A study of corporate social responsibility toward customer of Nha Be water supply JSC in Ho Chi Minh city

DISSERTATION A STUDY OF CORPORATE SOCIAL RESPONSIBILITY TOWARD CUSTOMER OF NHA BE WATER SUPPLY COMPANY JSC IN HO CHI MINH CITY Assignment number: one Weight: 75% Assignment length: 115

DISSERTATION

A STUDY OF CORPORATE SOCIAL RESPONSIBILITY TOWARD CUSTOMER OF NHA BE WATER SUPPLY COMPANY JSC

IN HO CHI MINH CITY

Assignment number: one Weight: 75%

Assignment length: 11592 words Student name: Nguyen Ngoc Thuy Linh Email: nnl2OCD@bolton.ac.uk Student ID: 2124770 Module Tutor: Dr David Ratcliffe Supervisor: Dr Ron Smith Date of submission 1st MAY, 2023

Findings - The study's findings demonstrate the significance of CSR activity implementation for clients, which can be evaluated using the research model's suggested five metrics According to each industry, businesses should have specific plans and initiatives to carry out and improve their social duty to customers

Research limitations/implications – Through the case study of Nha Be WASUCO, the study recommended social responsibility initiatives for consumers in the water supply sector in Ho Chi Minh City Hence, companies in the same sector can consult and put their social responsibility into practice

Originality/value - This is one of the first studies to explore the CSR activities toward customers based on stakeholder's theory and two sets of standard GRI and ISO26000 in the water supply industry in HCMC

Keywords: Corporate Social Responsibility, CSR activity, water industry, water supply, Nha

Be WASUCO, customers, Ho Chi Minh City

Paper type: Research paper

Declaration

I declare that the dissertation, " A study of Corporate Social Responsibility toward customer

of Nha Be Water Supply JSC in Ho Chi Minh City," is the outcome of my independent investigation under the supervision of Dr Ron Smith

The outcomes of the data collection conducted at the Nha Be Water Supply company are all included in the tables for analysis, commentary, and evaluation To complete this dissertation, I additionally looked over the pertinent sources that have been thoroughly cited and are now available

The data is entirely accurate and has not been plagiarized I will assume full responsibility for the information in my report if any fraud was discovered

Ho Chi Minh City, April 1 2023

Nguyen Ngoc Thuy Linh

Acknowledgment

First of all, the author would like to express her sincere gratitude to all of the lecturers, especially those at Ho Chi Minh University of Banking and the University of Bolton, for sharing their knowledge, expertise, and experience during the years in the university In particular, I want to express my gratitude to Dr David Ratcliffe, Dr Ron Smith, and Dr Pham Thi Tuyet Trinh for devoting their valuable time to thoughtfully guiding and offering helpful advice to assist me in finishing this dissertation

At the same time, I want to express my appreciation to the entire Nha Be Water Supply Company staff for helping me gather information for my research topic Additionally, I am grateful to the respondents for their precious time to assist me in completing the research questionnaires

Finally, many thanks to my family and friends for their inspiration, encouragement, and support in helping me stay motivated to finish my research

With deep respect and gratitude, I would like to wish all of you a lot of health and success in work and life

Ho Chi Minh City, April 1, 2023

Nguyen Ngoc Thuy Linh

List of tables and figures

● Figures

F IGURE 2.1 C ARROLL ’ S P YRAMID OF C ORPORATE S OCIAL R ESPONSIBILITY

F IGURE 2.2 T RIPLE BOTTOM LINE THEORY

F IGURE 2.3 S TAKEHOLDER ’ S THEORY

F IGURE 2.4 C ONCEPTUAL 0 FRAMEWORK OF C ORPORATE S OCIAL R ESPONSIBILITY TOWARD CUSTOMER

F IGURE 3.1 R ESEARCH O NION

F IGURE 3.2 M ETHODOLOGICAL CHOICE

● Tables

T ABLE 2.1 E MPIRICAL STUDIES ON CSR TOWARD CUSTOMERS IN GENERAL AND THE WATER INDUSTRY IN

DOMESTIC AND GLOBAL CONTEXTS

T ABLE 3.1 T HE SCALE OF PRODUCT RESPONSIBILITY (PRO)

T ABLE 3.2 T HE SCALE OF INFORMATION RESPONSIBILITY (INF)

T ABLE 3.3 T HE SCALE OF CUSTOMER RIGHTS RESPONSIBILITY (RIG)

T ABLE 3.4 T HE SCALE OF CUSTOMER AWARENESS RESPONSIBILITY (AWA)

T ABLE 3.5 T HE SCALE OF SUSTAINABLE CONSUMPTION RESPONSIBILITY (SUS)

