Abstract

Employee trust, satisfaction and corporate social responsibility are three aspects of the issue that create reputation, brand and quality of the enterprise. The article reviews studies to determine whether trust really affects the relationship between corporate social responsibility and employee satisfaction. The research uses the systematic review method and MaxQDA pro 2023 software to synthesize, classify and build a theoretical framework on the impact relationship of factors and develop a research model suitable for the Vietnamese context.

1. Introduction

In the current trend of international economic integration in Vietnam, the implementation of corporate social responsibility (CSR) is considered one of the mandatory requirements for enterprises if they want to succeed and reach out to integrate with the regional and world economy. Therefore, in addition to implementing CSR, enterprises also need to be aware of the benefits and contributions of CSR to the realization of sustainable development goals.

In addition, most studies often approach from the perspective of business benefits, there are not many studies from the perspective of employees. CSR has a significant impact on business operations through many different connections. In particular, the relationship between CSR and employee satisfaction (ES) is an aspect that needs to be considered more in the context of rapid economic development. The article examines the impact between CSR and ES through employee’s trust (ET) then find out practical solutions to promote the development of the company.

To clarify the above statement, this study focuses on an overview of domestic and foreign studies on the relationship between CSR and ES; the relationship between ET and ES; the relationship between CSR and ET. The study uses a systematic overview method and the MaxQDA pro 2023 software to synthesize, classify and build a theoretical framework on the impact relationship of these factors and develop a research model suitable for the Vietnames context.

2. Research Methodology

- Literature Review Method

The author conduct a literature review of classical research theories and studies both domestically and internationally on Corporate Social Responsibility (CSR) and the impact of CSR on employee trust and employee satisfaction.

The researcher collect materials from national database and research platforms such as ScienceDirect, ProQuest, Elsevier to search for academic papers and research studies on CSR and employee satisfaction, using keywords like “CSR,” “Impact of CSR on Employee Satisfaction,” “The impact of CSR on employee trust,” “CSR & Employee Satisfaction,” “Comparison Social Responsibility,” and “Employee Satisfaction.”

- Document Analysis Method

The research materials is systematically organized using the Mendeley citation software according to different groups and research themes. Once a relatively complete database is gathered, the author will read and categorize the issues into thematic groups using the coding feature in MaxQDA Pro 2023.

3. Concepts Related to Corporate Social Responsibility

Corporate social responsibility was recognized and discussed from the 1930s to 1953. In the book "The Responsibility of Businessmen" Howard R.Bowen ¹ officially laid the foundation for the theory of corporate social responsibility with sharp explanations calling on businessmen to pay attention to the relationship between businesses and social goals. Accordingly, CSR refers to the obligation of businesses to pursue policies, implement decisions, and take actions that are expected to achieve social goals and values. Over time, the concepts of CSR have been developed by foreign and domestic scholars in the direction of expanding and specifying its content: Sethi ² and Carroll ³ all have the same point of view that CSR is not an immutable rule, it will change to suit social expectations. CSR is a "dynamic" concept and has adaptation in each stage. Locke E ⁴ states that: “Corporate social responsibility is all the economic, legal, ethical and other issues that society expects at a given time.”

Since the 21st century, many researchers have mentioned the issue of environment and sustainable development when talking about the concept of CSR. Experts from the World Bank ⁵ stated: “Corporate CSR is the commitment of enterprises to contribute to sustainable economic development, through activities aimed at improving the quality of life of employees and their family members, for the community and the whole society in a way that is beneficial to enterprises as well as the general development of society. Stakeholder theory researchers stated: CSR aims to create and balance the different interests of enterprises and stakeholders.

