Please Wait! Your file will start to download within 10 seconds automatically. Otherwise click here Download

Effects of Corporate Social Responsibility to Customer Loyalty: Vietnamese Textile and Garment Enterprises


Thi Thu Hoai Pham , Thi Diep Uyen Doan ,

Download Full PDF Pages: 75-85 | Views: 1375 | Downloads: 345 | DOI: 10.5281/zenodo.3491451

Volume 8 - February 2019 (02)


The objective of the article is to test the impact of corporate social responsibility (CSR) on customer loyalty (CL). I am using survey data from 389 Vietnamese textile and garment enterprises included in the "textile enterprises directory" issued by the Vietnam Textile and Apparel Association in 2015. Results after 3 months of conducting surveys and collecting data Data analysis results show that CSR is implemented in three aspects: employees, environment, and community have a positive impact on customer loyalty. Specifically, when businesses implement CSR will make a repeat purchase rate of customers increase, and revenue from old customers is also higher than new customers. Since then, the author recommends that Vietnamese textile and garment enterprises should have a CSR strategy to reduce the costs of finding customers and advertising


Corporate social responsibility, customer loyalty, Vietnamese textile, and garment enterprises.


        i.            Agyemang, O. S. and Ansong, A. (2017) "Corporate social respnsibility and firm performance of Ghanaian SMEs Mediating role of access to capita and firm reputationl ," Journal of Global Responsibility , vol. 8, pp. 47-62.

      ii.            Anh Ho Thi Van, (2018), Social responsibility and financial efficiency of listed companies: Doctoral Dissertation, Ho Chi Minh City University of Economics.

    iii.            Aras, G.; Aybars, A. and Kutlu, O.,(2010) "Managing corporate performance Investigating the ralationship between corporate socail responsibility and financial performance in emerging markets," International Journal of Prodyuctiity and Performance Management, vol. 59, pp. 229-254.

     iv.            Aupperle, Carroll, and J Hartfield, (1985), "An empirical examination of the relationship between corporate social responsibility and profitability," Academy of Management Jouranl , vol. 28, pp. 446-463.

       v.            Barnetf, (2007), "Stakeholder influence capacity and variabiity of financial returns tocorporate social responsibility ," Acad. Manag. Rev. Arch, vol. 32, pp. 794-816.

     vi.            Barney, (1991), "Firm resources and sustained competitivie advantage ," Journal of Management, vol. 17, pp. 99-120.

   vii.            Baron R.M and Kenny, D.A,(1986), "The moderator -mediator variable distinction in social psychological research : Conceptual ,strategic,and statistical consideration, ," J.Personal.Soc.Psycho, vol. 51, pp. 1173-1182.

 viii.            Bermam (1999), "Does stakeholder orientation The relationship between stakeholder management models and firm fimancial perpormaance," The Academy of management journal, vol. 42, pp. 29-44.

     ix.            Berman, Kotha S A. C, and IM Jones, (1999), "Does stakeholder oriertation matter? The relationship between stakeholder management models and firm financial performance," Academy of managemet Journal, vol. 42, pp. 488-506.

       x.            Bird, A Hall, F Momente, and F Reggiani, (2007), "What corporate responsinility activities are valued by the market ?," J.Bus.Ethics, vol. 76, pp. 189-206.

     xi.            Brown and P.A Dacin, (1997), "The company and the product : corporate associations and consumer product responess.," J. Mark, vol. 61, pp. 68-84.

   xii.            Brown and W.R.CSR Forster, (2013), "Stakecholder theory : a tale of adam Smith ," J.Bus.Ethics, vol. 112, pp. 301-312.

 xiii.            Carroll, B. A, (1990), "Corporate social responsibility evolution for a definitional construct," Bus.Soc, vol. 38, pp. 268-295.

 xiv.            Carroll, B. A, (2000), "Ethical challengs for business in the new millennium : orporate social responsibility and models of management movality ," Business Ethics Quately , vol. 10, pp. 33-42.

   xv.            Charlo, Ismael Moya, and Ana M Munoz, (2017) "Financial Performance of Socailly Responsible Firms : The Shor- and Long-Term Impact," susustainability, vol. 9, p. 1622.

 xvi.            Cheung, K Jiang, B,C Mak, and W Tan, (2003), "Corporate social performance form evalution and industrial defferenc : Evidence from Hong Kong," J. Bus.Ethics, vol. 114, pp. 625-631.

