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Chapter 1 INTRODUCTION
This chapter introduces the research background, raising the problems, the objectives,
scope and the process of the research were defined in order to solve.
1.1 Overview
The growing of global economy makes the quality of life rising fast and more
comfortable. However, in that process people destroy environment and human life. The
world development is accompanied by wrong side of society such as: natural disasters,
environmental pollution, resource depletion, discriminatory treatment, labor
exploitation and toxic products, etc.
Our earth will be quickly destroyed soon by ourselves. So is it reasonable to continue to
maximize profits at any cost? Will we accept to have a short life left on earth? Or is it
time we all get the same serious look about developing world responsibly and
sustainably? The question has made a major concern from 1953 to date in the process
of business development and the concept of Corporate Social Responsibility (CSR)
also was originated.
Currently, CSR has become a real movement and growth in worldwide. For the current
Euro-American countries, consumers are interested in not only the quality of end
product but also the way that production method which are friendly with environment,
community, human healthy or not. For example, there have been many movements to
boycott products such as fringe food, carbonated soft drinks, fur products, etc. With
social pressure, the enterprise has made CSR initiative as one of the essential and
serious activities, even drafting for their own CSR strategy. For example, a series of
programs have been implemented such as saving energy, reducing carbon emissions in
the production and using recycled materials, solar energy, improving water sources,
building schools, building epidemic diseases research center in developing countries,
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improving the working environment of employees and helping surrounding
communities. Companies are known as CSR leaders: TNT, Google, Intel, Unilever,

and calls for efforts to strengthen international cooperation on sustainable development.
In Asia, the trend of interest in CSR is increasing but the development of CSR is still
relatively low. In particular, Vietnam is one country that CSR concerns have been risen fast.
CSR was first introduced into our country through the activities of multinational
companies investing in Vietnam. The contents of CSR performance in these companies
are basic and effective: "I love Vietnam" - Honda Vietnam, educational programs for
personal hygiene for children in the mountainous provinces of Unilever; computer
training program TOPIC64 of Microsoft, Qualcomm and HP; supported programs
surgery of congenital heart defects and supporting victims of Can Tho bridge collapse
by VinaCapital, Samsung; vision rehabilitation program for poor children by Western
Union's, etc.
For domestic enterprises, the initial concern for CSR in the export enterprises such as
garment and footwear (focusing on the treatment of workers and applying the good
work). The Vietnam Business Links Initiative, a multi-stakeholder initiative, developed
a local code of conduct for the footwear sector in the late 1990s. The Initiative now
provides annual CSR Awards for the footwear, garment and textile industries, and
recently initiated an award for CSR in the marine products industry. In addition, large
corporations in Vietnam also implement CSR initiative and build a good image with
the public such as Mai Linh, Duy Loi, ACB, Sacombank, Kinh Do, etc. However, these
activities lack of depth.
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Most small and medium enterprises in Vietnam is still relatively inactive in CSR issues
such as soy sauce 3MCPD, melamine-tainted milk, petrol station fraud or causing
serious environmental pollution, etc. So clearly, the perception about CSR is incorrect
and not enough that makes the Vietnamese enterprises losing competitive advantages
on their playground and ruin the business environment from indirectly to directly. What
is the reason? Do not managers of the enterprises have fully aware of the importance of
CSR for sustainable development? Or they do not know where they start and how they
implement CSR? Therefore, CSR perception is very important and sensitive.

(middle and low level managers).
Quntitative research will be applied to the companies or enterprises in Ho Chi Minh
City (HCMC) only. HCMC is a central commercial city in Vietnam, where attracts
most of important and developing industries in Vietnam.
1.4 Research Process
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1.5 Research Structure
Chapter 1 Introduction to introduce the research background, the research problem.

Chapter 2 LITERATURE REVIEW
This chapter presents the theorical concepts and conceptual framework being the base
for the research. Hypotheses according to the conceptual framework selected for this
research are discussed and developed for testing.
2.1 The concept of Corporate Social Responsibility
The basic concept of CSR is that corporations have responsibilities to go beyond the
traditional business objective of maximizing short-term profits and protect and nurture
society and the environment. However, implementation CSR is controversial because
there is no consistent definition of CSR and no accepted way to measure it. Numerous
studies attempt to define “corporate responsibility” from various perspectives, with
descriptions ranging from “corporate philanthropy” to “business ethics”.
The definition of CSR does not come in the form of a single conclusive definition even
though in theory and practice, there were many detailed discussion with regard to the
concept of CSR. In genral, CSR refers to making business decision associated with
ethical values, compliance with legal requirements, and respect for people,
communities and environment. Jones (1980) argues that CSR is the perception that
corporations have an obligation to groups in sciety other than stockolders and beyond
that prescribed by law and union contract. Another definition is from Kotler and Lee
(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) (2002) defines
CSR as “the commitment of the company to contribute to the sustained economic
development by working with employees, their families, the local community, and the
entire society in order to improve life quality”. Wood (1991) defines CSR as “a
business organization’s configuration of principles of social responsibility, processes of
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social reponsiveness, and policies, programs, and observable outcomes as they relate to
the firm’s societal relationship”.
Adding on to the definition from the social perspectives, Baker (2003) maintained that

