Abstract of Economic management Doctoral thesis: Scorporate social responsibility of small and medium - Sized enterprises in Thai Nguyen province for employees

THÁI NGUYÊN UNIVERSITY
ECONOMICS AND BUSINESS ADMINISTRATION UNIVERSITY

BUI THI THU HUONG

CORPORATE SOCIAL RESPONSIBILITY OF SMALL AND MEDIUM SIZED ENTERPRISES IN THAI NGUYEN PROVINCE FOR EMPLOYEES

Specialization: Economic Management
Code: 9340410

ABSTRACT OF ECONOMIC MANAGEMENT DOCTORAL THESIS

THAI NGUYEN, 2018


THESIS IS COMPLETED IN
ECONOMICS AND BUSINESS ADMINISTRATION UNIVERSITY THAI NGUYEN UNIVERSITY

Scientific supervisors: 1. Assoc. Prof. Dr. Tran Quang Huy
2. Dr. Pham Quoc Chinh

The peer review 1: ........................................................................................................
The peer review 2: ........................................................................................................
The peer review 3: ........................................................................................................

The thesis is prevented to the Council held in Thai Nguyen University at
the.....,......., 2018

Desertation can be found at:
- Learning Resource Center, Thai Nguyen University
- Library of Economics and Business Administration University

PREFACE
1. THE NECESSITY OF THE TOPIC
The industry of Thai Nguyen is on the rise with many small and medium sized industrial enterprises (SMIEs) which focus on intensive investment,
technological innovation, expansion of scale and location of activities and the
business lines. However, they only concern about profitability and ignores their
responsibilities for the stakeholders, especially for the employees - an input factor
that creates directly wealth for enterprises as well as the society, which plays an
important role in the success of the business. The dramatic increase but lack of
consideration, lack of careful calculations in the mining and processing industries
have resulted in many problems for the employees not only in ethical, philanthropic
but also in legal and economic aspects. Some problems exist in SMIEs in Thai
Nguyen province such as assigning jobs to employees unequally between SMIEs,
overworked employees, insufficient resting time, imporperly paid allowances for
employees, insufficient protection equipment for employees while the SMIEs’
payment of social insurance premiums, health insurance for employees is not
consistent with the law and contaminated working environment led to the high rate
of occupational deseases among SMIEs. These have threaten the sustainable
development of SMIEs in Thai Nguyen province and the society as a whole, thus
creating barriers to the building and improvement of social standards.
Based on these facts, the title "Corporate social responsibility of small and
medium - sized enterprises in Thai Nguyen province for employees" has been
selected to study to aim at improving CSR for employees of SMIEs in Thai Nguyen
province in the coming time.
2. PURPOSE OF STUDY
2.1. General purpose
Research on CSR of SMIEs in Thai Nguyen province for employees, thus
suggesting measures to improve SMIEs' CSR implementation in Thai Nguyen
province, contributing to enhancing the job satisfaction.

2.2. Detailed purpose
- To systemize theoretical and practical basis relating to CSR for employees.
- Analyze and assess the actual status of CSR implementation of SMIEs in
Thai Nguyen province for employees in the past and analyze the impact of CSR on
employees' job satisfaction in SMIEs Thai Nguyen province.
- Propose some measures to enhance the implementation of CSR of SMIEs
for employees in Thai Nguyen province by 2025.


3. OBJECT AND SCOPE OF STUDY
3.1. Study object
The study object of the thesis is the implementation of CSR of SMIEs in
Thai Nguyen province for employees.
3.2. Scope of study
3.2.1. Content
- CSR has various contents such as environmental protection, CSR for
consumers, CSR for the community, CSR for employees. In the scope of this
dissertation, the author analyzes the implementation of CSR of SMIEs in Thai
Nguyen province through the steps in the process such as by working out the plan,
organizing the implementation, building contents of implementing and evaluating
the implementation.
- The thesis investigates, evaluates and quantifies the influence of CSR for
employees on job satisfaction of SMIEs in Thai Nguyen.
3.2.2. Space
The dissertation is conducted in the SMIEs currently operating in Thai
Nguyen province.
3.2.3. Time
- Secondary data: The thesis collects secondary data on the implementation
of CSR of SMIEs in Thai Nguyen province in the period 2014 - 2016.
- Primary data: The dissertation collects the primary data on the

implementation of SMIEs in Thai Nguyen by 2016. The solutions are researched
and proposed by 2025.
4. NEW CONTRIBUTIONS OF THE RESEARCH
Firstly, the thesis contributes to the systematization and clarification of the
theoretical and practical basis of CSR for employees, the concept of CSR for
employees in SMIEs as well as building the criteria and framework CSR of SMIEs
in Thai Nguyen province.
Secondly, the survey with the sample size of 231 managers and 394
employees in SMIEs in Thai Nguyen province showed that the proposed research
model is relevant. The proposed hypotheses are supported where responsibilities of
SMIEs for employees in the economic, legal, ethical, philanthropic aspect have the
same impact on the job satisfaction of employees.
Thirdly, the survey results show that the SMIEs in Thai Nguyen province
have not properly performed the economic and legal responsibility for the
employees.


