The Roles of Corporate Social Responsibility and Perceived Organizational Support on Employee Loyalty in the Vietnamese Public Sector

Abstract

Employee loyalty is crucial for an organization’s success, especially during economic recovery after the COVID-19 pandemic. This research aims to develop a framework of employee loyalty for the public sector, examining the relationship between corporate social responsibilities (CSR), perceived organizational support (POS), organizational identification, and employee well-being. The research addresses the gap in the literature on employee loyalty in public sector organizations and provides valuable insights into the mediating roles of employee well-being and organizational identification in enhancing employee loyalty in the Vietnamese public sector. The findings of this study showed that both CSR and POS positively impact organizational identification and employee well-being. Also, organizational identification and employee well-being play mediating roles in the relationship between CSR, POS, and employee loyalty. However, there is an insignificant relationship between POS and employee loyalty in the Vietnam public sector context. By combining both social identity theory and organizational support theory perspectives, this research offers a more integrated and holistic approach to understanding the path from CSR and POS to employee loyalty, providing managers and policymakers with a more concrete perception of the value and role of CSR and POS in building long-term trustworthy relationships with employees.

Plain Language Summary

The Roles of Corporate Social Responsibility and Perceived Organisational Support on EmployeeLoyalty in the Vietnamese Public Sector

Employee loyalty (EL) is a significant challenge, especially during the economic recovery after the COVID-19 pandemic. Employee loyalty requires organizational resolutions, such as emotional involvement and consistent commitment to the company for positive organizational performance. Loyal employees tend to be more productive, offer improved customer service, and incur lower labor turnover costs, thus generating higher business revenue growth. This study aims to examine the relationship between Corporate Social Responsibility (CSR), Perceived Organizational Support (POS), organizational identification, employee well-being, and employee loyalty. It also seeks to explore the mediating roles of organizational identification and employee well-being in the relationship between CSR, POS, and employee loyalty.

Keywords

employee loyalty corporate social responsibilities perceived organizational support organizational identification employee well-being

Introduction

Employee loyalty (EL) is a significant challenge, especially during economic recovery after the COVID-19 pandemic. Employee loyalty requires organizational resolutions, such as emotional involvement and consistent commitment to the company for positive organizational performance. Loyal employees tend to be more productive, offer improved customer service, and incur lower labor turnover costs, thus generating higher business revenue growth (Yao et al., 2019; Yee et al., 2010). Academic scholars and practitioners acknowledge the significant employee loyalty value due to the ability to predict essential aspects of business performance (Stojanovic et al., 2020), job satisfaction (Dhir et al., 2020), employee productivity, and organizational profitability (Adeinat & Kassim, 2019). Simultaneously, employees are generally regarded as the most valuable organizational asset from the human resources management perspective (Gaudet & Tremblay, 2017). The sustainable management of human resources is pivotal when employees engage in direct organizational operations, formulate corporate goals, and structure the achievement process (Staniškienė & Stankevičiūtė, 2018). Employees’ devotion, commitment, and participation at work must also be monitored, as demotivated employees would be inclined to reduce work productivity and lower organizational performance (Cachón-Rodríguez et al., 2021).

Vietnam encounters high employee turnover rates in the public sector, especially after the COVID-19 pandemic (Khang & Chung, 2022), despite higher levels of work satisfaction and commitment in the long term (Hue et al., 2022). The public sector also experiences challenges in terms of compensation and incentive programs when most employees receive insufficient income to fulfill the increasing demand in Vietnam (Tuoi Tre News, 2016). These challenges might negatively employee loyalty in Vietnam as employee loyalty significantly predicts employee retention (Singh, 2019), which highlights the need to examine the issues in-depth and determine the factors impacting public employee loyalty. Massaro et al. (2015) emphasized that the public sector is subject to more representativeness, accountability, and responsiveness requirements than the private sector. Nevertheless, the public sector does not possess sufficient authority to select relevant objectives and activity scopes. Maan et al. (2020) also argued that the political nature of the public sector contributed to low public perceived organizational support (POS) to capitalize on opportunities instead of addressing and resolving existing issues

The high power distance and bureaucracy of Vietnamese public organizations negatively impacted the exchange connections between employees and employers (D. T. N. Nguyen et al., 2019), which posed a query on whether corporate social responsibility (CSR) and POS would directly impact employee loyalty through employee well-being (EWB). Moreover, this study answered the advocacy of Cheema et al. (2020) on examining CSR in other cultural contexts and considering different types of industries and enterprises. Shafique and Ahmad (2022) only delineated the positive CSR impact on business operations without explicating the POS role for employees. Meanwhile, Cachón-Rodríguez et al. (2021) and Murshed et al. (2023) advocated for further research on the interaction between CSR and employee behaviors, including employee well-being and employee loyalty. The CSR was posited to produce mutually beneficial, long-term, and trustworthy relationships with stakeholders (Fatma et al., 2022).

The above gap in the literature motivated this research to develop, validate and apply a framework of employee loyalty for the public sector. Hence, the specific objectives are as follows:

- To examine the relationship between CSR, POS, organizational identification, employee well-being to employee loyalty.

- To examine the mediating roles of organizational identification and employee well-being in the relationship between CSR, POS, and employee loyalty.

This research would be significant in several aspects. Specifically, the findings would contribute additional value to public organizations, which received limited attention in the existing literature, through the lens of social identity theory and organizational support theory. Furthermore, the study outcomes would contribute significantly to the existing Employee Loyalty knowledge corpus. The research findings would reveal the positive impacts of CSR and POS on organizational identification and employee well-being in public organizations, which would support the notion of integrating both perspectives for a more integrated and holistic approach to understanding the path from CSR and POS to employee loyalty. Resultantly, managers would acquire a more concrete comprehension of the CSR and POS value and role in establishing long-term trustworthy relationships with employees. The current study would also provide valuable insights into the mediating roles of employee well-being and organizational identification to enhance employee loyalty in the Vietnamese public sector. The research is structured as follows. First, the research provides an overview of the research context: the Vietnamese public sector. Thereafter, the research discusses the direct relationship between CSR, POS, organizational identification, employee well-being, and employee loyalty; and highlights how organizational identification and employee well-being mediate the relationship between CSR, POS, and employee loyalty. Following the research methodology, this research uses Smart PLS to test the research’s hypotheses. The findings and discussions of their implications for both theory and practice are in the final section.

