a study on incorporating corporate social responsibility in a tea manufacturing company a case study on hung cuong trading limited company

A STUDY ON INCORPORATING CORPORATE SOCIAL RESPONSIBILITY IN A TEA MANUFACTURING COMPANY: A CASE STUDY ON HUNG CUONG TRADING LIMITED COMPANY... Abstract A STUDY ON INCORPORATING CORPORAT

A STUDY ON INCORPORATING CORPORATE SOCIAL RESPONSIBILITY

IN A TEA MANUFACTURING COMPANY: A CASE STUDY ON HUNG

CUONG TRADING LIMITED COMPANY

DO XUAN TRUONG

28 March, 2011

DO XUAN TRUONG

Abstract

A STUDY ON INCORPORATING CORPORATE SOCIAL RESPONSIBILITY

IN A TEA MANUFACTURING COMPANY: A CASE STUDY ON HUNG

CUONG TRADING LIMITED COMPANY

BY

DO XUAN TRUONG March 2011

Supervisor: Le Van Lien

Corporate Social Responsibility (CSR) is a trend in the world today, but it is still relative new in Vietnam Companies want to compete, to grow, they need

to implement CSR CSR is a competitive tool for them The main aim of this research

is to find the level of awareness and the implementation of CSR of a tea company Researcher will use both of primary and secondary data to achieve this aim In the primary data, researcher uses questionnaire sample to collect data from managers and employees of the company After the analyzing of the results, researcher also gives some recommendations for the company