xvii.            Cho and Lee, (2016). "Managerial Effciency, Corporate social performance and corporate Financial Performance," Business Ethics, vol. 22, pp. 292-317.

xviii.            Cho and Lee, (2017). "Corporate Social Performmance and Corporate Financial Performance ,"  Business Ethics, vol. 26, pp. 192-218.

 xix.            Clakson, (1995). "A stakeholder framework for analyzing and ecvaluating corporate social performance ," Academy og management review, vol. 20, pp. 92-117.

   xx.            Clarkson, (1995). "A framework for analyzing and evaluating corporate social performance ," Academy of management Review, vol. 20, pp. 571-610.

 xxi.            Clarkson, (1996). "A stakeholder framework for analyzing and evaluating corporate social perpormance," The Academy of Management Review, vol. 20, pp. 92-117.

xxii.            Clarkson, (1998). "A stakeholder framework for analyzing and evaluating corporate social perpormance," The academy of management review, vol. 20, pp. 92-117.

xxiii.            Clarkson, Y Li, G.D Richardson, and F.D Vasvari, (2008). "Revisiting the relatonship between enviromental pperformance and enviromental disclosure : An empirical anayisis. ," Account organ.Soc, vol. 33, pp. 303-327.

xxiv.            Cochran and R.A Wood, (1984). "Corporate social responsibility and financial performance ," Academy of management journal, vol. 27, pp. 42-56

xxv.            Cochran and R Wood, (1986), "Corporate social responsibility and financial performance," academy of Management Journal, vol. 27, pp. 42-56.

xxvi.            Cochran and Ra Wood, (1989)."Corporate social responsibility and financial performance," Acadeny of management Iournal, vol. 27, pp. 42-56.

xxvii.            Cornell and A Shapiro, (1987), "Corporate stakeholders and corporate finance," Financial management, vol. 16, pp. 5-14.

xxviii.            Crisostomo, Fatima de Souza Freire, and Felipds Cortes de Vasconcellos, (2011). "Corporate social responsibility , firm value and financial performance in Brazil," Scial responsibility journal, vol. 7, pp. 295-309.

xxix.            Deckop, K.K Merriman, and S Gupta, (2006). "The effects of CEO paystructure on corporate social performance ," Journal of management , vol. 32, pp. 329-342.

xxx.            Deegan, (2002). "The legitimising effect of social and environmental disclosure - a thecreticl founolation Accounting : Auditing & Accountability," Juornal, vol. 15, pp. 282-311.

xxxi.            Duccissy , (2013). "Does corporate social responsibility pay off in time of crisis ? An alternative perspective on the relation between financial and corporate social performance ," Corporate social responsibility and environmental Management, vol. 20, pp. 157-167.

xxxii.            Duyên Châu Thị Lệ, (2018). Trách nhiệm xã hội doanh nghiêp: Mối quan hệ với hiệu quả hành động - trường hợp các doanh nghiệp Đồng bằng sông Cửu Long.: Luận án tiến sĩ đại học Kinh tế thành phố Hồ Chí Minh.

xxxiii.            Elias, (2004)."An Examination of Business Students` Perception of Corporate Social Responsibility before and after Bankruptcies," Business Ethics, vol. 52, pp. 267-281.

xxxiv.            Erhemjamts, (2013), Q Li, and A Venkateswaran, "Corporate social responsibility and its impact on firm`s investment policy organizational structure and performance ," Journal of business Ethics , vol. 118, pp. 395-412.

xxxv.            Famiyeh, Amoako Kwarteng, and Samuel Ato Dadzie, (2016). "Corporate social responsibility and reputation : some empirical perspectives," Journal og Global Responsiibility , vol. 7, pp. 258-274.

xxxvi.            Freeman, (1984) ."Strategic management : A Stakeholder Approach , Pitman,Boston,MA,"

xxxvii.            Friedman, (1970). "Friedman doctrine: The socia responsibility of business is to increase its profits.," The New York Times Maggazine vol. 30, pp. 676-693.

xxxviii.            Galant and simon Cadez, (2017)."Corporate social responsibility and financial performance relationship : a review of measurement approaches," Economic Research-Ekonomska Istrazivanja, vol. 30, pp. 676-693.

xxxix.            Galbreath, (2010)."How dose corporate social responsibility benefit firms ? Evidence from Australia," Eouropean Business Reveiw, vol. 22, pp. 411-431.

     xl.            Giannarakis, (2014). "The determinants infuluencing the extent of CSR disclosure," International Journal of Law and Management, vol. 56, pp. 393-416.