According to Sybil et al ⁶: "Corporate social responsibility is the organization of actions to meet the interests of themselves and their stakeholders in the current generation without affecting the ability to ensure the interests of future generations". Social responsibility is compliance with the law and exceeding the requirements of current laws to achieve sustainable development goals. According to the European Union ⁷: "CSR is the process by which enterprises integrate social, environmental and ethical issues into their business activities and strategies in close interaction with stakeholders beyond the requirements of law and collective labor agreements". Based on the above statement, the concept CSR in this research is defined as follows: CSR is the commitment of enterprises to stakeholders to comply with and exceed the requirements of the law, thereby improving the quality of life of employees, implementing behaviors with partners, the community, and the environment in the direction of ensuring sustainable development.

From the above concept, it can be seen that: Firstly, enterprises have commitments to implement economic goals and must attach importance to commitments to implement social goals because these goals have a dialectical relationship, mutual impact, influence, and promote each other in the process of enterprise operations. Enterprises implementing CSR need to identify commitments and programs of activities to implement CSR associated with each related party in accordance with their capabilities and business strategies.

Second, corporate social responsibility needs to be placed in the relationship between the enterprise and its stakeholders such as employees, customers, shareholders, suppliers, and the environment. Stakeholders have contributed, invested, or have a decisive relationship with the survival and prosperity of the enterprise during its operations, so managers must consider the impacts of the enterprise on its stakeholders to maximize their benefits in the total value of the enterprise's benefits, thereby meeting the expectations of stakeholders in the sustainable development of the enterprise and society.

Third, comply with the law and exceed the requirements of the law. In which, compliance with the law is the legal obligation and requirement that every enterprise must comply with (signing labor contracts, paying wages, occupational safety and health, insurance, etc.) as well as exceeding compliance with the law (competitive wages, organizing recreational activities for employees, shareholders, partners to connect stakeholders, etc.) to ensure sustainable development for the enterprise as well as society.

Employee satisfaction

From different perspectives, researchers have proposed many concepts of Employee Satisfaction. Küskü ⁸believed that employee satisfaction reflects the needs and desires of individuals that are met and the employees' feelings about their jobs . Wright & Kim ⁹ also believed that the fit between employees' desires and what they feel from their jobs reflects employee satisfaction with their jobs. Many other researchers agree with the view that employee satisfaction with their jobs is a positive emotional state with their jobs that is expressed through their behaviors and beliefs ^{4, 10, 11}.

In addition, many researchers have stated that job satisfaction is job satisfaction with different aspects of the job. The level of satisfaction with those aspects of the job affects the attitudes and perceptions of employees Smith ¹¹. Smith's way of considering job satisfaction with many aspects has received much support from other researchers ^{13, 14}. Thus, we see two basic trends used in considering job satisfaction. First, considering job satisfaction as a general emotional variable of employees with the job, which can affect their beliefs and behaviors. Second, considering job satisfaction with many different aspects. This study considers employee job satisfaction by combining a comprehensive consideration and a job perspective.

Employee's trust

Employee trust in the organization is a multifaceted concept. Typically, Trust is often associated with human relationships and is one-sided. However, when considered within an organization, trust is perceived in a broader sense: (i) Trust in an organization is a consequence of human relationships within the organization at the same level and between different levels (group, superior-subordinate, unit, organization, external stakeholders); (ii) Trust in the organization is formed on the basis of organizational cultural values, characterized as behavioral standards (iii) Trust is a consequence of the communication relationship between individuals accurately, sincerely and openly ¹⁵

Employee trust in the organization plays a very important role in improving the performance of the organization ^{16, 17}. Organizations, whether large or small, operating within the international or domestic market, are very conscious of building and strengthening the trust of employees within the organization. When an organization has more trust, more energy and resources are released, the organizational structure will become more flexible and able to adapt better to market challenges and pressures; From there, operational efficiency will be higher.

