Ownership Structure and Corporate Social Responsibility: Evidence from Vietnam

Abstract

The purpose of this article is to examine the influence of ownership structure on corporate social responsibility (CSR) disclosure in Vietnamese companies. This study used the FGLS and PCSE methods on a sample collected from 87 enterprises in the consumer goods industry published on the Vietnamese Stock Exchange over 3 years from 2017 to 2019. CSR Score was rated based on a KLD scale. Findings reveal an unexpected negative link between Government Ownership and CSR Score, while Foreign Ownership shows a positive association, contradicting assumptions. Family Ownership exhibits a negative relationship, signaling potential CSR implementation challenges in family-owned firms. The study contributes to the literature by exploring ownership types and CSR in emerging markets, emphasizing the need for tailored corporate governance mechanisms. Practical implications implore policymakers and business leaders to adapt appropriate corporate governance to specific ownership dynamics, fostering CSR integration into sustainable practices.