MINISTRY OF EDUCATION AND TRAINING
THUONGMAI UNIVERSITY

TRAN THU HA

CORPORATE SOCIAL RESPONSIBILITY
TOWARDS EMPLOYEES OF VIETNAM OIL AND
GAS GROUP
Major:

Commercial Business

Code:

62340121

PHD DISSERTATION SUMMARY


Hanoi, 2019

This research was done at: Thuongmai University

Scientific instructor:
1. Assoc. Prof. Dr. Nguyen Thi Bich Loan
2. Assoc. Prof. Dr. Nguyen Thi Minh Nhan

Examiner 1:
Examiner 2:
Examiner 3:


(Skouloudis et al., 2015; Huang and Zhao, 2016; Nguyen Thi Kim
Chi, 2016; Dinh Thi Cuc, 2015). Notably, Zheng and Zhang (2016)
asserted that CSR towards employees is different among enterprises
in term of ownership and firm sizes. State-owned economic
corporations with larger scale often show better CSR towards
employees than private enterprises. In Vietnam, there has not been an
in-depth study of CSR towards employees in term of ownership to
look at the difference in CSR towards employees of different
economic sectors, especially at state-owned economic groups.
From practical aspect, it is expected that by 2020, there are only
about 150 state-owned enterprises and three state-owned economic
groups (SOG), including Vietnam National Oil and Gas Group
(PVN), Electricity and Power Corporations, and Viettel Military
Telecom Corporation. It can be seen that PVN is one of the national


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economic leaders. Oil and gas is a special economic and technical
industry because it is associated with the national energy source and
is an economic value chain in the country's development strategy.
Petroleum workers are quite diverse, complex and industry-specific,
often exposed to hazardous environments, long working hours,
workplaces far from home... Therefore, CSR towards employees in
PVN needs to be paid attention, it should be done in a more
synchronized, scientific and systematic manner.
Based on the generalized issues analyzed above, it shows that the
topic "CSR towards employees of Vietnam National Oil and Gas
Group" is necessary both in theory and practice to conduct research.
In order to evaluate CSR towards employees of PVN, the dissertation
goes into depth analysis to find out achievements as well as

contract; job security; ensure income and minimum wages; ensure
working time and rest time; ensure labor safety and labor hygiene;
create opportunities to improve professional qualifications; (ii)
Factors affecting CSR towards employees, including: Awareness of
business leaders; corporate culture; legal system and labor
conventions; awareness of employees; mass organizations.
4. Research approach
The dissertation approaches the research content CSR employees
of SOG through implementing labor contract; ensuring job security;
ensuring income and minimum wage; ensuring working time, leisure
time; ensuring occupational safety and hygiene; creating
opportunities to improve professional qualifications. In the research
content, factors affecting the implementation of CSR towards
employees are also analyzed in detail to evaluate and understand the
extent of these factors affecting the implementation of CSR towards
employees of SOG.
5. Scientific and practical significance of the thesis
- Scientific significance of the thesis
Based on the overview and inheritance from domestic and foreign
research, the dessertation has clarified a number of basic theories on
CSR towards employees at SOG, forming research model, scale of
factors affecting CSR towards employees of PVN. Since then, the
thesis has pointed out 06 contents and criteria for evaluating CSR
towards employees of SOG; identified 05 key factors affecting CSR
towards employees of SOG.
- Practical meaning of the thesis
Based on researching the experience of implementing CSR towards
employees of some SOGs, the dessertation has drawn 07 lessons



1.1. About Corporate social responsibility
From different approaches, CSR research focuses on a number of
topics as follows:


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From perspective of corporate governance: CSR is a key factor
and is associated with business operations of enterprises (Pham Vu
Luan, 2004; Nguyen Manh Quan, 2007; Pham Van Duc, 2009;
Nguyen Thi Bich Loan, 2008; Carroll and Shabana, 2010; Le Thanh
Ha, 2009a and Ramon Mullerat, 2011). From perspective of
stakeholders: Previous studies on CSR have confirmed the role of
stakeholders such as business leaders and employees in influencing
organizational decisions (McGuire et al., 1988; Jensen , 2001;
Montgomery and Ramus, 2011; Pless et al., 2012; Skouloudis et al.,
2015. From perspective of ownership: enterprises with different
forms of ownership have different levels of CSR performance (Sahu,
2016; Singh, 2008 and Nash, 2012).
From here, we can confirm the role of CSR to stakeholders in
SOGs. However, in Vietnam there has not been any study on CSR in
SOGs.
1.2. About Corporate social responsibility towards employees
1.2.1. About CSR towards employees
Research CSR towards employees can be found in some works
through the following approaches: (i) The content of CSR towards
employees according to SA8000 standards; (ii) Content of CSR
towards employees according to ISO26000; (iii) Content of CSR
towards employees according to the BSCI Code of Conduct; (iv)
Content of CSR towards employees from the perspective of rights,
obligations and responsibilities.

