Implementing corporate social responsibility in vietnam situation and solutions

• Community: Responsibility to the community is responsible for contributing to enhance, improve and develop community life which is the nearest locality where business activities, contr

VIETNAM NATIONAL UNIVERSITY, HANOI INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES

c a C S s o

-BUI THI P H U O N G

Implementing Corporate Social Responsibility

in Vietnam: Situation and Solutions

TABLE OF CONTENTS

m ; B E G IN N IN G 1

1 Jruency o f the subject 1

2 Research situation 1

3 Research purposes 3

4 Objects and scope o f the research 3

5 Research methods 4

6 he structure o f the subject 4

CHAPTER1: TH EO R ETIC A L ISSUES SOCIAL RESPONSIBILITY B I S I N E S S 5

1.1 Introduction 5

ỉ I I A bout Business E th ic s 5

/ / 2 The concept o f social responsibility 7

/ Ì 3 The content o f corporate social responsibility 8

1.13.1 Incidence o f corporate social responsibility 8

/ / 3.2 The contents o f the CSR 9

I I 3.3 The object o fC S R 1 1 ỉ Ỉ.4 The relationship between corporate social responsibility and business ethics 11

1.2 Factors affecting corporate social responsibility 13

1.2.1 P rescribed bv law 13

1.2.2 Perceptions o f Social A ffairs 13

1.2.3 The process o f globalization and market pow er 14

1.3 Tools to im plem ent and evaluate the effectiveness o f CSR activities 15

1.3.1 These tools make corporate social responsibility’ 15

1.3.2 R ating Tool corporate social responsibility 16

1.4 The effects o f the im plem entation of corporate social responsibility 21

1.4.1 Corporate social responsibility contributes to adjust the behavior o f business entities 21

/ 4 2 Corporate social rcsp()nsihị / ị ’ myitrihnjp to ịrvỊrtrnyịvỊơ nuni[t\> hynvỊrị ynlỵp an d reputation o f the business 22

1.4.3 The implementation o f corporate social responsibility to help increase p ro fits fo r businesses 24

( 'orporate social responsibility to contribute to attract qood w orkers 25

1 4 \ Social responsibility contribute to improving the national linage 26

CONCLUSIONS 1 .26

C H A PTER 2 IM P L E M E N T A T IO N OF C O R PO R A T E SO C IA L R E SP O N SIB IL IT Y THE W O R LD AND IN V IE TN A M 27 2.1 About the im plem entation o f CSR in the w orld 27

2.1.1 The international organization o /C S R 27

2.1.2 The im plem entation o fC S R in a num ber o f businesses 29

2 1 2 1 Procter & Gamble (P&G) 29

2.1.2.2 CSC G roup 31

2 Ì 2.3 Green M ountain Coffee Roasters 33

2.1.2.4 Sanlu G roup 34

2.2 Status o f implementation of Corporate Social Responsibility in V ietnam 36

2.2 / The im plem entation o fC S R in Vietnam 36

2.2 ỉ- 1 Overview o f implementation o /C S R in Vietnam 36

2.7.2 CSR in Vietnam is done by the fie ld 38

2 2 2 1 CSR with em ployees 38

2.2'.2.2 Corporate Social Responsibility to shareholders 48

2.2'.2.3 Corporate social responsibility to consum ers 50

2.2'.2.4 Corporate social responsibility to the com m unity 52

2.2 2.5 Corporate social responsibility fo r environmental issues 53

2.2 .3 The im plem entation o f a CSR o f enterprises in Vietnam 56

2.2 3.Ỉ Honda Vietnam Company 56

2.2 3.2 Unilever Vietnam C om pany 58

2 2 3 3 Vietnam Dairy> Products Company (Vinam ilk) 61

C O N C L U S IO N S 2 63

CH IARTER 3: SO L U T IO N S IM PROVE EFFICIENCY OF CORPO RATE SO iC IA L R ESPO N SIB IL IT Y IN V IE T N A M 64

3 1 Assessing the im plem entation o f CSR in V ietnam 64

3.1 I The presen t g a in 64

3.1 .1 1 N um ber o f enterprises engaged in CSR b o o st 64

3 1 1.2 Practice has p ro ved that CSR can impact business 64

3 / /.J The enterprise actively engaged in community development work over 65

3 / / 4 The media for C S R 65

3.1.2 These problem s exist 65

3.1.2 / Restrictions in labor issu e s 65

3.1.2.2 CSR for consum ers 66

3.1.2.3 CSR to the en viro n m en ta l 66

3.1.3 The cause o f the existence in the p a st 66

3.2 O pportunities and challenges when im plem enting CSR in V ietnam 69

3 2 1 O p p o rtu n ity 69

3.2.2 The challenges that businesses face when conducting CSR in Vietnam 71

3.3 Some solutions to develop and im prove the efficiency o f CSR im plem entation in V ietnam 73

3 3 1 The measures from the State 73

3 3 1 1 ■ To supplement and perfect the legal framework in Vietnam to create a solid leqal basis fo r business ethics and CSR 73

3.3 Ỉ 2 Enhance communication to raise awareness about CSR in business ethics and Vietnam 75

3.3.1.3 There are policies to encourage and support the implementation o fC S R in the business 76

3.3.1.4 Perfecting the mechanism o f operation o f the inspection test 78

3.3.1.5 Putting CSR into the curriculum o f universities 78

3.3.2 Solutions from the enterprise 79

3 3 2 1 Raising awareness about CSR 79

33.2.2 There are long-term strategy o f building and improving the standard CSR with the appropriate steps 80

3.3.2.3 To build a strong union base 81

C O N C L U SIO N 85

R E F E R E N C E S 88

LIST O F T A B L ES

Figure Í: Model the components o f C S R 10

Figure 2: The relationship between business ethics and social responsibility 12

Figure 3: Hierarchy o f needs Maslow m o d e l 14

Table 1: Assessments CSR activities in some countries 37

Table 2: Economic benefits from investments to improve air and reduce fatigue for workers in a garment company 42

Table 3: What happens many local workers’ compensation cases d e a th 45

LIST O F A B B R E V IA T IO N S

Bảo hiêm xã hội (BHXH) Social insurance

Tráeh nhiệm xã hội doanh nghiệp Corporate social responsibility (CSR)Đạo đức kinh doanh (ĐĐKD) Business Ethics

THE BEGINNING

1 U rgency of the subject.

In a world o f information technology grows, the trend o f globalization, internationalization becomes an essential objective, the relationship between the economy and more closely attached, exchanges Trade between countries is grow ing strongly, the competition among enterprises is increasingly fierce Previously, the company measures used diversify products, improve product quality as an effective measure to gain competitive advantage in the marketplace Currently, companies pay attention to strengthening the image, enhance reputation, brand development through the construction o f corporate culture, business ethics is

a solution is being applied initially to bring positive effect Businesses want to assert the brand on the market, which they now work towards the implementation

o f good corporate social responsibility (CSR - Corporate Social Responsibility)

Corporate Social Responsibility is a growing trend in the world, become a requirement "soft" to the enterprise in the integration process, but the problem in Vietnam is still relatively new and has not been businesses due attention Numerous cases o f environmental violations and violations o f labor rights, violating the interests o f consumers have been causing severe burning and the community losing confidence in the business Since then, Vietnam businesses more aware o f the performance benefits o f social responsibility to bring the enterprise is necessary in the context o f our country today Enterprises to implement corporate social responsibility is to help improve profits for many businesses such as getting more orders, and also measures to promote the names o f such companies

So be aware o f this problem has focused on businesses to put CSR into their business activities

2 Research situation.

2.1 The situation o f C SR research in the world.

The world may go through some typical projects such as:

- Matthew J llirschland, "Corporate Social Responsibility and the Shaping

o f Global Public Policy" Hardcover (Dec 12, 2006) The author discusses the

im portance o f CSR in companies like: The prescribed the new global business -

t h e company's understanding o f corporate social responsibility and CSR theory

m e e ts practice - global governance and network o f global public policy

- Oyvind Ihlen, Betteke Van Ruler, Magnus Fredriksson, "Public Relations

a n d Social Theory: Key Figures and Concepts" (Routledge Communication Series) The author discusses the problem: public relations and social theory

ex ten d s the scope o f the theory o f public relations Since it focuses on concepts

su ch as trust, legitimacy, understanding, and reflection, as well as behavioral issues, energy, and language

- Muhammad Yunus, "Building Social Business: The New Kind o f

C apitalism That Serves Humanity's Most Pressing Needs" The author would like

to help businesses find the role o f business activities Through the portrait that

bu sinesses paid more attention to social issues trahcs o f the business

2.2 The situation o f C S R research in V ietnam

In Vietnam, may include a num ber o f books, articles represent research on

C S R as:

- Dr Le Thanh Ha, 2006, "Corporate Social Responsibility in the wage problem ," Social Labor Report, No 290, dated 15/05/2006 The author would like

to mention the role o f wages as the wage position has shown, the work has shown

th e benefit sharing between the organizations, businesses and workers have shown

th e development occupation o f each individual employee

- Hoang Long, 2007, 'Corporate Social Responsibility - The driving force

f o r development ", Trade Magazine, No 26/2007 Authors demonstrate the imiportance o f CSR in the business to the developm ent o f social attention on developm ent o f hard and soft infrastructure, transport, especially in the economic coirridors, human resources development high, the key service sectors such as fimance - banking, telecommunications and other new energy sources and renewable

2

- I lone Minh, 2007 "Social responsibility and business ethics", this Cultural

a n d social life No 2 / 2007 Fthics and social responsibility issues is clearly indispensable in business It is difficult to persuade enterprises to better the ethics

a n d accountability bv the arguments based on the immediate economic benefits

- TS Neuven Manh Quan 2004 Professor o f "Business Ethics and corporate culture" Publishing House o f Social Labour Business ethics and corporate culture are valuable assets an important contribution to the success o f

e v ery business It is a system o f values, norms, ways o f thinking to great effect the actions o f the members o f the business

1 lowever, so far no one has studied the subject: "Social responsibility o f enterprises in Vietnam: Status and Solutions" This is the subject o f the first

M aster o f the table on this issue

3 Research purposes.

The purpose o f the research topics are:

- To study the basic theoretical issues on corporate social responsibility, content and how to deploy corporate social responsibility

- Study the state o f corporate social responsibility in the world and in

V ietnam in the current period

- To propose solutions to implement Corporate Social Responsibility in

V ietnam for economic development - economic development in Vietnam in the ne:ar future

4 O bjects and scope o f the research.

- Objects o f research topics is the theoretical issue o f corporate social responsibility as the concept and the components o f corporate social responsibility,

th e role o f corporate social responsibility for the survival and development o f

en terprises

- Scope o f the research topics considered limited to the implementation o f social responsibility o f enterprises; the methods, wavs o f multinational companies bu:ilding standards, the Code o f Conduct and development o f corporate social responsibility

3

5 Research methods.

Dissertation application o f research methods follows:

- Desk research method: The secondary information is collected and used mainlv from the following sources: the books and journals related materials from the internet portal,

- Methods o f empirical research: thesis fieldwork in the workshop to collect opinions o f experts in this field: "Roundtable stakeholders BSCI 2010 in Hanoi", dated 06 09 May 2010; The opinion o f those directly involved in implementation

o f CSR as: Dang Phuong Dung - Vice President o f Vietnam Textile and Apparel Association, TS Nguyen I hi Lan Huong - Director, Institute K.HLD and Social Affairs, Ministry o f Labour, Invalids and Social Affairs o f Vietnam

6 The structure of the subject.

Dissertation topic: "Im plem entation o f Corporate Social Responsibility in

Vietnam: C u rren t situation a n d solutions" Besides an introduction, conclusion,

appendices and references, divided into three chapters review course:

Chapter /: The basic theoretical issues on corporate social responsibility Chapter II: Implementation o f Corporate Social Responsibility in the world and in

Vietnam

Chapter III: A number o f measures to improve the effectiveness o f Corporate

Social Responsibility in Vietnam

The author would like to thank Dr Nguyen Hoang Anh, she has guided the author as the subject o f this thesis Author and subject selection faced many difficulties because the authors do not have much knowledge about some business issues Article by the author's limited knowledge o f inevitable errors, defects to the author so wishes to receive additional comments to the writer o f the article is more complete

4

C H A P T E R 1

T H E O R E T I C A L ISSUES SOCIAL RESPONSIBILIT Y BUSINESS

In the context o f a fierce competition, the customer satisfaction becomes a kev asset for businesses and organizations in an effort to improve the quality o f the service, to maintain customer loyalty, improve competitive capacity o f enterprises Since the early 90s, corporate social responsibility (CSR - Corporate Social Responsibility) has satisfied the needs o f customers for industry, businesses in many developed countries around the world CSR has proven its important role in becoming the basis for competitive strategy, marketing, brand building, trade promotion at the enterprise level, industry and national level To survive in that situation, more and more business people paid much attention to building its image

in the public and business ethics or social responsibility are concepts mentioned frequently in the years through

1.1 Introduction

1.1.1 A b o u t B usiness E thics

Ethics is a unique category o f human society Ethics is a broad category referring to human relationships and the rules o f behavior in relationships between people and people living in these activities Ethics is the study o f the nature and basis o f morality in human relationships, in which morality is understood as the fair, standards and codes o f conduct From the scientific perspective, the American

Heritage Dictionary Electronic Dictionary "Ethics is a science research on the

nature o f the right - or wrong, the philosophy o f right - and w rong, rules or standards level dominates the behavior o f m embers o f a p rofession"1 More moral

or more is particularly important in building and developing relationships in the business, the scope and nature o f the relationship o f an individual, group become more diverse and complex due to the emergence o f new actors, diversity o f opinions, motives, goals and behavior

1 N guven Manh Quan (2004), “B usiness ethics a n d corporate culture ”, Pulishers work - social, page 16.

5

In family life and society, human behavior is governed by rules common moralitv tradition Meanwhile, professional life has its own laws, its own characteristics, in which human relationships, wider, more complex and different from the relationship purely social The rules o f morality arc no lormer popular enough to be effective for professional life; it should add the new code o f conduct appropriate to guide human behavior in the new relationship Business Ethics is only bemin serious research and development into a science, both theory and practice, in the second half o f the twentieth century in the industrialized West, the managers confronted with problems arising from the management o f huge companies operating on a global scale, and when they witnessed the growth o f companies in the economy o f Asian traditional Specifically, in 1974 the conccpt

o f business ethics official said Norman Bowie - Professor o f Strategic

Management and o f Philosophv offers a theme o f "Kingdom o f ends" discussion at

a Faculty Meeting school2 In the 1980, 1990 this issue became the subject of lively debate in conferences, seminars, in schools, between businesses, shareholders, employees initially in the U.S., then spread to other countries

According to the author o f "Business Ethics" - Vemer Henderson:

"Business Ethics is a set o f principles and standards to control the behavior

o f an individual business, a group o f people or a certain occupational groups fo r the purpose o f bringing benefits to society"3.