Fourthly, the quantitative research results show that the economic
responsibilities for employees will have the greatest impact on job satisfaction
among SMIEs in Thai Nguyen province, followed by legal, ethical responsibilities
have the least effect.
Fifthly, the content in the thesis will provide a basis for enterprises to
compare with their CSR implementation for their to employees. This, in
combination with groups of solutions presented in the dissertation will enhance the
CSR implementation of the enterprises for employees, thereby improving the job
satisfaction for employees.
Sixthly, the research results will a reference for the policy-making agencies
involved in the development of SMIEs in Thai Nguyen province in particular as
well as Vietnam in general.
5. STRUCTURE OF THE RESEARCH

Chapter 1: Overview of corporate social responsibility for employees
Chapter 2: Theoretical and practical basis for corporate social responsibility
of small and medium - sized industrial enterprises for employees
Chapter 3: Research methods
Chapter 4: Results of research on corporate social responsibility of small and
medium - sized enterprises in Thai Nguyen province for employees
Chapter 5: Some solutions to improve the corporate social responsibility of
small and medium - sized enterprises for employees in Thai Nguyen province.
CHAPTER 1
OVERVIEW OF CORPORATE SOCIAL RESPONSIBILITY
FOR EMPLOYEES
1.1. RESEARCH ON CORPORATE SOCIAL RESPONSIBILITY FOR
EMPLOYEES
1.1.1. Overseas studies
1.1.1.1. Studies on corporate social responsibility for employees
1.1.1.2. Studies on the effect of corporate social responsibility for employess on job
satisfaction
1.1.2. Vietnam studies


1.1.2.1. Studies on corporate social responsibility for employees
1.1.2.2. Studies on the effect of corporate social responsibility for employees on job
satisfaction
1.2. GENERAL ASSESSMENT ON RESULTS OF RESEARCH AND
PRINCIPLES OF RESEARCH
1.2.1. Successes
1.2.2. Limit
- In the country and abroad, research on CSR for employees is relatively high
but only concentrated and deepened in theory. From a practical point of view, there
have been a number of researches on the implementation of CSR on employees in

enterprises, but there is no such research in small and medium - sized enterprises in
the industrial sector in Thai Nguyen province, Vietnam.
- The implementation of CSR for employees is discussed in various aspects
but no research has developed a scale to assess the impact of CSR for employees on
job satisfaction among SMIEs in Thai Nguyen province. This is also the "gap" in
the study.
- There have been many studies using analytical and synthesis methods;
Statistical methods, description and modern methods (EFA, regression) to assess the
relationship between CSR and employees' satisfaction, but no study was found in
Thai Nguyen.
- In Vietnam in general and in Thai Nguyen in particular, the industry is
becoming a key industry. With the rapid growth of the industry, the current status of
CSR in SMIEs in Thai Nguyen province is not discussed yet.
1.2.3. Research orientation
In the thesis, the author will focus on the following issues: Choosing the
framework; Develop criteria for CSR assessment of SMIEs for employees based on
the selected framework; Evaluate the performance of CSR of SMIEs in Thai
Nguyen for the employees through the selected criteria; Evaluate the impact of CSR
on employees on job satisfaction of SMIEs; Propose solutions to improve CSR of
SMIEs to employees in order to develop sustainable SMIEs.
CHAPTER 2
THEORETICAL AND PRACTICAL BASIS FOR
CORPORATE SOCIAL RESPONSIBILITY OF SMALL & MEDIUM SIZED INDUSTRIAL ENTERPRISES FOR EMPLOYEES
2.1. THEORETICAL BASIS


2.1.1. Small and medium - sized industrial enterprises
2.1.1.1. Conception
a. Concept of industrial enterprises
Understandable, industrial enterprises are economic organizations with their

own names, assets, stable transaction offices and business registration in accordance
with the law for the purpose of conducting business activities. In the field of
industry include mining, processing and repair services.
b. Concept of small and medium - sized enterprises
Small and medium - sized -sized enterprises are independent production and
business establishments and have registered their business according to the current
law, with a registered capital of no more than VND 100 billion or an average annual
labor force of no more than 300.
c. Concept of small and medium - sized industrialenterprises
Small and medium - sized industrial enterprises, first of all constituting part
of the system of enterprises, are independent production and business
establishments, which have registered their business under the current legislation
and have registered capital not exceeding VND 100 billion or an average number of
employees not exceeding 300 people per year for the purpose of conducting
business activities in the industrial sector including mining, processing and repair
services.
2.1.1.2. Characteristics of small and medium - sized industrial enterprises
2.1.1.3. The role of small and medium - sized industrial enterprises
2.1.2. Corporate social responsibility for employees
2.1.2.1. Conception
Corporate social responsibility for employees is the commitment of the
business organization to employees to the economy, legislation, ethics and
phylanthropic through inherent responsibilities to improve the quality of
employees’s life in win - win situation ( both company and employees benefit).
2.1.2.2. Roles
- For the benefits of employees
- For the benefits for businesses
2.1.2.3. Contents
a. Actions planning
- Identifying the demands of CSR for employees

- Developing instruments of CSR for employees


- Budget planning
b. Implementation
- Organizating apparatus
- Organizing office communication
- Organizing employees training
c. Content of implementation
Based on Carroll's pyramid model (1991), the content of business
organization CSR for employees includes:
- Economic responsibility: Some criteria show the economic responsibility of
SMIEs for employees include:
+ Creating jobs
+ Retention and development of company
+ Making profits for funds extraction
+ Wage fund, welfare and reward funds are suitable paid for employees
- Liability for employees contains:
+ Signing labor contract
+ Ensuring legal working time, resting time
+ Ensuring protective equipment
+ Ensuring periodic medical examination
+ Legal Social insurance, health insurance payment
+ Child labor, compulsory labor and discrimination
+ The right of labour to join trade unions
- Ethical responsibilities: some indications contain:
+ Training, developing and improving labour’s ability
+ Creating a healthy labor relations
+ Respecting employee’s privacy
+ Protecting the Accusers in workplace