T ABLE 4.1 B USINESS PERFORMANCE OF N HA B E WASUCO BETWEEN 2020 AND 2022

T ABLE 4.2 C RONBACH ’ S ALPHA OF RESEARCH SCALE

T ABLE 4.3 C HARACTERISTIC OF RESEARCH RESPONDENTS

T ABLE 4.4 D ESCRIPTIVE STATISTIC OF THE RESEARCH DATA

CHAPTER 1 INTRODUCTION

1.1 Background

The concept of corporate social responsibility (CSR), which has sparked a lot of debate, analysis, theory development, and research, has grown in popularity and importance throughout time (Carroll and Shabana, 2010) However, its concept also changed as a result

of the changing social expectations for company behavior in the subsequent decades (Agudelo et al., 2019) Also, many studies have examined the idea of CSR since the 1950s and demonstrated the efficacy of various CSR programs and CSR dimensions (Carroll, 1979; Dahlsrud, 2008; Xia et al., 2018) So, Corporate Social Responsibility is generally understood

as a continuous commitment by businesses to behave morally while enhancing the lives of their employees, the community, and society (Davis et al., 2016; Col and Patel, 2019) Given the intense competition in a globalized economy, CSR is a crucial predicate for companies looking to earn profit and maintain competitive advantages (Gorski et al., 2014) So, nowadays, many firms have spent money on CSR activities that help them increase their profit and achieve long-term growth (Ayangbah, 2017)

1.2 Problem statement

1.2.1 CSR in Vietnam

In recent years, foreign NGOs and multinational corporations have engaged in several activities that have helped to popularize the idea of CSR in Vietnam Moreover, due to changing perspectives, CSR integration into corporate strategies has become a major focus for many significant firms in Vietnam (Phan and Podrudsik, 2018) However, it is challenging

to apply CSR in developing nations because of their limited legal systems and the strong influence that monopolies, corruption, and group interests have on society (Phan and

Podrudsik, 2018) Besides, several large businesses in Vietnam are aware that they must follow CSR principles if they want to expand sustainably Yet, due to the limited financial resources, human resources, and business size, the adoption and application of CSR in Vietnamese firms are encountering various challenges and restrictions (Nguyen et al., 2018)

1.2.2 CSR in the water industry in Vietnam

Nowadays, the entire water sector is under intense pressure to safeguard its natural capital and sustainably manage water sources as a result of climate change's increased stress on water sources and water quality (Miller and Hutchins, 2017) Public and private water providers are under more pressure to solve the growing water issues by incorporating CSR methods (Von Schwedler, 2011) The first reason is that water firms must give environmental concerns, and climate change, in particular, the top priority In addition, each business is in charge of a specific geographic region So, it becomes imperative that they be among the first to adopt CSR practices to cover their ability to water supply services and protect the environment

Due to the rising need for clean water for use and production in Vietnam, the water supply industry is a safe sector with steady growth potential Within the context of urbanization, the demand for clean water is rising (Shalizi, 2008) Providing access to clean water for homes and businesses makes the water supply industry a vital utility sector with high levels

of stability In contrast, it could potentially be dangerous due to societal and environmental problems, particularly the well-being of the customer who directly uses the water that the businesses supply Hence, companies in the water supply industry must therefore uphold their social responsibility to their customer, who is a crucial stakeholder

1.2.3 Nha Be Water Supply Joint Stock Company

The Nha Be Water Supply Joint Stock Company (Nha Be WASUCO/NBW) began operations

on February 1, 2007, following the equitization of the Nha Be Branch under Saigon Water Corporation (SAWACO) in 2005 The company provides construction consultancy for water supply and drainage works, management and development of water supply systems, and supply of clean water for consumption and production needs in District 4, District 7, Nha Be, and Can Gio Besides, it is a unit that consistently actively participates in social activities that have a variety of practical meanings, in addition to effective production and business operations and well-performing economic and political tasks NBW has been growing and making an active contribution to community development with the criterion and principle of

"One value, one belief" and "Dedicating and attentive customer care." (NBW, 2022)

1.3 Research objectives

The study aims to investigate the CSR activities that Nha Be WASUCO has been conducting toward customers, evaluate their benefits and drawbacks, and then propose a recommendation for addressing its shortcomings for better CSR practices in the future Additionally, the specific objectives are to

RO1: To conduct a literature review of Corporate Social Responsibility (CSR)

RO2: To investigate CSR activities toward customers at Nha Be WASUCO JSC in HCMC

RO3: To propose a recommendation for the improvement of CSR implementation toward customers at Nha Be WASUCO JSC in HCMC

1.4 Research questions

The study aims to answer the following research questions:

RQ1: What are the current CSR activities toward customers at Nha Be WASUCO in HCMC? RQ2: How important are Nha Be WASUCO's increased CSR activities to customers?

RQ3: How can Nha Be WASUCCO's CSR activities for customers be improved?