According to GS Philip V Lewis, U.S general: "Business Ethics is all the

rules, standards, ethics or laws to provide a guide to behavior standards and the integrity o f an organization in certain cases"4 Therefore, we can see, business

ethics, including the principles and norms guiding behavior effect in the relationship business; they are the people concerned (investors, customers, management management, employees, legal representatives o f agencies, communities, partners , ) used to judge a particular action is right or wrong, ethical or unethical Whether the object concerned is not always the case, the judge

2 Nt>uven Hoang Anil, "B usiness ethics in V ietnam - S ituation a n d S o lu tio n ", Hanoi Foreign Trade University, page

I

1 Verne K Henderson (1997), "B usiness ethics ", Publishers work - social, page 32.

1 Dr Niuiyen Hoang Anh (2008), "B usiness ethics in Vietnam - R eality a n d p e r sp e c tiv e " , www.isbee.orii.

6

ail wavs affect their approval for corporate social and business activities of enterprises However, different ethics in each person, everv uroup, every society, every culture, so that morality depends on the circumstances.

Internal functions o f business ethics as a basis to review the ethical behavior

o f businesses and entrepreneurs However the various ethical in each person, every group, every society, every culture, so that morality depends on the circumstances

/ 1.2 The concept o f social responsibility.

An important aspect o f business ethics for business, to assess the business is the social responsibility o f enterprises Corporate Social Responsibility born after business ethics and is the top concern o f businesses today So, corporate social responsibility is what?

In 1970, in his book "Capitalism and Freedom ", the economist Milton Friedman wrote: ''There is one and only one social responsibility' o f business - that

is using its resources and engage in activities to increase its profits so long as it rem ains subject to the rules o f the game, m eaning that participants compete openly

a n d freely, without deception or fraud"5 According to Friedman's speaking, we

consider that this idea only to realize the effect o f the rules in business but not to promote the advantages o f business ethics in business Here are just pay attention

to running for profit "in order to increase profits" in accordance with the constraints o f the enterprises in the "market - no cheating or fraud." It can be said,

the concept o f CSR in Friedman's view only a narrow range that is a business, see

the benefits before that ignores long-term benefits, such as "fast grow ing, strong

a n d sustainable" between domestic enterprises and foreign enterprises.

After Friedman's definition o f CSR is a series o f concepts that CSR after

every concept in each period was initially the more complete content ''Social

responsibility implies im proving corporate behavior to a level consistent with the norm s, values and social expectations''6 (Prakash Sethi, 1975) Or "social responsibility o f enterprises, including expectations o f economic society, law,

5 Jame H Donnelly/ Jane L G ibron/ John M Ivancevich (2002), "L earn basic m a n a g e m e n t”, Publisher statistics,

patie 74.

6 John R Boatright (2007), “E thics a n d the conduct u f bu sin ess", Pearson Prentice Hall, N ew Jersey, page 369.

7

nu >)\jlity and charity for the organization at a iỊĨven time" (Archie B Carol!,

1 9 7 fJ) In Maiunan I Ferrell introduces the concept o f CSR as follows: "A business

v:i:h social responsibility in deciding and its operators to create and balance the

d ifferen t interests of individuals and organizations involved"*.

The concept o f CSR was time to expand your audience affect many businesses and organizations involved, and goals set out for businesses that pay attention to their activities that affect such any social issues with communities around like (human rights, labor issues, .), environmental protection;

Group Private Sector Development o f the World Bank launched the

definition o f Corporate Social Responsibility "Corporate Social Responsibility is

th e com m itm ent o f businesses to contribute to sustainable economic development through activities to improve the quality o f life o f workers and members o f their

fa m ilie s , communities and society in a way most beneficial to both businesses as

we II as the overall developm ent o f so ciety"'.

This definition would like to emphasize that CSR is "means" to solve

problem s between business community, business environment, enterprise customers, support sustainable business development in a sustainable society The comcept o f choice within the framework o f this thesis is the definition o f Group Priivate Sector Development o f the World Bank will be unanimously selected as it

is complete, clear and high level compared with the general other definitions

1.1.3 The co ntent o f corporate social responsibility.

1.1.3.1 Incidence o f corporate social responsibility.

Corporate Social Responsibility is a broad field involving all subjects rel ated to business activities Therefore, the incidence o f corporate social responsibility is not confined within the enterprise, it also has great importance to

m any different sectors o f society So basically we share the incidence o f CSR with the following three aspects:

7Joihn R Boatright (2007), "E thics a n d the conduct o f b u s in e s s ”, Pearson Prentice Hall, New Jersey, paee 369.

8 Miaignan I Ferell (2004), "C orporate S o c ia l Responsibility' a n d m arketing: cm integrative fra m e work J o u rn a l o f

A caidcm y o f m a rketin g s c ie n c e ”, Vol 32 N o l , pp.3 - 19.

8

The scope o f the enterprise: CSR affcct relationships within and outside

contract workers and satisfaction between the two parties legal rights and obligations o f workers as jobs, welfare workers, rules work, occupational safety and build environmentally ethical behavior in business

Scope o f business: CSR address the problem in terms o f business

relationships with partners, subjects directly related to business activities

Scope o f society CSR settlement set out the relationship to the customs and

cultural traditions, each country's religious, ethnic communities Consider CSR issues o f equal rights and interests in society, ensure the credibility issues in business

ỉ 1.3.2 The contents o f the CSR.

CSR can be understood as a self-aware take on other responsibilities, in addition lo responsibility for the economic and legal More specifically, the responsibility is reflected in the choice o f the business objectives and evaluate performance, not merely based on the criteria for welfare benefits and old units but also on the criterion o f moral worth or accuracy compared to the expectations of society CSR is not merely the act o f humanitarian and charity to the communities that constitute CSR element much more broadly, it is the synthesis, combined and supplemented by many other factors involved, which lack one o f these factors can not be regarded as a business with social responsibility According to the model

elements following the model o f CSR CSR is a "tower" with its obligations are in

different levels and priorities will in turn made up from the bottom o f the tower top The implementation o f CSR must be rooted in the economic sense, because this is the goal, nature is why the business exists and is also the basis to perform the following duties o f the CSR Business activities and is managed by the national legal system to survive so long, the enterprise must comply with the provisions o f

it Not stopping there, businesses also need to create an environment o f fairness, honesty and sentiment that in relation to staff and that the responsibilities o f business ethics In addition to the economic obligations, legal and business ethics are bound by obligations humanities This means the business activities aim to improve the situation o f each person, people and communities And when making

9

I

decisions, businesses must balance these obligations to achieve the highest efficiency.

Figure 1: Model components of CSR10

(Source: oc Ferrell, John Fraedrich, Linda Ferrell (2005), "Business

E thics Ethical D ecision-m aking & cases", Boston Houghton, p p 48)

Corporate Social Responsibility is the obligation a business or individual must make to society in order to achieve the most positive impacts and minimize negative impacts on society Social responsibility can be considered a commitment

o f the firm or individual to society, while business ethics refers to the code o f conduct to be considered carefully in terms o f business organizations industry as a basis for decision making in business relations Basically, social responsibility includes the obligations o f economic, legal, ethical and humane.

Economic obligation is an obligation first and most basic o f business

performance related to how CSR allocation in the social system, the resources are used to make products and services.

Legal obligations o f business is to fully implement the legal provisions for

the official concerned, the competition for the natural environment due to current legal regulations.

