Impact factors on the adoption of corporate social responsibility: Empirical evidence from an emerging market

Abstract

The adoption of corporate social responsibility (CSR) practices has been recognized as a significant contributor to the success of companies. Companies that engage in CSR initiatives can achieve positive outcomes that align with economic, social, and environmental goals while maintaining a long-term perspective (Nimani et al., 2022). CSR has become an increasingly important issue for businesses in Vietnam, and several factors have been identified as significant predictors of CSR adoption by Vietnamese-listed enterprises. This study examines the impact of the size of the enterprise, corporate governance, owner structure, board gender diversity, business industry, innovation, and knowledge of environmental, social, and governance (ESG) issues on CSR adoption. The study finds that the size of the enterprise is positively related to CSR adoption. Additionally, corporate governance structures that prioritize stakeholder interests tend to promote greater CSR adoption, while a diverse ownership structure and a higher representation of women on corporate boards also positively influence. Companies in certain industries tend to adopt CSR more readily. Moreover, the study highlights the positive impact of innovation and knowledge of ESG issues on CSR practices. These findings provide valuable insights into the factors that contribute to CSR adoption and suggest that targeted interventions may be necessary to encourage more widespread adoption of CSR practices. Further research is needed to explore these factors in greater depth and to develop effective strategies for promoting CSR adoption in Vietnam.