4. The Impact of Corporate Social Responsibility on Employee Satisfaction

CSR for employees is the activities and policies in improving the quality of the working environment for the physical and mental safety of employees at the workplace and the working environment outside the business location. Therefore, CSR for employees is not only limited to the scope of the business but goes beyond the scope of the business, anywhere the business's employees work. Thang & Fassin ¹⁸ believe that CSR for employees is to create a balance between work and life, labor dialogue, fairness, objectivity, training and development for employees; protect health and safety at work through policies to improve the working environment, treatment, recognition of associations, trade unions as well as other rights of employees protected by law. Raihan & Al Karim ¹⁹ studied the impact of CSR on ES based on Carroll ²⁰ four aspects of social responsibility, showing that: charitable, ethical and legal responsibilities of CSR significantly and positively affect employees' job satisfaction, while economic responsibilities have a negative impact on ES at work.

In addition, Barakat et al ²¹ argue that CSR has a strong impact on ES, and corporate image plays a mediating role in this relationship. Therefore, implementing CSR will help businesses build a better image, thereby increasing employee satisfaction.

Huynh Quang Linh & Mai Trung Kien ²² studied the impact of CSR on ES in enterprises in Tra Vinh province. The study showed that the 5 components of CSR including: Responsibility to employees, Responsibility to customers, Responsibility to sellers, Responsibility to the environment and Responsibility to the community of the enterprise all have an impact on employee satisfaction. In which, the component of responsibility to employees has the strongest influence on

Ho My Dung ²³ studied the relationship between CSR, ES and employee loyalty found that responsibility to customers, employees and the environment has a positive impact on ES, legal responsibility has no impact on SE and SE has a positive impact on employee loyalty.

Research by ²⁴ on the impact of CSR on employee engagement at tourism service enterprises in Can Tho city. The research results show that three factors affect employee engagement: (1) responsibility to stakeholders; (2) responsibility to employees; (3) responsibility to the Government and local authorities. Specifically, the factor that has the strongest impact on employee engagement is responsibility to stakeholders (Shareholders, customers, suppliers, community), followed by responsibility to employees.

Bui Nhat Vuong ²⁵ examined the impact of CSR perception on job performance through the mediating role of job attitudes (including “employee engagement” and “job satisfaction”) under the moderation of the variable “income”. The results showed a positive relationship between CSR and job attitudes. This finding also implies that managers should develop appropriate CSR to improve employees’ job attitudes and positive behaviors.

Studies by Youn & Kim ²⁶, Nguyen Thi Hong Hanh & Nguyen Thi Kim Thoa ²⁴; Ho My Dung ²³, Hoang Thi Phuong Thao ²⁷ all found that implementing social responsibility outside the enterprise not only towards customers and partners but also towards the community and locality, this contributes significantly to building trust and image of the enterprise among employees.

Overall, research shows that employees are an important part of CSR implementation. Internal CSR directly affects employees through factors such as salary, benefits, and safe working conditions. When companies focus on these aspects, employees have more confidence and satisfaction with their jobs, thereby creating engagement and loyalty. On the other hand, when businesses implement external CSR to customers, partners, communities, and society, it helps create a positive image for the organization, and this contributes to creating pride and employee commitment to the organization.

5. The Impact of Social Responsibility on Employee Trust

Phạm Viet Thang ²⁸ shown that all factors training and development, health and safety, work, dialogue, and treatment have a positive impact on satisfaction. The factors of work and health and safety do not have enough basis to conclude that they affect trust; The factor of trust has a positive impact on satisfaction; Both factors of satisfaction and trust have a positive impact on commitment.

According to the study by Cho et al., ²⁹ which examined the relationship between organizational trust and CSR, it was found that economic responsibility, philanthropic responsibility, and ethical responsibility have a positive impact on organizational trust. Organizational trust has a positive impact on job satisfaction. Finally, CSR affects employee trust through economic responsibility.

Lê Thu Hanh ³⁰ studied the relationship between CSR and employee trust and commitment to the Company. The results showed that Charitable Responsibility; Economic Responsibility; Legal Responsibility; Ethical and Social Responsibility are 4 factors that have a positive impact on Employee Trust and Commitment.