Theoretical Backgrounds

Underpinning Theories

Within the scope of this research, it is crucial to emphasize the need of using both Social Identity Theory and Organizational Support Theory in order to have a thorough comprehension of employee loyalty and well-being. This integration offers a strong foundation for examining the factors that affect employee outcomes in a holistic view. Social Identity Theory explains the manner in which CSR programs foster company identity and pride. This is achieved by harmonizing business principles with social expectations and actively participating in ethical actions. Meanwhile, Organizational Support Theory explains how employees’ view of being valued and supported is influenced by POS, which is determined by factors such as recognition, fair treatment, and helpful actions. By considering CSR and POS as separate variables, this study include both the external ethical factors and the internal support systems that impact employee loyalty and well-being.

Social Identity Theory

According to the social identity theory, employees tend to identify with businesses that boost their self-esteem and self-image (Ashforth & Mael, 1989). Employees begin the categorization process by examining the similarities and contrasts between their and the organization’s identities. Next, they adopt the norms and values of their organization based on their self-identification (Tajfel, 1974). According to social identity theory (Turner et al., 1979), group identification may boost an individual’s self-esteem. An organization serves as a significant reference group for its personnel. For instance, when public sector employees receive support from their organization through CSR and POS, they will form a positive relationship with the organization, contribute to organization identification, and demonstrate a positive attitude toward the organization through employee well-being and loyalty. A company that invests in ethical CSR to “do good” for society is viewed as distinguished and special, and its employees will satisfy a deep-seated desire for self-definition (Dutton et al., 1994).

Moreover, as a normative reaction, employees who strongly identify with the business would want to give back by establishing behaviors that might help the organization and support its aims. In fact, employees who think they have a social identity should be more motivated and more willing to assist one another. When employees feel supported, they are more likely to integrate the purpose and values of the firm as a component of their own identity. This identification produces a great work atmosphere, develops employee loyalty, and motivates individuals to go above and beyond to contribute to the firm’s success.

Perceived organizational support (POS) plays a crucial role in the public sector, particularly in retaining experienced and highly qualified civil servants. Research has consistently shown that POS has a significant negative relationship with turnover intention, indicating that employees who perceive their organization as supportive are less likely to leave their jobs (P. Nguyen et al., 2022). The concept of POS is consistent with social identity theory, which posits that employees reciprocate the support they receive from their organization by exhibiting positive attitudes and behaviors, such as commitment and loyalty. This research suggests that organizations that provide supportive environments will enhance employee motivation and employee benefits, which can increase employee loyalty.

Organizational Support Theory

According to the organizational support theory developed by Eisenberger et al. (1986), POS affects the productivity employees produce. It is evidence that employees are aware that their contributions are valued by the firm and that the organization is concerned about their well-being (also known as perceived organizational support; Kurtessis et al., 2017). The POS should be designed to encourage a culture of reciprocity, resulting in a feeling of obligation to contribute to the organization and the anticipation that greater performance on its behalf will be acknowledged and rewarded. Individuals with a high POS should, as a direct consequence, engage in more activities directly relevant to their jobs. This encouragement will enhance organizational identification and extra-role performance that benefits the company. Concerning the well-being of the employees, employees strive to achieve balance in their relationship with the company by fostering constructive attitudes and behaviors consistent with POS (Rhoades & Eisenberger, 2002).

Corporate Social Responsibility (CSR) and Perceived Organizational Support (POS) in the Public Sector

It has been hypothesized that engaging in corporate social responsibility, often known as CSR, would result in relationships with stakeholders that are trustworthy, mutually beneficial, and long-lasting (Glaveli, 2020). Because employees are major stakeholders in an organization (Freeman & Velamuri, 2006), it should not surprise that researchers and practitioners are becoming increasingly interested in researching CSR from the perspective of employees and understanding the processes by which they affect employee loyalty. The term CSR refers to the activities carried out by a business to benefit society and contribute to its general well-being (AlSuwaidi et al., 2021). In both the developing country and mainstream CSR literature, many researchers adopt a stakeholder-oriented approach to CSR, which holds that organizations have an obligation to work toward meeting the needs of a wider array of stakeholders (Clarkson, 1995; Jamali & Mirshak, 2007). CSR reporting in developing countries is more heavily influenced by powerful external stakeholders such as society, foreign investors, international media, and international regulatory bodies (Grabner-Kräuter et al., 2023).

Since 2000, Vietnam has undergone a considerable adjustment to the Doi Moi strategy, which has led to an increase in the level of economic integration that the nation has with both the regional and global economies (Vuong, 2014). During this period, the party-state implemented legislation to support private enterprises and foreign direct investments (FDIs) through investments and trade. This is evident in the establishment of the country’s first stock market in 2000 and a series of bilateral trade agreements (Rowley & Truong, 2009). However, Vietnam’s market economy was criticized, including deregulation, environmental pollution, low wages, unfair terms with suppliers, and lack of customer responsibility (M. Nguyen et al., 2018). These issues have led to a lack of engagement with CSR amongst businesses, which has been seen as symbolic to mask noncompliance with CSR principles. Therefore, the involvement of businesses in Vietnam with corporate social responsibility (CSR) has been criticized as superficial and tokenistic, potentially serving as a means to conceal and offset their nonadherence to core CSR principles and tenets (Anner, 2012; Bilowol & Doan, 2015). The state management and public administration systems in Vietnam have a widespread reputation for being too bureaucratic, which has led to allegations of deceit and corruption (Rowley & Truong, 2009). Since enterprises in Vietnam have been plagued by these problems and the country’s growth has been hampered (M. Nguyen et al., 2018), academics are now paying increasing attention to CSR in the public sector.