10 o c Feưell, John Fraedrich, Linda Ferrell (2005), “Business Ethics - Ethical Decision marking & cases", Boston

Houghton, pp 48

10

Moral obligation o f the enterprise is defined as behavior or social activities

are expected but not specified in the legal obligations Ethical obligations is the foundation o f lethal obligation

Obligations o f human enterprises, including the acts and activities that

society wants to direct and effective decision dignity o f organizations or businesses The obligation to humanity to show the desire o f businesses devoted to the society

1.1.3.3 The object o f CSR.

The subject o f corporate social responsibility are:

• Employees, officers and employees: business needs to comply fully and

strictly with the law provisions on use o f labor problems, ensure occupational safety and building friendly relationships, good beautiful in the enterprise,

• Related parties (stakeholders)' The stakeholders including shareholders,

consumers, families o f employees Is responsible for promoting ties and commitments related to the use and scope o f the trust assets, ensuring honest, intelligent and silver in the information in the income that shareholders deserve responsibility for consumer use consumer goods and services in conformity with

w hat the manufacturer has committed

• Community: Responsibility to the community is responsible for

contributing to enhance, improve and develop community life which is the nearest locality where business activities, contribute to the sustainable development o f the cultural environment - economic - o f the national society For example, responsibility for environmental protection responsibility surroundings or at least not for economic reasons that cause adverse impacts to the environment, using resources efficiently

1.1.4 The relationship between corporate social responsibility and business ethics.

Social responsibility is an expression o f business ethics, is the realization o f the rules and standards o f business ethics into practical action, to promote the most positive impacts and reduce minimize the effects corporate social responsibility is important in evaluating business ethics (DDKD)

The concept of' business ethics and social responsibility are very intimate relationship Manner described in the diagram, business ethics is the basis for the decision, as "input" o f the selection process actions (social behavior) o f the enterprise social impact desired contain in social responsibility is the goal o f the action, it is also the "output" o f the operation.

The process (Figure 2)

Basic for dicision

How to act

Social impact

Bussiness ethics Corporate culture Social responsibility

How to solve the problem The program activities o f Maximum positive impact

the businessPrinciples and standards Consensus principle Minimum negative

Objects concerned Voluntary compliance in The scope o f the society

the organization

F igure 2: R elationship between B usiness E thics a n d S o cia l R esp o n sib ility'1 (Source: Vu Thi H uong (2009), PhD thesis topics "Business Ethics and Corporate Culture in Vietnam).

In mapping the relationship between business ethics and social responsibility on business, business ethics is the basis o f the decision, and the content o f business ethics to create much impact on social issues Assembly Corporate social responsibility goals that make Business Ethics sets Map

V u Thi Huong (2009), dissertation topics "B usiness E thics a n d C orporate culture in V ietnam " Research

irstiitutes training ec onom ic financial, page 7.

12

describes a closed process, intimatelv linked between business cthics and social responsibility, such as the production o f and consumption processes in bioloẹy so.

1.2 Factors affecting corporate social responsibility.

1.2.1 Prescribed by law.

Provisions o f law as a basis, the foundation o f CSR This is the binding criteria for enterprises and should be directed to perform to achieve high economic efficiency The business, when businesses have to comply with the provisions o f law would create a legal environment in which businesses operate under a proper goal, creating trading environment fair, equitable, open and create the closeness betw een the business together However, the law can not serve as a basis to judge

an action is ethical or unethical in the case that it only set the basic rules for the action is considered responsible business It is worth noting that legislation often issued later than the actual place, "latency" certain law is an opportunity for business activity occurring illegally, and when things were then the new legal basis

on which to build the new regulations Even if the legal documents were issued to the contents go into "life" also needs a certain time period In short, the provisions

o f law as well as the minimum requirements that individuals and organizations need to make in relation to society Legal compliance, business efficiency, create more jobs, environmental protection, as enterprises complete their social responsibility

1.2.2 Perceptions o f S o cia l A ffairs.

As social development is synonymous with high living standards o f the comm unity is enhanced, so that human needs are also under development According to Abraham Maslow, the more people try to meet demand and that demand is satisfied the demand appears next, beginning with physiological needs (food, clothing, housing, ) and then to demand safety and protection; social needs (emotional problems) demand respect, recognition, status; ultimately needs to assert self develop and express themselves

13

(Source: Nguyen Thuong Lang, M anager Magazine, "Theory o f Mas low's needs with the developm ent o f skills to encourage employees")

The employee - an indispensable component to maintain the operation o f a business is also growing more aware o f self-worth On its own or through their trade unions have stood up to reclaim the right to their legitimate interests, the business leaders through business practices are increasingly aware that the jobs for the community as responsible for social work is conducive to the robustness o f the business.

1.2.3 The process o f globalization and market power.

The strength o f the market that typically consumers' tastes have been put out

o f business for the fierce competition for social responsibility and business ethics based on the combined effects o f o f Conduct, to decide on the selection o f consumers, rather than purely on the impact o f their senses Therefore, die period

o f globalization is developing rapidly, the gap in technology, technical cooperation between the economy on a shortened, quality is more uniform than to survive and

12 Nguyen Thuong Lang - Magazine manager, « Theory o f demand A Kiasktw to develop skills to encourage employees", V !’! I i t ) , i Ml t s corporate governance/management/ Theory o f demand Maslow

to develop skills to encourage employees/

14

t h r v o in fiercely competitive environment At that time, CSR and business ethics

as i resource, a new capital for enterprises in international competition These two

resources will influence and motivate consumers to change their perception o f the consumer In the trend o f globalization, with the increasingly fierce competition and intense, every economy, every business must continuously improve their competitiveness, including competitiveness o f human resources and investment climate plays an important role Economic globalization and economic unity o f the region to increase the links between enterprises o f the country, but also forced companies to directly compete with each other more fiercely However, there are regions, countries and companies got rich thanks to rapid globalization, but there are regions, countries and businesses lose out or even be ejected from the vibrant flow o f trade and international investment Currently, businesses are focused on three o f competition: quality, price and design

1.3 Tools to im plem ent and evaluate the effectiveness o f CSR activities.

1.3.1 These tools m a ke corporate social responsibility.

Ethics is generally understood that the unwritten constraints, CSR has been specifically written into the business for discretionary application According to statistics, at present the world with more than 1000 o f the code o f conduct shows corporate social responsibility related to content: occupational health and safety o f the producers, health care workers and environmental protection as a common certificate: SA 8000 - labor standards in factories; WRAP-responsibility in the garment industry; FSC- forest sustainability; ISO 14001 - environmentalmanagement systems in the enterprise

For example, SA 8000 is one o f three criteria required for businesses in the

process o f international economic integration worldwide According to experts, the application o f SA 8000 standard will improve the competitiveness o f enterprises through impacts such as: getting the recognition, trust and loyalty o f customers; set

a standard common standards on a global scale on the Conduct o f Business to create fair competition, increasing the ability to expand global business and reach customers who require high values o f products and support to help businesses take

15

time trouble because not undergo inspection interdisciplinary, eross-checkinii and

the inspection o f labor S/i 8000 standard contains provisions on social responsibility according to criteria as follows: "I C hild labor; 2 Forced labor; 3

S a fety and occupational health; 4 Freedom of association and right to collective barạaininạ agreements; 5 Discrimination; 6 Sanctions; 7 Hours 8 Paid; 9

M anagem ent System" When businesses comply with these standards will bring

economic benefits and business products that consumers receive, the business behind it is easy to attract good labor force because they understand the role, his interest in working in the enterprise pay much attention to corporate social responsibility

1.3.2 R ating Tool corporate social responsibility.

Businesses implement corporate social responsibility initially bring the benefits to business: To promote compliance with national legislation; ensure that businesses realize the long-term business objectives, sustainable strong and increasing competitiveness in the integration process, building relationships harmonious labor, reduce business risks in international trade disputes, dumping, Therefore, enterprises are CSR is not just economic benefits but also benefits society and politics In addition, the positive side, implementation o f CSR by enterprises o f the Code also encountered difficulties

Now the world is on the 2000 Code o f Conduct, divided into three groups:

Code o f Conduct o f the international organizations such as ISO, ILO

Convention, GC, OECD

Code o f Conduct o f the m ulti-national corporations, organizations and

professional associations', the Code o f Conduct o f Nike (Sports Group), Adidas

(Fashion Group), FTA (Foreign Trade A sso ciatio n )

Code o f C onduct o f the independent organizations such as SAI (Social

Accountability Organizations International), FLA (F ra n ch ise )

Businesses will need to gather sufficient information to choose the implementation o f the Code o f Conduct which best suits your business BSCI

ụ u H J o u r n a l o f philosophy.com vn C o m p iled fr o m various sources.