1.5 Scope of the study

The study focuses on the CSR practices of a water supply company, Nha Be WASUCO, in Ho Chi Minh City Based on the stakeholder's theory, the study only considers the customer's perspective in ensuring consumer benefits Furthermore, the study examines and evaluates the historical performance of CSR implementation at Nha Be WASUCO to identify areas for future development and improvement

1.6 Research methodology

This study uses both qualitative and quantitative methodologies With a qualitative research approach, the author examines secondary information gathered from Books, articles focusing on the CSR topic, and the financial reports and data about CSR activities and policy from Nha Be WASUCO Besides, questionnaires for quantitative research will be created through face-to-face interviews with professionals and the company’s managers in the field

of social responsibility Once completed, the questionnaire will be sent to customers who have been using NBW's products and services in the region After gathering data, the researcher utilizes SPSS software for testing the scale and descriptive statistics method to enable contemplating and evaluating NBW customers' statements about the social responsibility that the company is carrying out toward them Analysis, comparison, and evaluation of NBW's accomplishments and weaknesses are carried out using the data acquired, in conjunction with research theories Hence, the study comes up with recommendations for better CSR practices of Nha Be WASUCO toward customers

1.7 Research structure

● Introduction – This chapter provides an overview of the study

● Literature Review - This chapter presents previous research and theory concerning the

concept of CSR

● Methodology - This chapter presents the methodology applied in this dissertation by

following the Research Onion framework of Saunders et al (2019)

● Data analysis - This chapter mostly focuses on the analysis of primary and secondary

data that were gathered to fulfill the research objective

● Conclusion – This chapter addresses the research questions and presents the findings, followed by a recommendation for NBW and conclusions

1.8 Research ethics

To protect the confidentiality of the research findings, research ethical guidelines were of the utmost importance This dissertation is grounded in actual data, information, and acknowledged academic documents All things will be following the rules and guidelines of the University of Bolton (Appendix 1)

CHAPTER 2 LITERATURE REVIEW

2.1 Corporate Social Responsibility

2.1.1 Definition

Nowadays, Corporate Social Responsibility is a crucial area of study for corporate ethics, and

it is defined as the interaction between businesses and society (D'Aprile and Mannarini, 2012) However, the field of CSR is broad, and it is challenging to understand exactly what it entails (Vallaster, 2017) Therefore, CSR is defined in a variety of ways and practices of different companies by academics Although there has been significant discussion about CSR for 50 years, there is no agreement definition (Carroll, 1991; Schwartz and Carroll, 2003; Freeman et al., 2010) In his book - "Social Responsibilities of the Businessman" Bowen (1953) provided the first description of social responsibility, which refers to business people's responsibility to pursue policies, make judgments, or follow courses of action that are beneficial to our society's goals and ideals Since then, the subject of CSR has emerged

as a significant business issue However, Friedman (1970) stated that a company's only duty

is to use its resources and expertise to raise profits for shareholders while abiding by the law Besides, Carroll (1979, 1991) provided one of the most well-known definitions of CSR:

"The responsibility of the business is constituted of economic, legal, ethical, and discretionary expectations that society has of organizations." Additionally, Carroll's theories, which have thrived since the 1950s, continue to play an important role in influencing how businesses view this topic today (Visser, 2010) In the 21st century, CSR is

an organization's commitment to long-term economic development, with employees, their families, the community, and society all working together to improve people's quality of life, according to the World Business Council for Sustainable Development (WBCSD, 2000) Also, CSR is a profit-maximizing corporate strategy that is viewed as being socially responsible,

according to Baron (2001) Even if there are several definitions of CSR, they all have some similarities They all argue that for businesses to be prosperous, they must uphold the greatest standards of moral, ethical, and social integrity Furthermore, CSR is now regarded

as a crucial element of any company's "long-term strategy" as opposed to merely a marketing activity or a part of a company's public relations activities (Krasodomska, 2015) Besides, the amount of CSR literature has expanded in recent years in developing nations Therefore, it is important to understand the CSR idea in countries like Vietnam in terms of two distinct areas: CSR Understanding (CSR Thinking) and CSR Implementation (CSR Doing) (Nguyen et al., 2018) Additionally, the majority of earlier studies on CSR in industrialized nations have centered on the demands placed on businesses to handle pertinent concerns such as those affecting customers, managers, employees, and shareholders (Huang et al., 2019)

2.1.2 Theories of Corporate Social Responsibility

Several theoretical stances have been employed to explain why business organizations engaged in CSR activities and CSR disclosure (Adams et al., 1998; Bayoud et al., 2012) Also, this subchapter will present three different CSR models, including Carroll’s Pyramid, Triple bottom line theory, and stakeholders’ theory

