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The effect of corporate social responsibility on firm performance: Evidence from Vietnam
Problems and perspectives in management, 2023-09, Vol.21 (3), p.528-542
[Peer Reviewed Journal]
ISSN: 1727-7051 ;EISSN: 1810-5467 ;DOI: 10.21511/ppm.21(3).2023.42
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Title:
The effect of corporate social responsibility on firm performance: Evidence from Vietnam
Author:
Ha Nhu
Thao
, Le
;
Ngoc Phi Anh, Doan
;
Hung Cuong,
Vo
;
Thi
Kim Ngoc,
Nguyen
;
Van Cuong,
Vo
Subjects:
balanced scorecard
;
developing country
;
empirical study
;
sustainable development
Is Part Of:
Problems and perspectives in management, 2023-09, Vol.21 (3), p.528-542
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.
Publisher:
LLC "CPC "Business Perspectives
Language:
English
Identifier:
ISSN: 1727-7051
EISSN: 1810-5467
DOI: 10.21511/ppm.21(3).2023.42
Source:
ProQuest Central
DOAJ Directory of Open Access Journals
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