The Impact of Corporate Social Responsibility on Employee Satisfaction in the Pharmaceutical Industry

Abstract

CSR (Corporate Social Responsibility) is not treated as an optional add-on anymore, although a prerequisite for any business. The benefits that come with CSR depend largely on the responses of the stakeholders and workers in this case, are very critical. Pharmacy is one of the most vital industries in Vietnam. However, there are shortcomings and gaps amongst these pharmaceutical companies, particularly in the area of sustaining high quality retention of human capital. This paper helps in evaluating CSR’s impact on satisfaction of employees in Vietnam’s Pharmaceutical sector using Carroll’s pyramid model (1991) as a foundational framework. The authors gathered the required dataset via online surveys, collecting 175 responses from pharmaceutical employees between 01/2025 and 02/2025. The PLS-SEM estimation of The PLS structural equation model was executed with SPSS and AMOS 20. From the findings, CSR positively impacts employee satisfaction, indicating that along with mediating variables were (i) Corporate Business Ethics and (ii) Philanthropic Responsibility. This study has filled in the gaps within the existing literature by providing some real-world evidence of CSR's usefulness to pharmaceutical companies.