2.1.2.1 Carroll’s Pyramid

Carroll developed a specific theory for how businesses interact with their local communities and the global community (Figure 2.1) For more than 30 years, this term has been widely applied in CSR research (Carroll and Shabana, 2010; Tosti-Kharas et al., 2017) Carroll's Pyramid of CSR includes four commitments that serve as the framework for a company's social responsibility (Brin and Nehme, 2019) Carroll's CSR Pyramid has been criticized from the perspective that humanitarian objectives have begun to complement the commercial

motives of CSR (Gereziher and Shiferaw, 2020) Given that it was developed in the US, several researchers doubt its global applicability (Matten and Moon, 2005) Hence, these contributions are not as valuable for developing nations Additionally, several people have criticized Carroll's Pyramid approach to CSR, mostly because it does not adequately explain how the various duties interact with and influence one another (Wisser, 2006; Geva, 2008) Besides, Crane and Matten (2004) objected that Carroll's second model does not address competing commitments or how culture manifests itself after the formation However, Carroll doesn't offer any solutions to such disputes (Wisser, 2006) Therefore, Carroll's Pyramid of CSR is criticized despite being seen as a legitimate CSR concept overall

Figure 2.1 Carroll’s Pyramid of Corporate Social Responsibility

(Carroll, 1979) Economic responsibility is the most important since it is the basis for all other company obligations (Geva, 2008) Therefore, the business cannot exist without making a profit, and neither can business ethics Additionally, Legal responsibility is the second layer since businesses must conduct their operations within the bounds of the law (Carroll, 1991, Geva, 2008) Hence, businesses pursuing economic objectives must adhere to the law, and uphold the fundamental principles and values that society expects The third component, ethical

responsibility, includes those behaviors that are accepted or rejected by society although they are not explicitly stated in the law So, Carroll (1991) contended that they are more ambiguous than legal responsibility, therefore, more difficult for businesses to foresee and uphold Thus, for corporations to behave ethically, they must uphold these social norms Lastly, philanthropic responsibility refers to corporate behavior that can be seen as a reaction to social expectations, in which firms engage in work for the welfare of others and support social initiatives (Carroll, 1991) The main examples include charity or humanitarian endeavors (Vo et al., 2020) Furthermore, it is suggested that charity is frequently the most economical approach for a firm to increase its competitive power (Porter and Kramer, 2006)

2.1.2.2 Triple bottom line

Figure 2.2 Triple bottom line theory

(Elkington, 1994) John Elkington first used the phrase "triple bottom line" (TBL) in 1994 based on the findings

of a survey of international authorities on CSR and sustainable development (Elkington, 1997) (Figure 2.2) This theory proposes a three-dimensional construct of CSR (Profit,

People, Planet) (van Marrewijk, 2003) However, Norman and Donald (2004) commented on the TBL idea and highlighted that there is no clear description of the concept and only ambiguous claims about the goals Besides, TBL is more useful for industries that affect the physical environment, like tourism, forestry, and agriculture (Glaveli, 2020) Elkington (2013) stated that an organization's permission to operate in society comes from more than just meeting stakeholder needs by increasing revenues (the economic bottom line); it also comes from enhancing its environmental and social performance However, in the case of the TBL ideology, this idea seems implausible because the company cannot give back to the people and the earth exactly what they have taken from it (Robins, 2006) Also, Elkington (2013) stated that TBL merely discusses assessing the impact rather than defining how to incorporate and bring about changes in the values and operation of a company Furthermore, the TBL approach was created as a response to the debate over standard metrics of corporate performance that prioritize profit as their primary metric (Ubagu and Gbuushi, 2020)

2.1.2.3 Stakeholder’s theory

Figure 2.3 Stakeholder’s theory (Freeman, 1984)

Freeman (1984) stated that Stakeholder theory is a capitalism that emphasizes the connections between a company's stakeholders, including its clients, vendors, employees, investors, and communities (Figure 2.3) Previously, Abrams (1951) identified four corporate plaintiffs: employees, investors, consumers, and the wider public, including the government Also, this was broadened by Eells (1960) to eight criteria that management should consider

in staying in touch with the demands of a diversified society Besides, this theory ties into CSR since it describes how well a company handles its stakeholders (Dmytriyev et al., 2021) Hence, a company ought to provide value for all parties involved, not just shareholders Although one of Freeman's stated aims is to give management a useful tactical tool through the identification of actors, he does not offer a sufficient theoretical framework to explain company behavior or the conduct of individual actors (internally or externally) (Key, 1999) Therefore, to address this issue, Donaldson and Dunfee (1994); and Jones (1995) proposed that contract theory serves as the foundation for stakeholder relationships Additionally, Freeman's (1984) model, which contends that stakeholder groups may be easily distinguished as distinct entities, fails to account for the intricacy of the indicated genuine linkages Hence, stakeholders should be recognized according to their interests (Donaldson and Preston, 1995); and based on their relational traits of power, legitimacy, and urgency (Mitchell et al., 1997) Therefore, despite receiving much criticism, Freeman's stakeholder map offered businesses a method of strategically evaluating the influence of the firm's external environment on the firm's structure through stakeholder identification Additionally, customers are a significant group of stakeholders in the business world, therefore, their choices and actions can have a direct impact on how an organization

develops Hence, customers are given special consideration since their responses have a significant impact on a corporation's managerial decision-making (Brown and Dacin, 1997) Thus, following the stakeholders' theory, this study focuses on Nha Be WASUCO's CSR toward its customers, one of the most significant stakeholders that require attention