2.2.2 Caroll’s CSR conceptualization - Carroll’s CSR Pyramid
Carroll (1979) first delineated the now-familiar four categories of CSR in a paper on
corporate social performance, depicting them as ordered layers which he labelled
economic, legal, ethical and discretionary responsibilities. Carroll (1979) explained that
the four classes “are simply to remind us that motives or actions can be categorized as
primarily one or another of these four kinds”. The order and relative weighting was “to
suggest what might be termed their fundamental role in the evolution of importance”.
In its first conception, therefore, the framework took a retrospective developmental
perspective, based on the claim that “the history of business suggests an early emphasis
on the economic and then legal aspects and a later concern for the ethical and
discretionary aspects”.
In 1991, Carroll (1991) first presented his CSR model as a pyramid, as shown in Figure
2.1. He once again uses his original historical explanation for the relative weighting,
saying: “To be sure, all these kinds of responsibilities have always existed to some
extent, but it has only been in recent years that ethical and philanthropic functions have
taken a significant place”. He also introduces dependence as a rationale, “beginning
with the basic building block notion that economic performance undergirds all else”.
Finally, he suggests that, although the components are not mutually exclusive, it “helps
the manager to see that the different types of obligations are in a constant tension with
one another”.
10 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
“the four faces of corporate citizenship”, but soon returned to his original construct.
Most recently, Carroll reproduced his 1991 CSR pyramid once again, but this time
attempted to incorporate the notion of stakeholders, in terms of which economic
responsibility contains the admonition to “do what is required by global capitalism”,

perception is positive related to both job satisfaction and organizational justice. In this
research, the authors use Turker’s CSR scale to measure employees’ CSR perception.
And the model as below

+
+
Internal
CSR
job
engagement
organizationa
l engagement
training and education

human rights

health and safety

work life
balance

workplace diversity

+
+
+
CSR

CSR and job satisfaction. In the hospitality literature, one recent study found that
multiple dimensions of CSR have significant, positive effects on employees’ job
satisfaction (Lee et al., in press).
H2: There is a positive impact of CSR to customers on Employees’ satisfaction
Carroll (1999) states that economic viability is something business does for society as
well and describe the economic component as a responsibility to produce goods and
servies that customers want and do right thing what customers expect.
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.,
2007). Results indicated that higher levels of customer orientation encourage
employees to have higher degrees of job satisfaction. This finding is grounded in the
theoretical literature: social exchange theory proposes that individuals engage in
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reciprocal behaviors and support those from whom they benefit, and Hoffman and
Ingram (1992) apply this to the workplace in finding that customer orientation behavior
positively correlates with job satisfaction. In addition, it seems customer orientation is
associated with job satisfaction (Motowidlo, 1984).
H3: There is a positive impact of CSR to government on Employees’ satisfaction
Based on study by Tziner, Bar, Oren and Kadosh (2011), a significant positive
relationships were found between CSR to government and employees’ job satisfaction.
Especially, the research of Choong-Ki, Hak-Jun, Hye-Mi, Seoki, Bernhard (2012) also
found a significant and positive effect from legal CSR dimension on employees’ job
satisfaction.
According to Sim (2003), “social responsibility” and “legality” are not one and the
same thing. CSR is often seen as acts that go beyond what is prescribed by the law. The
definitions of McGuire (1963) and Davis (1973) state that legal obligations is one of
important compnent of CSR.
H4: There is a positive impact of CSR to society, environment, generations and
NGOs on Employees’ satisfaction

Employees’ concern should be higher regarding internal CSR, whereas managers
should consider both dimensions as equally important (Brammer et al, 2005).
According to Tamm, Eamets, Motsmees (2010), managers’ and employees’ assessments
of external CSR are closer to each other than their assessments of internal CSR.

