THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND

EMPLOYEE ORGANIZATIONAL COMMITMENT IN MULTINATIONAL CORPORATIONS

IN HO CHI MINH CITY
Abstract
Based on the theoretical background in previous studies and the increasing context of personnel turnover
in multinational companies, the authors conduct this study with the research objective: test and measure the
impact of Corporate Social Responsibility (CSR) on employee’s organizational commitment through the effect
of organizational identification and organizational trust. The SEM model was used to analyze the data, which
was collected from 271 employees working in multinational corporations in Ho Chi Minh City. The study also
discusses and provides some governance implications to help MNCs improve their social responsibility towards
social and non-social stakeholders, employees, customers and the government as well as increase employee
organizational engagement through identification and trust in the organization.
Keyword: Corporate social responsibility, employee organizational commitment, organizational
identification, organizational trust.

1. Introduction
Along with the increasing integration of the economy, Vietnam has led to the development and
multiplication of multinational companies in recent years, which has attracted a large number of Vietnamese
qualified human resources. These companies have had a long development process and possessed many resources
in terms of investment, finance, technology, customers and available market share, etc., so they could easily gain
many advantages in competition in attracting and recruiting human resources. However, retaining human
resources after recruitment is always a difficult problem for most multinational companies operating in the
Vietnamese market because the personnel transition between businesses is becoming more popular than ever.
Therefore, multinational companies, whether operating in the same field or not, compete with each other in
holding on to talent.
Realizing that the demand for human resources, especially highly qualified human resources, is increasing,
many companies gradually change their priority and put a strong human resource as their top concern. With the
shortage of qualified personnel in Vietnam, the problem of retaining good employees becomes even more a
concern of businesses. The questions for these businesses are: How to retain employees? How to increase
employee commitment in the organization?
One of the policies that most multinational companies have implemented in the world as well as are widely
applied in Vietnam to solve the above questions is applying corporate social responsibility (CSR) in business
activities. The influence of CSR on organizational commitment is one of the topics attracting the attention of
many researchers in the world. Several scholars have revealed a direct relationship between CSR and employee
organizational commitment (Ali et al., 2010; Mozes et al., 2011; Mueller et al., 2012; Wong and Gao, 2014;
Ditlev Simonsen, 2015; Bouraoui et al., 2019). However, a number of studies suggest the intervening mechanisms
in this relationship such as trust in the organization (Farooq et al., 2014), corporate culture (Wong and Gao, 2014),
job satisfaction (Rahman et al., 2016), employee engagement (Gupta, 2017) and perceived organizational support
(Bouraoui et al., 2019). At present, in the context of the severe impact of the global Covid-19 pandemic, the study
of employee organizational commitment has become a topic of interest to many authors (typically such as Hassan
Ismail, Lubaba Sukkar (2020)). In addition, compared to other countries, the quantity of research on the
relationship between CSR and organizational commitment in Vietnam is still very limited. In which, some high
qualified studies can be mentioned as researches by Luong (2019); Bui and Nguyen (2020); Pham (2020); Tran
Nguyen (2021). Most research uses the SEM model to examine the relationship between CSR and other variables
affecting employee commitment in the company.
 In general, previous studies mainly evaluated the impact of CSR on employee-related variables individually,
but did not show the impact of CSR on employee-related variables in a synchronous system. Moreover, most of
the reviewed studies above only use a single mechanism - Social Identity Theory (SIT), to assess the impact of
CSR on employee attitudes, behaviors and employee commitment, instead of accessing these relationships by
multiple mechanisms. Along with the increasing interest in the topic of the relationship between CSR and
organizational commitment, similar studies on this topic are also expanded to be considered in many fields,
nations and regions. However, most of those are examined under developed countries or developing countries in
the South East and Middle East with strong influence of religion. Therefore, the model and research results are
difficult to be consistent and applied directly to businesses in Southeast Asian countries like Vietnam.
In Vietnam, the studies are mainly approached from an organizational perspective with related issues such
as business performance, customer loyalty. Meanwhile, the value of CSR associated with personal values of
employees that makes changes in attitudes and behaviors of employees has not been approached in a diversified
way. Most of those only consider the end result in terms of employee performance instead of organizational
commitment. Furthermore, most of these studies exploring this relationship only evaluate the direct impact of
CSR perception on employee commitment, without explaining how this effect occurs. In addition, studies on this
topic in Vietnam do not analyze the commitment originated from the benefits they may receive from the
organization in the future, but mainly emphasize commitment derived from the inspiration, passion and
enthusiasm that the organization can instill in employees. Therefore, the applied research on the relationship
between CSR and employee commitment carried out with multinational corporations or large-scale enterprises in
Vietnam are also limited. This is also the research gap that this study aims to bridge. More specific, the study will
evaluate the current state of social responsibility of multinational companies in Ho Chi Minh City as well as the
level of employee commitment in their organizations. At the same time, the study also explores the relationship
between these two factors and the mediating factors affecting that relationship. The obtained results promise to
be able to provide the managers and human resource departments with a deeper insight into the impact of CSR
on organizational commitment of employees. From there, recommendations for managers and human resource
departments are raised to set appropriate orientations and policies in human management to retain the right
employees.