- Phylanthrophic responsibilities: Here some indications:
+ Providing financial services, social services to employees
+ Developing employee’s personality and ethics
+ Encourage employees taking part in charitable reserves
d. Evaluating Implementation
Measurement criteria contain financia criteria and non-financial criteria.
Financial criteria are measured by CSR’ effects and cost - savings. Non-financial
are measured such as the level of CSR implementation, employee satisfaction,


employee commitment. Measuring the results of CSR helps to simplify the decision
- making process and reduce risks in the implementation process.
2.1.2.4. Affected factors
a. Elements of the external environment
- The economic - political environment
- Legislation environment
- The management of the authorities
- Civil society organizations
- Public opinion and the Press
b. Elements of the internal environment
- Operational strategies and targets.
- Company financial position
- Board of management
- Each individual employees
- Trade unions
2.2.

THE

PRACTICAL

BASIC

OF

CORPORATE

SOCIAL

RESPONSIBILITY OF SMALL AND MEDIUM - SIZED ENTERPRISES
FOR EMPLOYEES
2.2.1. International experience
2.2.1.1. Corporate social responsibility of small and medium - sized industrial
enterprises for employees in Guangdong province, China
2.2.1.2. Corporate social responsibility of small and medium - sized industrial
enterprises for employees in Tokyo, Japan
2.2.2. Experiences in Vietnam
2.2.2.1. Corporate social responsibility of small and medium - sized industrial
enterprises for employees in Bac Ninh province
2.2.2.2. Corporate social responsibility of small and medium - sized industrial
enterprises for employees in Vinh Phuc province
2.2.3. Learning from experience
- Proving initial support to motivate SMIEs to implement CSR for
employees.
- Investing time and budget for SMIEs
- The SMIEs have to fulfill all four responsibilites: economic, legal, ethical
and charitable responsibilities for employees:


+ Having flexible compensation, looking after social security issues such as

social insurance, health insurance, labor satisfaction and other welfare to
employees.
+ Designing the legal and suitable working time, rest time for employees
+ Prohibitting discrimitation to appoint employees; índiscriminating training
types, personal background, religion, gender, nationality in recruiment in order to
creates a healthy, equitable and equal working environment.
+ Employee training programs, plans, contents and methods should
implement to suit the enterprises situations. In addition, the enterprise creates
opportunities for career advancement.
+ Create a healthy and useful environment for employees to improve the
their quality of mental health.
CHAPTER 3
RESEARCH METHODS
3.1. RESEARCH QUESTION
- What is the role of CSR for employees in SMIEs?
- What are the criteria for assessing whether SMIEs conduct CSR for
employees?
- What are the current situation of CSR of SMIEs in Thai Nguyen province
for employees?
- What is the impact of CSR for employees to job satisfaction of SMIEs in
Thai Nguyen province?
- What are the constraints that exist in the implementation of CSR in SMIEs
in Thai Nguyen province and what are the causes of these constraints?
- What solutions to improve CSR of SMIEs in Thai Nguyen province for
employees?
3.2. APPROACH AND ANALYTICAL FRAMEWORK
3.2.1. Approach
3.2.1.1. Approach to the system
3.2.1.2. Approach by type of business
3.2.1.3. Participatory approach

3.2.2. Analytical framework
3.3. RESEARCH METHODS
3.3.1. Method of collecting information
3.3.1.1. Secondary data


- From research papers, research works, thesis, dissertations, scientific
articles, seminars, yearbooks in the country and abroad related to dissertations.
- The information is officially published as the Government's decrees, codes,
documents issued by the departments of the province.
- Data provided by SMIEs in Thai Nguyen province.
- In addition, the author also collected data through a number of official
websites.
3.3.1.2. Primary data
Primary data was collected by expert interview and survey method, as
follows:
a. Expert interview
b. Survey and survey
3.3.2. Synthesis, data processing
3.3.3. Analysis of data
3.3.3.1. For secondary data
3.3.3.2. For primary data
3.4. SYSTEM OF RESEARCH METHODS
- Indicators reflect the development of CSR plans for employees, such as the
number of enterprises and the percentage of enterprises wishing to implement CSR
for employees; Number of enterprises and percentage of enterprises applying CSR
standards for employees number of enterprises and percentage of enterprises having
budget to implement CSR for employees.
- Indicators reflect the organization of CSR implementation for employees,
such as the number of enterprises and the percentage of enterprises establishing the

department responsible for implementing CSR for employees number of enterprises
and percentage of enterprises having internal communication to carry out CSR for
employees; Number of enterprises and percentage of enterprises having training
staff to implement CSR for employees.
- Indicators reflecting the implementation contents: Indicators reflect the
economic, legal, ethical and philanthropic responsibilities of the enterprise for
employee.
- Indicators reflecting CSR assessment of employees


