Enhancing firm performance and sustainable growth through Corporate Social Responsibility

Abstract

Purpose: The purpose of this research is to fill the gap between corporate social responsibility (CSR) and firm performance in relation to sustainable growth. It examines the influence of four CSR related factors, namely, Obligation to Society, Obligation to Customers and Markets, Obligation to Natural Environment, and Economic Benefit in CSR, on the relationship commitment and authentic commitment on stakeholder relationship. These commitments are assumed to impact on Strategic CSR Satisfaction and Durability, which turn affect Firm Performance as well as Sustainable Development Practices

Design/methodology/approach: The survey obtained 411 observations from employees of companies already involved in CSR through convenient sampling in Ho Chi Minh City. The paper fills a gap in the literature by considering the perception of employees along with CSR strategy and long-term performance, especially in the context of an emerging economy

Findings: Structural equation modeling has validated that all posited relationships are statistically significant and positive barring one; Obligation to Society does not make any significant impact on the Authentic Commitment to Stakeholder Relationship in CSR. The study adds to the CSR discourse by bringing to the forefront the strategic value of employee engagement in CSR, and offering empirical evidence on how specific dimensions of CSR relate to sustainable development of the firm

Research limitations/implications: This study provides useful insights, but also has several limitations. The use of convenience sampling limits the generalizability of the results. Although 411 participants were sufficient to conduct structural equation modeling, the sample size was small and lacked diversity across industries and regions. The study focused on companies that are already actively engaged in CSR, which may overlook the perspectives of companies that are in the early stages of CSR implementation. In addition, the sample is concentrated in a few industries, which limits the generalizability of the results to other industries.

Social Implications: The study highlights the importance of integrating Corporate Social Responsibility (CSR) initiatives and considering employee perspectives to improve business performance and promote sustainable development. It examines how different aspects of CSR affect stakeholder engagement and trust, highlighting the importance of employee engagement in long-term sustainable development. The survey findings provide valuable guidance for business leaders and policymakers seeking to implement practical CSR strategies as a cornerstone of sustainable growth, especially in emerging markets.

Originality/value: The findings of the study should be useful for business leaders and policymakers who have the willingness to enhance sustainability through the path of social responsibility