2. Literature review
2.1. CSR and organizational commitment
In the study of the relationship between CSR and organizational commitment, many authors have
considered the impact of social responsibility on employees in two aspects. The first aspect concerns prospective
employees, after analyzing previous studies, the authors believe that social responsibility creates a good reputation
for businesses, thereby increasing the magnetism to attract new applicants for a job in this organization. The
second aspect, which regards current employees, suggests that business initiatives in social responsibility are in
turn associated with improvements in employee engagement and loyalty as well as business performance
(Maignan et al., 1999, Turker, 2009, Nejati and Ghasemi, 2013). The research results show that social
responsibility plays an important role in enhancing employee's commitment to the organization. Additionally,
Mehmood, K.K.; Rasheed, R.; Jaan, J (2020) stated that employees feel very comfortable and committed when
their employers support them in performing the community-based activities. Therefore, hypothesis H1 is proposed
as follows:
Hypothesis H1: CSR has a positive impact on organizational commitment.
2.2. CSR and organizational identification
Research based on social identity theory (Tajfel and Turner, 1979) shows that CSR creates employees'
desire to identify themselves with their organization due to its prestigious image. That is, CSR actions have a
direct influence on employees' organizational identification (Jones, 2010; De Roeck et al., 2014). Current studies
on micro-CSR recommended that CSR has great influence on organizational identification of the employees
(May, A.Y.C. et al., 2021). CSR activities increase the brand value of the business but at the same time it will
make employees feel proud of their business (Thi Thu Hoai Nguyen et al., 2020). Furthermore, because CSR
actions enhance the image of the company, employees feel proud to be associated with it, which enhances their
self-worth and self-esteem, whether the actions CSR focuses on social or non-social stakeholders or customers.
It is for the reasons mentioned above that hypothesis H2 is proposed as follows:
Hypothesis H2: CSR has a positive impact on organizational identification.
2.3. CSR and organizational trust
Social Exchange Theory (SET) emphasizes that social behavior is the result of an exchange process (Blau,
1964). The exchange refers to a reciprocal behavior (Konovsky and Pugh, 1994). Specifically, if employees feel
happy when they are working for the organization, they are likely to actively support the organization as a mutual
social exchange. Trust is gradually formed through the process of social exchange between employees -
management and is significant in forming relationships (Blau, 1964).
Based on the reciprocal principle of social exchange theory, when an organization is socially responsible
and engages in voluntary acts in support of its employees and other stakeholders, employees will feel responsible
for performing reciprocal acts for those actions. In many cases, CSR affects employees' trust in the organization
through a direct social exchange relationship, that is, because the organization's voluntary behaviors are focused
on employees’ rights and interests, employees eventually feel they are directly receiving those benefits and feel
the need to return the favor of the organization.
A business that participates actively in CSR activities will simultaneously have structure and culture
influenced by these values. This also reinforces employees' perception that their organization will maintain a
positive working environment even in the future and that the organization will care about the values and well-
being of employees in the workplace, thus, employees will ultimately feel confident in the organization they work
for (Collier and Esteban, 2007). With environmentally responsible, social, community, supplier and customer
actions will create a good impression on employees about the company's business ethics so they feel confident in
organizations (Thi Thu Hoai Nguyen et al., 2020). Based on the arguments given above, hypothesis H3 is proposed
as follows:
Hypothesis H3: CSR has a positive impact on organizational trust.
2.4. Organizational identification and organizational commitment
Reality proves that organizational identification is a consequence that individuals achieve while working,
but has not yet proven that this is an antecedent to self-discipline. Although voluntarily participating in completing
job duties has similar meanings when assessing a person's work motivation, in fact, individuals who work
voluntarily bring more positive and effective results than those who do passive work. In other words, engaged
employees understand the organizational culture, enjoy their work, and dedicate themselves to work, while
individuals who see work as an obligation do not (Anaza and Rutherford, 2012). In this study, we will focus on
the aspect of organizational identification which is the feeling of belonging and the affective aspect of
organizational commitment. Hypothesis H4 is proposed as follows:
Hypothesis H4: Organizational identification has a positive impact on organizational commitment.
