Impact of Human Resource Management Practice on Organizational Performance: The Case of Food Processing Enterprises in Vietnam

Abstract

This research aims at exploring relationship among Human resource management practices (HRMP), corporate social responsibility (CSR), Organizational commitment (OC) and food processing enterprise’s performance. The sample size of 438 was collected from staffs and managers in 278 food processing enterprises in Viet Nam. Analytical method Structure Equation Model is used to analyze the data. The results of the study showed that HRMP directly positively influences demissions of CSR including CSR to employees, customers and environment. CSR positively relates to organizational commitment. However, there was only directly link between CSR to customers and enterprise’s performance. Although HRMP was not directly influence on organizational performance, it was the significant predictors indirectly through CSR and OC. Therefore, it is necessary to improve the functions of HRM practices such as recruitment and training, job evaluation, salary, Compensation, job stability and encourage participation in innovation combined with implementing CSR aspects.

1. Introduction

Entering the twenty-first century, when businesses frequently expand across national borders, not only multinational corporations and international organizations, but even small and medium-sized enterprises (SMEs) are also expanding is working hard to get and maintain a competitive advantage by solving the problem of “people and their potential” with great vitality. In this context, the strategic importance of effective human resource management and development for the future prosperity of organizations can be emphasized.

Although people are the most valuable asset, they can also become a burden if their abilities and attitudes do not match the needs of the organization. Therefore, in a fiercely competitive environment, in the global market and in the local market, finding and nurturing the right human resources to execute the business strategy is an important success factor [1]. Previous transactional leadership methods have failed to attract and retain the best talents by offering better salary, incentives and perquisites [2]. Although these transactional ways provide immediate respite, they are not enough to retain the talented ones for long and solve the talent crunch. Organizations need more than exchange means to engage or involve employees in its growth. They require inspiring leadership, an appealing vision and meaningful engagement of employees to transform organizations into a meaningful, soulful social entity [3]. Leadership is one of the significant driving forces that can radically improve the organizational performance and its fortunes. Leaders are responsible for key organizational decisions.

Effective human resource management is essential, especially for SMEs as international expansion puts additional pressure on their limited resources, especially people. Lado and Wilson [4] defined Human Resource Management (HRM) system as “a set of distinct but interrelated activities, functions, and process that are directed at attracting, developing, and maintaining (or disposing of) a firm’s human resources” [4]. In addition to maintaining competitive advantage and sustainable development, organizations should focus not only on human resources but also on other aspects of corporate social responsibility (CSR) such as customers, community community, society, environment, etc. On the other hand, the competition between businesses today is related to quality, price, distribution channels, advertising as well as the implementation of corporate social responsibility.

Carroll [5] argued that CSR operated in an enterprise to have economics, legal, ethical and philanthropic [5]. Taking CSR to make profits and complying with the law is a top priority when it comes to business ethics and corporate social support. Furthermore, Carroll [6] argues that employees are the main factor linking HRM and CSR, and they are also the ones who bring social responsibility to stakeholders [6]. HRM practice plays an important role in achieving the above goal, as it is one of the means of garnering the employee support and commitment necessary for the implementation of CSR policies [7].

The stressors facing organizations throughout call for a focus on the role of the leader. In particular, the organization needs leaders who lead with purpose, values, and integrity; leaders who build enduring organizations, motivate their employees to provide superior customer service, and create long-term value for shareholders [8].

Furthermore, when leaders evaluate the long-term outcomes of making socially and ethically responsible decisions, it is clear that there are significantly positive outcomes [9]. Therefore, in order to evaluate the effectiveness of leaders for the organization, this article analyzes the impacts of human resource management functions on business performance by evaluating the perceptions of employees and managers of Vietnamese seafood processing companies.

However, HRM has different measurement components across studies by Pfeffer [10], Singh [11], Guest [8, 9, 10, 12]. In Vietnam, the researches on HRMP mostly focus on small and medium enterprises such as Thang and Quang [13], Dung et al. [12, 13, 14]. Therefore, in order to specifically analyze the function of HRM, a path analysis model of the relationship between HRMP and business performance in food processing companies was conducted. Investigate findings as a basis for proposing impacts for enhancing leadership effectiveness to improve organizational performance.

