Labour Management Sustainability Score And Firm Financial Performance Between Companies In Vietnam

Hanh M. Duong (), H.-Anh Nguyen and Hien T. Nguyen
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Hanh M. Duong: Vietnam National University, International School
H.-Anh Nguyen: Vietnam National University, International School
Hien T. Nguyen: Vietnam National University, International School

A chapter in Proceedings of the International Conference on Emerging Challenges: Sustainable Strategies in the Data-Driven Economy (ICECH 2024), 2025, pp 434-450 from Springer

Abstract: Abstract Research purpose: The study utilises MSCI ESG Ratings to examine the correlation between labour management sustainability and financial performance of 100 Vietnamese enterprises, promoting sustainable labour management in a challenging economic climate. Research motivation: The study aims to provide an empirical framework for Vietnamese enterprises regarding labour management sustainability, addressing discrepancies and enabling comparisons between firms. It serves as a reference example for Vietnamese businesses in measuring the sustainability of labour management through the MSCI ESG Rating Methodology. Research design, approach, and method: We collected data from 100 companies in Vietnam from financial statements, annual reports, and official websites from 2018 to 2022. The data was used to derive financial performance indicators and the Labour Management Key Issue Score by applying the MSCI ESG Rating Methodology. These data are then analyzed using panel regression via Stata to determine the relationship between labour management sustainability and financial performance. Main findings: The study categorized businesses into groups based on EXP, MGMT, KI, and Equity. The study revealed that the Labour Management Sustainability Score has a positive influence on the return on equity (ROE) and return on assets (ROA) of Vietnamese enterprises. These findings contribute to the theoretical framework of the MSCI ESG Ratings Methodology and the field of labour management. Practical/ managerial implications: In the context of labour management of businesses, firms are increasingly encouraged to embrace global labour management standards and publicly release pertinent labour management data. The study adopting the MSCI ESG rating method can serve as a reference for businesses, as labour management positively impacts financial performance.

Keywords: Sustainable Labour Management; Financial Performance; Vietnam Companies (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-694-9_30

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