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Research Model 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
H2


review of CSR and CSR scales were conducted to look through all the relevant concept
of factors influence CSR and employees’ satisfaction; proposed a conceptual model
with the hypotheses for CSR and employees’ satisfaction of Vietnamese firms in HCMC.
Based on the literature review of CSR, employees’ satisfaction, the pilot research of the
conceptual model has been developed with four main factors of CSR which are
supposed to be influenced employees’ satisfaction of Vietnamese firms in HCMC. The
draft questionnaire was built from the consolidation and citing from previous studies of
the same literature topic. Both qualitative and quantitative methods are conducted in
order to consolidate for the quality of this research. There are two phases in research
design step in this study: pilot survey and main survey. Afterward, the measurement
scales and pilot questionnaires on CSR and employees’ satisfaction were prepared in
qualitative research.
A qualitative research with preliminary questionnaire was conducted with pilot
enterviews with some key interviewees who are employees and managers (middle and
low level managers) in Vietnameses firms by in-depth interview. After that, the sample
size is determined.
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In the main survey, the qualitative study was conduct to this research by face-to-face
interview method. Questionnaires were sent to 440 interviewees who are employees
and managers coming from different organizations in HCMC. And the main method
which is used to interview in this survey is direct survey and online survey. Data was
collected in two weeks.
After interviewed, there are 410 questionnaire were sent back but only 391
questionnaires in collected samples coulb be used for analyzing because of the missing
problems in the answers. After checking the correction and quality, the data were
imported to SPSS software in order to analyze.
The validation of questionnaires and the reliability of measurement scale of this
research were also tested by using Exploratory Factor Analysis (EFA) and Cronbach
alpha reliability methods while the Standard Multiple Regression was applied for

Step 1: Initial research model and the draft questionnaire
Based on the literature review, the conceptual model and preliminary hypotheses on
CSR and employees’ satisfaction were developed. While the draft questionnaire which
has based on the various measurement scales in the previous and extent researches was
also designed.
Step 2: Questionnaire refinement by qualitative pilot research
In the first round of this step, the qualitative research with preliminary questionnaire
was conducted with pilot interviews by in-depth inetrview method. This round was
executed with three employees and two middle level managers of some Vietnamese
firms who are friends of author in order to assess the sufficiency of the measurement
scales, the conceptual model and the questionnaire. Then, the sample size was
identified.
Step 3: Quantitative pilot research for the clarity of questionnaire testing
A quantitative pilot research was carried out in this step by face-to-face interview
method in order to test how the interviewees understood not only about the content of
questionnaires but also about the measurement scales of this research. This round was
undertaken with 14 interviewees who also employees and managers in Vietnamese
companies in HCMC. The feedbacs from interviewees in this step were very important
to the questionnaire refinement process and ensure the understanding of most pilot
intervieweesabout this survey. The questionnaire which was refined was also the final
version to be released in the main survey.
Step 4: Data collection
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The direct survey with attached questionnaires was sent to 360 interviewees with hard
copy. Besides, online survey was also sent with 180 questionnaires. There are 410
questionnaires replied and only 391 questonnaires were used for data analysis step.
Step 5: The validity of scales testing with Exploratory Factor Analysis (EFA) method
After collecting data from main survey, the Exploratory Factor Analysis (EFA) method
was applied to explore the inter relationship between the variables.

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 (k=51 is the number of variables)
Otherwise, Tabachnick & Fidell (2001) illustrated the minimum sample size which is
required for the multiple regressions should be:
n ≥ 50 + 8m (where m is equal to the number of independent factors)
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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.
3.3.2 Qualitative research
Before having the final questionnaire, the preliminary questionnaire as pilot method
was sent to some key employees and managers of some Vietnamese companies by in-
depth interview method in order to check the content of the measurement and find out
the mistakes of questionnaire. After that, the quantitative research in pilot research
period is also conducted with randomly-selected 14 interviewees who are targeted
interviewees as mentioned come from Vietnamese companies located in HCMC by
face-to-face interviews for final test before launching the final survey.
The information is collected in in-depth interview in order to identify the influence of
the independent factors (CSR to employee, CSR to society and other stakeholders, CSR
to Government and CSR to customer) on employees’ satisfaction of Vietnamese firms
in HCMC.
All the comments from the interviewees gathered in pilot study is to revise the
measurement scales and questionnaires. The misunderstanding mistakes or duplicated
issues (between the variables) were also mentioned by the interviewees to ensure that

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CE02 The employees in our company receive a reasonable
salary to maintain an acceptable quality of life
2009
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
Newly
developed
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
Adapted from
Duygu Turker,
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
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completely and promtly
2009
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
Adapted from
Duygu Turker,
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
Adapted from
Duygu Turker,
2009
CS06 Our company make the investments to create a better life
for future generations
CS07 Our company make the investments to create