2. Literature review

2.1 Leadership and management

Leadership is a part of management, it is the ability to persuade others to find ways to achieve defined goals, bring cohesion to a group, and motivate the group to achieve its goals. Management activities such as planning, organizing, and decision-making are seeds that do not work until the leader unleashes the motivating power of people and directs them towards certain targets [15, 16]. Leaders are present on the basis of the organization, their essential role being the direct influence of people, in the group’s activities.

Managers have activities that derive from the management function: they develop and apply development strategies, they make forecasts and plans; they organize and coordinate work; they provide an environment conducive to performance—this motivates employees; they ensure the effective growth of management action; they promote communication with employees, with customers and with suppliers; they develop strategic relationships [17].

Manager is associated with action verbs: do, develop, intervene, manage, control, fix, etc. Managers do not manage equilibria, but dynamic phenomena; they do not search to maintain an existent situation if it is not profitable. The leader is associated with the inflection of the verb to change [18]. Therefore, within the framework of this article, we will focus on the aspect of human resource management in organizations.

2.2 Human resources management

Schuler and Jackson [18] argued that is HRM practices refer to organizational activities directed at managing the pool of human resources and ensuring that resources are employed towards the fulfillment of organizational goals [19]. Theriou and Chatzoglou [19] stated that all superior practices that lead to performance were given various names as “best HRM practices”, “high commitment practices” and finally, “higher productivity and product quality practices” [20]. A significant body of research has suggested specific HRM practices which are expected to promote inimitable attributes in human resources that can help an organization to obtain a competitive advantage and enhance its performance [21].

Tocher and Rutherford [21] defined HRM as “a set of distinct but interrelated activities, functions, and processes that are directed at attracting, developing, and maintaining (or disposing of) a firm’s human resources [22]. HRM is as a strategic and coherent approach to the management of an organization’s most valued assets—the people (or human talent) working there who individually and collectively contribute to the achievement of its objectives [19, 20]. Human resource management is defined as a very important function in the operation of an organization, including recruitment, compensation, organizational development, safety, employee motivation, health care, effectively share information, train and manage all employee-related activities, and that means employees can carry out activities to achieve goals [23]. The later definitions that more concern on the strategic and humanistic roles of HRM as a trend for sustainable development in the organization [14].

For this study, components of HRM included selection and recruitment; Training and developing; evaluate the work of employees; workplace stability and advancement, compensation and rewards, and encouragement of engagement and innovation.

2.3 Corporate social responsibility

Carroll [5] argued that CSR is the business activity involved economic, legal, ethics, discretionary benefits and social support [5]. The CSR literature suggested that socially responsible companies not only try to be economically sustainable and profitable, but also endeavor to work with their employees, families, local communities and nation–states to improve the quality of life in ways that was both ethical and sustainable in relation to society and the environment [24]. The CSR includes two dimensions: external and internal stakeholder. The external dimension was reflected in the relationship between the organization and the community, the internal dimension as management and employees which is the expectation of employees to seek functional, economic benefits, psychological and ethical from employer organizations [22, 25].

Peterson [26] showed that there was a positive relationship between a civic enterprise and organizational commitment through employee perceptions about corporate social responsibility activities [27]. Crowther and Abreu [28] found five stakeholders of CSR including consumers, suppliers, communities, government and environment [29]. Based on the concepts of Peterson [26], Carroll [6], Mason and Simmons [24] and Vietnam Chamber of Commerce and Industry (VCCI) and CSR’s characteristics in Vietnam [6, 23, 25]. The concept of CSR can be understood as activities that meet the expectations of stakeholders and contribute to sustainable development through orientation towards employees, customers and the environment.