In the context of the Vietnam public sector, POS is particularly important due to the unique characteristics of public servants (P. Nguyen et al., 2022). Public employees often have a strong sense of pride and loyalty to their organizations, making them more likely to remain committed and dedicated to their roles (M. Nguyen & Truong, 2016; M. Nguyen et al., 2018). However, the public sector faces significant challenges in retaining experienced and highly qualified employees due to the increasing competition from the private sector (Hue et al., 2022), especially that Vietnam government is fostering sustainable development in the private sector. Therefore, providing a supportive environment through activities such as training and career development programs, as well as an incentive reward system, can help to enhance employee satisfaction and commitment and maintain the effectiveness and efficiency of public services.

Hypothesis Development

In line with social identity theory, an employee’s “perceived affinity with and sharing experiences with an organization that he or she belongs to and where his or her identity is defined concerning the group characteristics” is the organizational identification definition in the literature review (Jones, 2010). Organizational identification is a specific application of Social Identity Theory within the context of an organization. Corporations are required to consider various stakeholders who would impact relevant businesses and vice versa. The stakeholders encompass customers, investors, suppliers, and local, national, or international communities. Employees are also another vital group (Cheema et al., 2020). Individuals would associate personally with reputable and responsible organizations, which would promote a sense of self-concept and self-worth. The CSR policy would engender a positive correlation with the employee’s participation in environmentally conscious actions. Cheema et al. (2020) revealed a significant positive association between CSR and organizational identification. Similarly, Faisal et al. (2022) propounded a high CSR degree would positively impact organizational identification. Employees’ CSR perception was also significantly and positively correlated to organizational identification (L. Zhao et al., 2019), as employees would prefer associating with organizations exhibiting prestigious images, reputations, or statuses. Hence, the following hypothesis was posited:

H1: A positive association exists between CSR and organizational identification.

The public sector should recognize organizational CSR efforts as a critical strategic asset, which demonstrates social obligations aligned with economic goals, legal boundaries, ethical standards, and consumer expectations (Carroll, 2016). The CSR initiative could increase competent employees’ appreciation for the current firm, hence minimizing the possibility of employee turnover and the loss of institutional knowledge (Flammer & Kacperczyk, 2019). The CSR practice or social responsibility in business aims to improve corporate core principles and the position relative to market competitors. Thus, CSR assists in preventing information leakage by retaining competent employees and minimizing the employees’ tendency to join a competitor while also improving employee identification with a firm and strengthening employee loyalty (Flammer & Kacperczyk, 2019; Shen et al., 2020). Positive employee attitudes and high levels of work engagement were also significantly associated with the CSR initiatives (Stojanovic et al., 2020). In addition, AlSuwaidi et al. (2021) discovered that CSR positively influenced employee well-being, which underscored the importance of CSR efforts to the community and workforce. A corresponding hypothesis was postulated:

H2: A positive association exists between CSR and employee well-being.

The CSR is defined as corporate acts advancing the business-specific objectives and benefiting shareholders while serving a social purpose for stakeholder groups (L. Zhao et al., 2019). The CSR is not only considered as a social improvement but also an effective instrument for generating financial rewards. A positive association also existed between CSR and employee loyalty (Shafique & Ahmad, 2022). The CSR activities contribute to improved employee engagement and commitment, which reflect corporate beliefs and ideals. Businesses prioritizing CSR would be more successful in recruiting and retaining outstanding personnel while generating a positive psychological contract between employees and firms. Employees would perceive the enterprise as fulfilling respective duties beyond the economic aspect, thus leading to an increase in employee pride through the positive corporate image. Additionally, CSR initiatives with direct employee benefits, such as wellness programs and sustainable workplace practices, could foster employee loyalty by demonstrating the commitment to employee well-being. The present study proposed that CSR actions could improve the public perception of corporations and elevate employee loyalty levels:

H3: A positive association exists between CSR and employee loyalty.

The organizational identification, as a specific form of social identity theory, is a form of connectivity, in which employees describe personal backgrounds based on participation in organizations (Ashforth & Mael, 1989). Employees who identify closely with ﬁrms would work more diligently to attain organizational objectives, enhance job performance, and exhibit extra-role performance. Employees would also demonstrate higher devotion degrees to companies with lower turnover intention (Avanzi et al., 2014). Consistently, a significant relationship existed between organizational identification and employee loyalty when employees perceived a strong connection with companies. Strong employee identification with firms was also associated with improved job satisfaction, trust, and pride, which would result in higher employee loyalty (Tseng & Wu, 2017). Moreover, organizational identification serves as a psychological connection between an employee and the employer by promoting a sense of shared identity and purpose, which encourages employees to match personal interests and aspirations with those of the firm. The alignment creates a reciprocal relationship where the organization provides benefits and support to the employees with higher levels of loyalty and commitment (Steffens et al., 2017). A relevant hypothesis was postulated:

H4: A positive association exists between organizational identification and employee loyalty.

The organizational identification is a fundamental concept in organizational studies to explicate the factors contributing to employee positive behaviors, which are conducive to the company interests (Albert et al., 2000). Employees would obtain a sense of pride and belongingness with an enhanced self-image when perceiving the firm as genuine in social obligations (Chen & Khuangga, 2021). Particularly, organizations applying CSR practices would improve reputation among stakeholders, such as customers and employees, which could foster employee commitment. Servaes et al. (2023) corroborated that CSR efforts increased employee identification with the corporation owing to higher employee well-being and community well-being emphasized by the company. Faisal et al. (2022) also demonstrated higher employee satisfaction with higher corporate commitments to social benefits that surpass the minimal threshold of stakeholder expectations. Resultantly, the CSR actions would elevate employees’ social value and reinforce the corporate identity. Furthermore, a perceived environment of support could assist an enterprise in ensuring that employees feel appreciated and supported through CSR efforts to society, customers, employees, and employee well-being. Employees would appreciate POS as a key rationale underpinning employee retention in the current firm. Specifically, POS perceptions may indicate employee satisfaction (Rhoades & Eisenberger, 2002) and organizational connectivity (Brown & Leite, 2023), which subsequently impacts employee well-being and employee loyalty. Two relevant hypotheses were proposed:

H5: Organizational Identification mediates the relationship between CSR and Employee Loyalty.