2.1.3 Corporate Social Responsibility toward customer

It has been proposed that Corporate Social Responsibility will result in long-term, dependable partnerships with stakeholders (Mobin et al., 2016) Because businesses operate in a highly competitive market with rising customer expectations, CSR has a strong impact on them (Yeh, 2015) Furthermore, customers are key stakeholders of an organization, it is not surprising that researching CSR toward consumers has piqued the interest of researchers, particularly in the service sector (Arendt and Brettel, 2010; Jensen et al., 2018) In terms of obligations, a business's duty to its customers is greater than to other stakeholders and may include providing good service and products at a reasonable price Based on these concepts, the current study defines CSR toward customers as the company's voluntary and ongoing commitment to act ethically and make business decisions related to developing strong relationships with customers by respecting and complying with their requirements (Perez and del Bosque, 2013; Gallardo and Sa’nchez, 2014)

2.1.3.1 International Organization Standardization (ISO) 26000

ISO 26000, a global standard of The International Standards Organization (ISO), provides social responsibility guidance for all types of organizations, both public and private, in both developed and developing countries, as well as in transition economies (Hemphill, 2013) It has set guiding principles on socially responsible practice for the legitimate demands of customers, such as the meeting of fundamental needs to a sufficient quality of life, improving living conditions, and supplying vital goods and services

● Responsibility for ensuring customers' right to information

When adopting information, businesses must use fair marketing practices, truthful information, and fair contracting procedures so that customers understand what is being offered (Hemphill, 2013) Thus, by comparing the qualities of various goods and services, consumers can make informed decisions about their consumption and purchases Besides, fair contract procedures also seek to protect the legitimate interests of both providers and customers by reducing disparities in the parties' relative negotiating strength

● Responsible for ensuring the customers’ health and safety

Providing risk-free and secure products and services is one approach to guarantee it Moreover, clear instructions for safe usage, including installation and maintenance, are another crucial factor Besides, the consequences of a company's goods and services on the security and well-being of its customer can directly affect its reputation (Grayson and Hodges, 2004) Therefore, firms should adopt safety measures to safeguard the health and safety of their customers, especially children who may not be able to identify or evaluate potential hazards

● Responsible for sustainable consumption

The concept of sustainable consumption is defined as using resources and goods in a way that promotes sustainable development (Pineiro-Villaverde and García-Álvarez, 2020) The products and services that an organization provides, its life cycles and value chains, and the type of information that provides to its customers all contribute to the role of business in sustainable consumption Thus, nations must restrict and eliminate unsustainable modes of production and consumption to achieve sustainable development and a higher standard of living

● Responsible for customer service

Organizations should use services, consumer support, and complaint and conflict resolution after the sale or provision of goods and services to satisfy customer demands (Rutledge, 2010) Besides, due to omissions, failures, or misuse, goods and services may not offer enough features, hence, consumer rights may also be violated, costing money, resources, and time Therefore, companies can increase customer satisfaction and decrease complaints

by offering top-notch goods and services

● Responsible for protecting customer data privacy

The goal of this process is to protect consumer privacy by limiting the types of information collected and the methods used to access, use, and secure it Businesses, for example, can ensure the security of consumer information by limiting the collection of personal data to that which is required for the provision of products and services, or by obtaining the consumer's voluntary and informed consent, which is one way to prevent the collection and processing of personal data from infringing on privacy (Choi et al., 2019) Recently, the rise

of electronic communications (including financial transactions) and large-scale databases has raised concerns about individual privacy Hence, businesses can help to maintain consumer trust and confidence by implementing strict methods for collecting, using, and protecting customer data

2.1.3.2 Global Reporting Initiative (GRI)

According to GRI standards, which were published by The Global Sustainability Standards Board (GSSB), sustainability reporting is the creation of a report by a company that makes its economic, environmental, and social impacts, both positive and negative, on sustainable development goals publicly available (GRI, 2016) This process allows the organization to

identify important economic, environmental, and social implications and publicize them in line with accepted standards GRI 416, GRI 417, and GRI 418 are three topics in the GRI 400 section that are related to corporate social responsibility toward customers (GRI, 2016) Firstly, GRI 416 addresses customer health and safety (Social topics) This includes an organization's systematic efforts to address health and safety throughout a product's or service's life cycle, as well as compliance with laws and voluntary codes addressing the effects on consumer health and safety (GRI, 2016) Secondly, GRI 417 covers information, product and service branding, and marketing communications (GRI, 2016) Customers have the right to full and accurate information about the advantages and disadvantages of the goods and services they use, including information gleaned from both the branding of goods and services and their marketing communications Lastly, GRI 418 discusses consumer information security rights An organization is expected to limit the gathering of personal data, collect it legally, and be open about how it is gathered, used, and secured to defend the right to Customer Information Security Also, the firm is expected to refrain from disclosing or using the client's private information for any purposes other than those that have been previously agreed upon (GRI, 2016)