   xli.            Girerd, S Jimenez-Garices, and P Louvet , (2014)."Which dimensions of social responsibility cocern finacial investors ?," Journal of business Ethics, vol. 121, pp. 559-576.

 xlii.            Graafland, S.C.W Eijffinger, and H Smidjohan, (2004). "Benchmarking of corporate social responsibility : Methodologiaal problem and robusstress," Journal of business ethics, vol. 53, pp. 137-152.

xliii.            Greening and D.B Turbon, (2000) "Corporate social performance as a competitivie advantage in attracting a quality workforce," Bus.Soc, vol. 39, pp. 254-280.

xliv.            Grizkin and J.F Mahon, (1997). "The corporate social performance and corporate financial performance debale Twenty-five years of incmparable reseach," Business society, vol. 36, pp. 5-31.

 xlv.            Nguyen Hong Ha, (2016). Effect of corporate social responsibility on customer loyalty: research in livestock industry in Northern Vietnam: Doctoral thesis, National Economics University.

xlvi.            Hasan, Nada Kobeissi, Liuling Liu, and Haizhi Wang, (2018), "Corporate Social Responsibilyti and Firm Financial Performance : The Mediating Role of Productivity," J Bus Ethics, vol. 149, pp. 671-688.

xlvii.            Hillman and G.D Keim, (2001). "Shareholder value ,stakeholder managenent and social issues : what`s the bottom line," Strategic management journal, vol. 22, pp. 125-139.

xlviii.            Huang and Luke Watson, (2015). "Corporate social responsibility research in accoumting," Journal of Accounting Literature, vol. 34, pp. 1-16.

xlix.            Hoang Thi Thanh Huong, (2015). Applying the social responsibility strategy of small and medium-sized enterprises in Vietnam, studying the garment case: Doctoral thesis, National Economics University.

        l.            Johnson and M.B Houston, (2000)."Buyer-supplier contracts versus joint ventures: determinants and consequences of transacton structure," Journal of marketing reseach, vol. 37, pp. 1-15.

      li.            Kabir and David M. Akinnusi, (2012). "Corporate social and environmental accounting information reporting practices in Swaziland," Social responsibility journal, vol. 8, no. 2, pp. 156-173.

    lii.            Kapstein, (2001). "The corporate ethics crusade ," Foreign affairs, vol. 80, pp. 105-119.

  liii.            Laan, Hans Van Ees, and Arijen Van Witteloostuijn, (2008). "Corporate social and financial performance : An Extended Stakeholder Theory, and Empirical Test with Accounting Measures," Business Ethics, vol. 79, pp. 299-310.

   liv.            Lech, (2013). "Corporate social responsibility and finacial performance : Theoretical and emprirical aspects," Corporate economic reseach, vol. 16, pp. 49-62.

     lv.            Lee and Heungjun Jung, (2016). "The effects of corporate social responsibility on profitability The moderating roles if differentiation and outside investment," Management Decisiom , vol. 54, pp. 1383-1406

   lvi.            Lin, Ruei Yuan Chang, and Van Thac Dang, (2015)."An Intergrated Model to Explain How Corporate Socail Responsibility Affects Corporate Financial Performance," sustainability, vol. 7, pp. 8292-8311.

 lvii.            Lu and Indra Abeysekera, (2017). "What do Stakeholders Care About Investigating Corporate Social and Environmental Disclosure in China," J Bus Ethics, vol. 144, pp. 169-184.

lviii.            Luo and C.B Bhattacharya, (2006), "Corporate Social Responsibility , Customer Satisfaction, and Market Value," Iournal of Marketing, vol. 70, pp. 1-18.

   lix.            Luv and Bhatta Charya, (2006)."Corporate social responsibility customer satisfaction and market value ," Journal og makerting , vol. 70, pp. 1-18

     lx.            Mai Nguyen Phuong, (2014). Social responsibility of food manufacturing and processing enterprises in Vietnam - approach from the perspective of consumers, universities Economics - VNU, Hanoi Doctoral thesis.

   lxi.            Mai Nguyen Thi Tuyet and Nguyen Vu Hung, (2015), "Survey and survey methods: Principles and practices": National Economics University Publishing House.

