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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 9 Issue 13 pp. 2215-2228 , 2019

Corporate social responsibility, balanced scorecard system and financial performance in the service sector: The case of Vietnam Pages 2215-2228 Right click to download the paper Download PDF

Authors: Danh Nguyen, Thanh Ngo, Ron Nguyen, Huy Cao, Huy Pham

DOI: 10.5267/j.msl.2019.7.031

Keywords: Balanced Scorecard System(BSC), Corporate Social Responsibil-ity (CSR), Service sector, Vietnam

Abstract: This study attempts to provide empirical findings for the advantages of implementing Bal-anced Scorecard System (BSC) combined with Corporate Social Responsibility (CSR) for ser-vice providers in determining the effects of BSC and CSR on businesses performance (BP). The concept of BSC is employed to evaluate the perceived importance of the relationship between the BSC and BP to facilitate the goals of service providers. BSC covers key perspectives, including financial perspective, customer perspective, internal process perspective, growth and ideal learning perspective towards service quality. CSR can influence goals of business directly and indirectly by different paths, including: Firstly, from CSR to Goals directly; secondly, from CSR to the Financial dimension and then to Goals; thirdly, from CSR to Learning & Growth and to Goals; and fourthly, from CSR through Learning & Growth, including causal relationship effects that affect the Financial dimension, then to Goals. To achieve the objectives, the study designs a questionnaire and distributes it randomly to three major groups of stakeholders (i.e., two hundred customers, seventy employees and thirty managers). This study uses CSR variable and BSC perspective variables which is frequently employed to assess the performance of financial perspective, customer perspective, internal business process perspective, learning and growth perspective. Using ordinary least squares regression and the sample of three groups of stakeholders, the results show that the changes towards sustainability occur in this country. The stakeholders of firms hold the perception that CSR can help firms reach their goals and visions. Secondly, the study contributes to the literature of performance measurement systems in the service industry. Our findings provide empirical evidence for the suggestion that BSC can help service firms achieve their goals and visions. The combination of CSR and BSC in this study can become a foundation to discover more for service firms in developing countries. Thirdly, our approach concentrates on important stakeholders, which can illustrate differences in the perceptions of important stakeholders about CSR, BSC dimensions, goals, and visions. Furthermore, this helps to enhance the chances to develop the appropriate visions and goals for their business.

How to cite this paper
Nguyen, D., Ngo, T., Nguyen, R., Cao, H & Pham, H. (2019). Corporate social responsibility, balanced scorecard system and financial performance in the service sector: The case of Vietnam.Management Science Letters , 9(13), 2215-2228.

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Journal: Management Science Letters | Year: 2019 | Volume: 9 | Issue: 13 | Views: 1945 | Reviews: 0

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