TABLE OF CONTENT

Declaration of Originality and Word Count ii

DECLARATION ii

Acknowledgement iii

Abstract iv

TABLE OF CONTENT v

LIST OF FIGURRES AND TABLE viii

LIST OF ABBREVIATIONS ix

CHAPTER 1: INTRODUCTION 1

1.1 Research background 2

1.1.1 CSR in the world 2

1.1.2 CSR in Viet Nam 3

1.1.3 CSR in the tea industry 4

1.2 Problem Statement 5

1.3 Objective and Sphere of Research 6

1.3.1 Objective of Research 6

1.3.2 Sphere of Research 6

1.4 Research methods 7

CHAPTER 2: LITERATURE REVIEW 8

2.1 Definition of CSR 9

2.2 Pyramid Concept of CSR 11

2.3 The Concepts Related to CSR 12

2.3.1 Stakeholder Theory 12

2.3.2 Tripple Bottom Line 13

2.3.3 Business Ethic 14

2.3.4 Sustainable Development 14

2.3.5 Investment Decision 15

2.3.6 Responsible Investment 15

2.3.7 CSR Reporting 16

CHAPTER 3: RESEARCH METHODOLOGY 17

3.1 Research Objective 18

3.2 Theoretical Framework and Measurement 18

3.2.1 Managers 18

3.2.1.1 Level of Awareness 18

3.2.1.2 Implementation 19

3.2.2 Employees 19

3.2.2.1 Level of Awareness 19

3.2.2.2 Implementation 20

3.3 Research Methodology 20

3.4 Data Source 20

3.4.1 Primary Data 20

3.4.2 Secondary Data 21

3.5 Research Method 21

3.6 Research tool 21

3.7 Sampling 22

3.7.1 Sample Population 22

3.7.2 Sample Frame 22

3.7.3 Sample Size 22

3.8 Limitations 22

3.9 Hypothesis Statement 22

CHAPTER 4: ANALYSIS 24

4.1 Collection of Questionnaires 25

4.2 Description of Result 25

4.2.1 Age 25

4.2.2 Gender 26

4.2.3 Managers 27

4.2.3.1 Level of Awareness 27

4.2.3.2 CSR Implementation 31

4.2.4 Employees 35

4.2.4.1 Level of Awareness 35

4.2.4.2 CSR Implementation 38

4.3 Result Analysis 42

4.3.1 Level of Awareness of CSR 42

CHAPTER 5: CONCLUSION AND RECOMMENDATION 47

5.1 Conclusion 48

5.2 Recommendation 49

5.3 Limitation of Study 50

5.4 Suggestion for Future Research 50

REFERENCE (Harvard referencing system) 51

APPENDICES 53

Appendix A: Questionnaire Sample 53

LIST OF FIGURRES AND TABLE

Table 1: Elements and its items related to CSR 10

Figure 2.2: Pyramid model of CSR (Archie B Carroll, 1979) 11

Figure 2.3: The relationship between firm and its stakeholders 13

Table 2: Age 25

Table 3: Gender 26

Table 4: Question 1 - Description of Result 27

Table 5: Question 2 - Description of Result 28

Table 6: Question 3 - Description of Result 29

Table 7: Question 4 - Description of Result 30

Table 8: Question 5 - Description of Result 31

Table 9: Question 6 - Description of Result 32

Table 10: Question 7 - Description of Result 33

Table 11: Question 8 - Description of Result 34

Table 12: Question 1 - Description of Result 35

Table 13: Question 2 - Description of Result 36

Table 14: Question 3 - Description of Result 37

Table 15: Question 4 - Description of Result 38

Table 16: Question 5 - Description of Result 39

Table 17: Question 6 - Description of Result 40

Table 18: Question 7 - Description of Result 41

LIST OF ABBREVIATIONS

1.1 Research background

1.1.1 CSR in the world

Nowadays, Corporate Social Responsibilities is one of the hottest topics in the world CSR is the relationship between business and stakeholders It affects directly on reputation of businesses Objectives of the business activity are not limited to profits Measure of business success is the impact that business creates for society In

addition, long-term benefits of CSR are largely internal to the enterprise such as improving relationships at work, reduce accidents, and reduce the rate of employee severance, increased labor productivity CSR will also help improve the reputation of the business relationship with customers and partners, creating a competitive

advantage and facilitate the call for investment, especially foreign investment CSR focuses on society and the environment The expectations of stakeholders are

economic benefits, environmental protection and social impact The purpose of businesses is that to meet expectations above to satisfy them If they can do it, their businesses will have a sustainable development Sustainable development must incorporate and harmony between the three aspects: economic development, social development and environmental protection Knowing this, multinational companies have operations to towards the goal of sustainable development in many countries For example, some companies in automotive industry (Volvo); garment (Nike, Addidas) and dairy industry (Friesland foods)… have CSR report annually They produce high quality product, sponsor for many programs that related to children or construct wastewater treatment systems to protect environment On the other hand, some companies are still not aware of the importance of CSR; they have caused damage to the environment, clients and themselves (effect on their reputation) For instance, BP is one of the biggest oil companies in the world However, BP has

encountered a problem that is serious oil spill in the Gulf of Mexico The cause of this incident is due to the lack of supervision, poor safety Living environment is

threatened seriously have caused more sickness, poverty for the people In addition, marine organisms can not survive, caused ecological imbalance

1.1.2 CSR in Viet Nam

In fact, CSR is still a new field in Vietnam, but particularly important

for the sustainable development of enterprises Restriction to implement CSR in Vietnam may be due to the perception of business about CSR, or because limited financial and technical to implement CSR In Vietnam, success in accelerating

economic growth is putting the country on environmental issues and pressing social The main issues that are demanding the economic entities, including businesses, should have the responsibility to contribute to reduce problems or make better Enterprises are only interested with profits while the environment and society face with damages caused by them To reduce this problem, government has some

activities to encourage businesses such as CSR awards, organize seminars on CSR and sustainable development to increase the level of awareness about CSR of

businesses Evidence that, from 2005, Chamber of Commerce and Industry of

Vietnam, Ministry of Labour, Invalids and Social Affairs, Ministry of Trade and Industry along with Association Footwear, Textiles awarded “the Corporate Social Responsibility towards sustainable development” to honor the small business which implemented social responsibility in the context of enterprise integration Currently, many large enterprises in Vietnam have found that social responsibility of enterprises has become one of the indispensable requirements for enterprises, because, in the context of globalization and international integration, if the business does not comply with social responsibilities, they will not be able to gain access to world markets

Many businesses when implementing social responsibility has brought practical results in the production Results of a recent survey by the Institute of Labor Studies that conducted over 24 social enterprises of the two industries (Shoes and Textiles) showed that: by the implementation of social responsibility programs, turnover of business has increased 25%, labor productivity has increased from 34.2 million VND

to 35.8 million VND per worker per year and the ratio of exports increased from 94%

to 97% Besides economic efficiency, these enterprises want to strengthen its

reputation with customers, create the closeness and satisfaction of employees for enterprises, and attract labor force with highly specialized (Duc P V, 2010)

