trách nhiệm xã hội của doanh nghiệp ( tiếng anh)

Student ID 1207383
BOLTON BUSINESS SCHOOL
Faculty of Well being and Social Sciences
Course level: BA
Module title: Contemporary Management Issues (CMI)
Module code: BAM3011
Level HE6
Credits 20
Assignment title: Corporate Social Responsibility essay (2500 words)
Date issued Date due in Extension date agreed
(tutor to sign)
Actual submission
date18/10/2012
17/09/ 2012 19/10/ 2012
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Student Number Student Name
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Student Signature _____Signed___________________________Date18/10/2012
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Corporate social responsibility (CSR) plays an important part in business operation,
society and environment protection. Thus, a developing country like Vietnam, its
government has found out the important CSR’s role and has programs for CSR
hosted by Vietnam Chamber of Commercial Industry (VCCI); especially, Ha (2012)

the CSR award 2012 was celebrated in Hanoi with the purpose to improve the
knowledge about CSR and encourage enterprises to do CSR as business strategy
for sustainable growth. Of the companies carrying out these programs, Vinamilk was
considered the big success. Vietnam dairy products JSC (Vinamilk) company has the
CSR campaign with the title “12 billion VND for milk foundation Vietnam
development”. Post this campaign, Vinamilk became top well-known brand-name
milk in Vietnam (Vinamilk annual report, 2010).
However, there are many critics about CSR’s characteristics by scholars. For Critics,
CSR is just a tool for public relation and window dressing. And it is not CSR.
Therefore, the following part of this essay will take a look closer for these arguments
and the difficulties of translating CSR in Vietnam.
Although the concept of CSR has been popular since 1950s’ in the last century,
Bowen (1953) cited in Löber (2012) defined that there would be general social and
economic benefits that would accumulate to society. Besides, CSR is still defined by
other views such as Elkington (1999) ,the triple bottom line (TBL) theory which
mentions profit, people, planet. For him, CSR is business ethics in practice because
it requires company to take responsibility for not only economic but also the society
and environment because it is core value for consistence development and long term
profit. Moreover, TBL has been used as a measurement to evaluate CSR
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achievements earned from companies. According to Schwartz and Carroll (2003),
economic, ethic, legal are the most common factors of CSR. (Carroll, 1999);Hart
( 1995) claimed that when company put its profit behind social’s interest, it will
become a good citizen in society. Also, Holme and Watts (2000); McWilliams and
Siegel (2001), agreed that Company should focus on financial status and
stakeholders’ value. Michael Hopkins (1998), CSR is concerned with treating the
stakeholders of the firm ethically or in a socially responsible manner. Winston (2012),
because company can make a lot of money in business, they should share the moral
responsibility as well.

Nevertheless, Friedman (1970) had different views, he stated that there is always the
conflicts between CSR`s projects and companies’ finance. As the nature of business
is to maximize profit, the opposite ideas claim that CSR is stable growth and long run
business strategy. Anyway, its final purpose still aims to profit. Gallagher (2005)
agreed with Fiedman’s points that company is only responsible for its shareholder
not to society. And all under circumstances, shareholder’s wealth is always the top
mission of firm’s operation.
Also, McGuire et al. (1988) pointed that for companies engaging in CSR expenditure,
they get economic disadvantages compared to the firms less responsible for CSR.
When CSR is invested, it could take a huge cost; thereby it’s against shareholder’s
benefits.
In the aspect of profit from TBL theory, CSR brings the potential benefits by
operating perspective such as reducing cost, recycling products. For example,
General Mills (GM) is one of the large food production companies in USA, it has
program reduction of energy usage by 20% to 2015 after installing energy monitoring
meters on its equipment at Covington, Ga.plant, and GM saved estimated $2.5mil in
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2011 (General Mills environmental sustainability, 2011). With the savings cost, it
could be used to re-invest or keep reserving account to prevent abnormal situations.
Furthermore, CSR is adopted as competitive advantage tool when the other
competitors are influenced by factors or scandals; for instance, economic downturn,
unhealthy products or harmful environment activities etc. In particular, General
Electric, an electricity company, has released fluorescent light bulbs which are
friendly environment and consume less energy in comparison with normal bulbs. (GE
EcoMagination report, 2005) these products brought for GE $10.1 billion earning
before tax. This shows that for a company whose products and services are
preferred than others already has good CSR.
Moreover, Company applying CSR well often takes the initiative in innovative
products which create brand differentiation among the competitors since the