16

Code o f Conduct: launched to ensure compliance with social standards and the specific environment BSCI is the standard compliance review o f social responsibility in business BSCI was born in 2003 from the initiative o f the Foreign Trade Association ( I T A) with the purpose o f establishing a common forum for the rules o f conduct and monitoring systems in Europe on CSR The suppliers must ensure that the Code o f Conduct will also be reviewed by subcontractors involved in the production process o f the final stage o f production

is dene on behalf o f BSCI members The following, requirements are particularly important and must be performed by a developmental approach:

1 Legal compliance: Compliance with all laws and regulations are applied,

the industry standard minimum, the agreement the International Labor Organization and the United Nations, and other requirements prescribed by law to applv more stringent rules

2 Freedom o f Association and Collective Bargaining Rights' The rights o f

all individuals to form and join unions o f their discretion and to collective bargaining will be respected In these situations, or in countries where the rights o f freedom o f association and collective bargaining restricted by law, the equivalent measures o f independent and free as well as the negotiations will be supported for all individuals The personal representative will be sure to participate in the role o f their members at work

3 Prohibits discrim ination: Do not allow any form o f discrimination inhiring, remuneration, to participate in training, promotion, termination orretirement based on gender, age, religion, race race, social status, social context, disability, ethnic origin and country, nationality, membership in the organization

o f workers, including associations, the political accession, the sexual orientation or any other personal characteristics

4 C om pensation: Wages paid for regular working hours, overtime hours

and :he difference will have more time to reach or exceed the minimum wage and /

or industry standards No deductions are illegal or improper In the case o f wages

as prescribed by law or industry standards are not sufficient to pay Hviftg:expenses

' R U N G i / m V] Ĩ IN 7HƯ VIỂN Ị

I

and provide income for the costs incurred, the suppliers will try to ajve people

m em ber an amount sufficient to pay compensation to those needs Prohibition deductions as disciplinary measures The suppliers must ensure that the structure

o f wages and benefits are exhausted detailed clearly and regularly for workers; suppliers will also have to ensure that wages and benefits that are implementation and full compliance with relevant laws and compensation payment will be made in

a convenient way for employees

5 Hours: Supply Company must comply with relevant national laws and

industry standards on working hours Working hours maximum per week is prescribed by national laws will not exceed 48 hours and maximum overtime hours allowed per week should not exceed 12 hours Overtime is only allowed to do based on a voluntary basis and are paid at best Every worker is allowed to have at least one day off after six days o f continuous service

6 Health and Safety Workplace: A set o f clear rules and procedures must be

established and compliance with health issues and workplace safety, particularly prevention and use personal protective equipment, clean bathrooms, drinking water can be used and if the need to provide safety equipment for food storage Prohibition rules and the conditions in the bedroom o f violating basic human rights Especially do not allow younger workers to work in dangerous situations,

n et safe or healthy

In particular, the need to specify the management representatives responsible for health and safety for all individuals and must be able to blame for the implementation o f the provisions o f the Health and Safety o f BSCI All individuals must be trained on health and safety and have frequently noted, in addition to such training must be repeated for beginners and those who are assigned to tasks Need to set up systems to detect, prevent or respond to the potential danger to health and safety o f everyone

7 Banning the use o f child labor is forbidden to use child labor specified in

the Conventions o f the ILO and the United Nations and/or national legislation Among other criteria, the most stringent standards will be followed Banned any

form of exploitation o f children do Prohibition o f employment conditions such as s'.averv or harmful to children's health The rights o f vountz, workers must be protected In the case found that children working in the right situation with the definition o f child labor in the companies that supply need to set up and store policies and procedures to compensate for the children have to work that way

M oreover, suppliers that need to be provided appropriate support to enable the

c h ild to continue attending school until they are large enough

8 Prohibition o f forced labor and other D isciplinary action: All forms o f

for ced labor, such as to pay a deposit or other records o f individuals identified for hir ing labor is prohibited and as the labor o f prisoners violate basic human rights Banning the use o f physical punishment, mental or spiritual force as well as verbal abuse

9 The safety an d environmental procedures and standards for waste

treatm ent and handling o f chemical waste and other harmful substances, the handling o f waste generated or to reach or exceed the requirements minimum prescribed by law

10 The m anagem ent system- The company will supply and implement a set

pollicy for the resistance o f social responsibility, a management system to ensure thait the requirements o f the BSCI Code o f Conduct has can be set and compliance

w ith policies against bribery/corruption in all their business activities

M anagem ent must take responsibility for the proper implementation and continuous improvement by implementing measures to repair and periodic review

o f the Code o f Conduct as well as the exchange o f information on the requirements

of the Code conduct for all employees It should also be pointed out concerns about compliance with this Code o f Conduct o f the employee

Implementation o f the "social responsibility o f enterprises in V ietnam "14 is

an objective necessity o f the integration process, but the problem is a very new and

in fact when there is more awareness and use very different Therefore, according

Nguyen Huu Dunu, "C orporate S o cia l responsibility' in V ie tn a m ", Academic and Social labor, h/tp:: l i a i H i i y n n v n j J i c i i i a t i c corporate culture m agazine/clbdn/m ore06.asp.

19

to research by the Ministry o f Labor experts - Invalids and Social Affairs, to applv the social responsibility in Vietnam enterprises need to be aware o f right and note the following points:

1 First o f all, to affirm that the association o f labor standards with international trade has not been recognized in the WTO and other international fora Therefore, the CoC is not the international conventions, nor between the

g o v ern m en t agreed that government is an agreement between business enterprises (sellers and buyers o f goods and services)

2 The CoC does not replace, not standing on the national law The

im plem entation o f the CoC in any country must be consistent with national law

a n d support the implementation o f national laws

3 Most o f the content o f the CoC is based on conventions and international practices (eg ILO) and national law However, important issues in the CoC is

g iv e n how to manage, monitor, inspect and evaluate the implementation o f these

ru le s (the sales company or an independent rating company)

4 The implementation o f the CoC is voluntary and completely non-binding

Ho wever, can a foreign company o f any regulations implementing a CoC that is required to sign a commercial contract it is the relationship between business enterprises, not is required from the government as well as local government import

5 Social responsibility o f business is specified in the CoC is understood as the responsibility o f business to society through its products This is a regular, continuous, mostly at work It is also the transition from pure interest to the growth

o f every business, every economy to an interest in the development o f each ent erprise to contribute to the overall development o f society

6 The implementation o f existing regulations can show social responsibility

o f business in the CoC is a storage fee nature o f the business investment, made beffore and make their products, rather than a contribution o f the business nature o f hum anity and charity have been extracted from the profits o f the business after selling the product

7 ll'C'SR and CoC is understood properly and correctly, in accordance with

national legislation, the implementation o f CSR is a job that is beneficial to both

p an ic s : one is the prestige and competitiveness o f enterprises is increasing up;

M onday that the rights and dignity o f workers better secured, and third is the

im plementation o f national laws are better, the competitiveness o f the economy is

higher, the environment better investment

8 The implementation o f social responsibility is the concretization o f some

k e v provisions o f the Labor Code and some other legal documents not mean that

businesses must obtain certain certificates It went to get a certificate o f a certain

sta.ndard o f choice and free decision in relation to enterprise customers

9 Legal basis, institutional system o f Vietnam can achieve CSR goals o f the

COC or to match with Vietnam's laws and harmonize the interests o f the parties

Thus, making the implementation o f CSR tools make it possible for

enterprises to strictly implement and more efficient business operations o f their

enterprises

1.4 The effects o f the im plem entation o f corporate social responsibility.

1.4.1 Corporate social responsibility contributes to adjust the behavior o f

b u sin e ss entities.