1.1.3 CSR in the tea industry

As we know, tea production and processing are closely related to many issues such as social, workers, ecology In the past, when looking at labor, social, ecology, we see only violation of international standards in the tea industry To solve these problems,

a number of initiatives have been introduced Firstly, Unilever launched an initiative for sustainable tea, it means that create sustainable agriculture initiatives for tea For example, Unilever will collaborate with the Ministry of Agriculture and Rural

Development to help the tea growers in Vietnam to build tea farms for sustainable development and increase exports of "green and clean" tea Secondly, according to the Dutch tea initiative, this civil society initiative calls upon companies selling tea in the global market to assume their responsibility for sustainable production and trade Companies focused improving human resources, quality products and services to consumers Simultaneously they have interested to community issues, and reduce environmental degradation (Sandun, 2010) In addition, they have given the Code of Conduct (CoC) of tea industry to increase the awareness and understanding of CSR for all tea companies From all initiatives above, we can see that, CSR issues in the

tea industry is being interested and conducted by concerned parties, doing this to create a good picture of the tea industry, issues such as hygiene and food safety, consumer interests, health and safety of workers, environmental concerns are the top interested of tea enterprises

1.2 Problem Statement

In recent years, companies in Vietnam have caused serious impacts on the

environment while environmental protection is an aspect of CSR For example, Vedan discharges untreated waste into the environment, affecting nearly 2.700ha farming area along the Thi Vai River basin Level of pollution was 90% with the range of about 10km affected along the river (Dantri, 2009) Another example is that a Taiwan company, namely Tung kuang, was caught because it discharging untreated waste water directly into the environment, concentrations of hazardous substances

exceeding specified thresholds These are two typical examples of serious violations

to the environment, as well as a lack of understanding, poor awareness about the harm caused by environmental pollution The enterprises need to put CSR into their

strategies Vinamilk is an example; they have some programs related to CSR such as

“milk fund” The biggest success of this fund is to ensure that drinking milk per day is right of poor children of Vietnam to they have developed a comprehensive physical and spiritual (Vuoncaovietnam, 2010) This action will also improve the image

and reputation of the company,many Vietnamese people buy Vinamilk’s products because they know that Vinamilk has interested to their children From all cases above, we can see that the important of CSR for both company and stakeholders CSR will help to increase the reputation of the company, to bring more profit for

shareholders, to ensure the fresh environment for society and so on Do be aware of the importance and benefits of implementing social responsibility in the context of

globalization and international integration, a number of large enterprises in Vietnam has made social responsibility in the form of commitment to society in protecting the environment, local communities and the workers In the tea industry, although no action was striking about CSR, but the companies had many attempts to meet the maximum requirements of customers, employees, communities and society

1.3 Objective and Sphere of Research

1.3.1 Objective of Research

In order to do this research, there are some main objectives of research:

- The first objective is to provide a framework about CSR, including the definition, concepts related to CSR

- The second objective is to find the level of awareness of CSR in a tea manufacturing company (Hung Cuong)

- The third objective is to present the benefits that CSR can bring to company and stakeholders

- The next objective is to show the implementation of CSR of the tea company

- The last objective is to recommend a CSR framework for the company

1.3.2 Sphere of Research

In this research, the researcher examines the level of awareness and implementation

of CSR of managers and employees in Hung Cuong Company Hung Cuong trading limited company is one of top tea exporting company in Vietnam Hung Cuong was established in 1998 Headquarter is an area of two hectares in Ha Giang

province Company has five plants and a warehouse which are located in Ha Giang province for the production Branch is in charge of market development, business-oriented and sales in Hanoi Warehouse is used to store tea products and prior

packaging to shipment in Hung Yen province Hung Cuong has 500 employees and

1500 farmers Leadership of the company including CEO and vice presidents, they are the ones who graduated from the University of National Economics, Foreign Trade University and has years of experience in working and managing In addition,

company also regularly organizes training courses and training for staff and workers who directly produce or those responsible for production technology In recent years, Hung Cuong Trading Co., Ltd has a special emphasis on quality, food hygiene and safety, the environment, looking for export markets, customer choice, and expand plant processing, always create regular jobs for hundreds of workers, tea growers Along with the development of the tea industry in general, Hung Cuong has tried its best, put the company growing By doing this, Hung Cuong has received several environmental awards from the government (vea, 2010)

1.4 Research methods

In order to do this research, the researcher is used survey method to collect

information from managers and employees The researcher send questionnaire to managers and employees of Hung Cuong trading limited company Because Hung Cuong has many employees, researcher can collect result easily After that, researcher was use the Microsoft Excel to analyze and checks the result collected

