The effect of corporate social responsibility on firm performance: Evidence from Vietnam
The vitality of corporate social responsibility (CSR) toward sustainability has been rising rapidly in business activities. Good CSR practices are one of the most critical instruments to satisfy stakeholders’ interests and improve business performance. This study explores the nexus between economic,...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2023-09-01
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| Series: | Problems and Perspectives in Management |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18786/PPM_2023_03_Thao.pdf |
| _version_ | 1797629676135383040 |
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| author | Le Ha Nhu Thao Doan Ngoc Phi Anh Vo Hung Cuong Nguyen Thi Kim Ngoc Vo Van Cuong |
| author_facet | Le Ha Nhu Thao Doan Ngoc Phi Anh Vo Hung Cuong Nguyen Thi Kim Ngoc Vo Van Cuong |
| author_sort | Le Ha Nhu Thao |
| collection | DOAJ |
| description | The vitality of corporate social responsibility (CSR) toward sustainability has been rising rapidly in business activities. Good CSR practices are one of the most critical instruments to satisfy stakeholders’ interests and improve business performance. This study explores the nexus between economic, social, and environmental dimensions of CSR and firm performance based on a balanced scorecard. The sample includes 336 Vietnamese enterprises, excluding financial firms. The survey was conducted from March to June 2021. The empirical results of the partial least squares structural equation modeling (PLS-SEM) demonstrate that CSR significantly affects company performance. The economic dimensions of CSR have the strongest impact on financial performance (p < 0.01; t > 2.57; sample mean is 0.362). However, the environmental dimensions of CSR have not been found to influence customer performance. This study also finds that the three dimensions of CSR positively impact learning and growth, which lead to higher internal business processes and then better customer performance, eventually positively influencing profitable results. Consequently, the firm’s leaders should have strategies for effective CSR implementation to increase financial performance and achieve sustainable development goals. Furthermore, the government and other organizations should actively improve legal policies and regulations related to CSR in order to ensure organizational and national sustainability.
AcknowledgmentThis study is funded by Funds for Science and Technology Development of the University of Danang under project number B2020-DN07-08. |
| first_indexed | 2024-03-11T10:56:26Z |
| format | Article |
| id | doaj.art-a37eea8272e44600a94b8ff840d2dcb5 |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-03-11T10:56:26Z |
| publishDate | 2023-09-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-a37eea8272e44600a94b8ff840d2dcb52023-11-13T07:21:23ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672023-09-0121352854210.21511/ppm.21(3).2023.4218786The effect of corporate social responsibility on firm performance: Evidence from VietnamLe Ha Nhu Thao0https://orcid.org/0000-0002-0493-7437Doan Ngoc Phi Anh1https://orcid.org/0000-0001-5642-8223Vo Hung Cuong2https://orcid.org/0000-0003-3989-4921Nguyen Thi Kim Ngoc3https://orcid.org/0009-0002-5634-7866Vo Van Cuong4https://orcid.org/0009-0002-4103-0743Ph.D., Head of the Testing and Quality Assurance Department, Faculty of Digital Economy, University of Danang, Vietnam-Korea University of Information and Communication TechnologyPh.D., Associate Professor, Head of the Academic and Training Department, Faculty of Accounting, University of Danang, University of EconomicsM.Sc., Deputy Director of the Centre of Resource and Communication, Faculty of Computer Science, University of Danang, Vietnam-Korea University of Information and Communication TechnologyPh.D., Head of the Planing and Finance Department, Faculty of Digital Economy, University of Danang, Vietnam-Korea University of Information and Communication TechnologyPh.D., State Audit, University of Danang, University of EconomicsThe vitality of corporate social responsibility (CSR) toward sustainability has been rising rapidly in business activities. Good CSR practices are one of the most critical instruments to satisfy stakeholders’ interests and improve business performance. This study explores the nexus between economic, social, and environmental dimensions of CSR and firm performance based on a balanced scorecard. The sample includes 336 Vietnamese enterprises, excluding financial firms. The survey was conducted from March to June 2021. The empirical results of the partial least squares structural equation modeling (PLS-SEM) demonstrate that CSR significantly affects company performance. The economic dimensions of CSR have the strongest impact on financial performance (p < 0.01; t > 2.57; sample mean is 0.362). However, the environmental dimensions of CSR have not been found to influence customer performance. This study also finds that the three dimensions of CSR positively impact learning and growth, which lead to higher internal business processes and then better customer performance, eventually positively influencing profitable results. Consequently, the firm’s leaders should have strategies for effective CSR implementation to increase financial performance and achieve sustainable development goals. Furthermore, the government and other organizations should actively improve legal policies and regulations related to CSR in order to ensure organizational and national sustainability. AcknowledgmentThis study is funded by Funds for Science and Technology Development of the University of Danang under project number B2020-DN07-08.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18786/PPM_2023_03_Thao.pdfbalanced scorecarddeveloping countryempirical studyperformancesustainable development |
| spellingShingle | Le Ha Nhu Thao Doan Ngoc Phi Anh Vo Hung Cuong Nguyen Thi Kim Ngoc Vo Van Cuong The effect of corporate social responsibility on firm performance: Evidence from Vietnam Problems and Perspectives in Management balanced scorecard developing country empirical study performance sustainable development |
| title | The effect of corporate social responsibility on firm performance: Evidence from Vietnam |
| title_full | The effect of corporate social responsibility on firm performance: Evidence from Vietnam |
| title_fullStr | The effect of corporate social responsibility on firm performance: Evidence from Vietnam |
| title_full_unstemmed | The effect of corporate social responsibility on firm performance: Evidence from Vietnam |
| title_short | The effect of corporate social responsibility on firm performance: Evidence from Vietnam |
| title_sort | effect of corporate social responsibility on firm performance evidence from vietnam |
| topic | balanced scorecard developing country empirical study performance sustainable development |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18786/PPM_2023_03_Thao.pdf |
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