"Social Responsibility o f Business is committed to ethical business o f

contributing to the socio-economic development by improving the lives o f the

workforce and their families, and it brought the benefits to the community and

society In fact, when done well socially responsible, will improve the financial

situation, reduce operating costs, enhanced reputation, risk management and better

handling o f the crisis and promote commitment to employees, good relations with

governm ent and communities, increase productivity Besides, if the employee has

conditions favorable work environment will motivate them to work better facilitate

business access to world markets, expanding markets for their products"15

Ac-.cording Ms Leif Iversen - CEO Norwegian company ETI: "Social responsibility

o f business is top issue in developed countries In Norway, all businesses have

15 I llttp: WWW ikkln.com.vn D esk to p a s£ \ Ileu s social cultu re/im plem entation corporate social/.

done well this problem Business not doing well then they U'i/I he elim inated from

trciic/mi// development The enterprise is responsible to society not only means that

businesses complete the legal obligations but also to comply with and invest more

in hum an resources, environment and relationships with stakeholders"16

Considering the scope o f the business environment, the business receives what

tom orrow is the inevitable result o f business decisions today The survival o f the

enterprise not only by the quality o f the products themselves but also services

provided mainly by the business style o f the business Behavior o f firms in relation

to staff and workers, employees, shareholders, the environment, the community

w ill show the status o f the enterprise, and understanding, how it impacts directly to

the success or failure o f the organization

To ensure their profits, firms are aware that development can not ignore the

pressures o f public opinion which is both a customer and employees or both

partners, investors in the country and internationally The international business

managers do not know how to maximize the profitability o f the company, but also

fully aware o f the conditions for creating and maintaining sustainable development

benefits And in perspective, the implementation o f CSR becomes a strategic

factor in the development-oriented enterprises

1.4.2 Corporate social responsibility contribute to im proving quality,

b ra n d value a n d reputation o f the business.

Information disclosure and transparency, the company operating efficiency,

rational use o f capital to create value for the product is to be done for any business

because o f the sustainable development o f the business industry If so, create

confidence for investors is the belief that emotions - the decisive factor

contributing to the profit share A typical example was a securities company blew

about a strategic partnership with reputable international partners; securities

companies that provide false information is a prestigious character accepted as

general director to push stock prices higher, but its share price fell sharply,

u' Hup: u u u Jddn.coniA n De^ktop.iispx news, socml culture/im plem entation corporate social/.

22

company shares fell by 90% As for suppliers, the work reduced to the point is to pa} vour bills on time and uood communication Once embarked on the business, keeping good relationships with suppliers are o f strategic significance in ensuring

a stable supply o f production with reasonable prices, from which the product is distributed distribution to consumers in time and right quality commitment

For consumers, CSR is reflected in the sale o f products meet those needs, affordable, delivery, and safe for use In fact, if the products meet consumer demand, product images and store business in the minds o f consumers In business, use Donimo psychological effect is also very important, "through word

o f mouth" is also very strong pervasive Enterprise customers to maintain and expand market share is the goal o f any business that reflects the spirit o f "customer

is king." She Lurita Doan, the first woman head o f the Provide and technical supervision o f the U.S government (General services Administration) has also said "the customer is king, if you do not provide good service, you will not have a second chance, and so will not with sustainability” Having built the brand and consumer confidence, the business became much more favorable

For the general public, first and foremost task o f environmental protection (also the protection o f public health) and then the charity Environmental pollution, natural resource depletion, climate change that are causing problems around the world eager and 2007 Nobel Peace Prize awarded to former U.S Vice President Albert Gore has reflected this focus Enterprise environmental protection, in addition to complying with government regulations is not overcome loss costs or damages for the consequences o f litigation Investments in green is hot issue in many developed countries

As stated above, implement corporate social responsibility will help improve the reputation o f the business, businessman, from which many companies will receive economic benefits - for their society, but no benefits politics However, it should not be identical to any charity as well have done better social responsibility, whether as a charitable activity is the social responsibility o f business The fact that there was a positive corporate philanthropy but because

23

I

profits that run under law violations, violations o f the sustainable development of

society "Vedan Kvents" and several other enterprises in Don” Nai was "poisoned"

r hi Vai river, destroying the new environment is a typical example for this case

CSR can help companies increase brand value and reputation significantly

Prestige to help businesses increase sales, attract partners, investors, and

employees The multi-national corporations such as The Body Shop (now the

French group specialized in manufacturing o f skin and hair care products) and

IKF.A (business corporations furniture o f Sweden) are examples Both companies

are known not only for quality products and reasonable price but also its reputation

as the enterprise is responsible for the environment and society

1.4.3 The im plem entation o f corporate social responsibility to help increase profits f o r businesses.

According to Charles Moore, executive director o f the Committee to

encourage business philanthropy CECP, "Business leaders today understand the

role o f the social contract help position businesses to achieve remarkably

s I iccessful real ity

Social responsibility o f business does not just stop at the aforementioned

issues, but generally this is the central issue Implementing good corporate social

responsibility brings many benefits CSR has a positive relationship to investment

interests, assets and increase revenue CSR will provide the basis for all successful

business-critical operations o f the organization On the one hand, CSR helps

businesses reduce production costs through the safe production methods, saves

Therefore, the most successful business enterprise is found to be the important role

o f CSR and apply it to practical production For example, a business major

packaging producers in Poland has saved USD $ 12 million within five years

thanks to the installation o f new equipment, thereby reducing water use by 7%,

70% o f substance 87% o f waste water and waste g a s17

17 Nguyen Huu Long, Director o f corporate advisory, "T was director o f su sta in a b le" ,

http, w\v w ipj.edu,\ n_\ I) new -201 (10720581 I was director o f sustainable.aspx.

24

Investment support local economic development could create a better workforce, supply cheaper and more reliable, and thus increase sales Hindustan Lever, a subsidiary o f Unilever in India, in early 1970 to work with only 50% capacity due to lack o f sourcing milk from local cows, and consequently has a severe loss To solve this problem, the company has established a comprehensive program to help farmers increase milk production This program includes training

o f livestock fanners on how to improve basic infrastructure and establish a coordinating, committee o f local suppliers Through this program, the number o f village milk supply has increased from 6 to more than 400, allowing companies to operate at full capacity and has become one o f the most profitable branch o f business corporations Many companies have a certificate after the CSR has been substantially increased revenue For example, Aserradero San Martin, a furniture company in Bolivia, after the certification o f sustainable forest (FSC) has reached the North American market and sell products at higher prices from 10-15 % 18

1.4.4 Corporate social responsibility to contribute to attract good workers.

Labor capacity is the deciding factor productivity and product quality, in developing countries, a large amount o f labor, but labor force o f high quality is not much, thereby attracting and retaining well qualified staff and high commitment is

a challenge with the business These businesses pay adequate and fair, giving staff training opportunities, health insurance and a clean work environment with the ability to attract and retain good employees Grupo M, a large textile company in the Dominican Republic, organized a shuttle workers, with health centers for health care workers and their families, organization and training o f workers paid twice minimum wage prescribed by this country CEO, and founder o f the company, do not worry about these costs, but said that it is wise investments He

said: "All that we are working fo r the benefit fo r the company - the perform ance,

quality, loyalty and creativity".

