The impact of corporate social responsibility on employee’s organizational trust: Empirical evidence from garment enterprises in Vietnam


Authors

  • Nguyen Thi Bich Loan Thuongmai University
  • Nguyen Thi Minh Nhan Thuongmai University
  • Nguyen Thi Tu Quyen Thuongmai University
DOI: https://doi.org/10.57110/vnu-jeb.v4i4.327

Keywords:

Corporate social responsibility, employee’s organizational trust, garment enterprises, Vietnam

Abstract

Organizational trust can be seen as an effective determinant of positive behaviors and attitudes of employees. Implementing corporate social responsibility is suggested as a solution to establish organizational trust. This research aims to provide new insights into four elements of corporate social responsibility affecting organizational trust of employees. Hypotheses were developed as a result of the critical review of relevant studies and then tested using quantitative survey data. The main results of the study were based on a database collected through a questionnaire survey in 2024 administered to 526 people in 38 Vietnamese garment enterprises. CFA analysis, SEM analysis, Bootstrap testing and multi-group analysis were applied to test hypotheses. The result indicates that economic responsibility, legal responsibility, ethical responsibility and philanthropic responsibility are positively related to employee’s organizational trust in Vietnamese garment enterprises. Of the four elements of corporate responsibility investigated, legal responsibility exerted the strongest influence.

References

Ali, I., Rehman, K. U., Ali, S. I., Yousaf, J., & Zia, M. (2010). Corporate social responsibility influences, employee commitment and organizational performance. African Journal of Business Management, 4, 2796.

Alafi, K. K., Al-Qeed, M., Alkayed, W. (2013). Prevalence and factors affecting employee satisfaction: The case of King Abdullah University Hospital in Jordan. International Journal of Business and Management, 8(40). http://dx.doi.org/10.5539/ijbm.v8n23p40

Bagozzi, R. P., Foxall, G. R. (1996). Construct validation of a measure of adaptive-innovative cognitive styles in consumption. International Journal of Research in Marketing, 13, 201-213. https://doi.org/10.1016/0167-8116(96)00010-9

Bentler, P. M., Bonett, D. G. (1990). Significance tests and goodness of fit in the analysis of covariance structures. Psychological Bulletin, 88, https://psycnet.apa.org/doi/10.1037/0033-2909.88.3.588

Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34. doi:10.1016/0007-6813(91)90005-G,

Carroll, A. B. (2016). Carroll’s pyramid of CSR: Taking another look. International Journal of Corporate Social Responsibility, 1(3), 1-8.

Daft, R. L. (2003). Management. 6th ed. South-Western, USA.

De Roeck, K., Delobbe, N. (2012). Do environmental CSR initiatives serve organizations’ legitimacy in the oil industry? Exploring employees’ reactions through organizational identification theory. Journal of business ethics, 110, 397-412, https://link.springer.com/article/10.1007/s10551-012-1489-x

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (1998). Multivariate Data Analysis. Prentice hall Upper Saddle River.

Hsieh, Y. H., Chan, J. Y. (2012). Corporate social responsibility: A concern among employees. Human Systems Management, 31, 219-230, doi:10.3233/HSM-2012-0770

Hu, W., Du, J., Zhang, W. (2020). Corporate Social Responsibility Information Disclosure and Innovation Sustainability: Evidence from China. Sustainability, 12(409), https://doi.org/10.3390/su12010409

Lee Y. K, Kim Y. S., Lee K. H., Li D. X. (2012). The impact of CSR on relationship quality and relationship outcomes: A perspective of service employees. Int J Hosp Manag, 31, 745-756.

Lee, C. K., Song, H. J., Lee, H. M., Lee, S., & Bernhard, B. J. (2013). The impact of CSR on casino employees’ organizational trust, job satisfaction, and customer orientation: An empirical examination of responsible gambling strategies. International Journal of Hospitality Management, 33, 406-415, https://doi.org/10.1016/j.ijhm.2012.10.011

Ahmed, M., Zehou, S., Raza, S. A., Qureshi, M. A., Yousufi, S. Q. (2020). Impact of CSR and environmental triggers on employee green behavior: The mediating effect of employee well-being. Corporate Social Responsibility and Environmental Management, 27(5).