CHAPTER 4
RESEARCH RESULTS
CORPORATE SOCIAL RESPONSIBILITY OF SMALL AND MEDIUM SIZED ENTERPRISES IN THAI NGUYEN PROVINCE FOR EMPLOYEES
4.1. OVERVIEW OF SMALL AND MEDIUM - SIZED ENTERPRISES IN
THAI NGUYEN PROVINCE
4.1.1. General characteristics of the Study Area
4.1.1.1. Natural Features
a. Geographical Location
b. Topography and Climate
c. Natural Resources
4.1.2.1 Process of Formation and Development
4.1.2.2. Number of Small and Medium - Sized Industrial Enterprises in Thai
Nguyen Province
a. Number of Enterprises by Enterprise Type
b. Number of Enterprises by Location
4.1.2.3. Labor Force in Small and Medium - Sized Industrial Enterprises
a. Labor Scale
b. Types of Business
b. Operational Area
c. Qualification of Labor

4.1.2.4. Results of Production and Business Activities of Small and Medium Sized Industrial Enterprises
4.2. IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY
OF SMALL AND MEDIUM - SIZED INDUSTRIAL ENTERPRISES IN
THAI NGUYEN PROVINCE FOR EMPLOYEES
4.2.1. Implementation of Enterprise
4.2.1.1. Actions planning
The SMIEs in Thai Nguyen Province put common world standards into
application limited, but there are some SMIEs have built and announced CSR
standards of internal employees which are appropriate for the needs of their
enterprises. This proves that SMIEs are also interested in implementing CSR
towards employees.
4.2.1.2. Implementation


In order to effectively implement CSR for employees, the SMIEs also
organized some forms of propaganda, dissemination of knowledge and guidance on
the implementation of CSR law to employees through the conferences, the
workshops. This is a popular method, conducted with many participants. In
addition, methods of propaganda by newspapers, radio and television are also
utilized, despite limited number.
4.2.1.3. Content of implementation
The first responsibility which SMIEs have to accomplish, resolving the
problems of employment. According to the statistics of The Department of Labor,
Invalids and Social Affairs, the SMIEs created jobs for nearly 2,100 labors in Thai
Nguyen City; about 1,000 employments in Pho Yen Town; and also 1,000 works in
Dong Hy District. To achieve the results, the Thai Nguyen SMIEs have repeatedly
recruited workers in various channels.
In addition to job creation for employees, in 2014, SMIEs in Thai Nguyen
created stable jobs for 6,740 employees; by 2015, the number of regular employees
increased 7,792 people (up 115.6%); and by 2016, the number of the employees got

8,959 employees (up 115%).
Besides, the average income of labor in Thai Nguyen SMIEs also improved
significantly, from 3.7 million VND per month in 2014 to 4.1 million VND per
month in 2015 (up 110.8%), and to 4.5 million VND per month in 2016 (up
109.7%).
During 2014 – 2016, SMIEs are profitable. The after-tax profits were
deducted by the SMIEs to improve employees’ living standards through the welfare
and reward funds. Thai Nguyen SMIEs actions were considered as high value in
implementing their economic responsibilities towards workers.
Despite the reduction in the number of accidents, this figure is still quite
high. In 2016, there were 87 occupational accidents, most of which were
concentrated in limited liability companies (35 accidents) and joint-stock companies
(20 accidents). The least is the private sector (7 accidents). The number of people
injured by occupational accidents in the period 2014 - 2016 also tends to decrease
gradually, only 69 people in 2016. But the number of deaths caused by work
accidents is on the rise, with 11 deaths in 2016. This showed that SMIEs are really
irresponsible to employees in providing the labors with the protective equipment.
4.2.1.4. Evaluating Implementation
In principle, the implementation of CSR standards towards employees in
Thai Nguyen SMIEs must be strictly executed, because each stage has the


supervisors of the Mechanic Register; Thai Nguyen Department of Labor, Invalids
and Social Affairs; The Management Offices of the districts/towns/communes.
However, the management of SMIEs is perfunctory, not continuous, so that the
implementation of CSR towards employees has not been thoroughly.
4.2.2. The Implementation of Corporate Social Responsibility of Small and
Medium - Sized Industrial Enterprises for Employees through Assessment of
Respondents in Thai Nguyen Province
4.2.2.1. Description of Survey Samples: Managers and Employees

4.2.2.2. Summary Results of the Questionnaire
a. Actions planning
a1. Identifying the demands of CSR for employees
The survey results of the managers in Thai Nguyen SMIEs showed that only
30.7% of the respondents said that their enterprises had the demand CSR towards
the employees, especially foreign-invested enterprises (100%) and joint-stock
companies (61,8%). This suggests that the needs to apply and implement CSR
towards employees in each type of enterprise is not the same.
a2. Developing instruments of CSR for employees
There are 56.2% of managers claiming that their SMIEs apply the SA 8000
Standard; 25.7% said they apply the Internal Self-Regulatory Code; only 8,6% of
respondents believe that their business applies WRAP Standards; and 8,6% apply
the OHSAS 18001 Standard. Thus, SMIEs in the research area utilize the most
popularly SA 8000 standards.
a3. Budgeting Plan
Currently, the majority of managers (56.3% of respondents) imply that Thai
Nguyen SMIEs do not have much budget to spend on CSR implementation. This
expenditure depends largely on the business efficiency of the enterprises. As the
business grows steadily, the companies will have better conditions in CSR
implementation. Moreover, the state of many budget but not use for implementing
CSR towards employees also occur in many enterprises, typically limited-liability
companies (53.1%).
b. Implementation
b1. Organizating apparatus
Most managers of Thai Nguyen SMIEs have not really attended to establish a
specialized unit of CSR implementation towards employees. As many as 82.7% of
managers in the surveyed enterprises said that their unit does not have a specialized
department being responsible for implementing CSR towards employees. The