 lxii.            Makin, Claude Francoeur, and Francois Bellavance, (2009)."Causality Between Corporate social performance and financial performance : Evidence from Canadian Firms," Business Ethics, vol. 89, pp. 409-422

lxiii.            Margolis and Walsh, (2003) ."Misery loves companies : rethinking social intiativesby business ," Administrative science quarterly , vol. 48, pp. 268-305

lxiv.            McWilliam and D Siegel, (2001)."Corporate social responsibility : a theory of the film perspective," Academy of Management Reiview, vol. 26, pp. 117-127

 lxv.            McWilliam and D Siegel, (2000) ."Corporate responsibility and financial performance : Correlation or misspecification ?," Strateg. Manag. J, vol. 21, pp. 603-609

lxvi.            McWilliam and D Siegel, (2002). "Corporate social responsibility and financial perpormane : correlation or misspecification ?," Strategic Management Journal , vol. 21, pp. 603-609

lxvii.            McWilliam, D Siegel, and P, M Wright, (2006). "Corporate social responsibility : strategic implications," Journal of Management Studies, vol. 43, pp. 1-18

lxviii.            McGuire and A Sundgren, (1988). "Corporate socail respolnsibility and firm fimamcial performance ," Academy of Management Journal, vol. 21, pp. 854-872

lxix.            McGuire A Sundgren , and T Schneeweis, (1988). "Corporate social responsibility and firm fimancial performance ," Academy of management journal, vol. 31, pp. 854-878

 lxx.            McGuire , A Sundgren, and T Schneeweis, (1988). "Corporate social responsibility and financial performance : correation or misspecificaton ?," Strategic management jouranl , vol. 11, pp. 603-609

lxxi.            McGuire , Thomas Schneeweis Tean, and Branch Ben, (1990). "Perceptions of firm quality : A cause or Result of firm perpormance," Journal of management , vol. 16, pp. 167-180,

lxxii.            Mishar and D Suar, (2010). "Does corporate social responsibility influence firm perfor-mance of Indian cornpanies," Journal of Business Ethics, vol. 95, pp. 571-601

lxxiii.            Mishra and Damodar Suar, (2010)."Do stakeholder management stratery and salience infuluence corporate social responsibility in Indian companies," Social Responsibility Joufinal, vol. 6, pp. 306-327

lxxiv.            Moore, (2001). "Corporate social and financial performance : an investigation in the UK supermarket industry," J.Bus.Ethics, vol. 34, pp. 299-315

lxxv.            Vietnam Textile and Apparel Association, Textile Industry Report 2015.,

lxxvi.            Vietnam Textile and Apparel Association, Textile Industry Report 2016.,

lxxvii.            Vietnam Textile and Apparel Association, Textile Industry Report 2017.,

lxxviii.            Vietnam Textile and Apparel Association, Directory of Vietnamese textile enterprises, 2015.

lxxix.            Vietnam Textile and Apparel Association, Press Release of Vietnam Textile and Garment Industry in the first 6 months of 2018.

lxxx.            O` Donovan, (2002). "Environmental discloicres in the annual report: extending the applicability and predicctive power of legitimcicy theory Accounting Aucliting & Accountability," Journal, vol. 15, pp. 344-371

lxxxi.            Orlitzky, (2003). "Corporate social and financial performance : a meta-analysics," Organization studies , vol. 24, pp. 403-441.

lxxxii.            Porter and M.R Kramer , (2006). "Strategy and society :the link between competitive advantage ans corporate social responsibility ," Harvard Business review, vol. 84, pp. 78-92.

lxxxiii.            Pratten and A. A Masht, (2009)."Corporate social discjosure in Libya," Social resonsibility Juornal, vol. 5, pp. 311-327.

lxxxiv.            Rais and R.V Goedegebuure, (2009)."Stakeholder orientation and financial performance : evidence from Indonesia ," Problems and perspectives inmanegement, vol. 7, pp. 62-75

lxxxv.            Reich, (1998)."The new meaning of corporate social responsibility California ," Management Review, vol. 40, pp. 8-17

lxxxvi.            Robert, (1992). "Determinants of corporate social responsibility : an application of stakeholder theory," Accounting,organization and society , vol. 17, pp. 595-612

lxxxvii.            Robert , (1993)."Determinats of corporate social responsibility disclosure : an appliciation of stakeholder theory.," Accounting organization and society, vol. 17, pp. 595-612

lxxxviii.            Robert and GR Dowling , (2002). "Corporate reputation and sustained superior finanvial performance ," Strategic management journal, vol. 23, pp. 1077-1093

lxxxix.            Sadeghi, Mehdi Arabsalehi, and Mahnoosh Hamavandi, (2016). "Impact of corporate social performance on financial performance of manufacturing companies ( IMC) listed on the Tehran Stock Exchange," Interbnation Journal of Law and Management, vol. 58, pp. 1754-243x.

