A Study On The Impact Of Corporate Social Responsibility On Individual Investors’ Investment Decision

Corporate Social Responsibility(CSR) is no longer a new concept for developing countries. It has been developing through long history and nowadays it is expected to implement by any business entities in the world. However, the term is not familiar to Vietnamese until recent years when the economy is more open and there are many critical cases and scandals concerning about Corporate Social Responsibility as the results of the economic boom. There are not many researches on that field; therefore, the understanding of Corporate Social Responsibility in Viet Nam has been limited. That is the motivation for the researcher to conduct the survey about the importance and perception of CSR among individual Vietnamese investors.The objection of the research is to access the understanding of individual Vietnamese investors on the topics of CSR. Then the research knows how the CSR’s affect to the investment decisions of investors. Besides, the research also wants to define which factors contribute to make responsibile investment decision by asking respondents’ understanding and opinion on CSR awareness, responsibile investment and correlation and CSR reportsBy conducting the research, the research is able to show that the understanding of CSR concepts and its importance is limited. The investors have little basic knowledge of CSR; however, the understanding is somehow distorted such as thinking of CSR as regulation compliance only. Moreover, the investors in Viet Nam find hard to use CSR as a tool to value firm and it is also difficult for them to make investment decision when CSR issues are mentioned.Through literature review, the research uses the method of survey and interviews directly individual Vietnamese investors, since then to analyze and explore the correlation between individual investors and corporate social responsibility.First of all, the research is conducted to system the theories of corporate social responsibility, including the definition of the concept of corporate social responsibility, stakeholder theory, social responsibility investment concept. Secondly, advancing overall of the reality of several countries on the world about corporate social responsibility. Next, analyzing the reality of Vietnamese corporate social responsibility. Then, determining the independent variable, dependent variable, questionnaires, carring out a survey, using SPSS software to statistic analysis. Finally, the research points out some issues and gives recommendation for sustainable development of enterprises and help the investor to make the right decisions.