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/.
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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
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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.
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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.
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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.