18 Manh Vy, ‘'Im plem entation o f so cia l responsibility brings nothing to the enterprise a n d s o c ia l",

In p: vuvw.teleco m munications magazin e.gov.vn/vi-vn/recogniz ed ex c h an g e /2 0 1 0 /7 /2 5 191 bcvt.

25

1.4.5 S o cia l responsibility contribute to im proving the national image.

Social responsibility is an inevitable trend and global implementation o f social responsibility is to increase competitiveness and international integration, not conflict with economic interests o f the business The role o f government in promoting the social responsibility o f business is to create a complete environmental law, a level playing field for businesses, supplying information, advice, guidance and issue mechanisms and incentive policies for enterprises, creating conditions for enterprises to perform better than the requirements o f the Labor Code, Law on Enterprises, Law on Investment, management, improving labor standards and promote competition, improve and facilitate raising labor standards in international trends But the role o f labor inspectors is to help businesses understand the true labor legislation implementing the method o f labor inspectors in charge o f the self-test and check the labor laws and increase the frequency o f inspections and strict handling businesses failing self-test and reports, organizing training, training for all employers on risk management in production and organizing the work o f labor protection in enterprises These results will support the implementation o f strategic corporate social responsibilities, and strengthen its role as link the efforts o f all stakeholders, creating a foundation for poverty reduction and growth sustainable growth in the future To enhance the social responsibility o f enterprises even more significant for developing economies

in the process o f opening and integration

C ON CLUSIO N S 1

We can find business ethics or CSR is currently receiving great attention o f the world However, enterprises have bravely put CSR into practice or not? This issue has been a thesis presented programs aim to help businesses better understand the nature o f CSR Seeing the scope o f its impact is broad and implement CSR is not easy issues, CSR requires that businesses must understand and take steps closely When considering the factors affecting CSR active firms must comply to the walk will follow the correct process If you follow a sequence, then the business will achieve more success

26

C H A P T E R 2

IM P L E M E N T A T IO N OF C O R P O R A T E SOCIAL

RE SPONSIB ILITY THE W O R L D A N D IN VIE TNAM

Corporate social responsibility are just beginning serious research and development into a science, both theory and practice in the second half o f the twentieth century in the industrialized West, when the companies faced with the problems arising from the management o f giant companies operate globally with the relationship o f labor, producing increasingly complex Half a century later, this issue becomes a critical tool, a measure indispensable for enterprises to survive and gain competitive advantage So the implementation o f CSR in the world and in Vietnam, the stars will be presented in detail in Chapter 2 o f this

2.1 About the im plem entation o f CSR in the world.

2 / I The intern a tio n a l organization o f CSR.

CSR appeared in 1970 became the movement was largely in response to the developing countries in the world Pressure o f public opinion, large companies have taken proactive CSR programs in their actions seriously and considered as objective, dominant strategy to win market competition Many businesses have harmony for profit and benefit the community and society Thousands o f programs are made, such as saving energy, reducing carbon emissions, using recycled materials, solar power, illiteracy, improve drinking water supply, establishment o f funds and secondary research on AIDS vaccines, other diseases in developing countries, providing scholarships to support disadvantaged, school construction, relief, support for disaster victims CSR is not only popular in the range o f enterprise-level state management, CSR issues also received attention, and is one

of the goals and strategies to build a strong economy State has an important role

in governing the operation o f the business to ensure the safety o f the environment

as well as to society, before the waves reach the maximum profit o f the enterprise Therefore, many countries have institutionalized the contents o f CSR into the legislation or other regulations under the various forms o f expression On a

27

broader effort to briniz CSR into common international practice and has become a realitv In 1999, a global agreement is General Secretary o f the United Nations (UN) Kofi Annan launched at the World Economic I'orum Tháng 7/2000 UN Global Compact (UN Global Compact for short) was officially launched to support and encourage the business community in all countries trading activities with social responsibility, based on compliance and effective implementation o f the UN Global Compact 10 principles are recognized globally under four areas:

- Human Rights;

- Labor;

- Anti-Corruption to address issues o f respect for human rights, welfare, anti-child abuse, forced labor, environmental protection, and prevention of corruption10

For the institutions o f the region, CSR was the European Commission

recognized early on: "CSR is the business concerns to social and environmental

considerations into business operations and their relationship with their com m unities on a voluntary basis".

In addition, CSR has also been included in the official agenda o f the APEC summit (Economic Cooperation Forum Asia - Pacific) held in September 11/2008

ir Lim a, Peru

Investors and Executive Director o f the Investment Fund has also begun to con sider social responsibility policies o f companies before making investment decisions Investors see it as the item is worth the investment because it not only adds to their social value, but it also has measures to reduce risk, ensure the safety and profitability o f capital because o f social sympathy for business and loyalty o f staff, customers

As such, CSR issues have become the concern o f every community, every gov em inent in the world-class, and directly related to the interests o f business

|C) R e s e a r c h conduc ted by íỉlobal treaty network in V ietnam in cooperation with C SR Asia and the National

Etomomics University Hanoi, "O v era ll eva lu a tio n o f so c ia l conditions a n d environm ent o f the industry' in Vietnam

buseul on th e p rin c ip le s o f the UN G lobal C o m p a ct

28

CSR become critical success factors for enterprises to implement this, but there is aJso the cause o f the bankruptcy, decline, collapse o f the companies ignore CSR.

2.1.2 The implementation of CSR in a number o f businesses.

In the world there are many successful businesses thanks to CSR, there are businesses from a small company has become the boom by CSR However, the implementation o f CSR business is not always as successful companies, but also the company failed Here are some typical enterprise implementation o f CSR.

- The company successfully implemented CSR:

2 1 2 1 Procter & Gamble (P&G).

P&G was founded in 1837 with the merger o f U.S company Procter and candle manufacturing facility Gamble soap

manufacturing Starting as a small company with

the main production items are soap, P&G has

become one o f the companies producing consumer

goods popular in the world According to a survey by Fortune magazine in 2008, p

& G leading companies are the most popular in the consumer goods industry in the U.S In addition, P&G is 16th in the top 10 global companies are the most popular Not only famous for its products, P&G's position on the consumer market the world has been built from the program, these activities are socially responsible company Even early on, the concept o f CSR has not been made, but die company's leaders were aware o f the responsibilities o f businesses do not just stop

at making profits but also with the same objects others and realize it by doing specific.

F or employees, p & G has always been rated as the best choice, a

destination for talent The p &G employees are satisfied with their working environment, where they have opportunities for advancement and career development are compensated, to learn, improve themselves Since 1887, P&G became one o f the first U.S company to apply profit sharing program for employees P&G also has policies in creating effective work environment and equal conditions for women to develop their employees Typical o f all, there are

29

three female leaders o fP & G : Deb I lenretta - President P&G Asia, Susan Arrnold - President business unit ulobally, Malanie Healey - President o f Product Family Beauty Salon and Products for women reached the "50 most powerful businesswomen world" poll in 2008 by Fortune The employees o f P&G has alwavs received the attention not only physical but also spiritual leaders from the company Typically in the earthquake disaster in Kobe, Japan in 1995 CEO P&G then Alan G Lafley has to take place, meet, encourage, share and support the staff

of their family share less difficult This has caused dramatic and beautiful image of the company employees

For clients' P&G consumers always win his attention and care alongside

increasing product quality improvement In 1924, P&G has pioneered the establishment o f research to understand market behavior and consumer preferences

to best meet the needs from customers Division marketing and brand management system began to be formed early in 1930 to serve customers the fastest and most convenient The company installed a toll free number (800 units), so that customers everywhere can call directly to P&G, to present the petitions and complaints about P&G products Therefore, P&G has always been widely used brand in the world