CHAPTER 2: LITERATURE REVIEW

(Prakash, Sethi, 1975) Some people understand "social responsibility of enterprises, including the expectations of society on economic, legal, ethical and charity

organizations for a certain time" (Archie B Carroll, 1979), or the definition comes from Business for Social Responsibility: “CSR is defined as operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business CSR is seen by leadership companies as more than a collection of discrete practices or occasional gestures, or initiatives motivated by marketing, public relations or other business benefits Rather, it is viewed as a

comprehensive set of policies, practices and programs that are integrated throughout business operations, and decision-making processes that are supported and rewarded

by top management” Lord Holme and Richard Watts said that “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the

workforce and their families as well as of the local community and society at large” From all definitions above, we know that businesses want to sustainable development, they must always abide by the standards of environmental protection, gender equality,

labor safety, labor rights, fair pay, training and staff development and development community Corporate social responsibility is expressed specifically on the elements, such as market, environment, employee, local community The table 1 below shows some items that businesses need to do when they do CSR:

- Renewable energies

- Environmental effects

on the location

- Environmental awareness of the employees

- Environmental Management

- Compatibility of family & occupation

-

- Company donations

- Sponsoring

- Awarding of contracts

to social organizations

- Charities

- Voluntary commitment

of employees

Table 1: Elements and its items related to CSR

With specific content of social responsibility above, the implementation of social responsibility of enterprises not only makes business sustainable development, but also contributes to the sustainable development of society in general

2.2 Pyramid Concept of CSR

As we know, in 1979, Caroll showed that "social responsibility of enterprises,

including the expectations of society on economic, legal, ethical and charity

organizations for a certain time" And 1999, he introduced the “Pyramid” that is the most comprehensive hierarchy of CSR It includes economic, legal, ethical and

discretionary responsibilities

Figure 2.2: Pyramid model of CSR (Archie B Carroll, 1979)

In this model, the first aspect is economic responsibilities It expressed through

performance and growth The main task of the businesses is that provide goods and services to members of the society to make profit Moreover, the enterprise is the economic fundamental cell of society Therefore, business functions must always be top priority The second aspect is legal responsibilities Government has the

responsibility to encode the social rules and ethics in legal documents, businesses pursue in the economic framework that fairly and meet the standards and values of that society expected from them Economic responsibility and legal are two basic parts which the CSR indispensable Companies have the responsibility to comply with

the provisions of the law because the legal documents are available If they do not follow, they will cause the violation serious consequences for human, social,

environmental, and for themselves and will be heavily punished by laws For

example, in the case of Vedan Company in Vietnam, they discharge untreated waste into the environment, so they will pay compensation of 120 billion VND

(tienphongonline, 2010) The third part of this model is ethical responsibilities

Ethical responsibilities are the rules; social values are accepted but may be not yet encoded into legislation It means that people will do what is right, fair and just The last aspect is discretionary responsibilities It refers that the businesses contribute resources to the community and improve quality of life to be good corporate citizens For instance, Hyundai has some donation programs for poor people or

American Express supports for the fight against AIDS and so on

2.3 The Concepts Related to CSR

2.3.1 Stakeholder Theory

Stakeholder is any groups or individual which can affect or is affected by an

organization (O Mayer, 2006) Stakeholders include investors, governments, political groups, suppliers, customers, trade associations, employees, communities Figure 2.3 below shows the relationship between firm and its stakeholders

Figure 2.3: The relationship between firm and its stakeholders

Stakeholder theory was first introduced in 1963 Nowadays, stakeholder theory has grown in number and type Stakeholder theory divided into two branches: the ethical and managerial branch The ethical view argues that all stakeholders have a right to be provided with information about how the corporation is impacting on them (Deegan, 2000) On the other hand, managerial branch argues that enterprises tend to satisfy the information demands of those stakeholders who are important to the ongoing survival

of the organization From this perspective, various activities undertaken by

organizations, including social responsibility reporting, will be directly related to the

expectations of particular stakeholder groups (Deegan, 2000)