6. Mediating Effect of Employee Trust on Employee Satisfaction

Truc Phuc‘*’et al., ³¹ studied the impact of CSR on employee trust and satisfaction in SMEs in Ho Chi Minh City. The results showed that ethics and legality have a significant impact on employee trust and satisfaction. At the same time, CSR plays a mediating role in promoting employee organizational trust and leading to their satisfaction.

Lee et al ³² when surveying casino employees in Korea to examine the impact of CSR on casino employees, organizational trust, job satisfaction, and customer orientation. The results indicated that legal CSR and voluntary responsibility in gambling had an impact on organizational trust, while mandatory responsibility in gambling had a negative impact on organizational trust. In addition, it appeared that organizational trust largely influenced job satisfaction and customer orientation.

Cho et al., ²⁹ also showed that employees' trust in the organization has a positive impact on job satisfaction in CSR activities.

Liu et al., ³³and Zanabazar & Sodov ³⁴ also pointed out the positive relationship between employee trust and job satisfaction. Accordingly, employee trust plays a key role in shaping their level of satisfaction with their jobs. When employees trust their leaders and fairness, they will feel secure. Trust will create a positive, open and dedicated working environment. Trust also helps reduce stress and anxiety, thereby improving work morale and commitment to the organization. On the contrary, when trust is eroded, employees will feel insecure, lose motivation and easily look for job opportunities elsewhere. Therefore, building and maintaining trust is an important factor in ensuring employee satisfaction at work.

In addition, when businesses perform well in activities such as environmental protection, community support and business ethics, they not only build prestige with society but also create pride for employees. When employees see that the business is responsible and makes positive contributions, they will believe in the values hat the organization pursues, thereby being more satisfied and committed. CSR not only enhances the image of the business but also motivates and inspires employees to contribute long-term.

7. Research Gaps and Issues

- Theoretical gap :

Up to now, there have not been many studies on the impact of CSR on employee satisfaction through the mediation of employee trust. Therefore, the results of the study will supplement the theory related to CSR in general and CSR for employees in particular.

- Time gap :

First, many previous studies used old data that did not reflect the post-COVID-19 pandemic changes, when CSR became more important for employee well-being and safety. In addition, most studies only analyzed short-term impacts without considering the long-term effects of CSR on satisfaction over time. Furthermore, few studies have compared the effects of CSR in different economic periods, such as before and after the economic crisis. Finally, employees’ expectations of CSR may have changed, from traditional factors such as compensation to sustainable values and social equity, but have not been fully studied. Therefore, updated data, time-series analysis, and consideration of changes in expectations are needed to fill this gap.

- Practical gap :

Many current studies may not have focused on assessing the impact of CSR through factors such as employee trust and corporate image on job satisfaction and motivation. These empirical gaps indicate that studying the impact of CSR on employee satisfaction can provide new and useful insights, helping to improve CSR policies and enhance employee satisfaction.

8. Proposed Research Model

The study identifies the impacts of CSR on employee satisfaction across stakeholders through employee trust. Existing studies may not focus on assessing the impact of CSR through factors such as employee trust. This includes how trust in CSR policies affects employee satisfaction and motivation. These empirical gaps indicate that studying the impact of CSR on employee satisfaction can provide new and useful insights, helping to improve CSR policies and enhance employee satisfaction.

The author proposes the following research model:

Reseach Hypothesis:

Hypothesis 1: Employees' awareness of corporate social responsibility towards (a) employees (b) customers and partners (c) community has a positive impact on employees' trust in the organization.

Hypothesis 2: Employees' awareness of corporate social responsibility towards (a) employees (b) customers and partners (c) community has a positive impact on employee satisfaction.

Hypothesis 3: Employee trust has a positive impact on employee satisfaction

ACKNOWLEDGMENT

The author would like to express sincere thanks to my colleagues, who supported me in data collection and shared valuable ideas, helping me complete this research.

References