For communities and the environment' In the '90s, P&G also has taken the

lead and reaped many successes in the use o f components and packaging do not harm the environment, can be recycled and reused At P&G, sustainable development is seen as a commitment o f the business community and is a resource for future development Currently, P&G is implementing programs to reduce energy use in the production process Specifically, in 2008, P&G lowered energy, 8% C 0 2 , 7% o f the water, saving 21% o f waste materials in the production process, and offers five strategies to improve environment In addition to launching the product meets the required criteria o f sustainable product development by saving resources P&G also very interested in issues improve the quality o f people's lives, through the program are responsible across the globe that represents the program: Live, Learn and Thrive (living, learning and

30

development) In 2008, the company has built 1,408 schools in China, helping poor children, have difficulties to school, p & G also has provided more than 1 billion liters o f clean water through the Children's Safe Drinking Water The company has also combined with UNICEF provided more than 50 million doses o f tetanus vaccine to prevent pregnant mothers in developing countries .2n

With innovative products, the development policies consistent with the operation o f CSR performance, p & G has maintained its leading position in the market for consumers in the world ahead o f the competition fierce competitors Thus, p & G is one o f the successful companies in implementing CSR

2.1.2.2 CSC Group.

CSC Group established in 1957 in the U.S is the company that provides business management solutions and advanced services platform technology through three primary service areas: Service and Business Solutions, Services outsourcing and business Management, public Service for the North American

market, in 2010, CSC was recognized as "most adm ired IT companies in the

w orld" by FO RTU NE magazine poll The superior capabilities o f CSC, including

design and systems integration; outsourcing information technology services and business processes, outsourcing; Web page application, supporting business and management consultancy business CSC is headquartered in Fall Churchs, Virginia, USA, with 94,000 employees, revenues for the fiscal year as o f April 2,

2010 reached 16.1 billion USD

For over 50 years, CSC has implemented the information technology services and management consulting in most major industries around the world CSC is a level 1 service providers in areas such as Insurance Services - Finance, Health Services, Aviation - Energy, Defense and Government Market & Consumer Goods Technology, Management Natural Resources

CSC is equipped with a global network, unified solution transfer and synchronization CSC applies standardized procedures from the international resources o f CSC in the operation o f the CSC system Therefore, customers always

20 Ht:p: 7w w w p g co m /co n ten t/p d f/h o m e/P G _2008_AnnualR eport.pdf.

31

trust the professional competence o f CSC - which is to provide high quality solutions anytime, anywhere, from anywhere in the world.

The CSC's commitment to customers is always done thoroughly CSC has always understood that businesses have confidence in CSC's solutions to achieve success in business Therefore, the CSC will strive to try to develop successful projects that have signed with customers.

For customers Customers are fully confident in die ability o f the CSC

professional in the field o f providing consultancy and software services, hardware and business services best suited to each other industries each other Customers around the world in many different industries always put trust in CSC - CSC always known as customer needs and make the most effective solution CSC gained outstanding achievements in providing SAP SAP is the implementation o f business innovation with information technology capacity This is a management software provider, founded in 1972 in Wall Street, the USA and official activities

in Vietnam in 2007 CSC is a Senior Partner o f SAP Global CSC provides the host system, provides the Application Program for SAP With over 30 years experience in the area o f SAP services provider, CSC always brings success to customers.

CSC is always the concept: creativity is the heart o f the success The application o f advanced technologies to develop practical solutions has brought success to the client and CSC to take over the industry, and value in die global market CSC always enhance the value o f the company with creative activities and innovation in business, which is the driving force for the success o f the CSC.

F or employees' From the practices most effective, such as a Catalyst for the

course the idea o f change management process for managers CSC has been to focus investment on several programs, processes and tools to provide the highest quality services to customers worldwide21 Besides the

successful companies in the implementation o f CSR is

also the company failed.

21 "Introduction lo CSC"”.

32

2.1.2.3 Green Mountain Coffee Roasters.

Green Mountain Coffee Roasters is a medium sized company specialized in tracinu in the U.S food sector Though sales and profit only very modest compared to the giant corporations in the world (one-quarter revenue in 2009 was l')7 million USD, profit was 14.4 million, up 56% over the same period last year 200822) but this company is a business case for the effective implementation of CSR Since its establishment in 1981, Green Mountain Coffee Roasters has social activities and the environment in a positive way In 1988, the company has donated more than $ 500,000 to Coffee Kids, a nonprofit organization working to improve the quality o f life for children and families in coffee growing communities Through the action plan o f the Organization o f Coffee Kids, the company provides credit assistance program for farmers who grow coffee in Huatusco, Mexico and the system o f health protection, safety and hygiene in a sustainable Cosaulan, Mexico In 1989, Green Mountain has established a committee for environmental protection and development o f forest coffee systems

to greening barren hills to increase the coverage o f forests is increasingly shrinking, this is a non-profit activities in order to protect the ecological environment The company is considered a pioneer business in fair trade movement (to pay coffee farmers a stable, fair price) But the biggest change from the beginning in 2000, the company provides financial control to improve the quality o f training programs to help coffee farmers obtain higher profits from coffee 45% o f the raw coffee Green Mountain Coffee Roasters to buy directly from farmers without going through intermediaries with a price not less than $ 1.26 / pound even lower market prices The company has always created differences in products based on the habits, culture and traditions o f each country,

so consumers are satisfied with their products

With these achievements in CSR activities, Green Mountain has been continuous 4 years (2003-2007) in the Top 10 companies most effective

http://v\ ww.csc.com/vn_ v n /d s / 2 6 7 17/4 9626gi% e 1 % bb% 9bi J h i % e 1 %bb%87u_v°/be 1 % b b % 8 1 C S C

” Http: Vw w w g re en m o u n tain co ffe e.co m /C o n ten tPa g e.asp x ?N am e = C o m p an y H ig h liig h s.

33

enforcement DDKD Bussiness Hthics magazine which voted in 2006, 2007 enterprises were head o i'the list.

in addition to enterprise excellence in the implementation o fC S R is the for- profit enterprise that has made unlawful, contrary to social interests, causc environmental pollution Typical o f these was the collapse o f Enron Corporation, Arthur Anderson audit company, or a series o f gas stations have their licenses withdrawn fraud and the recent incident caused a stir public opinion about the melamine contamination o f milk collection Sanlu group - China

- The com pany has not succeeded in im plem enting CSR:

2 Ỉ.2.4 San In Group.

Sanlu Group established in 1956 In the '90s, Sanlu has made rushing to develop, not only is the number one milk producer in China, but also a typical enterprise o f the Chinese economy In 1993, sales o f the company led the industry and maintained this position for a long time With such success, in 2005, New Zealand's Fonterra Group purchased 43% shares o f the corporation, immediately after, Sanlu was the General Department o f Quality Control China's certificate

"exempt" for milk products for children for a period o f three years 2006 - 2008 January 2008, milk powder Sanlu new generation o f award winning scientific and technical grade II By 6th May 2008, Sanlu became the only drink milk production for the aerospace industry to this country However, such success has been disregard for corporate safety, health and lives o f consumers without strict control

o f raw material inputs for the product Despite farm milking cows, but to meet the increasing production, dairy companies have entered from outside and this material was not due to quality assurance phase melamine (a toxic chemical cause kidney stones and can lead to death) in fresh milk to increase volume to make a profit Result in 1 kg o f finished products o f up to 2563 mg Sanlu melamine, while the standard o f the U.S food safety levels up to 15mg/kg melamine milk for children23

r ' Nguyen Thanh Tue (2008), "Thư ỊxđliọfScữìJit",hữpJ/ww\\ I\)ixiTSAiVi i;uivaVlrKfe.\-ítsp\?ArtK;lel[> l38S4<J&('ltưiiielll> ;5.

34