H6: Organizational Identification mediates the relationship between POS and Employee Loyalty.

According to Mathews and Izquierdo (2009), well-being is a condition of being happy, wealthy, and healthy physically, emotionally, psychologically, socioeconomically, and culturally. The Well-being depends on the knowledge of individuals’ positional connections, social interactions, and material standards of living, which comprises both socio-physical Well-being and culturally embedded cognitive categories (Meyers et al., 2018). Meanwhile, POS is the employees’ perception of the corporate appreciation level regarding employee contribution and the care level for well-being (Eisenberger et al., 1986). The POS concept was founded on organizational support theory to demonstrate the significance of recognizing personnel as valuable company assets (Fatma et al., 2022; Islam & Ahmed, 2018). Emerging research in this field highlights the importance of POS to employees’ desire to contribute to organizational success (Kurtessis et al., 2017). Additionally, the corporate influence on the trust and loyalty of employees, customers, and the broader public may be bolstered by a robust corporate culture and a visible commitment to CSR (Grover et al., 2019). Chen and Khuangga (2021) discovered that the management of a sustainable business, including POS, would increase employee loyalty. Bakker and Schaufeli (2008) and Kim and Park (2011) also revealed that firms implementing suitable sustainable activities, including POS, were more attractive to prospective and current employees. Furthermore, Brown and Leite (2023) demonstrated that POS significantly impacted employees’ experiences during the second lockdown of the COVID-19 pandemic. POS was the only component of organizational connectivity that significantly predicted each projected outcome, namely improved organizational well-being and more favorable distant working experiences. Summarily, POS is a critical resilience strategy for safeguarding employee health during illness outbreaks. The current study also hypothesized that POS is an organizational and situational characteristic that would directly impact employee well-being:

H7: A positive association exists between POS and organizational identification.

H8: A positive association exists between POS and employee well-being.

H9: A positive association exists between POS and employee loyalty.

The well-being is a complex and multi-dimensional concept depicted as an ideal human experience and psychological functioning with two approaches, namely eudaimonic and hedonic (Ryan & Deci, 2000). Eudaimonic well-being refers to the subjective sentiments associated with living a life of virtue in the pursuit of human greatness, which is also recognized as self-actualization, personal expression, and vitality (Huta & Waterman, 2014). Meanwhile, hedonic well-being is defined as the presence of positive affect and the absence of negative affect (Huta & Waterman, 2014). High employee well-being levels were demonstrated to promote employee engagement and performance (Jain & Sullivan, 2020) while minimizing absenteeism behavior (Van De Voorde et al., 2012). Although employee engagement is correlated to employee loyalty, the association between employee well-being and employee loyalty requires more investigation (Aboobaker, 2022). This study propounded that higher employee engagement with firms would contribute to higher employee well-being, which results in higher employee retention:

H10: A positive association exists between employee well-being and employee Loyalty.

Employees’ psychological requirements would be fulfilled when employees perceive sincere POS (Stinglhamber et al., 2015), which would subsequently influence the propensity to demonstrate loyalty. According to Murshed et al. (2023), organizational identification is a crucial component of the overall employee-organization relationship representation, wherein employees strive to discover meaning and purpose in daily work life instead of solely pursuing materialistic objectives. Identification with business growth will increase when employees feel appreciated and supported, hence resulting in increased loyalty and dedication. Organizations that focus on establishing a supportive atmosphere and encouraging organizational identity would anticipate higher employee loyalty that produces multiple advantages for both employees and the business. Employees with a positive attitude would also prefer to remain in the organization by not actively seeking another job, not responding to other job offers, and emphasizing organizational resources for personal requirements (Cachón-Rodríguez et al., 2021; del-Castillo-Feito et al., 2022). Thus, enhancing POS and CSR are the keys to boosting employee loyalty (Figure 1). Two hypotheses were posited:

H11: Employee well-being mediates the relationship between CSR and employee loyalty.

H12: Employee well-being mediates the relationship between POS and employee loyalty.

Figure 1.

Conceptual theoretical model.

Methodology and Measurement Scale

Methodological Design and Instrument

The present study was an explanatory and descriptive test by implementing a quantitative approach, incorporating positivism, and employing a cross-sectional survey design to evaluate the hypotheses regarding relationships between CSR, POS, organizational identification, employee well-being, and employee loyalty. A pre-test evaluation was conducted by academic scholars to determine whether measurement scales were well adapted in the Vietnamese public sector. The pilot-tested survey questionnaire was subsequently distributed to 20 employees from the Vietnamese public sector to gage their understanding of the survey questionnaire. This study utilized snowball sampling, wherein questionnaires were distributed to the original key-contact individual before being circulated to other public-sector participants within the individual’s network. The sampling technique is effective for recruiting participants from the public sector, particularly individuals with extensive expertise in healthcare service and manufacturing, education industry which have high turnover rate in the Vietnam market.