2.5. Organizational trust and organizational commitment
Since CSR investments are focused on employees as well as other stakeholders signaling that the
organization is caring, benevolent, and generous, a company with CSR policies and actions will appear to care
about its employees. These positive expectations create an organizational trust (Robinson, 1996). Thus,
organizational trust can be a possible direct result of a company's CSR policies and actions. Rogers (1995) argues
that trust is a fundamental characteristic of the ideal work environment. Trust between the parties is the driving
force of the relationship that increases the ongoing expectation and intention to cooperate (Anderson and Weitz,
1992; Ganesan, 1994; Andaleeb, 1996). Therefore, organizational trust is of great importance to the success of
the organization and it can bring great advantages to the organization. The success, effectiveness, and efficiency
of an organization largely depend on employees' trust in the organization they are working for. Many studies have
emphasized the importance of trust as the main antecedent of emotional attachment as studied by Kim and Frazier
(1997); Ruyter and Wetzels (1999); Bansal et al (2004). Because of the above reasons, hypothesis H5 is proposed
as follows:
Hypothesis H5: Organizational trust has a positive impact on organizational commitment.
2.6. Mediation role of organizational identification between CSR and organizational commitment
According to the Social Identity Theory of Tajfel and Turner (1979), when people feel that they are
members and belong to specific organizations, they tend to feel proud of their organization and align themselves
with those organizations and positive self-identity will be developed (Van Dick, Crawshaw, Karpf, Schuh and
Zhang, 2020). Shahzadi, Qadeer, John, and Jia (2019) emphasized the significance of this theory in organizations
when mentioning that people will view it positively when they perceive their organization is valuable or admired
by the public''. Thus, Social Identity Theory is used to explain the effect of organizational identity on the
relationship between CSR and employee organizational commitment.
Addtionally, Pratt (1998) specifically suggests that organizational identification is a perceptual construct
that induces attitudes such as affective attachment. In the research paper made by Farooq et al (2013), they also
mentioned that employees who identify themselves with the company commit for the sake of identification and
maintain their external credibility and internal respect. A company's positive reputation, which enhances
employee self-esteem and meets social identification needs, keeps employees committed to that company.
Moreover, employee commitment increases with the level of CSR initiatives, because employees increasingly
feel proud to identify with the company. When employees are proud of their organization, they commit themselves
to stick with the organization and accompany it in all circumstances (Thi Thu Hoai Nguyen et al., 2020).
Hypothesis H6 is proposed as follows:
Hypothesis H6: Organizational identification mediates the relationship between CSR and organizational
commitment.
2.7. Mediation role of organizational trust between CSR and organizational commitment
Based on the study of Farooq et al. (2013), we believe that CSR affects emotional attachment through the
mediating role of organizational trust because trust is a direct consequence of CSR policies and actions. CSR
policies are voluntary investments by companies for the benefit of communities, consumers, and employees.
These investments for the benefit of others are signals that reflect expectations that the company will treat
employees with the same level of care and benevolence in the future. Therefore, employees will return these
voluntary investments by the organization with trust in the organization through a process of reciprocal social
exchange. This exchange process also leads to the emotional attachment between employees and the organization.
Since organizational trust is an employee's belief in the likelihood that the company's future actions will benefit
and benefit them, trust must be a direct result of CSR policies, which in turn employees are increasingly
committed to their organizations. Studies by Faroof et al. (2013), Aryee et al. (2002), Farndale et al. (2011),
Ruppel and Harrington (2000), etc. Faroof et al. (2013) have successfully demonstrated the role of mediator of
organizational trust in the relationship between CSR and emotional attachment to the organization. Creating trust
for employees is very important, since the business activities face a lot of risk factors. Today, the company may
be huge, but tomorrow we may fall into bankruptcy. Without employees accompanying the company in
difficulties, it is difficult for the company to develop sustainably. Especially in the context of the current Covid
19 pandemic, it is very important (Thi Thu Hoai Nguyen et al., 2020). Because of the above reasons, hypothesis
H7 is proposed as follows:
 Hypothesis H7: Organizational trust mediates the relationship between CSR and organizational
commitment.
From the mentioned hypotheses, the authors propose the following research model:

CSR to
social and
non-social
Organizational
Identification
(H6)
CSR to H2 (+) H4 (+)
employees
Organizational
H1 (+)
Commitment

CSR to H3 (+) H5 (+)

customers
Organizational
Trust
(H7)
CSR to the
Government

Figure 1. Proposed research model

3. Method
Scales are built based on a combination of prestigious empirical studies in the world related to the topic of
the relationship between CSR and employee commitment. Specifically, corporate social responsibility (CSR),
employee commitment, organizational identification, and organizational trust are respectively referenced by the
research from Turker (2009), Meyer et al. (1993), Mael and Ashforth (1995), and Pivato et al. (2008).
Based on the theory and previous related studies, we conducted individual interviews to test the clarity of
the survey questionnaire in terms of semanteme, expression, and structure to make adjustments before carrying
out quantitative research and adjusting the scales from previous foreign studies to be appropriate in Vietnamese
context.
Research data is collected by survey method. We conducted the survey by sending online questionnaires
directly to employees at multinational companies in Ho Chi Minh City. After that, Cronbach's Alpha coefficient
analysis technique is applied to measure the reliability of the scales. Next, this study used EFA exploratory factor
analysis technique by Principal Components factor analysis method with Varimax rotation, then conducted
confirmatory CFA factor analysis and linear structural equation modeling SEM.
All of the scales are inherited from prior studies which have been evidenced with high reliability and
validity. Details of items for each scale are presented in Table 1 below.
 Table 1. Table of variables in the model after adjustment

Scale, sub-scales and items Author

Corporate Social Responsibility - CSR

CSR to social and non-social stakeholders (CSRS)

Our company participates to the activities which aim to protect and

CSRS1
improve the quality of the natural environment

Our company marks investment to create a better life for the future
CSRS2
generation

Our company implements special programs to minimize its

CSRS3 Turker (2009)
negative impact on the natural environment

Our company targets a sustainable growth which considers to the

CSRS4
future generations

Our company supports the non-governmental organizations

CSRS5
working in the problematic areas

CSR to employees (CSRE)

Our company encourages its employees to participate to the

CSRE1
voluntarily activities

Our company policies encourage the employees to develop their

CSRE2
skills and careers

The management of our company primarily concerns with

CSRE3 Turker (2009)
employee’s needs and wants

Our company implements flexible policies to provide a good work

CSRE4
and life balance for its employees

The managerial decisions related with the employees are usually

CSRE5
fair

CSR to customers (CSRC)

Our company protects consumer rights beyond the legal

CSRC1
requirements

Our company provides full and accurate information about its Turker (2009)
CSRC2
products to customers

CSRC3 Customer satisfaction is highly important for our company

 CSR to the Government (CSRG)

CSRG1 Our company always pays taxes on a regular and continuing basis

Our company complies with the legal regulations completely and Turker (2009)
CSRG2
promptly
Organizational Commitment
I feel happy to spend the rest of my career with my current
OC1
organization

OC2 I see the company's problems as mine Meyer et al.