differentiation will make unique and special position in customer’s mind as well as
the customer loyalty, trust in products and services.
Hart (1995) said company should strive to minimize the environmental impact and
product stewardship. Namely, Toyota automobile firm Ohnsman&Hagiwara (2012),
has invented type of cars called Prius that can both reduce 10% air pollution and
consume less gas. Consequently, these cars made by Toyota take cutting edge over
others and get global top 03 sales.
In addition to, corporates which have a good application of CSR can avoid the
potential risks or minimize them by communicating the code of conduct, ethics in
business as well as building up the culture “doing the right things” among staff.
Worldcom telecom is a case study of poor corporate governance. Worldcom did
fraudulent bookkeeping and its profit had been inflated by $3.8bn.; as a result, 17000
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employees lost their jobs (BBC ,2002). That‘s reason why company needs good risk
management to prevent such these similar things happening.
On the other hand, firm has consolidated or protected its image, brand name and
reputation since they’re the most valuable intangible asset. “Corporate image is a
result of everything a company does or does not do” (Smith & Taylor, 2002).
A well-established CSR company can survive and stand longer than others without
engaging CSR in both normal economic as well as the crisis time.
In the point of view about human, if company has a good well-known brand name, it
will attract and retain the talented staff and qualified workers. As a result, staff’s turn
over and training cost are reduced, besides the company which has good working
condition and policy will not only motivate moral also improve working
performance ,output and loyalty.
(Smith, 2003) companies which has good CSR manner are preferred by employees.
Base on survey conducted in 2007 (Scotiabank, 2007), if companies did not engage
social responsibility seriously, their staff would speculate on quitting jobs. The result
took from 70% respondent in Canada.

In addition, CSR is used as a norm method about human rights to protect labor in
developing countries from multinational companies where the law for protecting
labors is poor. Kenyon (2000) Nike footwear company shoes is a good example for
sweatshop; it hires child labors and let them work in poor working condition in
Cambodia, which is discovered by Panorama team; consequently, Nike faced the
criticism for those actions. After that Nike issued first CSR report (CSR wire, 2001)
about the labor rights and working condition. Nike tried to recovered image and
reputation; however, its goodwill is already damaged in the public eyes.
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Another view about planet is that CSR makes firms more perceptive of habitat
protection and its importance. Companies such as General Mills and General
Electricity know how to combine product and environment, and all of their products
are environmentally friendly and emits less pollution to the air; consequently, they get
both profit and reputation. It’s win-win situation.
However, Apple is another story for making maximize profit without engaging CSR.
This case study supported Friedman‘s argument.
Duhigg & Kocieniewski (2012) Apple Inc. , a computer company, took billions of profit
offshore in Ireland, Netherland and China by tax evade. Instead of operating in USA
where Apple has to care much about higher wage, working condition and code of
conduct obligations, it contracts supply chains in developing countries where it
benefit greatly from low tax and fewer law protection to save cost, expense and
increase profit. Gewizt (2012), from Peter Oppenheimer CFO, $64bilions Apple’s
income was offshore.
Karnani (2012) said that some companies do not take responsibility for public`s
interest still get profit .This is fundamentally flawed. For example, Blanchard (2012),
Foxconn factory where most of Apple’s products were assembled, had three workers
who died in a blast last year when polishing iPads ignited, and 18 workers committed
suicide in 2010.
After those scandals, Blodget (2012) workers still want to work there, because they