A total of 175 employees in the Vietnamese public sector were recruited between May 2023 and August 2023. This study also conducted a comprehensive literature review to select the most appropriate items to ensure adequate reliability of the measurement model. The CSR measurement scale comprised three dimensions, namely society CSR, customer CSR, and employee CSR, which were adapted from several past researchers (Bai & Chang, 2015; Su & Swanson, 2019; Turker, 2009; Youn et al., 2018). The measurement scale for POS was adapted from Eisenberger et al. (1986) with a sample item of “My organization cares about my general satisfaction at work.” The measurement scale for organizational identification was adapted from Smidts et al. (2000) with sample items, such as “I feel proud to work for my organization.” The employee well-being measurement scale contained two dimensions, namely eudaimonic well-being and hedonic well-being, adopted from (Berraies et al., 2020). The employee loyalty measurement scale with five items was adapted from Matzler and Renzl (2006) with five items. The current study modified the item wording to fit the context of the Vietnamese public sector to ensure the survey validity. Each item of the study constructed was examined on a five-point Likert scale ranging from 1 as strongly disagree to 5 as strongly agree. Questionnaires included two sections: Section 1 collected the general backgrounds of each respondent and their firms’ characteristics. Section 2 included the definition of CSR, POS, organizational identification, employee well-being and employee loyalty and consisted of questions related to these variables. With descriptive statistics, SPSS may identify missing data throughout the data screening process. Secondly, SPSS can identify outliers, which might have a detrimental impact on the findings. Next, descriptive and frequency data are analyzed. PLS-SEM is advantageous for evaluating complicated models with many variables and involving latent variables (Marin-Garcia & Alfalla-Luque, 2019). PLS-SEM is a suitable tool for predicting and explaining observed constructs (Hair et al., 2017). This research sought to determine the extent to which CSR and POS affect employee loyalty through mediating of organizational identification and employee well-being, necessitating the use of complex models with numerous relationships among the variables measured using multi-item measures (Henseler et al., 2016). Table 1 presents the measurement scales of five variables.

Table 1.

Measurement Scales of Studied Variables.

Variables	Constructs	Items	Description	References
Corporate social responsibilities	Society CSR	CSR1	Our company implements special programs to minimize its negative impact on the natural environment.	Bai and Chang, (2015); Su and Swanson, (2019); Turker, (2009); Youn et al. (2018)
		CSR2	Our company participates in activities aimed to protect and improve natural environment quality.
		CSR3	Our company targets sustainable growth which considers future generations.
		CSR4	Our company emphasizes the importance of its social responsibilities before society.
	Customers CSR	CSR5	Our company provides full and accurate information to our customers.
		CSR6	Our company respects consumers’ rights beyond legal requirements.
		CSR7	Customer satisfaction is a priority for our company.
	Employees CSR	CSR8	Our company supports employees who want to acquire additional training.
		CSR9	Our company policies encourage employees to develop their skills and careers.
		CSR10	Our company implements flexible policies to provide a good work and life balance for its employees.
		CSR11	The management of our company is primarily concerned with employees’ needs and wants.
Perceived organization support		POS1	My organization cares about my opinions	Eisenberger et al. (1986)
		POS2	My organization cares about my well-being
		POS3	My organization appreciates any extra effort from me
		POS4	My organization cannot ignore any complaint from me
		POS5	Even if I did the best job possible, my organization would fail to notice
		POS6	My organization cares about my general satisfaction at work
Organizational identification		OI1	I feel strong ties with my organization	Smidts et al. (2000)
		OI2	I experience a strong sense of belonging to my organization
		OI3	I feel proud to work for my organization
		OI4	I am sufficiently acknowledged in my organization
		OI5	I am glad to be a member of my organization.
Employee well-being	Eudaimonic well-being	EWB1	I have good relations with my colleagues	Berraies et al. (2020)
		EWB2	I feel like I am integrated among my colleagues
		EWB3	My colleagues are in solidarity with me
		EWB4	I have possibilities of evolution if I wish
		EWB5	My needs and expectations are taken into account My boss shows me recognition for my work
	Hedonic well-being	EWB6	My hours are stable
		EWB7	My professional life does not overflow into my private life
		EWB8	The time I spend at work seems reasonable I can personalize my workspace
		EWB9	My workplace is suitable for my needs
		EWB10	The Environment in which I work is pleasant
Employee loyalty		EL1	I speak positively about my company when talking to customers	Matzler and Renzl (2006)
		EL2	I speak positively about my company when talking to friends and relatives
		EL3	I can recommend the products and services of my company to others
		EL4	I would like to stay with this company also in the future
		EL5	I would not change immediately to another company if I got a job offer

Results and Discussion

The research received 175 valid responses out of a total of 250 responses. The valid sample constituted 44% male and 56% female participants. Respondents’ age distributions were as follows: 10.3% from 20 to 25 years old, 22.3% from 25 to 30 years old, 25.7% from 30 to 35, 15.4% from 35 to 40, 11.4% from 40 to 45 and 14.9% above 45. For education, 111 respondents had undergraduate levels (63.5%), 51 respondents had graduate levels (29.2%), only 5.1% had Ph.D., and 2.3% had other degrees. Employees with work experience less than five years accounts for 28%, followed by 23.4% employees with 10–15 years of experience, 22.9% employees with 5–10 years of experience, 14.9% above 20 working years and 10.9% from 15 to 20 years. Fields of work: 32% in Education, 25.1% in Healthcare, 14.9% in Production, and 28% in Other Services. The internal consistency of each concept was evaluated using Cronbach’s and composite reliability (CR) (reliability; Fornell & Larcker, 1981). As Table 2 shows, the values of Cronbach’s α range from .893 to .948, which are higher than the criterion of 0.7 recommended by (Nunnally & Bernstein, 1994). Similarly, all CR values are more than 0.8, which is greater than the benchmark value of0.7 as suggested by (Fornell & Larcker, 1981). Therefore, this research has acceptable reliability, and the consistency of the measurement items can be indicated.

Table 2.

Factor Loadings and Construct Reliability and Validity.

