The relationship between environmental, social, and labor responsibilities and the financial efficiency of companies: empirical evidence from companies in the VN30 group

Abstract

The corporate social responsibility of businesses is a crucial factor in the effort to build a sustainable economic development. Therefore, businesses need to commit to contributing to sustainable economic development through activities that enhance the quality of life for labors, communities, and society as a whole. In this study, the author group analyzes the relationship between environmental, social, and labor responsibilities affecting the financial performance of businesses. Additionally, the study constructs an overall social responsibility index based on research of Amran (2015) and explores the relationship between the overall social responsibility of businesses and their financial performance. A panel dataset of 30 companies in the VN30 Group, including financial companies (ACB, BID, VCB) and non-financial companies (MWG, SAB, FPT), spanning the period from 2018 to 2022, has been analyzed. The results of the final regression model indicate that most social responsibility indices have a positive correlation with the financial performance of businesses. The research findings of the author group provide a basis for policies that promote sustainable economic development through enhancing the social responsibility of businesses