2.2 Previous study

2.2.1 Global context

Turker's (2008) research produced a four-way CSR structure that included CSR for social and non-social stakeholders, employees, customers, and government In addition, the study found that customers are critical to a company's survival and growth Furthermore, the results of the analysis confirm that respondents are aware of the importance of customers

as stakeholders

Based on stakeholder theory and related literature, Pérez and Rodríguez del Bosque's (2012)

study results demonstrate the validity and value of the new scale for determining client satisfaction with CSR performance In his view, CSR entails responsibilities to the general public, shareholders, clients, and staff The scale is suitable for a range of customer groups with different ages, genders, and educational backgrounds

Berkes et al (2017) investigated CSR in the Water Industry Sector The study employs three standards, including UN Global Compact, GRI, and ISO 26000, to assess the CSR activities of water supply companies in Hungary in five areas: leadership, employees, society, environment, and product and service In addition, the study highlighted the relevant factors related to CSR toward customers

Pawlowska et al (2021) researched the CSR of the Czech Republic's water and sanitation corporation The study, which is based on the ISO 26000 global standard for CSR, includes

an analysis of managers' and employees' perceptions of CSR practices in seven categories: organizational governance, human rights, labor practices, environment, fair operating practices, consumer issues, social commitment, and community development The research article examined the CSR of the water business toward its customers through a survey containing four criteria

2.2.2 Vietnamese context

In Vietnam, Nguyen and Nguyen (2012) conducted research on CSR toward consumers The study used the United Nations Guidelines on Consumer Protection and the International Covenant on Economic, Social, and Cultural Rights Guidelines for social responsibility, in addition to the national standard ISO 6000:2010 (ISO 26000:2010), provide guiding principles for the practice of social responsibility concerning consumers' legitimate needs, as stated above

Thi and Van's (2016) research findings demonstrate how consumers view and respond to

CSR by examining the link between consumers' perceptions of CSR and their desire to make further purchases in the consumer sector The primary assessment scale for the latent variables, which consists of 19 items and is separated into Carroll's Pyramid of CSR's four layers, was developed using a pilot test and in-depth interviews As a result, businesses should carry out their economic obligations, including those related to product transparency, commitment to quality, full disclosure of their operations and products, and customer feedback channels

Nguyen and Nguyen (2021) researched to better understand how customer loyalty in the Vietnamese market relates to CSR The study uses both quantitative (in-depth interviews) and qualitative (questionnaire) methodologies to test the author's model The findings highlight the importance of firms putting forth an effort and supporting social responsibility initiatives to increase client loyalty

The table 2.1 below highlights each element of CSR for customers based on previous research

Table 2.1 Empirical studies on CSR toward customers in general and the water industry in

domestic and global contexts

Client satisfaction is a requirement for the business

Pérez, A., and The firm has methods to address customer complaints

Rodríguez del

Bosque, I

(2012)

Customers are treated fairly by the business

Customers are fully informed about the company's goods and services by employees

The business works to meet client needs

Vietna

m

Thi, Q and Van,

P.L (2016)

Items from the firm consistently meet high standards

The company gives sufficient information about the origin of its products and does so clearly and concisely

Items from the company are hygienic, safe, and good for consumers' health

For packaging, the company uses recyclable materials

The products of corporations are environmentally friendly Corporations support campaigns and initiatives (health,

education, environmental protection, infrastructure improvement, etc.) to advance prosperity and social welfare Nguyen, D.P

The business supports efficient education to encourage people

to engage in sustainable consumption

After selling or providing goods and services, the Corporation offers Services to help customers and settle complaints and disputes

The business has taken steps to safeguard customer information and data

The business ensures that customers have access to necessary services (such as water service, electricity, etc)

The business teaches consumers about sustainable consumerism, how to evaluate goods and services, and other topics

The business runs CSR initiatives with the community

2.3 Conceptual framework

The water supply industry is vital because it provides people with essential services Therefore, based on two sets of standards on social responsibility for customers, GRI and ISO 26000, and stakeholders’ theory, as well as empirical research on CSR in industries in general and the water supply industry in particular, the researcher proposes the framework shown below to evaluate Nha Be WASUCO's social responsibility practice for customers

Figure 2.4 Conceptual framework of Corporate Social Responsibility toward customer The proposed conceptual framework consists of five elements and 26 observed variables (Appendix 2)

● Responsibility for products: Following the law, the company provides products and

services that are safe, consistent in quality, and harmless when used at a reasonable price

● Responsibility for information: The company provides complete, accurate, and

Before-sale service In-sale service

After-sale service

Customer Awareness Product usage

Sustainable consumption Packaging

Environment protection

understandable information about the products and services it offers; communicates information about safe use; and warns about potential risks during use

● Responsibility for customer rights: The company provides support services, which

include resolving customer complaints and disputes before, during, and after the provision

of goods and services

● Responsibility for customer awareness: The company educates customers on evaluating

the quality of products and services, and consumer choices toward sustainable development