Constructs	Cronbach’s α	Composite reliability	AVE
Corporate social responsibilities	.948	.955	0.658
Society CSR	.917	.942	0.801
Customers CSR	.901	.938	0.835
Employees CSR	.902	.932	0.774
Perceived organization support	.940	.954	0.807
Organizational identification	.948	.960	0.829
Employee well-being	.931	.942	0.619
Eudaimonic well-being	.893	.922	0.703
Hedonic well-being	.893	.921	0.700
Employee loyalty	.917	.938	0.752

Next, this research analyzed the measures’ convergent and discriminant validity. Convergent validity was examined by two criteria recommended by (Fornell & Larcker, 1981): all indicator loadings should be significant and exceed 0.7 each construct’s average variance extracted (AVE) should be greater than 0.50. The reliability and validity of the measurement module are analyzed and assessed in the first stage. The identical factor loadings were measured to determine separate sub-factors’ reliability. One indicator such as POS5 (factor loadings is −0.07), are below 0.7, so item POS5 has been deleted from this research. Results in Table 2 also show that the values of AVE range from 0.618 to 0.835. Thus, this research meets all conditions for convergent validity (Figure 2).

Figure 2.

Measurement model.

To examine discriminant validity, the cross-loadings and the square root of AVEs were tested (Fornell & Larcker, 1981). According to this research data analysis, the loading of each measurement item on its corresponding latent variable is greater than its loading on any other construct. It demonstrates that all square roots of AVE are greater than any correlations between AVE and other variables. This research may thus infer that the discriminant validity is satisfactory. Additionally, Heterotrait-Monotrait ratios were determined. The result also states that HTMT values from all five constructs were less than 0.85, which is accepted. Table 3 states that HTMT values from all five constructs were less than 0.85, which was accepted. Table 4 states that the result of Fornell and Lacker was accepted.

Table 3.

Heterotrait - Monotrait Ration (HTMT) Result.

Variables	CSR	EL	EWB	OI
CSR
EL	0.800
EWB	0.808	0.899
OI	0.824	0.883	0.885
POS	0.866	0.829	0.900	0.823

Table 4.

Fornell and Lacker Criterion.

Variables	CSR	EL	EWB	OI	POS	CSR
CSR	0.811
EL	0.748	0.867
EWB	0.761	0.835	0.787
OI	0.782	0.828	0.835	0.813	0.910
POS	0.818	0.772	0.846	0.851	0.872	0.898

Path models represent structural models’ theoretical or conceptual components (Hair et al., 2013). The structural model is evaluated using coefficients of determination (R²) and path coefficients. The evaluation of the structural model also addresses H1 through H12 under the assumption that the regression mode is appropriately applied and calculated. Consequently, it may be argued that the larger the value of R², the greater the exploratory power of the regression equation and, consequently, the more accurate the forecast for the dependent variable (DV) (Hair et al., 2013). The value of R² in Table 5 is .762 for employee loyalty, which indicates that employee well-being and organizational identification account for approximately 76.2% of the variance in employee loyalty. The remaining 23.8% is explained by additional variables that can be determined through other studies. Moreover, Table 6 also shows the results of 0.731 for employee well-being and 0.774 for organizational identification, which means that CSR and POS accounted for approximately 73.1% in explaining employee well-being and 77.4% in explaining organizational identification.

Table 5.

R-square and R-square Adjusted.

Variables	R-square	R-square adjusted	Q ² predict
Employee loyalty	.762	.757	0.624
Employee well-being	.731	.727	0.722
Organizational identification	.774	.771	0.769

Table 6.

Hypotheses Testing.

Hypotheses	T statistics (\|O/STDEV\|)	p Values	2.5%	97.5%	Results
H1: CSR -> OI	3.109	.002	0.096	0.358	Accepted
H2: CSR -> EWB	2.646	.008	0.048	0.359	Accepted
H3: CSR -> EL	2.231	.026	0.013	0.317	Accepted
H4: OI -> EL	4.344	.000	0.231	0.595	Accepted
H5: CSR -> OI -> EL	2.351	.019	0.032	0.174	Accepted
H6: POS -> OI -> EL	4.087	.000	0.157	0.435	Accepted
H7: POS -> OI	10.229	.000	0.544	0.813	Accepted
H8: POS -> EWB	9.263	.000	0.531	0.814	Accepted
H9: POS -> EL	0.839	.401	−0.368	0.148	Rejected
H10: EWB -> EL	4.666	.000	0.256	0.639	Accepted
H11: CSR -> EWB -> EL	2.155	.031	0.018	0.194	Accepted
H12: POS -> EWB -> EL	4.450	.000	0.176	0.443	Accepted

An additional procedure is to examine (Stone-Geisser) Q² value to indicate the model’s predictive relevance. The Q² value was obtained using the blindfolding procedure, and values larger than zero signify the path model’s predictive relevance for the construct. Hair et al. (2014) recommended that values higher than 0, 0.25, and 0.50 represent small, medium, and large. Table 5 presents that the Q² values of employee loyalty = 0.624, employee well-being = 0.722, and organizational identification = 0.769 are well above the threshold requirement, implying that the model has predictive relevance for these constructs.

The PLS algorithm evaluates the relationship between exogenous and endogenous variables. Other than that, in order to determine the significance level, bootstrapping is applied through SmartPLS, and the output of the path coefficient in Table 6 reveals the results. According to Hair et al. (2012), the significant value of one-tailed is **p < .01 (2.33) and *p < .05 (1.645). Table 6 illustrates that the majority of hypotheses are supported, except for H9 is insignificant. Hypotheses H1 to H3 are supported (β = .211, β = .212, β = .174; p < .05, confirming that CSR has positive influences on organizational identification, employee loyalty and employee well-being. H4 is supported (β = .407, p < .05), which confirms that organizational identification has positive influences on employee loyalty. H7 and H9 are also supported (β = 10.229; β = .839, p < .05), which confirms that POS has a significant positive impact on organizational identification, employee loyalty, employee well-being. Hypothesis H9 has β = .839; p = .148 > .05 shows there is no significant impact between POS and employee loyalty. For the mediating effects of organizational identification and employee well-being, Table 6 shows the bootstrapping results of indirect impact and 5,000 resamples to analyze the significance of the mediation impact of organizational identification and employee well-being. The bootstrapping presented the indirect effect of CSR on employee loyalty via organizational identification and employee well-being were significant (β = .086; β = .096; p-value = .019; p-value = .031).

To distinguish between full and partial mediation, it is crucial to examine both direct and indirect outcomes. Partial least squares (PLS) analysis identifies full mediation when the direct effect (“c”) is statistically insignificant. Conversely, if the indirect effect (a × b) is significant, it indicates that only the indirect effect through the mediator exists (X. Zhao et al., 2010). Therefore, based on Table 6, the direct effect between POS and employee loyalty was not significant, therefore organizational identification and employee well-being fully meditated on the relationship between POS and employee loyalty. Meanwhile, the direct effect between CSR and employee loyalty was significant, therefore, organizational identification and employee well-being partially mediated the relationship between CSR and employee loyalty.

The research findings supported the significant positive CSR impact on organizational identification and employee well-being, which are consistent with previous studies (Cheema et al., 2020; Grabner-Kräuter et al., 2023; Su & Swanson, 2019). The CSR in public organizations, especially in developing countries, represents the transparency and efficiency of the governments. Hence, promoting CSR is integral for societies and relevant stakeholders, especially in attracting foreign investors. This study also supported the notion that CSR by public organizations would demonstrate that a caring organization with positive intentions to perform societal responsibilities (Serrano-Archimi et al., 2018), which would enhance organizational identification and employee well-being before contributing to higher employee loyalty. This study outcomes aligned with past findings, demonstrating that CSR positively impacted organizational identification and employee well-being (Li et al., 2020; Srivastava & Singh, 2020) which is also consistent with social identity theory. By participating in CSR, activities such as implementing sustainable environmental practices, maintaining ethical labor rules, engaging with the community, and contributing to philanthropic causes, the company is showing its dedication to upholding social and ethical standards, which in turn greatly impacts workers’ views and attitudes toward their employer.

According to Social Identity Theory, CSR initiatives may lead to a positive impact on Organizational Identification and employee well-being by fostering social bonds, aligning organizational and personal values, and improving the organization’s reputation, all of which contribute to employees’ emotional, social, and psychological wellbeing. Employees might feel fulfilled and satisfied when they know their firm is making a beneficial contribution to society, which improves their overall emotional condition. Similarly, employees would feel more engaged and collaborative in public organizations when the organization empowers employees by fulfilling CSR toward society, customers, and employees. Moreover, Vietnamese public organizations seek to impose responsibility on public activities and reassurance that organizations are acting according to assigned responsibilities. Notably, an insignificant relationship between POS and employee loyalty in Vietnamese public organizations was discovered in this study, which contrasted with prior employee loyalty studies (Eisenberger et al., 2002, 2019; Tariq, 2017).

The POS role might be diminished in Vietnamese public organizations, which encounter “irresponsibility, corruption, poor performance. and low work ethics of public employees” (Anh Vu et al., 2022). The organizational support theory delineates that employees perceive managerial behaviors as an indication of the organizational culture, which contributes to the POS perception (Gaudet & Tremblay, 2017). POS is regarded as interpersonal connections with organizations and a vital part of subordinate–supervisor interactions (Maan et al., 2020). Nevertheless, Vietnam is a country with high power distance in the organizational culture (Hofstede, 2022), which suggests that individuals perceive that the respective firms accept and expect hierarchy and unequal power distribution between high-status and low-status employees (Kim et al., 2023). Managers with high power attain significant influence and control over employees, and numerous Vietnamese employees are accustomed to complying with supervisors’ directives without further questions (M. Nguyen & Truong, 2016). This power imbalance can also lead to a lack of empowerment, as employees may not feel that they have the autonomy to make decisions or take ownership of their work, hence the role of POS might be neglected due to cultural and societal context in Vietnam public sector.

Furthermore, the research findings confirmed that organizational identification and employee well-being positively impacted employee loyalty (Gorgenyi-Hegyes et al., 2021; Salameh et al., 2023; Tseng & Wu, 2017). Regarding the roles of organizational identification and employee well-being in the relationships between the independent variables and dependent variables, organizational identification and employee well-being significantly mediated the relationships and elucidated the predictor effects of CSR and employee well-being on employee loyalty. Particularly, the results indicated that CSR and POS are predicted and mediated by organizational identification. Employees from public organizations identified that CSR strategies and POS contribute to shaping organizational identification and influence the belongingness and bonding of employees, thus enhancing employee loyalty. The results corroborated the postulations of the social identity theory regarding the development of the social self through participation in organizations with social recognition and the drive for self-enhancement (Ashforth & Mael, 1989), which would ultimately impact employee loyalty. Employees strive to achieve balance in the relationship with the organizations by fostering constructive attitudes and behaviors consistent with employee loyalty for long-term employee well-being (Rhoades & Eisenberger, 2002).

Conclusion

This research examined determinants impacting employee loyalty in the Vietnamese public sector through the mediating effects of employee well-being and organizational identification on the relationships between CSR, POS, and employee loyalty. The social identity theory and organizational support theory, attracted significant attention from researchers and practitioners, as employees could develop a strong identification and well-being with the respective organizations (Srivastava & Singh, 2020). Moreover, previous CSR literature emphasized external factors instead of internal stakeholders’ perspectives, including employees (Su & Swanson, 2019). Public employees in Vietnam were also more satisfied with the current jobs and devoted to the public sector when perceived as being appreciated by society, particularly in public universities, due to stable employment (Hue et al., 2022). Summarily, the findings contributed significantly to the field of organizational behavior through the integrated research model in revealing the relationships between CSR, POS, and employee loyalty mediated by employee well-being and organizational identification. The practical findings also supported the organizational support theory and social identity theory, which underpin the fundamentals of the investigated associations.