2.3.2 Tripple Bottom Line

Tripple bottom line (TBL) was first introduced in 1989 by John Elkington TBL includes three categories They are people, planet and profit Firstly, people mean human capital It refers how the businesses treat with their employees and local people Companies must ensure that they always deal fairly with workers and people live around They should have contribution and donation activities to help people Secondly, planet means natural capital Businesses need to have recycling programs

to protect environment, or they should have waste disposal system This work will reduce the damages for environment Lastly, the purpose of business is to make profit, but not so that they maximize profits by any cost It must be made in harmony with the other two categories of people and planet

2.3.3 Business Ethic

According to James Fieser, business ethic usually means one of three things: (1) avoid breaking the criminal law in one’s work-related activity; (2) avoid action that may result in civil law suits against the company; and (3) avoid actions that are bad for the company image In addition, business ethic is also the balance between the interests of enterprises or managers with the interest of the community or the interest of

employees, customers…

2.3.4 Sustainable Development

As we know, the implementation of CSR is to serve the objectives of sustainable development of enterprises, Sustainable development is a new concept emerged from the environmental crisis, so far does not have an adequate definition and uniform Some definitions to discuss sustainable development: environmental global

conference in Rio de Janerio (6/ 1992) gives a theory of sustainable development that

is the rational use and effective resources, environmental protection and economic growth in scientific way, or sustainable development is a conversion model that optimizes economic benefit and society in the present but without the potential harm

of the same benefits in the future (G Lino, 1988) From definitions above, sustainable development is the goal of economic growth to reduce the exploitation of natural resources for economic development, environmental degradation in the future and reduce poverty Sustainable development, including changes in modern technology, clean technology, more efficient technology in order to save natural resources or

products of socio-economic Businesses need to resolve problems related to

sustainability such as production, demand, natural resources, and distribution, capital investment, as well as advanced technology for production

2.3.5 Investment Decision

The investment decision making is the process whereby all resources are allocated in

organization in anticipation of future gain (Butler, 1993) It means that when investors

make investment decision in a company, they want to earn more profit from company operations In the past, when investors wanted to invest in a company, they look at the company performance, reputation, product of company and so on; they did not care about CSR concept However, today is CSR era, Along with the above factors,

investors are concerned that companies are socially responsible or not For example, how are companies interested in employee life? Does company support for the

community? Have company measures to protect the environment? If a company implements CSR, it will ensure the interests of investors The company keeps a good image that will make the stock price to stabilize or rise, through investors will gain more profit It can be said that CSR is the leading concern of investors before making

investment decisions in a company

2.3.6 Responsible Investment

Responsible Investment (RI) describes an investment process that incorporates an active consideration of environmental, social and corporate governance (ESG) factors within investment decision making and ownership practices It is driven by the

growing recognition among investors that responsible corporate behavior can have a positive influence on the financial performance of companies – particularly over the long term Investors who are aware of all factors that could affect investment

performance are better placed to manage risk and generate value (mercer, 2010) As

we know, because the implementation of CSR relate to long term benefits of company such as profit So investors need to consider about environment, ecology and social in investment process Doing this, reputation and profitability of company will not be affected and investors also not be affected

2.3.7 CSR Reporting

Today, most large companies are presenting CSR reporting The purpose of CSR reporting is to shows CSR activities of company and the amount of money they spent for these activities CSR reporting ensures transparency of these activities to satisfy the requirements of stakeholders Stakeholders, especially the investor and the

customer always want to see a report which is accuracy, completeness and most practical of the company Normally, in a CSR reporting, company will present their contributions to the economic objectives, social and environmental sustainability To satisfy the requirements of stakeholders, company need to identify their impact on society, on the environment

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Research Objective

The aim of this research is:

This research will provide a framework about CSR, including definition; CSR in Vietnam and in the world The researcher has collected, summarized and discussed some theories related to CSR In addition, the project will present about level of awareness of CSR, and how to implementation of CSR in a tea company Besides, the research includes researcher’s analysis about CSR in a tea company, and some

recommendation that researcher can find from the result of survey

3.2 Theoretical Framework and Measurement

CSR concept is very large Researcher is an unprofessional, may be not understand all about CSR Therefore, in this research, the researcher will divide into two parts: managers and employees Although, they are a small part of stakeholders, but are the most important in company This project presents CSR in a tea company, so the researcher will focus on level of awareness and implementation of CSR of the

Question 1: I know the term “Corporate Social Responsibility” (CSR)

Question 2: I really understand the term “CSR”

Question 3: Company has benefits from CSR disclosure

Question 4: I know CSR reporting

From all question above, researcher can analyze the result to find the level of

awareness of managers in the tea company

3.2.1.2 Implementation

Similar to the part of level of awareness above, researcher also ask questions for managers, including:

Question 5: As part of its CSR work, your company has undertaken community

projects, volunteering or sponsorship locally

This question relates to the contributions of company to society

Question 6: Company has tried to reduce your enterprise’s environmental impact

This question will help researcher to know that companies involved in environmental protection or not

Question 7: Company has suitable arrangement for health, safety and welfare that

provide sufficient protection for your employees

This question relates to the company has interested to their employees

Question 8: Company has been disclosure CSR reporting to society

CSR reporting is the most visible aspect of CSR activity This question will show that does company really appreciate CSR?

3.2.2 Employees

3.2.2.1 Level of Awareness

In this part, researcher also has three questions to ask employees of the company:

Question 1: I know the term “Corporate Social Responsibility” (CSR)

Question 2: I really understand the term “CSR”

Question 3: CSR is necessary for me

We know that employees are workers and farmers, may be the level of awareness is lower than managers, so the researcher uses three questions above to identify them

3.2.2.2 Implementation

This part consist three questions All questions relates to the responsibilities of

company toward their employees

Question 4: I require company to implement CSR

Question 5: Company has programs to support your living conditions (health, safety,

children…)

Question 6: I have never worked under any pressures (working time, salary…) Question 7: I have never been discriminated in my workplace

3.3 Research Methodology

This study includes qualitative method The qualitative method research is carried out

by the questionnaire survey on managers and employees in Hung Cuong Trading Limited Company

3.4 Data Source

To get information from others, researcher will use both of primary and secondary data

3.4.1 Primary Data

The first source will be used here is primary data Primary data is collected firsthand

by a researcher It normally is collected through experiments, questionnaires, focus groups, interviews and taking measurements There are some advantages of primary data The first advantage is that researcher can collect result from many ways such as telephone survey; interview; email…The second advantage is that it can include a large population and wide area The third advantage is very cheap and there is no prior agreement between parties The last advantage is that it can provide a better view to researcher about the topic

On the other hand, primary data also has many disadvantages Firstly, it is difficult for researcher to design a survey All questions in this survey must be simply and easy to understand for others Secondly, the respondents may not care about the survey or may be they give fake answers

3.4.2 Secondary Data

Secondary data has already been collected and available to the public The sources of secondary data include books, journals, census data, and biographies Similar to

primary data, secondary data also has both of advantages and disadvantages

Secondary data saves money and effort It helps researcher to save time and it

provides a basic of comparison for data that is collected by researcher Otherwise, secondary data may be outdated or it may not accurate

3.5 Research Method

In order to do this project, researcher uses survey method to collect primary data And using of books, journal and other sources from internet… to collect information about CSR concept, related concept and so on Using of secondary data is creating new questions for research and using of primary data is to answer these questions

3.6 Research tool

The research instrument is questionnaire Questionnaire means the way to gather data from a large number of respondents In this research, questionnaire includes many questions related to environment, social and economic for managers and employees of company All questions use five - points Likert Scales to help the respondents to understand and answer easily

Five- points Likert Scales:

1= Strongly Agree 4= Disagree

2= Agree 5= Strongly Disagree

3= Neither Agree nor Disagree

Because this research only focuses on a company, so it is not much managers

Researcher sent 35 questionnaires to managers of company, including board of

directors, managers of all departments, managers of factories, branch and warehouse Simultaneously, researcher also sent 75 questionnaires to employees (including workers and farmers) So, the total managers are 30 and total employees are 75

3.8 Limitations

There are some problems in survey research Firstly, the respondents may deliberately choose the answer that they like without regard to the right or wrong, especially the managers Secondly, maybe the question of researchers focused on a number of respects, this lead to the analysis of survey results are not exactly in the next chapter Thirdly, due to limitations of time and cost, researcher has narrowed sphere of

research

3.9 Hypothesis Statement

This research focuses on managers and employees So, researcher makes two

assumptions about the awareness of them

Hypothesis 1

Manager’s attitude toward CSR is positive

Although CSR is still relative new in Vietnam, but managers of the company have regular contact with foreign customers, they are knowledge people Therefore, may be the level of awareness of managers is high

Hypothesis 2

Employee’s attitude toward CSR is negative

On the other hand, most of employees are poor people, they can not always contact with communities such as news on television, internet, newspapers… So, the level of awareness of them is low