● Responsibility for sustainable consumption: The company meets product and service

demand in an economically, socially, and environmentally sustainable manner

CHAPTER 3 METHODOLOGY

3.1 Introduction

This study use the research framework created by Saunders et al (2019) to explain the research methods used and the choices made in light of the research objective and the study phenomena (Figure 3.1)

Figure 3.1 Research Onion (Saunders et al., 2019) The framework shows how each onion layer, when seen from the outside, illustrates a more thorough stage of the procedure (Orth and Macada, 2021) It gives researchers of research methodologies an efficient process to follow Moreover, its versatility for practically any form of research approach and capacity to be applied in several circumstances make it beneficial (Bryman, 2016) According to Saunders et al (2019), when employing a research onion, one must move from the outside to the inner layer to accomplish the research objective

3.2 Research philosophy

A research methodology is built on a certain philosophical principle, which then recommends the research procedures (Saunders et al., 2019) The research philosophy serves as the foundation for the approach of the study It also establishes the methodology that will be utilized to address research questions, the methods, and techniques for gathering data, as well as the analysis and presentation of the findings (Alturky, 2021)

on impartial evaluations of the research subject, the positivist philosophy is used in this study to clarify the research objectives

3.3 Approach to theory development

The shifting tendency between theories and research is known as the research approach Deductive, inductive, and abductive are the three basic methods for developing theories (Saunders et al., 2019) In this article, an inductive approach to theory development is presented

● Inductive approach

The inductive method lets the researchers develop their theories Besides, it is distinguished

by a shift from the particular to the general (Bryman and Bell, 2011) As no structure guides the data gathering in this method, the research focus can be determined after the data has been gathered (Flick, 2015) Additionally, this approach is frequently employed in qualitative research to comprehend the nature of the issue For example, interviews are conducted regarding specific occurrences, and the collected data may then be used to look for trends among respondents (Flick, 2015) Additionally, researchers in this area are more likely to deal with qualitative data and to gather this data using a range of techniques to establish various viewpoints on events

The researcher will use this approach to better comprehend the research problem To ensure the validity of the thesis, the researcher used interviews, observation, and document analysis approaches to gather data for this study Also, numerous information sources were accessed using diverse techniques to ensure the validity of the conclusion

3.4 Methodological choice

Before laying out a methodological choice, researchers must ascertain the goal, the nature

of the research, and the data required to make the best strategic choice Two primary categories of research strategies are frequently employed: qualitative and qualitative Research choices are described in terms of the use of quantitative and qualitative research methods, as well as the application of a straightforward or intricate combination of both, or the application of a single approach (Saunders et al., 2019) (Figure 3.2)

Figure 3.2 Methodological choice (Saunders et al., 2019)

3.4.1 Quantitative method

Positivism is connected to quantitative research designs, especially when those designs are combined with predetermined and highly structured data-gathering methods (Saunders et al., 2019) Quantitative research methods are fundamentally concerned with gathering and evaluating structured data that may be represented quantitatively Besides, the creation of precise and trustworthy measurements that enable statistical analysis is one of the main objectives (Goetzen, 2017) Due to the standardized nature of data collection, it is crucial to ensure that questions are phrased in a way that each participant will be able to understand them For instance, probability sampling techniques are typically used in this methodology

to ensure generalizability The main benefit of quantitative research is that its conclusions may be applied to a particular group Also, the size of the data sets the representativeness

of the results However, due to the method's heavy reliance on statistical data and difficulty

in identifying novel occurrences, it is not appropriate for studies with few data sources and

surveys that could take a long time (Badke, 2011)

3.4.2 Qualitative method

In contrast, the qualitative method primarily concentrates on ideas, views, and impressions

rather than on the analysis of numbers (Bryman, 2001) With this strategy, open-ended questions are used in interviews to assist researchers in better grasping the perspectives and experiences of people or groups who are interviewed about a specific issue Also, because interpretations in qualitative research are formed from words and images rather than data, it is frequently necessary to explore and clarify them with participants because words and images may have many meanings or confusing meanings (Saunders et al., 2019) The use of many techniques has been promoted in business and management research because it is likely to overcome the limitations of using only one or a few methodologies and provides for a more thorough approach to data collection, analysis, and interpretation Mixing the two approaches also provides the added advantage of providing the flexibility required for the exploratory and explanatory parts of the research Before Nha Be WASUCO's CSR practices toward customers can be examined, data must be collected on whether consumers are assured of their obligations to present a trustworthy and objective analysis Hence, this study simultaneously applies two quantitative and qualitative approaches to fulfill the research objectives

3.5 Research strategy

A research strategy is a blueprint for how a researcher approaches and answers a research problem Experiment, survey, archival research, case study, ethnography, action research, grounded theory, and narrative inquiry are suggested as the key research methodologies (Saunders et al., 2019) To explain the CSR initiatives that Nha Be WASUCO has been putting

in place for its customers, this study will employ three methods: a survey, archival research, and a case study