The present study appraised the intervening effect of organizational identification and employee well-being on the relationships between CSR, POS, and employee loyalty, which highlighted the importance of CSR strategies and POS for employee well-being and organizational identification by public organizations. The study results contributed to the existing literature by assessing the impacts of CSR and POS on employees’ organizational identification and employee well-being. In addition, the CSR impact could be contingent when the significant relationship between CSR and employee loyalty was mediated by organizational identification and employee well-being. Several crucial findings were discovered, wherein CSR significantly influenced employee loyalty, both directly and indirectly, through organizational identification and employee well-being. The findings supported the general notion that employees perform holistic perceptions of organizations in developing attitudinal and behavioral responses toward employers. Particularly, organizational identification significantly enhanced the positive relationship between CSR and employee loyalty, organizational identification and employee well-being partially mediated the positive impact of CSR on Employee Loyalty, Organizational identification, and employee well-being fully mediated the positive relationship between POS and employee loyalty. Thus, CSR, organizational identification, and employee well-being are pivotal employee loyalty determinants. Research from Tran et al. (2021) propounded that public sector reformation is required to ensure that optimal governance is attained in emerging countries, such as Vietnam. Currently, in Vietnam’s public sectors, CSR programs are often implemented infrequently and as occasional activities, rather than being fully incorporated into the organization’s fundamental strategy. CSR activities include many initiatives, including as one-time events like charity drives, environmental clean-up efforts, or community participation programs. Nevertheless, these priorities are rarely constantly given importance and often fade from memory after the event is over. Consequently, the influence of these corporate social responsibility (CSR) initiatives on employee welfare, company reputation, and societal advantage is still restricted. To tackle this problem and improve the efficiency of CSR activities, it is advised that public sector organizations in Vietnam implement a complete CSR plan that is integrated from the highest level of management and disseminated across the whole company. Implementing this strategic approach to CSR will guarantee that CSR becomes an essential component of the organization’s purpose, values, and long-term vision.

Nevertheless, it is crucial to acknowledge that organizations that have favorable public perception as a result of their corporate social responsibility endeavors but fail to treat their workers adequately, will be seen as insincere or counterfeit by both their employees and the general public. If an organization is engaged in CSR initiatives and has a favorable public image, its credibility in these efforts may be doubted if it does not provide enough support and respect to its workers. Employees are prone to feeling detached from the organization’s CSR activities if they believe that their well-being and concerns are not sufficiently handled. Hence, it is crucial for public sector firms to guarantee that their CSR endeavors are in harmony with the treatment of their workers, cultivating a culture of sincerity and sincere concern for both employees and the community they serve. Therefore, it is essential to combine CSR programs with a strong system of POS in order to improve employee well-being, loyalty, and overall organizational success. Developing a resilient POS system entails establishing a supportive work environment, where workers see themselves as being valued, respected, and backed by the business. By cultivating an environment that promotes assistance and acknowledgment, employees are more inclined to experience a sense of involvement and dedication toward the objectives of the firm. In addition, incorporating helping behaviors as a core aspect of employee contribution to the organization and society is essential. Public sector organizations should actively encourage and recognize employees who participate in CSR initiatives and contribute to the well-being of their communities. By making helping behaviors ingrained in the organizational culture, employees will be more motivated to engage in CSR activities and make a meaningful impact on society.

Public organizations are deemed accountable to the public for their respective activities (Tran et al., 2021). Hence, effective CSR strategies and POS might be applied to resolve significant social concerns and strengthen organizational public responsibility. Public organizational managers should focus on creating and enhancing employees belonging to organizations to achieve Employee Loyalty for practical implications. Public organizations could strive to provide advocates specifically addressing employees’ opinions and thoughts. Employees would remain and continue to contribute to the success of public organizations when receiving high support levels. Simultaneously, CSR, organizational identification and employee well-being are vital features for estimating the employee loyalty level in public organizations. Managers must also apply CSR strategies, including three dimensions, namely society, customers, and employees, to increase employee well-being and the relationships between employees and organizations. The company management should also maintain and enhance the existing POS levels and develop plans to improve the system in further elevating organizational identification and employee well-being levels. The POS continued producing positive impacts on employee well-being and organizational identification despite not directly impacting employee loyalty. Hence, management strategies should empower employees through effective evaluation systems and training while providing autonomy and task handling to employees.

Nevertheless, several limitations existed in this cross-sectional study. For example, causal relationships could not be determined. Future researchers could employ experimental and longitudinal methodologies to investigate the possibility of reciprocal interactions. Moreover, a direct relationship was discovered to exist between organizational identification, employee well-being, and employee loyalty. Future studies could appraise other factors that potentially contain direct relationships with employee loyalty, such as employees’ Big Five traits or personalities, contextual factors, and Hofstede’s dimensions. Further, the response rate in this study presents a limitation as nonresponse bias may occur due to the characteristics of respondents differing from those who did not respond. This can lead to an unrepresentative sample and potentially skewed results. To address these limitations, future research should explore strategies to improve response rates and consider sensitivity analyses or statistical techniques to account for potential nonresponse bias. Finally, this study has potential possibilities of bias that only focuses on employees in the public sector which may not be representative of the broader workforce. This focus on public sector employees may introduce biases and limit the generalizability of the findings to other sectors, such as private or non-profit organizations. Future research should aim to include a more diverse sample of employees from various sectors to better understand the relationship between CSR and POS across different organizational contexts.

Supplemental Material

sj-docx-1-sgo-10.1177_21582440241293574 – Supplemental material for The Roles of Corporate Social Responsibility and Perceived Organizational Support on Employee Loyalty in the Vietnamese Public Sector

Supplemental material, sj-docx-1-sgo-10.1177_21582440241293574 for The Roles of Corporate Social Responsibility and Perceived Organizational Support on Employee Loyalty in the Vietnamese Public Sector by Hien Thi Thao Bui, Vo Hien Chau Nguyen, Ngoc Anh Khoa Le, Ngoc Thu Hien Dang and Phuoc Nguyen Khoi Nguyen in SAGE Open

Footnotes

Declaration of Conflicting Interests

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This research is funded by the International University, VNU—HCM under grant number T2022-01-BA.

Ethical Consideration

Not applicable.

ORCID iD

Hien Thi Thao Bui

Data Availability Statement

The data used for this study are available upon request from the first author.

Supplemental Material

Supplemental material for this article is available online.

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