status of CSR towards employees of PVN? Second, what factors
affect CSR towards employees of PVN? Thirdly, what are the
solutions to improve CSR towards employees of PVN in the future?
SUMMARY OF CHAPTER I
In this chapter, the dessertation has summarized research results
on the following contents: CSR; CSR towards employees at SOG;
Factors affecting CSR towards employees. Since then, the thesis has
found gaps in theory and practice to confirm the research topic is
necessary. The gap is that: no studies have been conducted on CSR
towards employees with the object being at a SOG in Vietnam; There
has been no research to develop the content of CSR towards
employees from the perspective of complying with the provisions of
the laws of the host country, and at the same time conforming to
international standards in the context of globalization today and
taking into account specific circumstances in Vietnam; There have
been no specific surveys on the issue of CSR towards employees of


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PVN; No solution has been proposed for improving CSR towards
PVN's employees. Therefore, the study of CSR towards employees
of the PVN is meaningful both in theory and practice.
CHAPTER 2. THEORICAL AND PRACTICAL BASIS ABOUT
CSR TOWARDS EMPLOYEES IN SOG
2.1. Some basic concepts
2.1.1. Economic Group and State-owned Group
2.1.1.1. Economic group
In order to get along with Vietnam economic characteristics, the
thesis defined economic group as follows: Economic group is a
combination of enterprises with legal status, including parent

employees in harmonizing interests with related parties.
2.1.5. Corporate social responsibility towards employees in SOG
The thesis identifes: CSR towards employees in SOGs is the
responsibility of SOGs representing for the State in dealing with
obligations of the Group, ensuring the material and spiritual rights
to employees in harmonizing interests with related parties,
guaranteeing susbtainable development of the Group and society.
2.2. Content of CSR towards employees in SOG
Based on the provisions of Vietnam's 2012 Labor Code, previous
studies and international standards of corporate social responsibility
for employees such as ISO26000, SA8000, and Code of Conduct
BSCI, the dessertation selects and limits the content of CSR towards
employees in state economic groups in Vietnam:
2.2.1. Implementing labor contract
2.2.2. Ensuring job security
2.2.3. Ensuring income and minimum wage
2.2.4. Ensuring working time, leisure time
2.2.5. Ensuring occupational safety and hygiene
2.2.6. Creating opportunities to improve professional qualifications.
2.3. Factors affecting CSR towards employees in SOGs
2.3.1. Research variables
Variables are inherited and developed from domestic and foreign
studies. Specifically: (i) Awareness of business leaders, (ii) Corporate
culture, (iii) Legal system and labor conventions, (iv) Awareness of
employees towards CSR towards employees, (v) Mass Unions.
2.3.2. Developing hypotheses
Based on the research framework on factors affecting CSR towards
employees at SOGs, the thesis developed the following research



online academic databases and building personal competency
framework to train according to work demand. Seventh, in addition to
complying with lawful provisions relating to employees, it is necessary
to care about guidelines from international organizations on CSR
towards employees such as publishing CSR report.
SUMMARY OF CHAPTER 2
In this chapter, the thesis focuses on researching the content of
theoretical basis of CSR towards employees of SOGs; and
experiences of implementing CSR towards employees in some SOGs
in the country and abroad. The thesis has clarified the scientific basis
and systematized the basic theories about CSR in general and CSR
towards employees in particular. Specifically, the thesis analyzes the
concept of SOGs, employees, state-owned employees, CSR,
domestic theories and laws, and international standards on s CSR
towards employees, thereby establishing the content and system of
criteria assessing CSR towards employees of SOGs. In addition, the
research has identified a number of factors affecting CSR towards
employees in SOGs such as the legal system and labor conventions,
the awareness of business leaders, the awareness of employees,
corporate culture, mass organizations. Moreover, the research has
studied the experience of implementing CSR in general and CSR
towards employees in particular of some SOGs. Since then, the
research has drawn lessons on the implementation of CSR towards
employees, which can be applied at PVN.
CHAPTER 3. RESEARCH METHOD
3.1. Research process
To accomplish the research objectives, the research process is
implemented including the following steps:
Step 1: Collect secondary data to determine the theoretical basis


