (where m is number of independent variables)
No outliers are used in this case, no significant impact of outlier
Normality and linearity should be existed.
Data Analysis
Sample Descriptive Statistic
A total of 440 questionnaires were distributed to employees and managers, specifically targeting low and middle-level management Out of these, 410 responses were received, although 11 were deemed invalid due to incomplete information Consequently, the final analysis was based on 391 valid questionnaires, comprising 259 employees and 132 managers.
Table 4.1 Gender of respondents, Working experience, Enterprise ownership
Others (Joint Venture Enterprise, Non Government Organization)
In term of gender of this survey, 52% of respondents are male and 48% of respondents are female
Among 391 respondents regarding their work experience, 76% have less than 5 years of experience, while 20% have between 5 to 10 years, and 3% fall within the 10 to 15-year range Only 1% of the respondents, or 5 individuals, have more than 15 years of work experience.
Among the respondents, 28% are from State-owned Enterprises, while 56% represent Private Enterprises, and 16% are affiliated with other types of organizations, including Joint Venture Enterprises and Non-Governmental Organizations.
4.2 Assessment and Refinement of measurement scale
In this part of this research, the measurement scales are assessed and refined by two following methods:
Cronbach’s alpha to test the reliability of measurement scales
Exploratory factor analysis (EFA) is utilized to evaluate the validity of measurement scales, starting with the Cronbach's alpha test to assess their reliability A Cronbach's alpha value above 0.7 is ideal, while a value above 0.6 is deemed acceptable To enhance the reliability of the scales, variables with an item-total correlation below 0.3 are considered for removal.
The Exploratory Factor Analysis (EFA) is performed to assess the validity of measurement scales, utilizing the principal component extraction method along with varimax rotation For the EFA to be considered valid, the Eigenvalue must exceed 1, and the total variance explained should be greater than 50%.
The reliability analysis revealed that all factors met the required standards, with Cronbach's alpha coefficients exceeding 0.7, indicating strong reliability Specifically, the alpha values were 0.871 for CSR to employees, 0.855 for CSR to customers, 0.862 for CSR to government, 0.936 for CSR to society and other stakeholders, and 0.841 for employee satisfaction Additionally, all item-total correlation values across the scales were above 0.3, further supporting the reliability of the measures used.
The reliability test result in the following table will show the detail of the factors and variables which were reliable
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
CSR to employee (12 items) - Cronbach’s alpha 0.871
CSR to customer (8 items) - Cronbach’s alpha 0.855
CSR to government (4 items) - Cronbach’s alpha 0.862
CSR to society and other stakeholders - Cronbach’s alpha 0.936
After refining the reliability of measurement scale, the Exploratory Factor Analysis (EFA) method conducted to test the validity of the measurement of scales
The EFA testing results indicate that all independent factors have KMO values exceeding 0.7, with Bartlett’s Test Significance at 000, which is below the 0.05 threshold This confirms that the extracted variance satisfies the criteria for effective EFA testing.
Table 4.3 KMO and Bartlett’s Test KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
The analysis revealed that four factors had eigenvalues greater than 1, supporting the initial hypotheses The eigenvalues recorded were 13.993, 3.402, 2.690, 1.803, 1.632, 1.540, and 1.147, all exceeding the threshold Additionally, these factors accounted for a cumulative variance of 60.946%.
Component Initial Eigenvalues Extraction Sums of Squared
Rotation Sums of Squared Loadings
Extraction Method: Principal Component Analysis
In the Rotated component matrix, the loading of the variables on the seven independent factors were chosen
The value of each variable in each component should be more than 0.4 to show a strong correlation in that component and higher than other values more than 0.25
Following the Exploratory Factor Analysis (EFA), 11 variables were removed for not meeting the testing criteria, specifically CS8, CS9, CS11, CS16, CS17, CC8, CE1, CE2, CE3, CE7, and CE8 Consequently, the total number of scales decreased from 43 items to 32 items, which were subsequently reorganized into 7 distinct groups, as illustrated in the table below.
The study reveals significant shifts in how interviewees perceive certain variables compared to initial hypotheses and existing theories, indicating a divergence in understanding employee satisfaction factors Following exploratory factor analysis (EFA), the Corporate Social Responsibility (CSR) factor related to society and stakeholders has been refined into three distinct components: environment, society, and competition Meanwhile, the CSR factor concerning employees has been categorized into two aspects: employee life and development opportunities In contrast, the CSR factors related to customers and government remain largely unchanged.
The CS factor is organized into smaller groups rather than being disordered, aligning with Stakeholder Theory, which identifies stakeholders as shareholders, employees, customers, suppliers, government organizations, trade associations, environmental groups, and community members Therefore, categorizing the CS factor into three specific areas—CSR to the environment, CSR to society, and CSR to competition—provides clarity and precision Additionally, Duyu Turker's 2009 study indicates that the "CSR to stakeholders" factor encompasses CSR initiatives directed at society, the natural environment, future generations, and non-governmental organizations.
According to Albdour and Altarawneh (2012), internal corporate social responsibility (CSR) for employees encompasses various aspects such as training and education, health and safety, human rights, work-life balance, and workplace diversity To enhance clarity, it is effective to categorize CSR towards employees into two distinct factors: "employee life" and "development opportunity." The "employee life" factor emphasizes the importance of work-life balance, safety, and health policies, while the "development opportunity" factor focuses on training, education, and workplace diversity This division allows for a more specific understanding of employee concerns within CSR.
Finally, 4 original factors are regroup into 7 factors after EFA is reasonable and acceptable
Variables in factors are grouped again as below
CSR to environment and generation (CEG): CS01, CS02, CS03, CS04, CS05
(“Generation” means future descendants/ future generation)
CSR to society (CTS): CS09, CS10, CS12, CS13, CS14, CS15
CSR to customer (CTC): CC01, CC02, CC03, CC04, CC05, CC06, CC07
CSR to employee life (CEL): CE09, CE10, CE11, CE12
CSR to government (CTG): CG01, CG02, CG03, CG04
CSR to employee development opportunity (CED): CE04, CE05, CE06
CSR to competition (CCO): CS18, CS19
New 7 factors are checked on reliability again because old groups were broken and the old value of reliability is not qualified any more The Cronbach’s alpha values of all the factors over 0.7 and qualified
Table 4.6 Cronbach’s Alpha for new factors
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
CSR to environment and generation (7 items) - Cronbach's Alpha 902
CSR to society (6 items) - Cronbach's Alpha 901
CSR to customer (7 items) - Cronbach's Alpha 845
CSR to employee life (4 items) - Cronbach's Alpha 810
CSR to government (4 items) - Cronbach's Alpha 862
CSR to employee development opportunity (3 items) - Cronbach's Alpha 767
CSR to competition (2 items) - Cronbach's Alpha 785
4.2.2.2 The dependent factor: Employees’ satisfaction
The KMO value for the employees’ satisfaction factor is 0.762 which is greater than 0.6 and the Bartlett’s Test of Sphericity value is significant at the Sig value is 000 (