Becker [30] recommends a link between CSR and human resources management. This combination can bring many forms of business benefits to a company, such as improved reputation, loyalty, and employee retention within the organization [31]. According to Sarvaiya [27], the interaction between HRM and CSR is mainly due to the factors indicated by CSR: the scope of CSR implementation, the stage of CSR development, and differences between companies [32]. HRM is one of the means to assist employees to enhance their commitment to implementing CSR policies and practices. Hypothesis is proposed:

1. H1a: There is a positive relationship between HRM practices and CSR to employees.

   However, corporate CSR activities are also influenced by external stakeholders [33] such as customers, shareholders, suppliers, competitors, environment, community. HRM practices help foster an environment that provides clients with clear and ambitious production requirements that meet customer satisfaction and organizational performance [34]. Hypothesis:

2. H1b: There is a positive relationship between HRM practices and CSR to customers.

   Clarkson [29] argued that human resource management roles have a significant impact not only on organizational behavior, attitudes, organizational culture, and leadership skills, but also on employee awareness [29, 30]. In addition, Cacioppe and Fox [35] stated that environmental factor is necessary to analyze as referring to CSR [24]. HRM influences employee awareness, behavior, attitudes, organizational culture, and leadership skills development [36].

3. H1c: There is a positive relationship between HRM practices and CSR to environment.

2.4 Organizational commitment

Presents a spiritual relationship between workers and the organization, reducing the likelihood of leaving the organization [37]. Commitment impacts business goals and results when members perceive the organization and make every effort to help the organization achieve good results [38].

According to social identification theory (SIT—Social Identity Theory). It is often used as the basis for the relationship between CSR perceptions and responses to employee attitudes and behavior [39]. When employees realize that their organization works for the good of society, this contributes to a positive image, making them feel satisfied and wanting to identify with the organization, which enhances employee confidence and pride [24, 34].

Furthermore, De Roeck et al. [37] showed that CSR activities have an impact on improving employees’ attitudes towards the organization [40]. Mory et al. [38], Albdour et al. [41] and Thang [39] suggest that her CSR to employees is positively and significantly correlated with organizational commitment [38, 39, 42]. In addition, CSR is viewed as an important tool to influence the emotions, thoughts and purchasing behavior of target customers. However, these activities can not only improve the corporate image, but also affect the perception of employees. At least from the customer’s point of view, the employee looks like an agent of the employer. Therefore, if an organization misleads its customers or produces unsafe products, its employees may be ashamed of this behavior as well. On the contrary, if an organization cares about its customers by providing quality products and accurate information about its activities, employees can be proud to be part of that organization [43].

Moreover, in the study of Farooq et al. [40] and Glavas and Kelley [44] said that CSR towards employees, environment and customers are positively related to identification and organizational commitment [43, 45]. It is possible to consider hypotheses:

1. H2a: CSR to employees has a significant positive effect on organizational commitment.

2. H2b: CSR to customers has a significant positive effect on organizational commitment.

3. H2c: CSR to environment has a significant positive effect on organizational commitment.

2.5 Business performance

Is expressed through organizational performance and market performance [46, 47]. According to Richard et al. [48] recommends measuring company performance based on accounting, financial and market factors through company reports and feedback on Likert scales [49].

As employees become more aware of their organization and thereby increase their support to help them improve their performance, the power of organizational performance not only impacts organizational goals, but also job satisfaction and business performance [50].

Commitment is also called the psychological state that shapes the relationship between an employee and the organization and the decision to stay or leave the organization [51, 52]. Committed employees would have effectiveness in terms of high participation and high production leading to relatively low levels of absenteeism and turnover resulting in high levels of operating performance. Engaged employees are effective in terms of high participation rates, high productivity, relatively low absenteeism and low turnover, and therefore more productive operations. An organization’s personnel practices should pay attention to employee attitudes and beliefs. Because false beliefs can lead to employees not doing their best, resulting in poor motivation and performance, and poor organizational performance [53].

A high-performance facilitator work system is the relationship between trust, organizational commitment, and perception of organizational performance that positively impacts organizational performance [54].