3.5.1 Survey

A survey, which is a well-liked method in business and management research, is typically

utilized to address the issues of "what," "who," "where," "how much," and "how many." (Saunders et al., 2019) Additionally, questionnaire-based survey methods are popular because they make it affordable to collect standardized data from various respondents, making comparisons simple Besides, when probability sampling is employed, it is feasible to provide results that are statistically representative of the entire population at a lesser cost than collecting data for the entire population Furthermore, employing a survey method should allow the researcher more control over the research process (Coughlan et al., 2009) However, it does not yield as diverse a set of data as other research methods (Brown et al., 2005) Hence, the researcher should limit the number of questions included in the questionnaire to avoid placing an excessive strain on the respondent's goodwill

3.5.2 Archival research

The ability of the researcher to use an archival or documentary research technique has increased due to the digitization of data, the creation of online archives, and open data initiatives by businesses and governments (Hawkins, 2022) While accessing documents for study requires utmost caution, they may provide a wealth of data for analysis Also, the researcher can analyze the data either quantitatively, qualitatively, or both ways For example, by quantitatively evaluating qualitative data, the researcher may be able to provide a thorough description of significant events, the setting in which they occurred, the impact of outside forces, and the results (Newman et al., 1998)

3.5.3 Case study

A case study is a thorough inquiry into a topic or phenomenon in a practical setting (Yin, 2018) One of the most important aspects of defining a case study is selecting the case to be investigated and establishing the parameters of the investigation (Flyvbjerg, 2011) Also, this approach has the potential to produce insights through an in-depth investigation into the

analysis of a phenomenon in its actual setting, leading to rich empirical descriptions and the creation of theory (Ridder et al 2014)

3.6 Time horizon

This layer establishes the research's time frame: cross-sectional or short-term studies, which involve data gathering at a certain time; longitudinal studies, which involve data collection over a prolonged period to compare results (Melnikovas, 2018) Because data is not repeated and is only collected from samples once throughout a research period, this study has a cross-sectional temporal horizon Moreover, the researcher is also interested in investigating the traits of the population at a certain moment, which is customers' perceptions toward CSR activities of Nha Be WASUCO toward them during the period of operation of the company

3.7 Techniques and procedures

The final layer of the research onion is techniques and processes All of the options from the previous layer will dictate the fundamental data collection and analysis methods that will be applied in this layer to assist in addressing the research topic (Melnikovas, 2018) Besides, the gathering and analysis of primary and secondary data are crucial to the research's ability

to deliver reliable findings For research purposes, both data are gathered to reflect every facet of this study

3.7.1 Data collection

3.7.1.1 Primary data

A primary data source is original data, which contains information the researcher has personally gathered for a particular topic or goal There are numerous methods for gathering it For example, self-administered surveys, interviews, field observations, and experiments are the most widely used methods In contrast to secondary data, primary data

collection is more time- and money-consuming However, for some kinds of study, collecting primary data may be the only approach that works (Persaud, 2010)

● Questionnaire

Questionnaires are data collection methods that require participants to respond to a specified series of questions in a predetermined order (De Vaus, 2014) Moreover, it covers questionnaires that are completed over the phone, in person, or where the researcher is not physically present Additionally, the questionnaire is one of the survey strategy's most popular data collection tools as it offers an effective method of gathering responses from a large sample before conducting a quantitative analysis However, the questionnaire's design will impact the response rate, validity, and reliability of the data gathered Hence, the researcher needs to carefully develop and present each question in a clear and appealing visual manner, clearly explain the study objective, conduct a pilot test, and then deliver and return the completed questionnaires (Saunders et al., 2019)

In this study, the questionnaire will assist the researcher in gathering data on consumer attitudes, beliefs, and opinions—the target audience for Nha Be WASSUCO's CSR initiatives The questionnaire consists of 26 questions using Likert scale rating levels from 1 to 5 (from strongly disagree to strongly agree), in regards to five characteristics: CSR product (4 variables), CSR information (5 variables), Customer Awareness (5 variables), Customer Rights (6 variables), and Sustainable Consumption (6 variables) (Appendix 2)

- The scale of product responsibility

Table 3.1 The scale of product responsibility (PRO)

PRO Nha Be WASUCO offers clean and safe water to customers

Nha Be WASUCO uses its own label to prevent fake product

- The scale of information responsibility

Table 3.2 The scale of information responsibility (INF)

INF1 Nha Be WASUCO provides customers with comprehensive information about clean

water products and services

INF2 Nha Be WASUCO provides accurate information about water-related products and

services to customers

INF3 Nha Be WASUCO provides instructions for consumers on how to store and use the

water product

INF4 Nha Be WASUCO has employees to provide full product information to customers

INF5 Nha Be WASUCO is in charge of product introduction: clear, understandable

information that is not misleading

- The scale of customer rights responsibility