How corporate social responsibility affects competitive advantage: a case study of the petroleum trading Lao public company, Lao PDR

Abstract

The purpose of this research is to study how corporate social responsibility affects organisational performance. To accomplish this objective; fostering corporate social responsibility is one of the techniques that organisations employ. In this study, the researcher focused on internal organisational corporate social responsibility activities, such as employee engagement and corporate governance. A survey of 120 employees from different departments inside a large petroleum trading organisation in Laos was conducted. The research results show that the great practices of corporate governance and its effect on Corporate Social Responsibility (CSR) have a significant impact on Employee Engagement (EE) and Competitive Advantage (CA). Our findings indicate that the integration of corporate social responsibility into strategy and organisational governance structure, thereby creating shared value of job among employees and enhancing health and safety, local recruitment and customer value as competitive advantages.