Sampling method: The thesis uses random sampling method.
Sample size: According to Tabachnick and Fidell (2007), to
regression multiple regression analysis, sample size must satisfy: n ≥
8m + 50; where m is the number of independent variables of the
model. The study builds 5 independent variables, so the sample size is:
n = 8 * 5 + 50 = 90. The thesis issues 360 votes to employees at 15


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PVN units. Each unit sent 24 votes. Totally the research collected 336
valid votes, reaching 93.5% of the total number of tickets issued.
3.3.3. Preliminary quantitative research
To conduct a preliminary quantitative research, the thesis surveyed
50 employees at PVN's units, collecting 42 votes. The results show
that the scales satisfy the reliability through Cronbach’s Alpha
coefficient and total correlation coefficient.
3.3.4. Official quantitative research
The research collected 336 questionnaires from PVN. The data is
processed by SPSS 20.0 and analyzed through the following steps:
Step 1: Verify the reliability of the scale through Cronbach Alpha
coefficients. Step 2: Exploring factor analysis (EFA).
SUMMARY OF CHAPTER 3
Chapter 3 presents the research process including 3 steps from
Identifying theoretical basis of CSR towards employees of SOG; to
practical research, secondary data collection and primary data related
to research issues; and assess the situation, propose solutions and
recommendations.
CHAPTER 4. CURRENT SITUATION ABOUT CSR
TOWARDS EMPLOYEES IN PVN
4.1. Overview about Vietnam National Oil and Gas Group

52,9% in 2016, increasing up to 60,1% within first six months in
2018. Next is the 1 to 3 years contract, accounting for 20-25% year
by year. Short term Labor contract with less than 1 year got the
lowest percentage, from 4,2-7,3%. PVN has a large number of longterm employees, which creates stable employment for employees.
4.2.1.2. Clear content of labor contract
Content of labor contract only comply with legal provisions of
labor contract, however, there is still a phenomenon of law
enforcement. In fact, just like in any other enterprises, PVN labor
contract has not detailed in each regulation.
4.2.1.3. Labor contract content mentioned security of personal
information
Labor contract has not mentioned security of employee’s personal
information. In fact, employees at PVN have almost not concerned
much about the security of personal information. Up to 46.7% of
employees did not know about it and 29.2% of employees knew it
but have not really paid attention it this content.
4.2.2. About ensuring job security
Number of employees waiting for jobs without pay each year


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accounts for 0,2 – 0,3% of the total employees, which shows the
uncertainties in business, affecting job security for employees.
4.2.3. About ensuring income and minimum wage
4.2.3.1. Average income of employees
Average income of employees at PVN is quite high, ranging from
12,1 to 18,1 million VND per month per person. This numbers are
quite high in comparison to the average income at SOGs or
nationwide.
4.2.3.2. Rate of income below minimum wage

not match the criteria of occupational diseases.
4.2.5.4. Number of occupational accidents
From 2014 to 2017, number of occupational accidents occurred
all over the Group units fluctuated from 20 to 28 cases per year.
Along with that, total number of employees suffering from
occupational accidents varied from 17 to 34 people.
4.2.6. About creating opportunities to improve professional
qualifications
4.2.6.1. The average percentage of employees trained and fostered to
improve their professional qualifications
Compared to the total number of employees of the Group, the
number of employees participating in the annual continuing training
courses of the Group is not high and is decreasing over the years.
Specifically, in the past 5 years, in 2015, the average rate of
employees who have improved their professional qualifications
through the Group's training courses is the highest, reaching 6.2%.
Since then, this rate has plummeted to 1/3 with 2.2% in 2017 and
2.1% / year in 2018.
4.2.6.2. The cost for professional training is per capita/ year
The average cost that PVN spent on professional training for an
employee participating in the Group's training program is quite high.
In the last 5 years (from 2014 to 2018), this figure averages VND
21.62 million / year. In particular, in 2015 and 2016, the average
expenditure for professional training per capita reached the lowest
level, respectively VND 15.64 million and VND 16.98 million.
4.3. Testing scale of factors affecting CSR towards employees in PVN
4.3.1. Testing the reliabibity of the scale
The scale was reliable: Cronbach Alpha coefficients are from 0.8;
the correlation coefficient of the minimum total variable is from 0.7.


arrange the factors according to the reduction level as follows: (i)
employee awareness; (ii) awareness of business leaders; (iii)
corporate culture; (iv) mass organization; (v) labor laws and
conventions. It can be said that the results of quantitative analysis
support research hypotheses.
4.4. General assessment on the implementation of CSR towards