1. H3: Organizational commitment relates positively with business performance.

   Torgusa et al. [50] found significant positive relationships between CSR measures and employee engagement, CSR, and organizational performance [55]. CSR towards customers had a positive effect on financial performance [50, 52]. If customers are dissatisfied with a product or related service, investors are concerned that negative customer reactions in the form of a shrinking customer base, lawsuits, or both will directly impact revenue [56]. Therefore, companies must pay attention to factors such as ethical advertising standards, the health and safety of their customers while using their products, and a company-wide quality program to offer better products at fair prices. A company’s policies and practices for dealing with such issues can signal a positive signal of the company’s responsible attitude towards its customers and improve the company’s performance [57].

   Aragon-Correa et al. [58] examined the impact of the environment on business performance and showed that companies are actively taking steps to minimize their environmental impact [59]. Although the government has introduced many regulations and legal systems to regulate the behavior, implementing CSR that depends on the capacity of the organization [60]. Therefore, we suggest:

2. H4.a: There is a statistically significant relationship between CSR to employees and business performance.

3. H4.b: There is a statistically significant relationship between CSR to customers and business performance.

4. H4.c: There is a statistically significant relationship between CSR to environment and business performance.

   Singh [11] have shown that components of HRM practices have a positive effect on performance [9, 61]. Tran Kim Dung et al. [57] have shown that HRM practices not only affect business performance through human resource outcomes, but also have a direct impact on business performance itself [62].

H5: HRM practices effect directly positive on business performance.

3. Method

3.1 Sample

Sample size plays an important role in estimating and interpreting SEM results. Hair and associates. Hair et al. [59] suggested that the sample size for structural equation models with 10–15 indices usually ranges from 200 to 400. This also depends on the number of observed variables and the reliability of each study that can be measured. Can be obtained for different survey samples [63]. According to Hair et al. [59], the sample size must be at least 4–5 times the number of observations. There are 49 items in the research so the minimum sample size is 49 × 5 = 245. Samples were selected by convenient stratified sampling method for distributing answer sheets in 278 enterprises that allows enough suitable samples to analyze.

The survey was conducted by looking at private businesses/sole proprietorships in 2018. The survey questionnaire was conducted through face-to-face interviews and selected questionnaire responses. Conveniently stratified with 438 observations. The sample structure is made by examining managers and employees working in a company with at least 5 years of professional experience on order.

Based on geographical characteristics and number of food processing enterprises, 7 out of 13 provinces/cities in the Mekong Delta were selected for the survey, ensuring appropriate sampling for analysis in the official study. A total of 452 questionnaires were collected, while 14 of them were rejected as incomplete. Thus, the final usable questionnaires were 438 with a response rate of 75.3%. About half of the respondents were women (41.3%).

3.2 Research methods

Qualitative Research: Through reviewing documents, discussing with survey subjects, collecting expert opinions to establish a preliminary scale, the results of the preliminary scale have 51 observed variables. Quantitative research: Continue to take 51 variables to survey agricultural personnel in 136 companies. Through Cronbach’s alpha analysis and exploratory factor analysis (EFA), the remaining 42 variables meet the requirements, they continue to be tested for formal studies with 438 samples at 278 companies, through confirmatory factor analysis (CFA) to test the presence of the observed variables and confirm the conceptual relationship, which aimed to demonstrate the consistency and one-dimensionality of the concept. Using structural equation modeling (SEM), the component relationships in the research model were assessed and calculated [64].

Measure the components of HRM include selection and recruitment; training and improvement; evaluation of employees’ tasks; stability and promotion in work, remuneration and reward, and encouragement of participation and innovation. The scale was adapted from Lievens and Chapman [60], Mathis and Jackson [65], Bohlander and Snell [66], Huselid [62], Jiang et al. (2012) [19, 25, 65, 67, 68].

Measurement of “Corporate social responsibility” (CSR) include CSR to staffs, CSR to customers, CSR to environment. The scale is designed to focus [45, 67, 69, 70, 71].

Measurement of “Organizational commitment” (OC); The scale was adapted from Meyer et al. [70]; Meyer et al. [71]; Delaney and Huselid [45]; Whitener [72].

The scale for measuring “Business performance” (PER) include Organizational performance (PEP) and Market performance (PEM) was adapted from Huselid [62]; [45, 70, 73].

4. Result

4.1 Descriptive statistics

We made 278 companies, of which 21.6% were Private Enterprises, and 48.6% were Co., Ltd. The Joint Stock Companies accounted for 21.9% of the surveyed Enterprises; and the Household business accounted for 7.9.

Regarding Scale of employees: the total number of enterprises with less than 10 employees is 11.6%, over 100 employees accounted for 41.7%, and 18.3% and 28.4 of the surveyed enterprises had from 10 to 50 employees and from 50 to 100 employees, respectively.

According to the number of years of operation: 16.9% of the surveyed enterprises had the number of years of operation of under 5 years, over 20 years accounted for 19.8%, 32.4% and 30.9% of the surveyed enterprises had operating time from 5 to 10 years and from 11 to 20 year, respectively.

According to the descriptive statistics, it was confirmed that there were no missing values in this study. The remaining 438 responses were then considered for data analysis.

4.2 Analyze reliability of the scales

The results in Table 1 show that all scales have alpha weight > 0.7 and the variables of each scale have a total variable correlation which can accept the reliability of the analysis. Therefore, the scales ensure the reliability of the analysis.

Code	Observed variables	Observed variables	Cronbach’s Alpha	Value
Scale of HRM practices
SET	Recruitment	3	0.859	Qualified
TRA	Training	2	0.733
APP	Job appraisal	3	0.847
SAL	Salary	2	0.772
COM	Compensation	3	0.822
INN	Participant and Innovation	3	0.789
Scale of corporate social responsibility
CSRS	CSR to staffs	3	0.832	Qualified
CSRC	CSR to customers	3	0.812
CSRE	CSR to environment	3	0.825
Scale of organizational commitment
OC	Organizational commitment	4	0.880	Qualified
Scale of Business performance
PEP	Organizational performance	3	0.824	Qualified
PEM	Market performance	4	0.884

Table 1.

Testing reliability of the scales.

Source: data calculated by author.

4.3 Results of CFA analysis for component concepts.

The scale results show the index of df, Chi-square/df; TLI and CFI are both greater than 0.9. The model fits the market data [59]. The normalized weights of the variables are greater than 0.5. The scale reaches one dimension (Table 2).

Concepts	factors	Chi-square	Df	Chi-square /df	P value	TLI	CFI	RMSEA
Human resource management	6	262.936	137	0.000	1.919	0.929	0.943	0.058
Corporate social responsibility	3	53.940	24	2.248	0.000	0.956	0.970	0.067
Organizational commitment	1	3.250	2	2.260	0.040	0.994	0.998	0.048
Business performance	2	77.204	26	2.969	0.000	0.946	0.961	0.062

Table 2.

Analysis results of CFA for each component concept.

Source: data calculated by author.

Table 3 describes the overall reliability of all scales with composite reliability coefficients greater than Cronbach’s alpha value (greater than 0.8). In addition, the scale with total variance was extracted to explain the variability in the data for high scores (all at 55% or greater). Combined with the built-in reliability and reliability values, this scale meets the requirements for reliability and total variance extracted.

Concepts	Factors	Variables	Reliability		Cumulative of Variance (%) (ρvc)	Value
			Cronbach’s alpha	Composite reliability
Human resource management	Recruitment	3	0.859	0.860	55%	Qualified
	Training	2	0.733	0.742	61%
	Job appraisal	3	0.847	0.826	59%
	Salary	2	0.772	0.776	58%
	Compensation	3	0.822	0.822	40%
	Participant and Innovation	3	0.789	0.790	63%
Corporate social responsibility	CSR to staffs	3	0.814	0.905	61%	Qualified
	CSR to customers	3	0.780	0.783	55%
	CSR to environment	3	0.811	0.815	60%
Organizational commitment	Organizational commitment	4	0.880	0.881	65%	Qualified
PER-business performance	Organizational performance	3	0.824	0.833	56%	Qualified
	Market performance	5	0.884	0.885	61%

Table 3.

Summary results of testing the reliability.

Source: data calculated by author.

4.4 Model results: the standardized estimates

Table 4 shows the results of the model path analysis. As it can be noted from the path analysis of the associated standardized regression weights. However, two of the hypotheses were not confirmed with the required statistical significance. It is not able that the significance threshold for this study was set at the P-value of 0.05. In Tables with the P-values, the P-values given as three asterisks (***) refer to the P-value of less than 0.001 (Figure 1).

Relationship			Estimates	Standard error	Critical ratios	P value	Evaluation
HRM practices	➔	CSR to employees	0.796	0.114	9.989	***	Accepted
HRM practices	➔	CSR to customers	0.758	0.096	9.301	***	Accepted
HRM practices	➔	CSR to environment	0.794	0.091	10.028	***	Accepted
CSR to employees	➔	Organizational commitment	0.329	0.085	3.731	***	Accepted
CSR to customers	➔	Organizational commitment	0.240	0.101	2.804	.005	Accepted
CSR to environment	➔	Organizational commitment	0.262	0.105	3.036	.002	Accepted
Organizational commitment	➔	Business performance	0.325	0.058	4.047	***	Accepted
CSR to employees	➔	Business performance	−0.064	0.078	−.576	.565	Accepted
CSR to customers	➔	Business performance	0.366	0.090	3.436	***	Accepted
CSR to environment	➔	Business performance	0.243	0.096	2.215	.027	Accepted
HRM practices	➔	Business performance	0.174	0.183	0.945	.345	Rejected

Table 4.

Results of testing the relationship between concepts in theory model.

^***

Significant at P ≤ 0.001.

Source: data surveyed by author.

Figure 1.

SEM results for the theoretical model.

The results show that there is a statistical significance of relationship between HRM practices and CSR to stakeholders. This results show that the role of HRM practices in relation to CSR is necessary, especially aspects of environment, employees in the field of food processing. In addition, it is possible to explain the HRM activities that support employees’ attitudes positively through organizational commitment. This is similar to studies of Whitener [72], Chew and Chan [74], Gong et al. [75] that states relationship between HRM and business performance through organizational commitment [41, 73, 74, 75, 76].

The results show that the implementation of CSR towards customers and the environment directly affects the company’s performance, similar to the study by Rettab et al. [76], Murtaza et al. [77] argue that the expansion of CSR improves the image of the organization in the minds of consumers, which has a positive impact on financial performance [78]. Aragón-Correa et al. [58] found that enterprises reduce the positive impact of the environment on financial performance [59].

CSR for employees has no direct impact on company performance. However, if the employee is aware of the level of CSR that the company has for its stakeholders, he will actively promote the attitude to improve productivity. Social Identity Theory (SIT) is often used as a basis to explain the relationship between CSR perception and employee attitudes [39].

5. Conclusion and implications

The research results show that leadership plays an important role in human resource management, it has a positive influence on employee perception and company’s performance [2, 3]. It is expressed through HRM practices positively affect CSR in all aspects of employees, customers and the environment. It is consistent with previous studies on the growing practice of HRM organizations contributing to the formulation of social responsibility policies [7, 32]. In particular, the impact of HRM on CSR in terms of human resources and the natural environment is high (weights β = 0.796 and 0.794), which shows the importance of management and the level of CSR implementation, especially for environmental components, similar to Clarkson’s [29] study, highly appreciate environmental factors as important in implementing CSR [78]. This result is completely consistent with the food industry where most companies operating in this field consider the application of management standards such as SA 8000 to ensure a suitable working environment fit. In addition, customer-oriented standards are gradually improved and developed to meet food safety management standards such as GMP, HACCP or ISO 22000.

All three aspects of CSR affect organizational commitment, in which the strongest influence on commitment is CSR for employees (β = 0.329), which is unavoidable when employment for employees helps increase employee commitment to the organization. This result is consistent with the study of Skudiene and Auruskeviciene [73] on internal CSR (employee orientation), it has a more positive influence on employee motivation than external CSR aspects [77]. Al-bdour et al. [41]; Halim and Rahayu [79] also confirmed that internal CSR strongly influences organizational commitment [80, 81, 82].

In addition, organizational commitment has a positive impact on the company’s business performance (β = 0.325), it shows that organizational commitment will promote positive performance, generate business results, high business. Gouldner [78] showed that the benefit that one person receives from another leads to this benefit returning in a process in which organizational commitment positively affects firm performance [81, 82, 83]. While CSR for employees and the environment is important, it does not directly affect business performance. However, CSR towards customers positively affects operational efficiency (β = 0.348). This result motivates companies to take action to strengthen the brand image and reputation in the minds of customers [84].

Although HRM practices do not directly affect performance, HRM activities play an important role in indirectly affecting business performance (β = 0.805), corresponding to level 82.3% explained. This means that companies carrying out human resource management activities should incorporate an emphasis on performing accountability to stakeholders such as employees, customers and environmental responsibility. It is in the interest of companies to take into account factors such as working conditions, working hours, respect for labor protection and food safety, strengthen the company’s role for customers, respect customers, the treatment and rejection of waste in the natural environment are implemented more strictly, as they have a positive effect on the attitudes of employees contributing to improving the performance of the company.

5.1 Implications

In order to improve organizational commitment and business performance among employees in the seafood processing industry through HRM activities, the leaders need to focus on implementing some activities:

Improve management efficiency by maintaining and reforming their ISO management system. It is necessary to approach, maintain and develop a GMP (Good Manufacturing Practice) management system to ensure safe and hygienic conditions for production, including general principles, regulations, and guidelines for basic contents. From production conditions ensuring product quality and safety to the development of the HACCP System and food safety management standards (ISO 22000).

Regarding recruitment and training, the selection should be done publicly, with clear job descriptions for each position. In order to improve the quality of on-the-job training, human resource management needs to focus on two subjects who are employees of the company as follows:

For workers who directly create products, it is necessary to pay special attention to skills and production levels and pay attention to the implementation of regulations and processes, ensuring strict implementation of regulations in occupational safety, hygiene and food safety;

For indirect workers, it is necessary to improve their qualifications in many aspects, including regularly updating standards on quality management and science and technology, accessing and developing products suitable for the market. In addition, encourage employees to be proficient in other areas to increase flexibility in problem solving and easily take on other jobs when there is a change of job. Regularly organize and send employees to participate in professional training and retraining courses. This helps employees update their knowledge in a timely manner to respond to market demands.

Leaders should regularly monitor and evaluate employees through a set of assessment criteria on knowledge, skills, qualifications and work performance in the company, regardless of gender. The criteria should be clear, open and fair in evaluating employees. In addition, it is necessary to build a feedback channel and dialog with the company at least twice a year to answer questions, solve difficulties and complaints of employees.

The salary and bonus policy must be implemented in a timely manner, ensuring the salary suitable to the job position and reasonable compared to other companies of the same type of operation. Today, the demand for human resources for the processing industry in the coming time tends to increase.

Remuneration and bonus policy should be implemented timely to ensure that salary is suitable for the position and reasonably placed in comparison with other enterprises in the same type of business. Today, the demand for human resources for the processing industry in the coming time tends to increase. Therefore, salary and bonus are important factors that must be carefully considered to both increase revenue and ensure organizational commitment. The determination of marginal labor and wages should be reviewed and adjusted every 6 months to suit the actual production and business situation. Regulations on salary, bonus, sick leave, convalescence, maternity, etc.

The leaders should encourage employees to develop rules and procedures within the company to ensure quality improvement and increase employee engagement. At the same time, it will improve operational efficiency through improved management and streamlined and efficient work processes. Therefore, it will improve the quality of the product to meet the needs of the customers, thereby helping to improve the functioning of the market.

Research is limited to analyzing three aspects of social responsibility: employees, customers and the environment. Social responsibility is also expressed in other aspects, such as social responsibility towards the community, suppliers, shareholders, etc. were not analyzed in this study. It therefore underestimates the extent to which social accountability is exercised among stakeholders. This is a necessary research direction from which to analyze the encouraging aspects of corporate social responsibility to stakeholders.

Observed variables		Sources	Corrected item-total correlation	Cronbach’s Alpha
Scale of HRM practices
Recruitment
SET1	Company announce information of recruitment widely	Qualitative research	0.565	0.859
SET3	Provided full information on the work for candidates as admission	[67]	0.676
SET4	Selection and recruitment based on the capacity of candidates	Qualitative research	0.752
Training				0.733
TRA1	The company had an apprenticeship and training system for employees	Qualitative research	0.710
TRA2	Training to solve skills and issues in the enterprise	[25]	0.656
Job appraisal
APP1	The enterprise evaluated the work fairly	Qualitative research	0.721	0.847
APP2	The enterprise had a process to evaluate job clearly	Qualitative research	0.717
APP3	The enterprise evaluated employees that based on their ability and job performance	[19, 65]	0.706
Salary
SAL1	I was paid full, reasonable for the work I do	[82]	0.631	0.772
SAL2	I was paid on time	Qualitative research	0.631
Compensation
COM1	The enterprise had policies that reward appropriate	[85]	0.675	0.822
COM2	Employees received incentives such as promotions, bonuses, etc.	[25]	0.713
COM3	Rewards and benefits was distributed fairly	[25]	0.644
Participant and innovation
INN1	Employees often work to find solutions to meet the difficult problems	[71]	0.585	0.789
INN2	Encouraged employees usually think dynamically	[86]	0.700
INN3	Employees were encouraged participate to resolve issues	[68, 70]	0.607
Scale of CSR
CSR to staffs—CSRS
CSRS1	Our company provided a wide range of indirect benefits to improve the quality of employees’ life	[70, 71]	0.707	0.832
CSRS2	The managers of our company were primarily concerned with employees’ needs and wants.	[45]	0.703
CSRS4	Businesses create flexible conditions to balance the life and work well for employees	[45]	0.666
CSR to customers—CSRC
CSRC1	Employees were trained/instructed to provide full information about its products to its customers	[45]	0.583	0.812
CSRC2	Customers satisfaction were highly important for our company	[45]	0.582
CSRC3	The business always solves customers’ complaints satisfactorily	[45]	0.569
CSR to environment—CSRE
CSRE1	Our company has the necessary equipment to reduce its negative environmental impact	ISO26000	0.674	0.825
CSRE2	Our company use materials/products which are environmental friendly	ISO26000	0.705
CSRE3	Environmental factors and surrounding communities was always carefully weighed in business activities	ISO26000, [45]	0.665
Scale of organizational commitment—OC
OC1	I am proud of my job to tell others that I am part of this organization	[45, 72]	0.674	0.880
OC2	I really feel as if this organization’s problems are my own	[45, 72]	0.752
OC3	I would be very happy to spend the rest of my career with this organization	[84]	0.720
OC4	For me, this is the best of all possible organizations for which to work	[45, 72]	0.772
Scale of Business performance—PER
Organizational performance—PEP
PEP1	Quality of products services is ensured	[70, 73]	0.682	0.824
PEP2	New products, services is developed		0.761
PEP3	Number of products production is increased		0.736
Market performance—PEM
PEM1	I noticed that customers feedback positively	[70, 73]	0.677	0.884
PEM2	I noticed that the sales of the business increased		0.712
PEM3	I noticed the profitability of enterprises increases		0.774
PEM4	I noticed the enterprise market is expanded		0.730
PEM5	I noticed that the number of customers increased		0.713