The Relationship between Corporate Social Responsibility and Financial Performance: Evidence of Vietnam Textile and Garment Industry


Thi Thuy Lien Dinh , Thi Thu Hoai Pham ,

Download Full PDF Pages: 19-24 | Views: 1275 | Downloads: 409 | DOI: 10.5281/zenodo.3490358

Volume 8 - January 2019 (01)


The direct relationship between corporate social responsibility (CSR) and financial performance has been investigated by many researchers, but direct testing seems to be inaccurate as it is difficult to explain why there are these results. Because there are many factors indirectly affect this relationship. This study examines corporate reputation, customer loyalty, and employee engagement as mediate variables in the relationship between CSR and financial performance. The sample is 389 garment enterprises in Vietnam show that the link between CSR and financial efficiency is the intermediate relationship. The positive effect of CSR on financial performance is due to the positive impact of CSR on the company's reputation, customer satisfaction, and employee engagement.


Corporate social responsibility, financial performance, textile and garment industry, Vietnam


                        i.            Alafi, K., & Hasoneh, A. B. (2012). Corporate social responsibility associated with customer satisfaction and financial performance a case study with Housing Banks in Jordan. International Journal of Humanities and Social Science, 2(15), 102–115.

      ii.            Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.

    iii.            Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. The Academy of Management Review, 4, 4497–530.

     iv.            Carroll, A. B. (2004). Managing ethically with global stakeholders: A present and future challenge. Academy of Management Executive, 18, 114–120.

       v.            Châu Thị Lệ Duyên (2018): Trách nhiệm xã hội doanh nghiệp: Mối quan hệ với hiệu quả hoạt động trường hợp các doanh nghiệp đồng bằng sông Cửu Long Việt Nam, Luận án tiến sĩ ĐH. Kinh tế thành phố HCM.

     vi.            Clarkson, Max B. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. The Academy of Management Review, 20(1), 92–117.

   vii.            Dobers, P. (2009). Corporate social responsibility: Management and methods. Corporate Social Responsibility and Environmental Management, 16(4), 185–191.

 viii.            Garriga, E., & Mele, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53, 51–71.

     ix.            Galbreath, J. (2002). Twenty-first century management rules: The management of relationships as intangible assets. Management Decision, 40, 116–126.

       x.            Galbreath, J. (2008). The benefits of corporate social responsibility: An empirical study. Paper presented at the ANZAM conference proceedings (22nd annual conference), New Zealand.

     xi.            Galbreath, J., & Shum, P. (2012). Do customer satisfaction and reputation mediate the CSR–FP Link? Evidence from Australia. Australian Journal of Management, 37(2), 211–229.

   xii.            Garriga, E., & Mele, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53, 51–71.

 xiii.            Gossling, T., & Vocht, C. (2007). Social role conceptions and CSR policy success. Journal of Business Ethics, 47(4), 363–372.

 xiv.            Helm, S. (2007). The role of corporate reputation in determining investor satisfaction and loyalty. Corporate Reputation Review, 10(1), 22–37.

   xv.            Hoàng Thị Thanh Hương, (2015), Áp dụng chiến lược trách nhiệm xã hội của doanh nghiệp tại doanh nghiệp quy mô nhỏ và vừa Việt Nam: Nghiên cứu tình huống

 xvi.            Hồ Thị Vân Anh (2018); Trách nhiệm xã hội và hiệu quả tài chính: Bằng chứng từ các công ty niêm yết Việt Nam, Luận án tiến sĩ. Đại học Kinh tế thành phố HCM.

xvii.            Iacobucci, D., Saldanha, N., & Deng, X. (2007). A meditation on mediation: Evidence that structural equations models perform better than regressions. Journal of Consumer Psychology, 17(2), 139–153.

xviii.            Lin, C. H., Yang, H. L., & Liou, D. Y. (2009). The impact of corporate social responsibility on financial performance: Evidence from business in Taiwan. Technology in Society, 31(1), 56–63.

 xix.            Margolis, J.D., & Walsh, J. P. (2003). Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48(2), 268–305.

   xx.            Mishra, S., & Suar, D. (2010). Does corporate social responsibility influence firm performance of Indian companies? Journal of Business Ethics, 95(4), 571–601.

 xxi.            Mulki, J. P., & Jaramillo, F. (2011). Ethical reputation and value received: Customer perceptions. International Journal of Bank Marketing, 29(5), 358–372.

xxii.            Nejati, M., & Ghasemi, S. (2012). Corporate social responsibility in Iran from the perspective of employees. Social Responsibility Journal, 8(4), 578–588.

xxiii.            Phạm Việt Thắng (2018), Trách nhiệm xã hội của doanh nghiệp đối với người lao động trong các doanh nghiệp dệt may Việt Nam.

xxiv.            Rettab, B., Brik, A., & Mellahi, K. (2009). A study of management perceptions of the impact of corporate social responsibility on organisational performance in emerging economies: The case of Dubai. Journal of Business Ethics, 89(3), 371–390.

xxv.            Roberts, P. W., & Dowling, G. R. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23(12), 1077–1093.

xxvi.            Rowley, T., & Berman, S. (2000). A brand new brand of corporate social performance. Business & Society, 39(4), 397–418.

xxvii.            Santos (2012). Toward a Subjective Measurement Model for Firm Performance, Available online at

xxviii.            Salmones, M. G., Perez, A., & Bosque, I. R. (2009). The social role of financial companies as a determinant of consumer behaviour. International Journal of Bank Marketing, 27(6), 467–485.

xxix.            Shamsie, J. (2003). The context of dominance: An industry-driven framework for rxploiting reputation. Strategic Management Journal, 24(3), 199–215.

xxx.            Shum, P., & Yam, S. (2011). Ethics and law: Guiding the invisible hand to correct corporate social responsibility externalities. Journal of Business Ethics, 98, 549–571.

xxxi.            Urbach và Ahlemann (2010 Urbach, N., & Ahlemann, F. (2010). Structural equation modeling in information systems research using partial least squares. Journal of Information Technology Theory and Application, 11(2), 5–40.

xxxii.            Van Beurden, P., & Gössling, T. (2008). The worth of values — A literature review on the relation between corporate social and financial performance. Journal of Business Ethics, 82(2), 407–424.

xxxiii.            Wood, D. J. (2010). Measuring corporate social performance: A review. International Journal of Management Reviews, 12(1), 50–84.

Cite this Article: