GLOBAL BUSINESS & FINANCE REVIEW, Volume. 28 Issue.

4 (AUGUST 2023), 34-50

pISSN 1088-6931 / eISSN 2384-1648∣Https://doi.org/10.17549/gbfr.2023.28.4.34
ⓒ 2023 People and Global Business Association

GLOBAL BUSINESS & FINANCE REVIEW

www.gbfrjournal.org 1)

How Does Corporate Social Responsibility Affect Innovative Work

Behaviour?
Viet Quoc Cao†
School of Management, College of Business, University of Economics Ho Chi Minh City, Hochiminh, Vietnam

ABSTRACT

Purpose: This research examines the effect of perceived corporate social responsibility on the employee-company
relationship (organisational trust, organisational identification) and employees' future well-being and participation
in innovative work practices.
Design/methodology/approach: This study used a quantitative research approach by PLS-SEM analysis with a
sample size of 400. The respondents are employees working for four distinct textile garment manufacturing enter-
prises in Vietnam.
Findings: Our study found that corporate social responsibility directly impacts organisational trust, identification,
well-being, and innovative work practices, and innovative work behaviours are directly related to organisational
trust, employee well-being, and identification.
Research limitations/implications: The study focuses on workers who have a basic understanding of corporate
social responsibility. Consequently, the scope of research in diverse industries throughout the country's regions
and cities must be expanded. Given the constraints, future studies should be broadened and conducted in greater
detail. Each profession should concentrate its efforts on a broader range of survey subjects, such as office workers,
employees, and consumers.
Originality/value: Employee well-being is linked to innovative work behaviour, and the stronger the company's
identity, the more likely people will be to be creative at work. The author found that people who work for a
company that has a good sense of itself are more likely to be creative at work. The study shows that when employ-
ees are happy, they are more likely to work in new and innovative ways.

Keywords: Innovative work behaviours, Organisational trust, Organisational identification, Well-being, Corporate social responsibility

I. Introduction the organization. Innovative work behavior is an

obvious option for every firm. Successful firms
reward employees' innovative work behavior (e.g.,
Operational procedures are critical because of the Afridi et al., 2020). Corporate social responsibility
rapidly changing global business environment. (CSR) is generally described as the non-financial
Specifically, companies may succeed by using new components of a company's operations that benefit
ideas. Innovation is driven by worker behavior, not stakeholders (Lim & Greenwood, 2017). CSR is
conducted to protect the competitive advantage and
Received: Apr. 20, 2023; Revised: Jun. 1, 2023; Accepted: Jun. 11, 2023 dedication of the workforce (Porter & Kramer, 2006)
† Viet Quoc Cao Smith, 2007). When an organization produces profits
E-mail: [email protected]

ⓒ Copyright: The Author(s). This is an Open Access journal distributed under the terms of the Creative Commons Attribution
Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution,
and reproduction in any medium, provided the original work is properly cited.
 Viet Quoc Cao

and is concerned with the well-being of employees, When assessing the influence on employees' attitudes
charity, and the environment, employees trust the and actions, analyzing plans and tactics will help leaders
company and have a positive attitude about working guarantee employees' trust, pride, and satisfaction
for it. Some CSR efforts may help enhance employees' while increasing job performance and maintaining
well-being (Kim et al., 2018). environmental cleanliness. We aim to verify a research
Most studies have focused on the relationship model showing the connection between the following
between perceived CSR and outside stakeholders, factors: perceived CSR, organizational trust, organizational
most typically customers. Purchase intention and identity, employee well-being, and innovative work
brand loyalty are the key research variables. Within behavior.
a firm, perceived CSR is analyzed in connection to
employee engagement, job satisfaction, and operational
performance (Ghaderi et al., 2019; Úbeda-García et
al., 2021). Our knowledge of perceived CSR's effects II. Theoretical Background and
on innovative work behavior is somewhat limited Hypothesis Development
in the field of textiles. The textile industry uses water,
energy, and pollution. CSR in the textile sector A. Theoretical background
promotes enterprises to reduce water and energy use,
waste, recycling, and use of eco-friendly materials 1. Corporate Social Responsibility (CSR) and perceived
corporate social responsibility (PCSR)
and production methods. These can happen when
the employees have creativity and innovation in their
A company's voluntary social, environmental, and
job. CSR programs target carbon emissions, chemical
economic measures are called CSR. CSR emphasizes
management, and water pollution to reduce the
a company's social and environmental actions. It
industry's environmental impact. Exposure to chemicals,
entails incorporating ethical practices into corporate
noise, and physical dangers are risks of textile
operations and decision-making. It includes ethical
production. Worker safety, health, and well-being
sourcing, community participation, environmental
are CSR's priorities. Implementing safety measures,
sustainability, employee well-being, and philanthropy
providing protective equipment, giving regular
(S. B. Choi & Kawk, 2015). The company's activities
occupational health and safety training, and allowing
and objectives are usually based on its beliefs, policies,
workers to report problems are all part of this. Social
and commitments, making CSR an internal perspective.
welfare projects benefit from textile industry CSR.
It requires a firm to account for its effects on people,
Supporting local communities surrounding manufacturing
communities, and the environment. CSR activities
plants, investing in worker education and skill development,
can be monitored and evaluated using GRI guidelines,
and encouraging women's empowerment and gender
UN Sustainable Development Goals (SDGs), or
equality are examples. CSR projects may include
industry standards. Companies can declare their CSR
healthcare, education, vocational training, and fair
initiatives in sustainability reports or other ways (Ryu,
trade. Thus, the present study focuses on the impact
Chae, & Cho, 2017).
of PCSR on these employee behaviors.
Before 2015, most research concentrated on
We believe this job has a meaningful contribution
perceived corporate social responsibility (PCSR)'s
to innovation-related CSR theories. Additionally, our
influence on external stakeholders like partners,
studies suggest the impact of perceived CSR on
customers, and market and state reflections. The scope
perceived organizational factors such as trust,
was increased in 2015 and 2016 when several writers
organizational identification, employee well-being,
examined the influence of PCSR on brand value,
and innovative work behavior. For textile enterprises,
expenses, and business outcomes. While each research
in particular, holding on to what we have is vital.

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examined a different component of PCSR's impact (Latif & Sajjad, 2018). The criteria show that CSR
on these topics, the majority established a favorable is an enterprise's dedication to corporate ethics and
association between PCSR and items outside the constructing a sustainable economy, boosting the overall
organization, leading to several conclusions. quality of life for employees, their families, and the
Numerous scholars have published papers on the community. CSR has overtaken production costs,
influence of PCSR on workers. Their research product quality, and delivery schedule insignificance.
examined how firms' CSR initiatives affect employee A company's stakeholders—consumers, workers,
job satisfaction, loyalty, engagement, and workplace investors, and the public—perceive its social and
trust (Chaudhary & Akhouri, 2018; George et al., environmental responsibilities. It is a company's CSR
2020; Mandhachitara & Poolthong, 2011). Consequently, image. PCSR stresses public perception, beliefs, and
these researchers discovered that employee happiness attitudes about a company's social responsibility. It
improves when workers believe their employer examines how stakeholders see a company's activities
engages in more CSR initiatives. Additional research and reputation for social responsibility. PCSR affects
has studied the mediating influence of employee a company's reputation and stakeholder confidence.
contentment, or trust, in CSR activities on employee Positive PCSR boosts brand value, attracts consumers,
behavior following favorable work satisfaction and retains talent, whereas negative PCSR damages
ratings. Su and Swanson (2019) found that the more reputation and trust. PCSR involves how workers
CSR activities hotels engage in, the more they view CSR (Choi & Yu, 2014; Rupp et al., 2018).
contribute to enhanced trust, organizational identity, According to the authors, understanding workers'
employee satisfaction, and voluntary involvement perspectives and behaviors regarding CSR activities
with environmentally beneficial work behaviors. is critical to a firm's success.
Ahmad et al. (2019) indicate that when workers
positively see their organization's CSR activities, they
will volunteer and contribute to its growth via B. Organizational trust (OT)
constructive, inventive, and creative behaviors. Lu
et al. (2020) determine if firms' CSR efforts also Numerous studies have shown that trust correlates
help to strengthen employee engagement in the with employees' feelings of trust and positive attitudes
organization via job satisfaction and workers' and actions (Ng, 2015; Jang & Lee, 2022). Workers
perceived degree of justice at work. with high trust in the organization demonstrate more
positive conduct (Hansen et al., 2011). Trust disincentives
employees' desire to change their job (Mandhachitara &
Poolthong, 2011). Strengthening such favorable outcomes
III. Hypothesis Development helps to lower employee numbers. Gill (2008) suggests
that people lay their confidence in others' future
A. Perceived corporate social responsibility behavior. Various researchers have claimed that past
(PCSR) experiences and expectations are responsible for
beliefs. Therefore, if individuals or groups put their
Different publications on CSR have been published faith in another person or organization, they acquire
for a long time, yet there is no clear definition of confidence in its future conduct. Organizational integrity
CSR. Explaining CSR is challenging since it appears relies on employees' faith in their company, and an
from many viewpoints. Corporate social responsibility organization's development depends on employees'
differs tremendously according to who sees it (Omran & trust (Porras & Berg, 1978).
Ramdhony, 2015). Several theories on corporate
social responsibility have been proposed and evaluated

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 Viet Quoc Cao

C. Organizational identification (OI) is created by encouraging organizational resiliency

and optimism (Taylor, 2008)
Group identities affect self-concepts and self-
definitions. People belong to a group, and their
characteristics belong to that group. According to E. Innovative work behavior (IWB)
social identity theory, when people display their identity,
they establish a self-concept based on membership Change and innovation are ongoing concerns in
in a community or organization—the sensation of the cutthroat global economy, and innovative conduct
belonging (Ashforth et al., 2008). When a person is essential to organizational innovation (Khodyakov,
is placed into a group, the characteristic traits of 2007; Jang & Lee, 2022). All work behaviors promote,
that group function are like self-identification in the develop, and execute new ideas, processes, and
social environment. People will compare themselves products inside an organization. Studies into variables
to their peers. People want to gain or keep their that support imaginative work behavior have greatly
social identity by comparison to a group to enhance increased because the importance of innovation has
self-esteem. Individuals will identify themselves and grown, as Agarwal (2014) described. A critical
others into separate social groupings (Tajfel & Turner, component of innovation has been fostering more
1979), and classifications are based on shared traits inventive ideas (Damanpour, 1988).
(Tajfel & Turner, 1986). One of the keys to companies keeping a competitive
Our investigation depends on organizational advantage is innovation, which is also important for
identity. Organizational identity is crucial because long-term growth(Oswal, Ruigrok, & Agrawal, 2014;
it empowers people to understand better their sense Singh, 2011). Innovative work behavior is seen as
of self and their role in the world. Essential individuals essential in today's competitive business world, and
are vital to group identity and affiliation, which drives a dynamic workplace is vital for innovation-driven
organizational results. A greater organizational identity organizations or occupations and the workforce (De
enhances individuals' commitment to the company Jong & Den Hartog, 2010).
while increasing community participation (Cole &
Bruch, 2006).
F. Perceived corporate social responsibility
(PCSR) and organizational trust (OT)
D. Employee well-being (EWB)
Numerous scholars have argued the continued
Most people perceive well-being as difficult to significance of trust between individuals and organizations.
attain, often denoting both health and mental well- Trust is a proxy for the quality of interactions between
being, leading to misunderstanding the phrase (Wang entities (Mayer et al., 1995) and is required for long-
et al., 2020). La Placa et al. (2013) have outlined term connection preservation (Hassan & Semerciöz,
a framework to characterize and identify well-being's 2010). Shockley-Zalabak et al. (2000) assert that
significant characteristics. There is a view that both organizational trust is related to people's expectations
personal and communal happiness occurs on a spectrum. about the link network and organizational behavior.
Personal happiness, also known as subjective well- According to stakeholder theory, businesses should
being, is an individual's reaction to sadness, pleasure, prioritize the needs and wants of all relevant parties.
work, and life satisfaction (Diener, 2006). Individual Corporate social responsibility (CSR) projects show
happiness describes an employee's well-being and that a business cares more than just making money
is also affected by his or her work environment for its shareholders. Stakeholder trust is bolstered
(Juniper et al., 2011). A pleasant work environment when an organization is seen to be making an effort

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to understand and cater to the needs of its constituents. group goals above personal interests (Danna & Griffin,
Additionally, organizational trust refers to employees' 1999; Melnyk et al., 2013; Sharma et al., 2016).
confidence in the enterprise's ability to adopt regulations A firm that continuously emphasizes CSR activities
in their favor (Hunt et al., 2009). Su & Swanson may show investors that it cares for its employees'
(2019) established that hotels' CSR efforts directly natural and social environment (Farooq et al., 2014).
influenced employee trust. Additionally, as indicated in the theoretical basis,
Additionally, the company's ethical handling of CSR operations directly influence employees, a key
social issues increases employee trust (Hosmer, 1995). component of any firm, especially in strategically
Increased organizational trust leads to positive employee critical national regions. Kim et al. (2018) showed
behavior (Hassan & Semerciöz, 2010). In the Korean that PCSR improves employees' quality of life and
casinos' context, Lee et al. (2013) found a positive productivity. Additionally, PCSR helps businesses
effect of PCSR and OT. Our research analyses this improve their employees' well-being (Gond et al.,
connection via the lens of a different subject area, 2017). Thus, PCSR may help create a more pleasant work
namely textile enterprises, with hypothesis H1a: environment, resulting in higher employee satisfaction
H1a. Perceived corporate social responsibility (Su & Swanson, 2019). Su and Swanson's (2019)
positively affects employees' trust in the study indicated a good relationship between PCSR
organization. and EWB in the hotel work environment. The hotel
industry is growing in popularity in China, while the
textile and garment industry is critical to the Vietnamese
G. Perceived corporate social responsibility economy. Consequently, our study analyses the
(PCSR) and employee well-being (EWB) equivalent relation in the context of textile enterprises.
H1b. Perceived corporate social responsibility has
According to Sharma et al. (2016), employee well- a positive impact on employee well-being.
being is a broad word that incorporates physical and
psychological well-being. Not only are organizational
members concerned about their well-being, but also H. Perceived corporate social responsibility
managers, as a proxy for total life satisfaction. According (PCSR) and organizational identity (OI)
to research, employee well-being is inextricably related
to job performance. Happy employees are more In every company, organizational identity is a
productive and generate more income for the business; critical component of the person. Organizational identity
on the other hand, unhappy employees harm their enables individuals to better understand themselves
physical and psychological well-being, resulting in and their place in society by identifying as members
increased maintenance expenses, health insurance of a collective, a team, or a larger group. However,
premiums, and worker productivity(Sharma et al., it is also associated with some critical individual-
2016). Psychological contract theory focuses on the perceived organizational outcomes. The social identity
demands and duties that both workers and their theory says that a person's sense of self comes from
employers have for each other. When workers think their the groups he or she is a part of, such as their company.
company is socially responsible, a good psychological Workers who think their company is socially responsible
bond is made. When employees think their company (PCSR) feel more connected to it, strengthening the
cares about them, it can improve their job happiness, organization's identity (OI). PCSR projects help the
commitment, and general health (Seeck & Parzefall, group build its social character by showing that it
2008). Employee well-being affects employee attitudes. cares about social and environmental issues.
When individuals are content with their professions, Organizational identity impacts member loyalty,
they work more successfully together and prioritize effective teamwork, and civic conduct (Fu et al.,

38
 Viet Quoc Cao

2014; Lee et al., 2012). activities since many hotels operating in the Chinese
Taking socially responsible acts helps the firm market are enormous. The textile industry often
maintain a favorable reputation, which benefits involves chemicals and creates dirt during fabric
workers' perceptions of their company and meets their cutting, printing, sewing, and washing. Therefore the
physical requirements. These activities help develop amount of waste created is equivalent to industrial
workers' social identities as organizational members, operations. Additionally, behaviors that promote a
reinforcing their identity to the company (Fu et al., green, clean, and appealing environment are applied
2014; Kim et al., 2019). As a result, PCSR improves to grow more circumspect.
workers' willingness to portray themselves as an Employees who are aware of their company's CSR
integral part of the firm and increases their recognition initiatives are more likely to propose and execute new
of their business (Islam et al., 2016). ideas, according to (Afridi et al., 2020). Furthermore,
Su and Swanson (2019) established that PCSR several studies have shown that PCSR benefits
strengthens organizational identity. Thus, organizational employee behaviors such as organizational citizenship,
identity is the feature that most clearly represents commitment, and work productivity (Prieto & Pérez-
the link between workers and the company (Dutton Santana, 2014). When workers learn that their business
et al., 1994), considered a critical construct. As a result, supports CSR initiatives that help society and the
we will re-examine the effects of PCSR on textile environment and adhere to ethical standards, they
workers' organizational identities through hypothesis are overjoyed to be a part of them (Chaudhary &
H1c. Akhouri, 2018). In other words, CSR activities
H1c. Perceived corporate social responsibility has contributed to developing a confident and secure culture
a positive impact on organizational identity. by encouraging workers to be proactive and innovative,
even taking calculated risks with negative results.
According to social identity theory, employees'
I. Perceived corporate social responsibility commitment to CSR activities instills a sense of pride
(PCSR) and innovation work behavior of in them, as they think they are part of a socially
employees(IWB) responsible organization, resulting in good attitudes
and behaviors (Ellemers et al., 2004). Additionally,
The social information theory says that people's employees who feel their company is socially
ideas about social rules and standards are shaped responsible will display more positive behavior
by their knowledge. When employees think their toward them and engage in actions that advance the
company is socially responsible (PCSR), it sets a organization's goals (Newman et al., 2015). Since
social norm that values responsible and ethical creative labor is a behavior, PCSR regulations may
behavior. This social norm can affect employees' positively affect employees' innovative work habits.
feelings about innovation and how they develop and Numerous research has proven a clear correlation
act on new ideas. According to social information between PCSR and workplace creativity. For example,
theory (Thomas & Griffin, 1989), an employee's Ahmad et al. (2019) demonstrate that PCSR directly
immediate surroundings substantially impact their affects creativity performance, and Brammer et al.
attitudes and behaviors. Additionally, when employees (2015) demonstrate that organizational identity plays
perceive their company to be environmentally concerned, a mediating role in the relationship between CSR
the likelihood that they would adopt ecologically and creative performance. Furthermore, the rule of
beneficial activities increases (Raineri & Paillé, 2016). reciprocity, a critical determinant of social exchange
Su & Swanson (2019) corroborated these results by theory, demonstrates that one party's behavior is
investigating hotel staff behavior in China. The hotel contingent on the behavior of the other, and this
working environment demands pollution reduction dependency mitigates risks for both parties while

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boosting collaboration(Molm, 1994). Thus, we suggest H2 are as follows:

the following hypothesis H1d: H2. Organizational trust has a positive effect on
H1d. Perceived corporate social responsibility has the innovative work behavior of employees.
a positive effect on employee innovation
behavior.
K. Employee well-being (EWB) and innovative
work behavior (IWB)
J. Organizational trust (OT) and innovative
work behavior of employees(IWB) Social exchange theory connects employee well-
being (EWB) and innovative work behaviors (IWB).
The social capital theory emphasizes how important According to this theory, people's relationships are
it is for groups to have social relationships and based on sharing resources, and people act in ways
networks (Akdere, 2005). Trust is an important part that help them get the most out of their social and
of social capital because it makes it easier for workers economic situations. The idea says that people share
to work together, share information, and work together resources and benefits in their relationships. When
(S. M. Lee, Lim, Swanson, Park, & Lee, 2016). When workers feel good about their lives, they are more
employees trust their coworkers and bosses, they are likely to do IWB to give back. They think their group
more likely to work together on projects that help cares about their well-being, so they develop new
IWB. Trust lets workers ask for feedback, share ways to do their jobs and give back. This gives rise
information, and work together to develop and to a positive cycle in which workers' happiness makes
implement new ideas(Koo, Kim, & Kim, 2017). them more likely to try new things, and the company
Employees are driven to succeed due to their faith gains from their creativity. It is acknowledged that
in the organization (Chiang & Hsieh, 2012). According all employees want fulfillment in their lives and jobs
to social exchange theory (Nunkoo & Ramkissoon, 2012), and to increase their enjoyment. Employee well-being
the more trust employees have in an organization, is affected by work-related accidents, drug usage,
the more power they produce for it. Additionally, unhealthy lifestyle habits, and stress (Melnyk et al.,
they will be more receptive to persons that provide 2013). Environmental activism in the workplace is an
more inventive ideas (Top et al., 2013). A prior study essential facet of employee well-being. According to
conducted by Su and Swanson revealed a favorable social exchange theory, comparing costs and advantages
association between corporate trust and workers' green is crucial to human behavior. A person could adapt
behavior. Furthermore, some research demonstrates their behavior to accommodate a perceived social
that organizational trust produces more favorable exchange outcome.
work behaviors. According to Aryee et al. (2002), Pleasure has resulted in positive behavior (Danna &
faith in the organization motivates workers to work Griffin, 1999). Studies of adolescents' online social
diligently to fulfill assigned duties and collaborate behavior should establish that happiness has a beneficial
with other organization members. influence on adolescents' online social behaviors
Consequently, workers can discuss ideas freely (Erreygers et al., 2019). Positive online behaviors
at work, inspiring more innovative and new ideas, directly result from happiness(Danna & Griffin, 1999).
which will impact their attitudes and performance. Su and Swanson (2019) found a positive association
Employees who trust their employer are more inclined between employee happiness and environmentally
to act and behave in line with the employer's view conscious behavior in hotel work contexts. However,
and are more willing to contribute more effort. Su no research on the influence of employee happiness
and Song (2019) confirmed that organizational trust on innovative work behavior has been undertaken
positively affects innovative work behavior. Hypotheses in the textile field.

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 Viet Quoc Cao

Consequently, we predict that the well-being of H4. Organizational identification has a positive
employees at textile enterprises would behave in ways impact on employee's innovative work behavior.
that benefit the company, such as introducing innovative
practices in the workplace. Additionally, we propose
that employee well-being affects innovation activities.
Thus, the following hypothesis is suggested: IV. Methods
H3. Employee well-being has a positive impact
on their innovative work behavior. A. Measurement

The questionnaire designed for this study was

L. Organizational identification (OT) and originally drafted in English. The items were first
innovative work behavior of translated by two independent marketing researchers
employees(IWB) who spoke English and Vietnamese fluently and were
familiar with the constructs. In the next step, the
The Organizational identification theory postulates translators derived a combined translation of their
that people's attitudes and actions are influenced to independent measures, resolving translation discrepancies
some degree by the degree to which they identify by discussing them. Eight constructs were used in
with the organizations in which they work (Edwards, this study. Our study uses a 7 -point Likert scale ranging
2005). Employees cultivate a sense of belonging, from 1 (strongly disagree) to 7 (strongly agree) for
loyalty, and commitment to their organization when these two scales. We get the scale for employees'
they strongly identify with their company. Employees views of perceived corporate social responsibility
who have a strong sense of connection with their (PCSR) from Afridi et al. (2020); the scale comprises
company are more likely to be motivated to participate 14 variables, and the OT scale was proposed by (Su &
in IWB. The motivation happens because employees Swanson, 2019).
who feel this way view their creative efforts as a The employees well-being (EWB) scale was
method to contribute to the growth and prosperity adapted from the scale offered by (Sharma et al.,
of their company. 2016), with the 7 - point Osgood scale ranging from
Any individual will operate in a way that promotes 1 (extremely unhappy) to 7 (very happy).
their organization since they are also members of The organizational identification (OI) was adapted
that group. Su and Swanson (2019) investigated the from the scale developed by De Roeck & Farooq
relationship between business identity and employees' (2018). The scale was measured with a 7 -point Likert
green workplace behavior. The more positive, scale ranging from 1 (strongly disagree) to 7 (strongly
constructive, and creative an organization's identity is, agree). Finally, Innovative work behavior (IWB)
the more positive, productive, and creative activities comprises ten items that employees rate on a seven-
it promotes and the less negative or destructive point Likert scale from 1 (rarely) to 7 (very often).
behaviors it exhibits (Syna Desivilya & Eizen, 2005). The scale was adapted from the work of (De Jong &
Organizational identification may result in favorable Den Hartog, 2010).
results, including more cooperation among employees The questionnaire was presented to 05 academics
in the same firm, more fluid communication to handle and 05 employees to evaluate their perceptions of
difficulties collectively, and more. Furthermore, the topic of the study and assess the questionnaire's
organizational identification provides a more robust measurability and context. The questionnaire was also
articulation of an organization's civic behavior (Ashforth pre-tested by collecting consumer responses to check
et al., 2008; Fu et al., 2014; Islam et al., 2016). its wording, sequencing, and completeness. Based
As stated in Hypothesis H4: on the respondents' feedback, the questionnaire's

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sequencing was modified, and ambiguous questions worked for their current employer for less than three
were deleted. The feedback thus improved the years, 31.3 percent for four to ten years, 17.5 percent
questionnaire's clarity, relevance, and consistency. for less than one year, and just 14.8 percent of the
400 survey respondents had worked for their current
employer for more than ten years. Additionally, the
B. Sampling and Data Collection data indicates that university degrees account for 49.8
percent of employees, while college degrees account
To empirically test the hypotheses, a survey was for 43.5 percent. Additionally, 6.3 percent of
conducted on workers working in clothing and textile employees have finished high school, and just 0.5
firms in Binh Duong Province, Dong Nai Province, percent have finished a Master's program.
and Ho Chi Minh City. A convenience sample (non-
probabilistic sampling procedure) was used to design
the research sample. With instructions on how to
complete them, the questionnaires were distributed V. Results
to the respondents by an interviewer. The instructions
emphasized that the study focused only on their A. Measurement model results
personal opinions to minimize possible response bias.
Respondents were advised that their participation Cronbach's alpha, the composite reliability coefficient
entitled them to a small gift. Cover letters were (CR), the extracted total variance coefficient AVE,
provided with all surveys to explain the aim and and the single-factor loading coefficient are used to
purpose of the research. Furthermore, respondents were assess the measurement model (outer loading). The
guaranteed the confidentiality and anonymity of their composite confidence factor must be more than 0.7,
responses. We avoided potential bias stemming from the outer loading coefficient must be more than 0.4,
a 'sameness' in the consumers; for example, we trained and the extracted total variance( AVE) must be more
interviewers were instructed not to interview more than 0.5(Hair, Hult, Ringle, & Sarstedt, 2017).
than 05 workers from the same firm. Respondents Cronbach's alpha and overall reliability for all factors
were asked to complete the self-administered are more than 0.7, as shown in Table 1.
questionnaire onsite within about 15 minutes. After The PCSR scale has three components, each with
eliminating incomplete questionnaires, we collected an AVE of 0.581, 0.583, or 0.747 > 0.5; nevertheless,
400 completed questionnaires for further analysis. the composite PCSR scale has an AVE of 0.409.
A total of 550 questionnaires were distributed. We The sum of the variances extracted from all other
gathered 400 responses ranging in age from 18 to scales exceeds 0.5. For a single factor, all observed
over 41 years, with a response rate of 32.3 percent variables had loading coefficients larger than 0.4 (see
for those aged 26 to 33 years. 18 to 25-year-olds Table 1). Thus, the reliability, factor loading, and
accounted for 26.8 percent, 34 to 41-year-olds accounted extracted variance of the component scales indicate
for 24.8 percent, and those above 41-year-olds that the reliability and validity of the scales are
accounted for 16.3 percent. Females accounted for acceptable.
59.8 percent, while men accounted for 40.3 percent. The findings in Table 2 indicate that the PCSR
Human Resources, Accounting - Finance, and Operations scale's HTMT coefficient has two values greater than
all had comparable staffing rates of 19.5 percent, 18.8 0.9 (0.987 and 0.985), yet the author retains it for
percent, and 17.2 percent. The remaining 4% are analysis; the other scales all attain the HTMT coefficient
control personnel who work in various office-related of 0.9 and fulfill the criteria for discriminant validity
industries, including warehousing, packing, and (Henseler et al., 2016).
quality control. 36.5 percent of employees have

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Table 1. Reliability, convergence value of the scale, and outer loading of the factors

CSRCH CSRET CSREN OT EWB OI IWB

OI1 0.785
OI2 0.811
OI3 0.847
OI4 0.833
IWB1 0.79
IWB2 0.822
IWB3 0.83
IWB4 0.871
IWB5 0.845
IWB6 0.76
IWB7 0.78
IWB8 0.828
IWB9 0.818
IWB10 0.821
EWB1 0.887
EWB2 0.861
EWB3 0.891
OT1 0.829
OT2 0.869
OT3 0.805
OT4 0.845
CSRET1 0.718
CSRET2 0.702
CSRET3 0.800
CSRET4 0.773
CSRET5 0.818
CSREN1 0.828
CSREN2 0.883
CSREN3 0.882
CSRCH1 0.779
CSRCH2 0.770
CSRCH3 0.709
CSRCH4 0.733
CSRCH5 0.772
CSRCH6 0.806
Cronbach's alpha 0.855 0.82 0.831 0.857 0.854 0.837 0.945
Average Variance Extracted (AVE) 0.581 0.583 0.747 0.701 0.774 0.672 0.668
Composite Reliability (CR) 0.892 0.875 0.899 0.903 0.911 0.891 0.953

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B. Structural model evaluation independent variable has a high level of significance.

Due to the effects of non-model factors, the remaining
The author uses the f2, R2 indices, and path 29.8 percent of creative work behavior are unaccounted.
coefficients to assess the structural model(Hair et PCSR explains 37.6 percent of the variation in OT,
al., 2017). The R2 analysis in Figure 1 indicates that 36.9 percent in EWB, and 33.6 percent in OI, indicating
at a 5% level of statistical significance, the concepts that perceived corporate social responsibility has
of perceived corporate social responsibility(PCSR), moderate explanatory power. The remaining percent
organizational trust (OT), and organizational identification is unaccounted for due to non-model factors' effect.
(OI) account for 72.2 percent of the variation in The value of f2 in the organizational trust column
innovative work behavior (IWB), indicating that the shows a large impact of this factor (f2 = 0.604) on
OT (see Table 3). The value of f2 for the EWB
column shows a large impact of PCSR (f2 = 0.586)
on the factor. The value f2 for the OI column shows
a large impact of PCSR (f2 = 0.507) on the OI.
Finally, the value of f2 in the IWB shows a strong
impact on OT (f2 = 0.204) and EWB (f2 = 0.205)
but only a small effect from OI (f2 = 0.205) and
PCSR (f2 = 0.056).

C. Structural model examination

Figure 1. Structural equation model After analyzing the measurement model, the

Table 2. HTMT criterion

CSRCH CSRET CSREN OT EWB OI IWB PCSR

CSRCH
CSRET 0.597
CSREN 0.551 0.561
OT 0.571 0.644 0.536
EWB 0.606 0.553 0.573 0.613
OI 0.567 0.574 0.528 0.594 0.687
IWB 0.609 0.635 0.66 0.779 0.801 0.742
PCSR 0.987 0.958 0.845 0.701 0.693 0.669 0.752

Table 3. Effect size f2

CSRCH CSRET CSREN OT EWB OI IWB PCSR

2 2 2 2 2 2 2
f f f f f f f f2
OT 0.204
EWB 0.205
OI 0.090
IWB
PCSR 2.794 1.981 1.198 0.604 0.586 0.507 0.056

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 Viet Quoc Cao

structural model is investigated further to determine Employee innovation behavior (IWB) is positively
the link between latent variables. We employed path influenced by perceived corporate social responsibility
coefficients and R-squared analysis to get the path (PCSR) (H1d) with β = 0.180 and a p-value less
coefficients for endogenous latent variables. It is than 0.001.
critical to remember that the significance threshold Organizational trust (OT) has a beneficial influence
is set at 5% and a p-value of 0.05. The non-parametric on employee innovation behavior (IWB) (H2) with
Bootstrap analysis was used to evaluate the study an impact weight of 0.315 and t-value of 9.229 >
findings (Bootstrap test). Resampling is an effective 1.96, p-value less than 0.001.
technique for validating the model in practice. The Employee well-being (IWB) has a positive effect
study used a bootstrapping technique with a regular on employee innovation behavior (IWB) (H3) (β =
sample size of 5,000 observations versus a beginning 0.327, p-value = 0.000). Organizational identification
sample size of 400. (OI) has a beneficial effect on employee innovation
Based on the findings of the analysis in the behavior(IWB) (H4) (β = 0.210, p-value < 0.001).
preceding table, the author determined the following As a consequence, H1a to H4 are all supported.
hypotheses (see Table 4).
Perceived corporate social responsibility (PCSR)
improves employee trust in the firm(OT)(H1a). The D. Discussions and implications
findings of the SEM analysis indicate that PCSR
has a positive effect on OT in the company and The following are the findings from testing the
a positive and linear connection through an impact connections in the research model: The findings
weight of 0.613 and t-value larger than 19.978; indicate that perceived corporate social responsibility
p-value less than 0.001. (PCSR) positively affects employee trust in the firm
Employee well-being (EWB) is positively related (OT), which is consistent with earlier research(Su &
to perceived corporate social responsibility (PCSR) Swanson, 2019). When workers become aware of
(H1b). Findings reveal that PCSR positively affects corporate social responsibility actions, they develop
EWB (β = 0.608, p < 0.001) a greater confidence level.
Perceived corporate social responsibility (PCSR) Following that, perceived corporate social
influences company identity positively (OI)(H1c) responsibility (PCSR) has a beneficial effect on
with β = 0.580 and a p-value less than 0.001. employee well-being (EWB), consistent with prior

Table 4. Bootstrapping results of a structural model

Standard
Path T Statistics
Hypotheses Paths Deviation P Values Remarks
coefficient (|O/STDEV|)
(STDEV)
H1a CSR → OT 0.613 0.030 20.114 0.000 Supported
H1b CSR → EWB 0.608 0.032 18.762 0.000 Supported
H1c CSR → OI 0.580 0.036 16.147 0.000 Supported
H1d CSR → IWB 0.180 0.038 4.806 0.000 Supported
H2 OT → IWB 0.315 0.035 9.043 0.000 Supported
H3 EWB → IWB 0.327 0.037 8.850 0.000 Supported
H4 OI → IWB 0.210 0.035 6.064 0.000 Supported
CSR → CSRCH 0.858 0.015 58.034 0.000 Supported
CSR → CSREN 0.740 0.025 29.500 0.000 Supported
CSR → CSRET 0.814 0.021 38.082 0.000 Supported

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GLOBAL BUSINESS & FINANCE REVIEW, Volume. 28 Issue. 4 (AUGUST 2023), 34-50

research (Su & Swanson, 2019). Employee well-being responsibilities. When employees at a business
will improve due to their impression of corporate perceive that their employer is committed to social
social responsibility efforts. responsibility, it creates a good social environment
The perceived factor of corporate social responsibility that encourages employees to engage in creative work
(PCSR) positively impacts organizational identification behaviors as a kind of social repayment. The idea
(OI), which is consistent with previous research. of social responsibility can help to foster a supportive
Corporate social responsibility actions will add to working environment, which in turn makes it easier
the organization's identification enhancement. to share resources and stimulates creative thinking.
Employees' perceptions of corporate social Social responsibility is vast; today's culture has
responsibility (PCSR) positively affected their become an obligation for all enterprises. Corporate
innovative work behavior. This finding is consistent social responsibility is gaining traction to combine
with earlier research (Afridi et al., 2020). Employees sustainable development and fundamental values in
engaged in corporate social responsibility initiatives company operations to generate a shared value for
are likelier to engage in creative behaviors at work. enterprises and society. As the economy evolves and
The creative work behavior of employees(IWB) competition between firms becomes complicated,
is positively connected with organizational trust (OT). initiatives demonstrating social responsibility will assist
The more trust individuals have in a firm, the more organizations in mitigating risks, building reputation, and
likely they will work creatively and innovatively. improving reputation, resulting in several commercial
Employee well-being (EWB) is positively associated advantages. The research findings indicate that social
with innovative work behavior(IWB). The finding responsibility benefits the firm's market position and
demonstrates that they are more likely to work in internal business by increasing the organization's
novel and innovative ways when satisfied employees. trust, identification, and employee satisfaction.
Finally, the author established a positive relationship According to the data analysis and model testing
between organizational identification(OI) and workers' findings, there is a positive association between perceived
creative work behaviors (IWB). The stronger the social responsibility and trust, organizational identification
organization's identification, the more motivated and satisfaction, and innovative work behavior of
people will be to innovate. workers, in which trust and pleasure are the two
most significant elements of workers' innovation. Thus,
managers' first concern should be how to develop
E. Theories contribution and management the corporate identity and, more crucially, the trust
implications and pleasure of workers by increasing employee
awareness of the enterprise's social duty. To do this,
The social identity theory places an emphasis on firms must take the following steps:
the part that social identity plays in determining the First, firms must show their ethical commitments and
attitudes and behaviors of individuals. Employees' duties to consumers, suppliers, and staff. Businesses
perceptions of their employer's social responsibility must conduct themselves honestly to supply consumers
can positively impact their organizational identification with items worth their price. Additionally, businesses
as well as their degree of alignment with the organization's must maintain a just and ethical relationship with
aims and values. This alignment instills a sense of their workers and stakeholders in order for both parties
pride and loyalty in employees, which can potentially to cooperate toward the common objective of sustainable
affect the innovative work behavior of those individuals growth. Duty to safeguard the environment and actions
favorably. for the community, such as charity and assistance,
The concept of social exchange examines relationships demonstrate businesses' concern for and obligation
regarding both parties giving and taking gifts and to the community and their commitment to overcome

46
 Viet Quoc Cao

the repercussions of pollution created by production positive connections with corporate personnel. This
and commercial operations. Businesses must conduct relationship-building exercise aims to convince workers
themselves honestly to supply consumers with items that their boss understands them and is willing to
worth their price. assist or support them in their job and personal lives.
Second, businesses must adopt a detailed code To do this, managers must devote more time listening to
of behavior for their workers, provide equal treatment workers' perspectives. Managers will better understand
for men and women, create community initiatives, their workers' views and objectives, enabling them
and assist needy individuals. Employees should be to develop rules that encourage people to work more
encouraged to participate more in the company's social creatively and innovatively. Employees will feel more
responsibility efforts. Through these events, workers cared for and valued and more candid and comfortable
will feel like business members, committed to the discussing with their bosses.
firm's long-term success and the social community. Regularly analyze employee performance to make
Third, firms must adopt and frequently update new compensation, bonus, and promotion decisions appropriate
Labor Law provisions for all workers to ensure that for competent, well-suited workers to their jobs and
they understand and effectively exercise their rights have a high level of labor performance. Individuals who
and duties. As required by law, assisting workers make an effort and are persistent in pursuing excellence
in pursuing higher ideals such as accountability for deserve to be developed and promoted. Regular training
their position at work, accountability for errors made, and promotion policy implementation is necessary
objectivity, honesty, fairness, prestige, and innovation. to ensure that workers believe the training and
These will contribute to the development of individuals promotion route is practical, objective, and equitable.
and companies by providing a professional, responsible, Additionally, firms must periodically teach personnel
and effective work environment that enhances their to grasp the organization's objectives. By completing
professional values. these tasks, workers will develop a positive attitude
The research findings indicate that an organization's toward work objectives, careers, supervisors, and the
trust component directly affects workers' innovative enterprise's fair policies, significantly increased
behaviors. We suggest some ways to build employee confidence in the firm.
trust and organizational identification. For example, Employee welfare benefits creative behavior; hence,
firms must first develop specific regulations defining firms must adopt policies and tactics that foster
the functions and responsibilities of each type of creative behaviour to increase job productivity and
work, each department, and each individual in the motivate employees to act ecologically responsibly.
organization, with a particular emphasis on the issue of Ensuring that employees work in a safe and healthy
individual accountability for work results. Additionally, environment is vital. Enterprises should conduct regular
it is vital to adopt and constantly update new materials and periodic occupational safety training, provide
on the Labor Law for all workers to ensure that necessary labour protection equipment to employees,
workers understand and adhere to their legal rights conduct fire prevention and suppression drills, and
and duties. Following that, businesses must ensure staff conduct periodic health checks on employees to detect
development and training and emphasize compensation diseases that frequently occur in the textile industry,
and benefits. With a commensurate salary policy, such as respiratory (due to frequent exposure to dust
enterprises must conduct performance evaluations to and chemicals). Following that, management should
identify and develop good people; enterprise leaders place a premium on its employees' work-life balance,
should set aside time regularly to exchange, share, and including overtime and family time, colleague
support employees as they overcome weaknesses and relationships, and the planning of entertaining and
promote the benefits gained during the work process. community activities. Workers get the opportunity
On the leadership side, executives must develop to relax and recover after arduous work hours.

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GLOBAL BUSINESS & FINANCE REVIEW, Volume. 28 Issue. 4 (AUGUST 2023), 34-50

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