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Original Research

THE IMPACT OF SUSTAINABILITY REPORTING ON CORPORATE SOCIAL RESPONSIBILITY AND BUSINESS PERFORMANCE - THE CASE OF LISTED COMPANIES IN VIETNAM

Dr. NGUYEN PHU GIANG 1, and Dr. HOANG THI TAM 2.

Vol 18, No 05 ( 2023 )   |  DOI: 10.17605/OSF.IO/62BHJ   |   Author Affiliation: Professor, Thuongmai University, Vietnam 1; Thuongmai University, Vietnam 2.   |   Licensing: CC 4.0   |   Pg no: 417-435   |   Published on: 15-05-2023

Abstract

Purpose - There have been many studies on sustainability reporting. Still, research on sustainability reporting about corporate social responsibility and business performance has not been conducted in Vietnam. The article outlines the underlying theories on the relationship between sustainability reporting, corporate social responsibility and business performance. The paper also identifies and measures the influencing factors of sustainability reporting on corporate social responsibility and business performance. The article concludes: The sustainability reporting statement helps businesses identify and manage sustainability-related risks, protect the sustainability of their business operations, and contribute to corporate social responsibility. Sustainability reporting helps increase the business's transparency and credibility to customers, investors and other stakeholders, helps to create brand value for the company, and helps firms enhance activities to improve business performance. It's high corporate social responsibility. By implementing corporate social responsibility well, businesses will create a positive working environment, increase labour productivity, reduce turnover, build a sustainable and long-term business model, create value for both the company and the community, enhance the brand and increase revenue and business performance. Among the factors affecting corporate social responsibility: The most significant influence is on risk management, then the commitment to customers and investors, and finally, strengthening relationships with stakeholders. Among the factors affecting business performance: The most considerable influence is corporate social responsibility, then the organization's reputation and creating brand value, meeting the requirements of customers and investors, and finally, the level of transparency and reliability of the information. Methodology - We collected data on 197 manufacturing firms in 6 sectors. This study's primary data analysis method is the structural equation modelling method (SEM). The article used AMOS software to evaluate and measure the influence of each factor of sustainability reporting on corporate social responsibility and business performance. Practical implications - The article has analyzed five aspects: Risk management (RM), transparency and trust (TT), responsiveness to customer and investor requirements (RCI), organizational reputation, brand value (ORB), and stakeholder relationships (STR) ). We also find that the independent variable risk management (RM) strongly impacts corporate social responsibility. Good risk management helps businesses develop sustainably, with high business efficiency, which motivates them to carry out social duties. In addition, the variable CSR - corporate social responsibility also has the most substantial impact on BP - Business performance. This is a reciprocal effect when businesses implement reasonable social duties to help create corporate reputation and value to attract customers and employees and improve business efficiency and Sustainable Development. Originality - This attests that the research paper I submitted is the result of my original and independent work. I have duly acknowledged all sources from which the ideas and quotations have been obtained. The project does not contain any plagiarism and has not been sent elsewhere for publication


Keywords

Sustainability Reporting, Corporate Social Responsibility (CSR), Business Performance (BE)