Private firms (91.9%), the joint-stock companies (82.4%), and the limited-liability
companies (79.6%) occupy a high proportion with the main reasons are that they
did not want a cumbersome management, overlapping tasks. Their small and
medium - sized enterprises is no need to set up, pay much money for this activity.
b2. Organizing office communication
Internal communication has great significance, which determines the success
of CSR implementation towards employees. However, this work has not been really
paid attention to SMIEs in Thai Nguyen province.
b3. Organizing employees training
According to the survey, the majority of managers (98.3%) of Thai Nguyen
SMIEs stated that their enterprises did not organize training staff for implementing
CSR towards workers. This has a huge impact on implementing CSR on the
employees. The stakeholders of CSR towards employees are very difficult to
imagine what they will do, how to do it and where to start.
c. Contents of implementation
c1. Economic Responsibility
- Creating jobs
For the private and limited-liability companies, the employment situation of
the employees is not regular and stable, but the scale is small (less than 10% of the
opinions).
- Making profits for funds extraction
Although Thai Nguyen SMIEs are profitable, they have not yet made
satisfactory allocations to the fund improving workers’ living conditions.
- Wage fun,welfare and rewards funds are suitable paid for employees
Foreign-invested enterprises are paying better salaries than other enterprises.
Through surveys, among the SMIEs in Thai Nguyen Province, only three main
employees’ allowances are allowance for food, position allowances and harmful
allowances. However, these levels in each type of SMIEs are different.
c2. Legal Responsibility
- Signing labor contract

5.6% of employees imply that they do not have the labor contracts during
their works in the enterprises, mainly private enterprises. The people who do not
have the labor contracts, and the understanding of labor law, will be at high risk of
loss of benefits. This sign show that the private companies have not really well done
their legal responsibilities to the employees.
- Ensuring legal working time, resting time


The average working time of the employees in Thai Nguyen SMIEs is 9.2
hours/day, which is a long time, longer than the provisions of the Labor Code of
Vietnam. But 73.1% of employees in these businesses said that their working time
is reasonable.
- Ensuring protective equipment
Only foreign-invested enterprises and joint-stock companies well implement
the responsibility of labor protection equipment in enterprises. Other types of
businesses need to have solutions to enhance their accountability.
- Ensuring periodic medical examination
In the enterprises conducting to periodical examine employees’ health, most
of all have checked their health once a year (32.5%). The foreign-invested
enterprise is the only one making 100% health checks every 6 months for
employees. With such a situation, the problem of health check and protection for
employees are becoming urgent and alarming, SMIEs in Thai Nguyen Province
need to come up with practical solutions.
- Child labor, compulsory labor and discrimination
According to the survey, 15% of Thai Nguyen SMIEs have employed the
child labors, but 100% of the respondents said that their businesses registered to
employ child laborers with the Department of Labor, Invalids and Social Affairs
and 100% of the research participants also imply that their businesses strictly
comply with regulations on recruitment of child laborers.
Currently, forced labor is still occurring in SMIEs but not many, accounting

for 14.5% of the opinions, the remains confirmed that this situation has never
occurred. This will be a warning signal about the lack of CSR towards employees,
especially in private enterprises.
The situation of gender equality in Thai Nguyen SMIEs still has many
inadequacies. Most of the main female employments is workers, craftsmen, simpleskill employees (40.1%). Female workers hold high positions in the business such
as leaders of The Party, government, mass organizations, business owners occupy
only a small proportion (8.7%).
- Legal Social insurance, health insurance payment
Adapted to the survey, many enterprises still violate regulations of social
insurance, health insurance (66% of respondents). There is popular when the
registration of social insurance and health insurance of employees is still lower than
the minimum wage with the purpose of reducing business cost (46.7%). Some
participants of enterprise that participate in social insurance, health insurance with
high premiums, are the most important people (24.6%). Many firms also do not


inform their employees about the level of social insurance, health insurance
(15.8%).
- The right of labour to join trade unions
Only 68.5% of the enterprises have a trade union organization, and 31.5% of
the enterprises do not have a trade union organization. This is highest in the private
sector (73.6%), other types of businesses have low rates.
c3. Ethical responsibilities
- Training, developing and improving labour’s ability
The SMIEs have just stopped training employees in production techniques,
labor safety, but there are not many companies paying attention to training
employees for labor law.
- Creating a healthy labor relations
Thai Nguyen SMIEs have well partly done creation of a healthy relationship
between the managers and the employees. Two objects cooperated positively in

terms of attitude, spirit and action. 59.7% of the respondents believe that the
cooperation between the employees and the leaders in the SMIEs is good.
- Respecting employee’s privacy
The SMIEs in Thai Nguyen Province are well doing the job of respecting
their employees' moral rights.
- Protecting the Accusers in workplace
100% of respondents stated that there was no retaliation to the people
reporting wrong actions in the workplace. This is a very encouraging, so it should
be promoted so that the enterprise can perform its moral responsibility to the
employees.
c4. Phylanthrophic responsibilities
- Providing financial services, social services to employees
According to the survey, 76% of respondents believe that SMIEs provide
financial services and social services to their employees. Services provided to
employees in enterprises are also numerous and diversified, mainly sport training
programs (67.6%), entertainment and corporate support programs (65.6%).
- Developing employee’s personality and ethics
Through surveys, SMIEs in Thai Nguyen Province have not really well done
to develop the personality and morality of the employees. Therefore, the solutions
to overcome this situation are very necessary.
- Encourage employees taking part in charitable reserves