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employees of PVN
4.4.1. The achievements and reasons
4.4.1.1. The achievements
About performing labor contract: Employees were signed the
right kinds of labor contract. All employees are signed contracts.
About average income per head: The Group average income ranged
from 14 to 16 million dong per head per month. About working time,
leisure time: Working time of employees was in accordance with the
Labor Law. About occupational safety and health: 100% of
employees were equipped with labor protection before participating
in production, the rate of training on occupational safety and hygiene
ar the Group is quite high. About opportunities to improve
professional qualifications: average cost of professional training for
an employee participating in the training program of the Group is
quite high, reaching an average of 21.62 million VND/person/year.
4.4.1.2. The reasons of achievements
Firstly, the Group’s leaders always considered employees as the
element determining success of the Group. Secondly, corporate
culture at the Group has created professionalism and humanity.
Thirdly, PVN has large financial resources, so the Group has good
internal resources to implement CSR towards employees in a large

to their rights; (iii) the level of representation of trade union is not
really clear. Subjective reasons: (i) the role of functional agencies in
propagating and popularizing the implementation of CSR towards
employees in the Group is still quite uncertain and has not confirmed
the importance of CSR towards employees; (ii) the system of legal
documents on CSR towards employees is still incomplete and the
macro management agencies is not really supportive to promote
corporations and enterprises to implement CSR towards employees.
SUMMARY OF CHAPTER 4
Research has analyzed the situation of CSR towards employees at
PVN through the use of secondary and primary data in six contents:
implement labor contracts; ensure stable jobs for employees; ensure
payment of wages and minimum wages;; ensure working time and
leisure time; ensure occupational safety and hygiene; create
opportunities to improve professional qualifications for employees.
Research examines five influencing factors including: awareness of
business leaders, enterprise culture, employees' awareness, legal system
and labor protection conventions, and mass organizations. All five
above factors have a positive effect on CSR towards employees at PVN,


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in which, the awareness of business leaders has the greatest influence.
CHAPTER 5. SOLUTIONS TO ENHANCING CSR TOWARDS
EMPLOYEES IN PVN
5.1. Objectives, development orientation to 2025 and viewpoint
of enhancing CSR towards employees in PVN
5.1.1. Objectives and development orientation of PVN up to 2025
Firstly, focusing on building and developing PVN associated with
the strategy of developing the petroleum industry and the country's

the salary regime, job loss allowances for employees while waiting
for work.
5.2.3. Create conditions for employees to well perform working
time, leisure time
This method not only creates opportunities for employers to adjust
the labor structure according to market fluctuations and business cycles
of enterprises and helps meet the increasing demands of employees to
create a balance between work. and life.
5.2.4. Enhance the quality of occupational safety and hygiene
Firstly, simultaneously implement technical, medical measures and
protective equipment - occupational hygiene to prevent occupational
diseases; Second, update the occupational health safety management
system ISO 45001; Thirdly, strengthen the propaganda and
dissemination of labor legislation, prevention of occupational accidents.
5.2.5. Create opportunities to improve professional qualifications
for employees
Firstly, increasing the number of employees participating in
improving professional qualifications through e-learning mode;
Second, develop a training program based on needs and
qualifications of employees through individual competency
framework.
5.2.6. Improve factors affecting social responsibility for employees
of the Group
5.2.6.1. Enhance awareness of the Group leaders on CSR towards
employees
Firstly, appointing managers and trade union representatives to
participate in training courses on CSR in general and CSR towards
employees in particular. Secondly, proactively integrating CSR
activities for employees into business strategies and sharing
experiences in implementing CSR towards employees at the units that

5.3.2. To organizations and associations
Firstly, Strengthen the propaganda on the role and benefits of
CSR towards employees to business leaders and the employees
themselves. Secondly, Improve the organization and operation
regulations of organizations and associations. Thirdly, Strengthening
the encouragement and support of the Group in developing,
implementing and improving CSR towards employees.
SUMMARY OF CHAPTER 5


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The thesis has proposed four groups of views to improve CSR
towards employees, thereby, suggesting some solutions to improve
social CSR towards employees such as completing labor contracts;
ensure adequate employment and income for employees; Apply
flexible working time to some indirect labor department; improve the
quality of labor safety and hygiene; create opportunities to improve
professional qualifications for employees; improve factors affecting
CSR towards employees.
To ensure the feasibility of the solution, the thesis proposes a
number of recommendations to the Government and associations to
assist the Group to improve CSR towards employees..