Impacting Corporate Social Responsibility on Business Benefits: A Case Study of Small and Medium Enterprises in Ho Chi Minh City

Nguyen Phan Thu Hang, Le Dinh Nghi


Nowadays, any world economic organization or product exporter must comply with social responsibility policies: Protect the environment, products are safe for consumers, have policies that respect and ensure benefits for employees, etc. The better the enterprise demonstrates its social responsibility, the higher its competitive advantage. In addition, social responsibility also helps increase long-term profits for businesses: In the short term, in the early stages, companies will face the cost problem when implementing social responsibility: waste treatment systems to protect the environment, modern machines to increase productivity and quality, standard protective clothing to protect workers, etc. However, in the long term, the investment activities of enterprises will bring about significant increases in profits by building brands, trust, and loyalty with consumers. In addition, businesses can quickly bring their products to international markets because they comply with social responsibility standards. Social responsibility, in general, will help enterprises to increase competitive advantages and develop sustainably. Thus, the author surveyed 550 managers working for the corporate social responsibility of 275 small and medium enterprises in HCMC. The author analyzed the key factors impacting corporate social responsibility (CSR) and CSR affecting business benefits. The author applied structural equation modeling (SEM). Finally, the scientific novelty showed five factors affecting corporate social responsibility for business benefits of SMEs in HCMC with a significance of 1.0 percent. Five elements included (1) Environment, (2) Employees, (3) Customers, (4) Suppliers, and (5) Community. It is critical to spread and educate about social responsibility and perfect the legal framework for its execution to fulfill corporate social responsibility in Vietnam.


Keywords: corporate social responsibility, business benefits, small and medium enterprises.


Full Text:



ANGELID, J.K., and MASSETTI, B. Does Corporate Social Responsibility Orientation Vary by Position in the Organizational Hierarchy? Review of Business, 2018, 3(4): 23-32.

BACKHAUS, K.M., and STONE, B.H. Exploring the Relationship between Corporate Social Performance and Employer Attractiveness. International Business & Society, 2018, 4(3): 292-318.

BALABAN, G.D., and PHILIPS, H.F. Corporate Social Responsibility and Economic Performance in the Top British Companies: Are They Related? European Business Review, 2017, 3(2): 15-24.

BARON, D.F. A Positive Theory of Moral Management, Social Pressure, and Corporate Social Performance. Journal of Economic and Management Strategy, 2018, 8(1): 7-43.

BELDAT, A.H., and KARPIK, P.H. Determinants of the Corporate Decision to Disclose Social Information Accounting. Auditing and Accountability Journal, 2017, 2(1): 36-47.

BERMAN, S.T., and WICKS, A.K. Does Stakeholder Orientation Matter? The Relationship between Stakeholder Management Models and Firm Financial Performance. Academy of Management Journal, 2019, 4(5): 88-103.

BOWEN, J.G., and CHEN, S.G. The Relationship between Customer Loyalty and Customer Satisfaction. International Journal of Contemporary Hospitality Management, 2019, 3(5): 13-27.

BRAM, S.A., and RAY, T.B. The Contribution of Corporate Social Responsibility to Organizational Commitment. International Journal of Human Resource Management, 2018, 8(4): 17-29.

CARROLL, A.H. A Three Dimensional Conceptual Model of Corporate Performance. Academy of Management Review, 2018, 4(4): 49-58.

CLARK, S.M. A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance. Academy of Management Review, 2019, 2(1): 92-118.

CHOONGO, P. A longitudinal study of the impact of corporate social responsibility on firm performance in SMEs in Zambia. Sustainability, 2017, 9(8): 1-19.

DAWKINS, J.H., and LEWIS, S.F. CSR in Stakeholder Expectations: And Their Implication for Company. Strategy Journal of Business Ethics, 2018, 4(3): 85-96.

ENDERLE, G.Y. Global Competition and Corporate Responsibilities of Small and Medium Enterprises Business. European Review, 2018, 3(1): 51-63.

FORD, T.F. Small and Medium Enterprises (SMEs) and Corporate Social Responsibility. Strategy Academy of Management Journal, 2018, 3(2): 23-34.

FRIED, M.H. The Social Responsibility of Business is to Increase its Profits. Academy of Management Review, 2017, 4(2): 191-206.

HAIR, J., ANDERSON, R., TATHAM, R., and BLACK, W. Multivariate Data Analysis (7th Edition). US: Prentice-Hall: Upper Saddle River, NJ, USA, 2021.

HOMAN, T.G. Corporate social responsibility, and financial performance relationship: a review of measurement approaches. Strategic Management Journal, 2018, 2(2): 125-139.

JAYNE, M.G. Socially Responsible in the UK: Criteria Used to Evaluate Suitability Corporate Social Responsibility and Environmental Management. Academy of Management Review, 2019, 6(3): 37-48.

KOK, H.F., and BOO, E.D. The Link between Organizational Ethics and Job Satisfaction: A Study of Managers in Singapore. European Journal of Marketing, 2018, 9(4): 19-28.

MENGUC, B.G. Corporate Responsibility, Stakeholders and the Social Performance - Financial Performance Relationship. European Journal of Marketing, 2019, 9(4): 84-95.

MINTZ, H.F. The Case for Corporate Social Responsibility. Journal of Business Strategy and Finance, 2018, 4(2): 3-15

MITTAL, R.A. An Analysis of Linkage between Economic Value and Corporate Social Responsibility. Management Decision, 2018, 6(9): 37-46.

PHILIPS, H.F., and LYALLIST, J. Corporate Social Responsibility and Economic Performance in the Top British Companies: Are They Related? European Business Review, 2019, 8(1): 25-44.

RUBIN, R.B. Applying a Consumer Perceptual Measure of Corporate Social Responsibility: A Regional Australian Perspective. Journal of Corporate Citizenship, 2019, 2(9): 61-74.

SIVATO, S.A. The Impact of Corporate Social Responsibility on Consumer Trust: The Case of Organic Food Business Ethics. Journal of Management and Organization, 2018, 7(1): 3-12.

SOOLEY, N.J. Consumer Social Responsibility? Journal of Management, 2019, 5(2): 34-45.

STEAM, D.I. Corporate Social Responsibility: An Examination of Individual Firm Behaviour. Business & Society Review, 2018, 8(3): 29-44.

TIMNET, K.N. The Reputation Quotient: A Multi-Stakeholder Measure of Corporate Reputation. Journal of Brand Management, 2018, 5(4): 41-55.

TRAFLAND, J.N. Strategies and Instruments for Organizing CSR by Small and Large Businesses in the Netherlands. Journal of Business Ethics, 2019, 4(2), 15-24.

TRUMP, R.D. Stakeholders, Social Responsibility and Performance: Empirical Evidence and Theoretical Perspectives. Academy of Management Journal, 2018, 3(2): 45-56.

TURRAN, M.F. Assessing the Rate of Return of the Adoption of Corporate Social Responsibility. Academy of Management Journal, 2020, 3(1): 14-26.

WINDRO, D.H. The Future of Corporate Social Responsibility. International Journal of Organizational Analysis, 2019, 4(3): 25-36.

WORKUTCH, R.B. Corporate Saints and Sinners: The Effects of Philanthropic and Illegal Activity on Organizational Performance. British Journal of Management, 2020, 4(2): 22-37.

ZAIRY, M.J. The Impact of Social Responsibility on Business Performance. Managerial Auditing Journal, 2019, 7(4): 14-28.


  • There are currently no refbacks.