The survey results show that 87.5% of respondents believe that the
enterprises encourage them to participate in community activities. The scale is high
in the joint-stock and limited-liability companies. Most of philanthropic activities in
SMIEs now focus on charitable activities (73%), disaster relief (51%), hunger
eradication and poverty reduction (47%). The forms of support are relatively
diversified by cash, things in nature, volunteer time. Of them, donations by cast
occupied 79.5%.

d. Evaluating Implementation
- Evaluating the effectiveness of standard application
The managers in Thai Nguyen SMIEs found that the application of the
International Standard was initially not effective, most of applications of OHSAS
18001 and WRAP were poorly evaluated (over 60%). For standards set by the
enterprises themselves, the manager evaluates the application more efficient than
the international standards (32.2%). This shows that the development of CSR
standards for employees are suitable for enterprises, the application will be better.
- Evaluating through performance level
According to Table 4.40, 51.1% of managers said that their business was
partially responsible, 20.8% said that they had planned to do. However, the number
of respondents who show that their businesses have been fully implemented got a
small proportion (2.6%) and still 18.6% others think that enterprises have not yet
conceived CSR towards employees.
- Evaluating through employee satisfaction
+ Cronbach's Alpha Reliability Factor
+ Linear regression analysis
We have the regression equation as follows:
Y = 0.224 + 0.366X1 + 0.270X2 + 0.253X3 + 0.171X4 (*)
The linear regression equation suggest the conclusions from the sample, the
job satisfaction of employees depends on the four elements of CSR towards
employees: economic responsibility, legal responsibility, ethical responsibility, and
philanthropic responsibility. Since all independent variables are measured by the
Likert scale (the same unit), thus from the regression equation, it can be seen that
the level of each factors’ influence on job satisfaction. In particular, the most
influence is economic responsibility, followed by legal responsibility, ethical
responsibility and charitable responsibility which have the lowest impact.
+ Test the hypothesis of the model:
Hypothesis H1: The economic responsibility of SMIEs is positively
correlated with job satisfaction of employees

Hypothesis H2: The legal responsibility of SMIEs is positively correlated
with job satisfaction of employees
Hypothesis H3: The ethical responsibility of SMIEs is positively correlated
with job satisfaction of employees.
Hypothesis 4: The philanthropic responsibility of SMIEs is positively
correlated with job satisfaction of employees
4.3. FACTORS AFFECTING THE IMPLEMENTATION OF CORPORATE
SOCIAL RESPONSIBILITY OF SMALL AND MEDIUM - SIZED
ENTERPRISES INDUSTRIAL ENTERPRISES IN THAI NGUYEN FOR
EMPLOYEES
4.3.1. Elements of the External Environment
4.3.1.1. Economic - political Environment
4.3.1.2. Legislation Environment
4.3.1.3. The Management of the Authorities
4.3.1.4. Civil Society Organizations
4.3.1.5. Public Opinion and the Press
4.3.2. Elements of the Internal Environment
4.3.2.1. Operational strategy and targets
4.3.2.2. Company financial position
4.3.2.3. Board of management
4.3.2.4. Each individual employees
4.3.2.5. Trade Unions
4.5.
GENERAL
ASSESSMENT
OF
CORPORATE
SOCIAL

RESPONSIBILITY OF SMALL AND MEDIUM - SIZED ENTERPRISES OF
INDUSTRIAL ENTERPRISES IN THAI NGUYEN PROVINCE FOR
EMPLOYEES
4.5.1. The results have been achieved
- The planning: the managers in all SMIEs know CSR and are aware of the
importance of implementing CSR for employees, from the implementation plan,
implementation, the contents of development, applying to the assessment,
inspection of the implementation of CSR for employees. Most SMIEs have leaders'
commitment to implement CSR for their employees. In addition, these companies
are endeavoring to obtain certificates of CSR Management Standards for
international employees that are primarily SA 8000 standards.
- The organization: Some SMIEs have recognized the importance of internal
communication in CSR for employees. The most popular forms of communication


are conferences, training, press, and radio on such topics as working time, working
environment, occupational safety, training, volunteer programs, and relief.
- The implementation: Among the responsibilities that Thai Nguyen SMIEs
need to implement for employees, ethical responsibility and philanthropic
responsibility are best implemented by enterprises. This shows that SMIEs in Thai
Nguyen have always paid attention to building and setting standards, moral values
and cultural standards so that everyone complies when working as a guideline for
all activities in the business.
- The implementation evaluation: The research results show that the
application of the standards set by the enterprises themselves is more effective than
the application of international standards. Research results also show that the
implementation CSR of Thai Nguyen SMIEs for employees has the same impact on
the job satisfaction of the employees. While the economic responsibility is most
influential, then to legal responsibility, ethical responsibility and finally
philanthropic responsibility.