   xc.            Saeidi, Saudah Sofian, Parvaneh Saeidi, Sayyedeh Parisa Saeidi, and Seyyed Alireza Saaeidi, (2015). "How does corpporate social responsibility contribute to firm financial performance ? The role of competitive advantage , repulation, and customer satisfaction," Juornal of Business Research, vol. 68, pp. 341-350

 xci.            Sen and CB Bhattacharya, (2001). "Does doing good always lead to doing better? Consumer reactions to corporate social responsibity," Journal Morketing Research, vol. 38, pp. 225-244.

xcii.            Shen, Kannan Govidan, and Madan Shankar, (2015)."Evalution of Barriers of Corporate Social Responsibility Using an Analytical Hierachy Process under a Fuzzy Enviroment- A Textile Case," sustainability, vol. 7, pp. 3493-3514

xciii.            Shew and Y Chang, (2009). "Ambition versus consicrnce does corporate social responsibility pay off ? The application of matching methds," J Bus Ethics, vol. 88, pp. 133-153

xciv.            Skare and T Golia, (2012). "corporate social responsibility and corporate financial performance," Is there a link ? Economic research - ekonomska istrazivanja , vol. 25, pp. 215-242.

xcv.            Stuebs and Li Sun, (2010)."Business Reputation and Labor Efficiency , Productivity, and Cost," Business Ethics , vol. 96, pp. 265-283

xcvi.            Sun, (2012). "Further evidence on the association between corporate social responsibility and financial performance," Internatinal Journal of Law and Management , vol. 54, pp. 472-484

xcvii.            Sun and Marty Stuebs, (2013)."Corporate social responsibility and firm productivity : Evidenca from the Chemical Industry in the United States," J Bus Ethics, vol. 118, pp. 251-263

xcviii.            Sweney, (2009). "A study of current practice of social responsibility '' (CSK) and an examination of the relationship between CSR and financial performance using structural equation modelling (SEM) ''," Unpublished phd thecis , Dublin Institute of Technology

xcix.            Taylor, (2003)."Rediscovering customrer satis faction," Business horizons , vol. 46, pp. 3-14

       c.            Pham Viet Thang, (2018). Corporate social responsibility for employees in Vietnamese textile enterprises: Doctoral thesis, National Economics University.

     ci.            Tsoutsoura, (2004)."Corporate social resposibility and financial performance ," Working paper ,Has school of business ,university of California berkeley

   cii.            Turban and DW Greening, (1997). "Corporate social performance and orgomizational attractivenness to prospective employees ," Academy of management journal, vol. 40, pp. 658-672

 ciii.            Turyakira, Elmarie Venter, and Elroy Smith, (2012)."Corporae social responsibility for SMEs : A proposed hypothesised model," African Journal of Business Ethics, vol. 6, no. 2

 civ.            Vande, W Vermeir, and F Corten, (2005). "Corporate social responsibility and financial performance. ," Corporate Governance : the International jouranal of business in society, vol. 5, pp. 129-138

   cv.            Waddock and S Graves, (1997). "The corporate social performance finacial perpormance link," Strategc Management Journal , vol. 18, pp. 303-319

 cvi.            Waddock and S.B Grave, (1997)."The corporate social performance -financial performance link ," strategic management journal , vol. 8, pp. 303-319

cvii.            Waddock and Graves S.M, (1997). "The corporate social performance financial performance link," Strategic management Jouranl, vol. 18, pp. 303-319

cviii.            Wagner, R.J Lutz, and B.A Weitz, (2009)."Corporate hypocrisy : Overcoming the threatof incosistentcorporate responsibility perceptins," J. Mark, vol. 73, pp. 77-91

 cix.            Weber, (2008). "The business case for corporate social responsibility : a company:level measurment apprpach for CSR.," Eouropean Management journal, vol. 26, pp. 247-261

   cx.            Weber, (2010). "The business case for corporate social responsibility : A company-level measurement approach for CSR," Euoropean management journal, vol. 26, pp. 247-261

 cxi.            Zhu, Li-Yun Sun, and Alicia S. M. Leung, (2004)."Corporate social respnsibility, firm reputation aand firm performance : The rolr of ethical leadership," Asia Pac J Manag, vol. 31, pp. 925-947.

Cite this Article: