* Corresponding author. Tel.: +84 0914 915 926
E-mail address: ptthien.kt@uneti.edu.vn (T.T.H. Phan)
© 2019 by the authors; licensee Growing Science, Canada
doi: 10.5267/j.msl.2019.6.023
Management Science Letters 9 (2019) 2105–2120
Contents lists available at GrowingScience
Management Science Letters
homepage: www.GrowingScience.com/msl
The impact of leadership style and corporate social responsibility practices on financial perfor-
mance: Evidence from Textile industry
Thi Diep Uyen Doan
a
, Van Hung Bui
b
, Thi Thu Hien Phan
a*
, Xuan Hung Nguyen
b
and Thi Kim
Lien Tran
a
a
University of Economic and Technical Industries, Vietnam
b
National Economics University, Vietnam
C H R O N I C L E A B S T R A C T
Article history:
Received: May 17, 2019
Received in revised format: June
22 2019
Accepted: June 23, 2019
Available online:
June 23, 2019
The objective of this article is to assess the impact of leadership style on deciding to implement
corporate social responsibility (CSR) for Nam Dinh textile garment enterprises. At the same time,
the article examines the mediate role of CSR on the relationship between transformational leader-
ship and financial performance. Moreover, the article verifies the moderate role of firm size in the
relationship between transformational leadership and financial performance, Stakeholder - oriented
marketing plays a moderate role in the relationship between transformational leadership and CSR
practice and moderate role of transactional leadership style in the relationship between CSR prac-
tice and financial performance. Analysis was conducted on 168 textile garment enterprises in Nam
Dinh. The results show that CSR played a mediate role in the relationship between transformational
leadership and financial performance. At the same time, all moderator variables were statistically
significant. The result encourages Nam Dinh textile and garment enterprises to conduct business
ethically towards sustainable development by implementing CSR.
© 2019 by the authors; licensee Growing Science, Canada
Keywords:
Leadership style
Corporate social responsibility
Financial performance
1. Introduction
A lot of arguments have been happened on many studies for the relationship between leadership and
Corporate Social Responsibility (CSR) (Du et al., 2013). Many theories have been used to explain their
relationships between leadership and CSR, including: agency theory (Dunlop & Lee, 2004), institutional
theory (Resick et al., 2013), managerial values theory (Schaubroeck et al., 2000), stakeholder theory
(Coombs & Gilley, 2005) and upper echelon theory (Manner, 2010). Although many theories have been
used, researchers still argue whether leadership plays an important role in CSR decisions or not, the
relationship between leadership and SCR has not gained consensus (Lewis, 2014).