Relationship between Corporate Social Responsibility (CSR) and Financial Performance in the Healthcare Industry in Vietnam

Abstract

This study aims to understand the relationship between corporate social responsibility and the financial performance of companies in the healthcare sector in Vietnam. The sample size of the study is 242, including data collected from 22 listed companies in the healthcare industry in Vietnam, during the period from 2012 to 2022. By using Stata software research methods and tests, research results show that corporate governance, human rights, and community have a significant impact on the financial performance of healthcare businesses in Vietnam, while employee relations and environment have no impact on financial performance. From there, this study makes several recommendations that healthcare companies should have reasonable regulations to adjust the gender balance on the board of directors and develop a code of ethics on human rights associated with CSR activities, thereby implementing training programs to improve the quality of human resources, and needing to allocate investment costs in production technologies appropriately to optimize operating performance and profits of the business.