4.5.2. Existing Limitations
- The planning: The development of the CSR plan for the employees has
been concerned by manager, the implementation plan has been proposed but not
detailed, not based on specific needs of the project each business to build. In
addition, many enterprises did not develop the implementation framework and
action plan as well as CSR implementation process for employees. In addition,
SMIEs do not have much budget to spend on CSR for employees.
- Implementation organization: Many enterprises do not have a specialized
unit which has responsibilities for management and implementation of CSR for
employees. Even enterprises do not organize human training to implement CSR for
employees.
- In terms of content: In the implementation of CSR for employees, only
foreign-invested enterprises and joint-stock companies are performing well CSR for
employees, while limited companies and private companies have not really invested
and focused on CSR implementation for employees.
- On performance appraisal: Effective application of CSR standards to
employees has been relatively low. The majority of managers claim that their
businesses carry out CSR inspections for employees every 6 months or once a year.
However, in practice, this activity has not been clearly implemented, is still
perfunctory, not regular and periodic so there are still many constraints needing to
solve in order to improve the CSR implementation of the enterprises with the


employees. Research results show that many SMIEs in Thai Nguyen Province have
not been responsible for economic and legal responsibilities of the employees. At
the same time, the level of economic responsibility and legal responsibility on job
satisfaction of employees is greatest.
4.5.3. Cause of Limitations
- Because the size of the research enterprise is small and medium - sized.
Therefore, these enterprises with limited financial resources, most of them are lack

of funds to implement CSR for employees, they cannot immediately install modern
and safety equipment, industrial waste treatment line, also protect the labors.
- Employees in research enterprises have low educational attainment,
occupying the majority of secondary and vocational college. This has a great impact
on the awareness and assessment of CSR implementation of SMIEs in Thai Nguyen
towards employees.
- The implementation of CSR of Thai Nguyen SMIEs for employees is not
consistently and consistently implemented.
- The effect of the law is low, the responsibility of the state agencies in law
enforcement is very faint.
- SMIEs in Thai Nguyen Province have difficulty in accessing information
on laws, Code of Conduct.
- The viewpoints, policies and mechanisms of the State and the Sector on
CSR implementation of enterprises towards employees have not been specified.
CHAPTER 5
MEASURES TO ENHANCE CORPORATE SOCIAL RESPONSIBILITY
OF SMALL AND MEDIUM - SIZED ENTERPRISES IN THAI NGUYEN
PROVINCE FOR EMPLOYEES
5.1. BACKGROUND IN AND OUTSIDE COUNTRIES AFFECTING
CORPORATE SOCIAL RESPONSIBILITY OF SMALL AND MEDIUM SIZED ENTERPRISES IN THAI NGUYEN INDUSTRIAL ENTERPRISES
FOR EMPLOYEES
5.2. THE CONCEPT OF ENHANCING CORPORATE SOCIAL
RESPONSIBILITY OF SMALL AND MEDIUM - SIZED ENTERPRISES IN
THAI NGUYEN INDUSTRIAL ENTERPRISES FOR EMPLOYEES
Viewpoint 1: The State guarantees to create a legal environment for SMIEs to
implement CSR for employees.


Viewpoint 2: There should be a coordinated mix of management levels, sectors and
within each enterprise to enhance CSR of SMIEs for employees.

Viewpoint 3: Thai SMIEs themselves need to be aware of the role and importance
of enhancing CSR for employees in operation and management of
enterprises.
Viewpoint 4: Employees themselves must have knowledge and positive attitude
towards enterprises in enhancing CSR for employees.
Viewpoint 5: Thai Nguyen province needs supportive policies to improve the CSR
of SMIEs for employees.
5.3. MEASURES TO ENHANCE CORPORATE SOCIAL RESPONSIBILITY
OF SMALL AND MEDIUM - SIZED ENTERPRISES IN THAI NGUYEN
PROVINCE FOR EMPLOYEES
5.3.1. Encourage enterprises to apply the Code of corporate social
responsibility for employees
First of all, enterprises need to collect enough information to choose which
standards is best suited to their business. They can choose from one of three series
of standards SA 8000, WRAP, OHSAS 18001. After that, the enterprises to set up
the roadmap to apply the standards in detail and concurrently with the commitments
of business leaders on the application of CSR standards to the employees.
5.3.2. Set up a specialized unit to carry out corporate social responsibility for
employees
For companies applying CSR standards for employees, this section will
develop the roadmap for application of standards. For companies that do not apply
CSR standards for employees, the specialized unit will develop CSR framework for
employees. Together with the director of the enterprise, the specialized unit is
responsible for setting up the CSR framework for employees in line with their
production and business activities.
5.3.3. Strengthening the training and retraining of human resources for the
implementation of corporate social responsibility of employees
To invest in the training of leaders of enterprises in a holistic and strategic
way on CSR for employees, such as identification of general directors, directors and
deputy directors in charge; Course duration may be from 1 to 3 days, once a year

should be opened once; Trainers who have many years experience in CSR, training
budget, training format, etc to help managers understand employees engagement
with CSR as well as how to engage employees in CSR.