(1993)
OC3 The organization I work for means a lot to me personally

OC4 I don't feel like I belong to this organization

Organizational Identification
When someone criticizes the organization, it feels like a personal
OI1
insult

OI2 I am very interested in what others think about the organization Mael and
When I say about the organization, I usually say “we” rather than Ashforth (1995)
OI3
“they”

OI4 The organization’s successes are my successes

Organizational Trust
OT1 I trust my organization
Pivato et al.
OT2 I can count on my organization
(2008)
OT3 My organization is reliable

4. Results
4.1. Descriptive statistics of the study sample
After the process of synthesizing and checking survey data, the authors selected 271 valid samples out of a
total of 292 surveyed samples, ensuring that the sample size is larger than the minimum sample size (n = 150) for
this topic, including 129 men and 142 women. University education level is 182 observations, accounting for
67.2%. The number of years working for more than 5 years is 74 people, from 3 to 5 years is 87 people and under
5 years is 110 people. This observation sample is mainly employees with 146 people, accounting for 53.9%, junior
managers are 62 people, middle managers are 49 people and senior managers are 14 people.
4.2. Evaluation of scale reliability by Cronbach's Alpha
Based on the aggregated results in Table 3, all Cronbach's Alpha coefficients are greater than 0.6; enough
conditions to ensure the consistency of these scales (Hoang Trong and Chu Nguyen Mong Ngoc, 2008).
Moreover, the correlation coefficient of the total variables of the observed variables all met the requirements of
greater than 0.3. From the above two statements, it can be confirmed that the factors satisfy the criteria of
Cronbach's Alpha test and meet the reliability to conduct the next analysis.
Table 3. Cronbach's Alpha test results

Total variable
Variable
correlation
CSR to social and non-social stakeholders (CSRS): Cronbach’s Alpha = 0.709
CSRS1 0.463
CSRS2 0.401
CSRS3 0.513
CSRS4 0.454
CSRS5 0.502
CSR to employees (CSRE): Cronbach’s Alpha = 0.681
CSRE1 0.329
CSRE2 0.434
CSRE3 0.509
CSRE4 0.419
CSRE5 0.497
CSR to customers (CSRC): Cronbach’s Alpha = 0.715
CSRC1 0.500
CSRC2 0.553
CSRC3 0.553
CSR to the Government (CSRG): Cronbach’s Alpha = 0.780
CSRG1 0.649
CSRG2 0.649
Organizational commitment (OC): Cronbach’s Alpha = 0.842
OC1 0.677
OC2 0.669
OC3 0.746
OC4 0.624
Organizational identification (OI): Cronbach’s Alpha = 0.840
OI1 0.746
OI2 0.742
OI3 0.672
OI4 0.576
Organizational trust (OT): Cronbach’s Alpha = 0.919
OT1 0.853
OT2 0.807
OT3 0.867
Source: Results from SPSS 20, 2022
4.3. Exploratory factor analysis (EFA)
 The results of exploratory factor analysis for independent measures, dependent variables and intermediate
variables all show that the KMO value is less than 0.5, the Bartlett test is statistically significant with a significance
level of 5%. All observed variables have Factor loading greater than 0.5 and no observed variables simultaneously
upload two factors to ensure the convergence of the scale.
4.4. Confirmatory factor analysis (CFA)
Based on the results of EFA analysis, the authors conducted an evaluation of the CFA model fit indexes.
From the test results, we get the following values:
- Chi-square/df value equal to 2.96 is less than 3;
- CFI equal to 0.82 greater than 0.8;
- GFI equal to 0.84 is greater than 0.8;
- TLI equal to 0.82 greater than 0.8;
- RMR equal to 0.036.
According to Baumgartner and Homburg (1996), all of the above indexes are in the range of 0.8 and 0.9,
which still ensures the appropriateness of the model in the CFA analysis. In addition, in the IS research journal,
the authors stated that RMR < 0.05 is suitable for the model (Taylor, Sharland, Cronin and Bullard, 1993).
Therefore, it can be confirmed that the research model meets the criteria of the model in accordance with the
collected data set. In addition, the scales all meet the requirements of reliability, convergence value, discriminant
value and unidirectionality.
4.5. Structural equation modeling analysis
Table 4. SEM model estimation results

Unstandardized Standardized Hypothesis

Relationship P-value
estimate estimate
OC <--- CSR 0.339 0.138 0.014 H1 is confirmed
OI <--- CSR 1.000 *** *** H2 is rejected
OT <--- CSR 1.707 0.195 *** H3 is confirmed
OC <--- OI 0.354 0.048 *** H4 is confirmed
OC <--- OT 0.362 0.053 *** H5 is confirmed
Source: Result from AMOS 24
Bảng 5. Squared multiple correlation result