Matten, D., & Moon, J. (2008). “Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33. https://doi.org/10.5465/amr.2008.31193458

Molm, L. D., Collett, J. L., Schaefer, D. R. (2007). Building solidarity through generalized exchange: A theory of reciprocity. American Journal of Sociology, 113, 205-242,doi:10.1086/517900

Mozes, M., Josman, Z., Yaniv, E. (2011). Corporate social responsibility organizational identification and motivation. Social Responsibility Journal, 7(July), 310-325, https://doi.org/10.1108/17471111111141558

Nunnally, J. C. (1994). Psychometric Theory 3E. Tata McGraw-Hill Education.

Nyhan, R. C. (2000). Changing the paradigm: Trust and its role in public sector organizations. The American Review of Public Administration, 30, 87-109, https://doi.org/10.1177%2F02750740022064560

Rodrigo, P., Arenas, D. (2008). Do employees care about CSR programs? A typology of employees according to their attitudes. Journal of Business Ethics, 83, 265-283. doi:10.1007/s10551-007-9618-7

Prutina, Ž. (2016). The effect of corporate social responsibility on organizational commitment. Management: Journal of Contemporary Management Issues, 21, 227-248.

Schwartz, M. S., & Carroll, A. B. (2003). Corporate social responsibility: A three-domain approach. Business Ethics Quarterly, 13, 503-530, https://doi.org/10.5840/beq200313435

Sexty, R. W. (2014). Canadian Business and Society: Ethics, Responsibilities and Sustainability. McGraw-Hill Ryerson.

Shockley-Zalabak, P., Ellis, K., & Winograd, G. (2000). Organizational trust: What it means, why it matters. Organization Development Journal, 18(35).

Steenkamp, J. B. E., & Van Trijp, H. C. (1991). The use of LISREL in validating marketing constructs. International Journal of Research in marketing, 8, 283-299, https://doi.org/10.1016/0167-8116(91)90027-5

Tamm, K., Eamets, R., & Mõtsmees, P. (2010). Relationship between corporate social responsibility and job satisfaction: The case of Baltic countries. The University of Tartu Faculty of Economics and Business Administration Working Paper, https://dx.doi.org/10.2139/ssrn.1717710

Toliver, A. D. (2016). Measuring corporate social responsibility through organizational values: A scale validation study. PhD Dissertation, University of Texas Arlington.

Tran, K. T., Nguyen, P. V. (2020). Corporate Social Responsibility: Findings from the Vietnamese Paint Industry. Sustainability, 12(1044). https://doi.org/10.3390/su12031044

VCCI & Australia Human Rights Commission (2021). Responsible business practices in the garment and footwear industry in Vietnam.

Vu, H. H., & Nguyen, T. B. (2023). Textile and garment exports in the new context - Problems and solutions. <https://vioit.org.vn/vn/chien-luoc-chinh-sach/xuat-khau-det-may-trong-boi-canh-moi---van-de-va--giai-pha-p-5282.4050.html> Accessed 15.6.2024.

Zhang, Y., & Dong, C. (2022). Improve employee-organization relationships and workplace performance through CSR: Evidence from China. Fronties in Psychology, 13, https://doi.org/10.3389/fpsyg.2022.994970

You, C. S., Huang, C. C., Wang, H. B., Liu, K. N., Un, C. H., & Tseng, J. S. (2013). The relationship between corporate social responsibility, job satisfaction and organizational commitment. International Journal of Organizational Innovation (Online), 5 (65).

Yu, M. C., Mai, Q., Tsai, S. B., & Dai, Y. (2018). An empirical study on the organizational trust, employee-organization relationship and innovative behavior from the integrated perspective of social exchange and organizational sustainability. Sustainability, 10(864), doi:10.3390/su10030864

Downloads

Download data is not yet available.

Downloads

Published

25-08-2024

Abstract View

196

PDF Downloaded

139

How to Cite

Nguyen Thi Bich Loan, Nguyen Thi Minh Nhan, & Nguyen Thi Tu Quyen. (2024). The impact of corporate social responsibility on employee’s organizational trust: Empirical evidence from garment enterprises in Vietnam. VNU University of Economics and Business, 4(4), 12. https://doi.org/10.57110/vnu-jeb.v4i4.327

Issue

Section

Original Articles