Corporate Social Responsibility for Sustainable Development of Small and Medium Enterprises in Vietnam

Do Hai Hung,Nguyen Thi Hanh Nguyen

doi:10.11648/j.jbed.20200503.15

Abstract

Implementing social responsibility activities (CSR) towards sustainable development (Sustainable Development) is one of the issues that businesses pay special attention. The study carried out a survey of 316 small and medium sized enterprises allocated according to different business sectors and territories in Vietnam. The main purpose of the study is to assess the impact of corporate social responsibility compared to other factors developed in the research model affecting the sustainable development of small and medium enterprises (SMEs) in Vietnam. The observations constructed by research team and inserted in the corporate social responsibility policy scale are: Participation in vocational training support programs in the community; Building programs on clean water and sanitation; Training and improving the capacity and social knowledge for workers; Contributing to social activities in the locality; Paying attention to issues of environmental pollution treatment; and finally complying with the provisions of law to ensure food hygiene and safety and environment. The authors applied regression analysis to assess the impact of corporate social responsibility policies on sustainable development of small and medium-sized enterprises (SMEs). The research results showed that the social activities of enterprises have a positive influence on the sustainable development of small and medium-sized enterprises in Vietnam, besides other factors such as: Enterprise management capacity, finance, human resources and support policies from the government.

Highlights

Facing the trend of extensive international integration, the issue of sustainable development in general and enterprise's sustainable development in particular in recent years has always been given special attention by state management agencies
Out of 316 valid survey questionnaires, the number of small and medium-sized enterprises in the trade and services sector accounted for the largest proportion (45.2%); The number of enterprises in agriculture-forestry-fishery sector accounts for the least proportion (13.3%)
The research results show that the social activities of enterprises have a positive influence on the sustainable development of small and medium-sized enterprises (SMEs) in Vietnam with the coefficient β=0.189

Summary

Introduction

Facing the trend of extensive international integration, the issue of sustainable development in general and enterprise's sustainable development in particular in recent years has always been given special attention by state management agencies. Implementing sustainable development is the responsibility of the whole society, including the contribution of the enterprise community. To further promote the development of enterprises towards sustainability, the role of the enterprise's CSR activities should be considered [1]. The characteristics of SMEs are the limited amount of products, mainly base on manual labor, SMEs, usually only sell a few products and services in compliance with the qualifications and experience as well as finance capacity of business owners; The business capital of SMEs is mainly owned by the business owners, or borrowed from business owners relatives and friends, and the ability to access capital from credit institutions is low; SMEs are flexible due to low initial investment, use few labor and local resources. SMEs can change their production plans, convert their business premises, change their business type and even dissolve their businesses; SMEs are established and operated mainly based on the capacity and experience of the business owners themselves, so the organization of the apparatus is very

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