Estimate (R2)
Organizational trust (OT) 0.575
Organizational identification (OI) 0.284
Organization commitment (OC) 0.947
Source: Results from AMOS 24, 2022
In the proposed research model, the authors consider the relationship of CSR for two intermediate factors,
organizational trust and organizational identification, and consider the direct relationship of CSR to employees.
The dependent factor is the organizational commitment. The estimated results show that the impact relationship
of CSR is only statistically significant to one of two intermediate factors, namely organizational trust and
organizational commitment at the 5% significance level. While the impact of CSR on the remaining intermediary
factor is organizational identification, there is no statistical significance at 5% significance level. In which,
organizational trust is the most affected by CSR (β = 0.195) and CSR also helps to explain 57.5% of variation in
organizational trust factor.
 In addition, for the impact relationship of two intermediate factors, namely organizational trust and
organizational identification on employee's commitment to the organization, the estimated results show that both
factors organizational trust and organizational identification both have a statistically significant impact on
organizational commitment at 5% significance level. In general, among the three factors that have a direct impact
on organizational commitment, CSR, organizational trust and organizational identification, organizational trust is
the most important factor affecting employee organizational commitment. Moreover, these three factors also help
to explain 94.7% variation in employee's organizational commitment.
From the above results, it can be concluded that organizational trust has a mediating role in the relationship
between CSR and organizational commitment. Therefore, CSR has an impact on employees' organizational
commitment in both direct and indirect ways.
5. Conclusion
The main objective of this study is to examine the influence of CSR on employee engagement with the
organization, through the mediating role of trust and organizational identity based on social identity theory and
social exchange theory. The results after running the SEM linear structural model show that CSR really has a
positive relationship with organizational commitment both directly and indirectly through the intermediary
variable of organizational trust at the significance level 5%. Out of all 7 proposed hypotheses, only 2 are rejected,
that is, CSR has a positive impact on organizational identification and organizational identification plays an
intermediary role in the relationship between CSR and employee engagement. Although not acting as a mediator,
organizational identification still positively affects employees' emotional attachment to the organization.
If employees really identify themselves with the organization, they will become really attached to it.
Specifically, Farooq et al. (2013), Abdelhakim, A. S. et al. (2022), Erum Shaikh et al. (2022) and Thi Thu Hoai
Nguyen (2020) demonstrated that organizational identification also plays a significant role in mediating between
CSR and organizational commitment. However, this conclusion is not consistent with the study using the same
model conducted in the context of this research – Ho Chi Minh City. It can be said that the CSR of multinational
enterprises in Ho Chi Minh City has not really made employees identify themselves with the company. Therefore,
the difference in the conclusions of the two studies can be explained by the Vietnamese people who come from a
backward agricultural country and the economy is mainly controlled by the State and they are not really familiar
with diverse cultures provided by multinational companies. The influx of multinational companies into our
country has blown a new wind for the Vietnamese economy in general and Ho Chi Minh City in particular. Part
of it is also because the values these companies pursue, as well as the environment and work culture they spread,
do not fit perfectly with Vietnamese culture. Therefore, through the CSR policy, people are not ready to identify
themselves with the organization.
Overall, although CSR is a modern concept that is not yet fully understood and implemented in developing
countries, the strong impact of CSR in multinational companies along with organizational trust and organization
identification, compared with previous studies conducted in a Western context, implies that Ho Chi Minh City
residents highly value a company's CSR actions to social stakeholders and non-society, employees, customers
and government. One possible explanation could be that the overall level of CSR in Vietnam is quite low
compared to the level in Western countries, which is likely to make multinational companies with CSR stand out
in the community. These companies are often particularly reputable businesses. Although the studies that the
authors refer to were conducted abroad, the sampling and research methods are similar to the studies in Ho Chi
Minh City. This is also a suggestion for foreign businesses with headquarters, branches and offices in Vietnam to
consider developing appropriate CSR policies to retain long-term employees because this human resource
problem is growing rapidly and received great support from major corporations in the world.
Besides the above-mentioned results, the study still has some limitations. Firstly, the study uses a non-
probability sampling method, convenient sampling, so the sample representativeness is not high and does not
accurately reflect the crowd. Second, this study only studied affective attachment, so the following studies will
be of higher value if they analyze the influence of CSR on all three aspects of attachment, including sentiments,
interests and morals. These limitations will be the motivation as well as the target for future research directions.

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