5.3.4. Measures to enhance corporate social responsibility of small and medium
- sized enterprises in Thai Nguyen province for employees
5.3.4.1. Enhance economic responsibility for employees
*) Improve the payment mechanism for employees
The salary paid to the employee should be based on the equality agreement
between the employee and the business owner, which must not be contrary to the
current provisions of law and clearly stated in the labor contract. Particularly, there
should be commitments on the time of payment, how to pay to the employee should
be clear. Construction and registration of salary scale and payroll must be
completed in the provincial Department of Labor, War Invalids and Social Affairs.
When building payroll scales, the business owner should consult with the trade
union organization
and publish it at the workplace before proceeding.
*) Reward fund, welfare fund for employees
In order to achieve stable and sustainable development and well perform the
responsibility for employees in economic aspect, Thai Nguyen SMIEs should
deduct part of their profit after tax as bonus fund, welfare fund with The maximum
deduction rate of 5% (this rate is determined based on actual business situation each
year).
5.3.4.2. Enhance liability responsibility for employees
*) Health Care for Employees
Fully and seriously examine periodical health for employees. Once every six
months, the employee should have their health fully examined, if any signs of
occupational disease are detected, the employee must be properly treated and
transferred to other suitable job. This is a mandatory provision of the Enterprise

Law, especially for industrial enterprises.
*) Strengthening labor protection
Enterprises should issue documents stipulating administrative sanctions and
violations of labor protection law, such as the purchase of non-quality equipment,
Occupational safety training. To invest in the purchase of labor protection
equipment for employees, suitable for each job or profession.
5.3.4.3. Enhance ethical responsibility for employees
Developing and promulgating criteria for assessing the soundness of
industrial relations in these enterprises is essential. The system of labor relation
assessment standards may be piloted in a group of enterprises, which will then be
modified to suit the specific characteristics of the SMIEs and across the province.


5.3.4.4. Enhance phylanthrophic responsibility for employees
*) Improve and develop the personality and ethics of the employee
In addition to promoting the traditional values, it is necessary to overcome
the existing negative stereotypes in every SMIEs employee as constrained by old
habits and new problems, insufficient production habits calculating economic
efficiency, working style slowly.
*) Establish good relationship with the family
Businesses should pay close attention to the events of the family of
employees, such as birthday, funeral, summing up the school year by visiting,
sending gifts or sending representatives to visit the family of employees. In
addition, inviting families to participate in exchanges organized by enterprises such
as arts, festivals and tourism is an effective way to help members of the family
understand and stick with the company.
5.3.5. It is important to examine and evaluate the implementation of corporate
social responsibility of employees
Check the implementation of CSR for employees. In order to do this activity,
the enterprise needs to set up a supervision board, composed of CSR staff members,

employees, supervisors and NQL staff. Monitoring activities must be carried out
regularly.
5.4. SOME RECOMMENDATIONS
5.4.1. Continuing to amend and improve the legal system in the
implementation of enterprises' responsibilities towards laborers
- The State have to take strict remedial measures, strictly punish and prevent
SMIEs from evading CSR for employees.
- The State should add to the Labor Code the year-end bonuses which are
compulsory for enterprises and set the minimum reward level.
5.4.2. The state needs to support policies for enterprises to implement CSR for
employees
- Financial support for enterprises
- Training policies to improve the level and management skills for the staff
of state management
- Tax exemption for enterprises
CONCLUDE
The thesis "Corporate social responsibility of small and medium - sized
enterprises in Thai Nguyen province for employees" is an independent,
comprehensive and meaningful research project in both scientific and practical


aspects. Basically, the thesis has achieved the objectives of the research and
obtained the main results as follows:
- The dissertation has reviewed nearly 20 research projects in the world and
in Vietnam related to CSR of SMIEs for employees and the impact of CSR
implementation of enterprises on employees to satisfaction of work of employees. .
Thus, the dissertation shows that the implementation of CSR for employees is
discussed in different angles but no research has been conducted in Thai Nguyen
province and no research work approaching the economic aspect.
- The dissertation has systematized and clarified the concept of CSR for employees

with 4 aspects: economic responsibilities, liability responsibilities, ethical
responsibilities, phylanthrophic responsibilities. Accordingly, the CSR framework
for employees was identified to assess the implementation of CSR in Thai Nguyen
SMIEs for employees. In addition, the thesis also investigated the practical basis of
CSR implementation in SMIEs for employees in some countries with political and
economic similarities with Vietnam and Thai Nguyen, from which lessons learned
for Thai Nguyen province.
- The thesis uses different approaches in combination with quantitative and
qualitative methods, including Carroll's (1991) diamond model to make theoretical
modeling of the thesis.
- The results of the research on the actual situation of the thesis show that
SMIEs in Thai Nguyen province are always interested in building and setting
standards, ethical values and cultural standards so that all laborers comply with their
working conditions. First, as a guide for all activities in the business. As for the
economic responsibilities and liabilities of the employees, these enterprises are
showing irresponsibility. In addition, the implementation of CSR for employees in
the SMIEs in Thai Nguyen has not really been effective. Only JSCs and CSEs are
implementing CSR for employees, while limited companies and private companies
do not pay much attention to and invest much in this activity.
- The results of quantitative research show that the contents of CSR
implementation in Thai Nguyen SMIEs for employees have the same impact on the
job satisfaction of the employees. Where the economic responsibility is most
influential, then to legal responsibility, moral responsibility and finally charitable
responsibility.
- The thesis has identified the remaining constraints and find out the reasons
for the limitations in Thai SMIEs' implementation of CSR for employees due to
cognitive, legal personality.