The effects of corporate social responsibility and practices on the performance of SMEs in Vietnam

Thai Thi Kim Oanh,Đang Thanh Cuong,Đao Quang Thang,Nguyen Thi Thu Cuc,Ho Thi Dieu Anh

doi:10.5267/j.ac.2021.5.015

Abstract

Corporate social responsibilities (CSR) have gained the attention of regulators and recent studies due to their comprehensive influence on the firm performance. Thus, the present study examines the impact of CSR practices such as social welfare, human rights and physical environment on SMEs performance in Vietnam. This research also investigates the mediating role of organizational support among the links of social welfare, human rights, the physical environment and SMEs performance in Vietnam. This study has followed the primary data collection methods such as survey questionnaires to collect the data from respondents and also executed the smart-PLS for analysis. The results indicated the social welfare, human rights and physical environment have a positive association with SMEs performance in Vietnam. The results also exposed that organizational support positively mediates among the links of social welfare, human rights, the physical environment and SMEs performance in Vietnam. This study guided the regulators while developing the regulations related to CSR and firm performance.

Highlights

Small to medium-sized enterprises have the potential to create employment, generate revenue revenues, increase managerial capabilities, and foster creativity
The path analysis has exposed the nexus among the variables, and the results indicated the social welfare, human rights, and physical environment have a positive association with sized companies (SMEs) performance in Vietnam H1, H2 and H3
The study elaborates the influences of SCR practices for social welfare, human rights, and a healthy physical environment on the performance of small and medium enterprises

Summary

Introduction

Small to medium-sized enterprises have the potential to create employment, generate revenue revenues, increase managerial capabilities, and foster creativity. Profitability is the indicator of the success of small and medium-sized enterprises, which is the core component of the financial reporting of the SME. In Vietnam, the government is strongly concerned with developing small and medium-sized companies (SMEs), as the development of a nation depends very much on economic stability and on company health. In Vietnam, SMEs are making a substantial contribution to both the public and state budgets. The 2011 survey report found that small and medium-sized businesses accounted for over 97.6 percent of Vietnam's overall number of companies, making them a significant tool in the generation of jobs and revenues for government budgets. For instance, account for about 15% in Ho Chi Minh city, 24% for Kien Giang, 16% for Dong Thap, 22% for Ninh Binh, 19% for Yen Bai, 17% for Thai Nguyen, 22% for Quang Nam, 33% for Binh Dinh (Thanh, Huan, & Hong, 2021; Van & Nguyen, 2019)

Methods

Results

Conclusion