need money even the harsh working condition. Apple doesn’t have social
responsibility and ethics in business, but it still attracts employees and keeps people
buying its products. Lynley (2012) Apple has been one of five best tech companies to
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work for. On the other words, CSR is used as public relation, a green-wash method
to polish company’s image and cover up the negative information.
Duke energy is another story about applying CSR as a fashionable mantle. Duke
Energy is the company considered to have a profound effect on achieving a
sustainable energy revolution, renewable-energy, and its top management is
commitment to greenness and sustainability. Despite kind words about environment
protection, Duke is one of the US utilities still building coal-fired power plants which
emit the great amount of pollution to the air (Greenwash+20, 2012).
In case, CEOs who use firm’s revenue to support the social activities will be
considered as thieves since it is the shareholder’s wealth and asset of organizations
not private property. Since executives are hired by the shareholders, their top priority
duty is to aim to owners and shareholders’ benefit. Actually, the managers want to
show their social responsibility, but it just looks like they’re imposing tax to
shareholders and forcing company to follow the decisions they make. So it will be
better if they spend their own money while participating in CSR.
Karnani (2012) said that government‘s major role is to take responsibility for the
public and observe firms’ activities much better than any CSR campaigns. Because
once government is corrupted, nothing will be protected such as money laundry,
human rights violation and air, water pollution. In this situation, CSR is just theory
itself.
In the context of Vietnam, Post “Doi Moi” 1986, Vietnam has opened door policies
and achieved the economic growth in two past decades and became WTO’s member
in 2007. (WTO, 2007).However, there are still many social issues remained such as
the gap between wealth and poverty, corruption, and pollution. In order to address
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those problems, the government has committed to stable growth and the
environment protection; As a result, Vietnam Agenda 21 was issued. On the other
hand, government strongly encouraged firms to join to protect environment, improve
labor condition and safety workplace (Ministry of planning and investment, 2008).
Despite the positive government actions, there are still many challenges and
difficulties in implementing CSR.Firstly, government has less law enforcement to
ensure firms to do right things as well as their cooperation. (NREN ,2009) Thi Vai
river was polluted by VeDan Company was taken as a good example for lacking of
watchdog groups and local corruption.
Dien (2010). At that time, there was a huge boycott for claiming compensation due to
poisoned river and destroyed habitat. The government forced Vedan to make up for
the lost they caused; however Veda still postponed paying damaged to resident.
Secondly, the main reason companies do not implement CSR is that they don’t
understand its meaning as well as its key role to company’s growth.
One-third of 400 companies 39.8% have no idea about the CSR, the other one-third
have little bit knowledge and just 10% know about it. Less than one-fifths of them
were certified with ISO9000 while the company certified with SA8000 or ISO14000
made up 10%. (Baseline survey report, 2010).
Moreover the Vietnamese stakeholder’s awareness about CSR is quite poor. Only
Service and Export enterprises such as leather and footwear, garment and textile
carry out CSR seriously because of high requirement from foreign partners.
(Baseline survey report, 2010).
Thirdly, Kim (2011) 98% companies are small and medium sized (SMEs) in Vietnam;
and Tuoitre (2012) 53000 SMEs go bankrupt in H1/2012 due to capital shortage,
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inventory products and high interest rate. Actually, surviving, improving financial
performance, paying debt and entering into the market are their top goals because of
economic downturn in recent years. Hence, CSR implementation is not their big

concern anymore.
Whereas, thanks to CSR, there also some companies overcoming obstacles
mentioned above.
For instant, Vietnam Dairy Products JSC (Vinamilk) revenue reached $1billion in
2011; according to Ms Lien chairwoman, Vinamilk keeps focusing on employees,
corporate governance and maximizing profit by cost savings in 2012. (Vinamilk
annual report, 2011) Vinamilk becomes one of the top brand milks in Vietnam. This
success showed that if doing well its bottom line, it will bring out intangible benefit
that’s able to support and boot company’s performance to get over the difficult time
and achieve sustainable growth.
However, price of products is still the basic factor for customer when making decision
on purchasing. Pham (2011) survey, 69% of respondents still buy products from
immoral companies and 70% are unwilling to pay higher for goods/services from
CSR companies. Thus, CSR knowledge and perception should be informed
commonly to people. When the customer benefit from CSR products, the demand for
them will be increasing; as a result, companies will be aware of adopting it in
practice,
“Who is not starting to think about CSR in time will miss an opportunity or even loose
his business” (Florian Beranek, 2010). Therefore, CSR should be done step by step
because if the firms get the outcome, it will motivate them to proceed next step.
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Government not only strengthens the law and regulation but also creates more
watchdog groups and NGOs to inspect companies’ activities. On the other hand,
government has policy to encourage enterprises to implement social responsibility
such as imposing low tax, subsidiary products.
In conclusion, CSR improves corporate`s long term profitability, reduces risks
management and inefficiency, builds up the company’s image, reputation and
attracts perspective and good employees to organization. It helps to create
competitive advantage, make company have more innovation in its products and

establish brand differentiation in the customer’s mind and loyalty. However, CSR is
supposed a green wash, type of marketing strategy to deliver brand recognition and
public relation.
On the other hand, CSR can violate profit and make the conflicts between
shareholders’ wealth and stakeholder. Government’s role for protecting society and
environment is still the most important. In fact, the real CSR doesn’t have purposes
and fraud actions.
In Vietnam, the code of conduct is less strict in spite of having positive actions from
state. There is lacking of understanding and being aware of CSR well as well as
capital, technology from small and medium enterprises.
Recommendation, this essay reviews the CSR`s importance, its negative impacts on
global business, and the difficulties of adopting it in Vietnam where CSR concept is
quite new and hard to understand.
This essay has some limitations because it only focuses on some aspects of CSR,
which is considered key points and major topic for arguments in the real world. Some
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points are mentioned generally and not discussed in detail both in Global and
Vietnam context. Therefore, it needs more survey, research and data base in order
to understand more clearly about the issue of CSR.
Words count: 2468
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