Implementing corporate social responsibility in vietnam situation and solutions

VIETNAM NATIONAL UNIVERSITY, HANOI
INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES
-----------c a C S s o -----------

BUI THI PHUONG

Implementing Corporate Social Responsibility
in Vietnam: Situation and Solutions

M A S T E R ’S T H E S I S
Major: Vietnamese Studies
Code: 60.31.60

02ũs)sfũO O O l3
Supervisor: Associate prof. Dr. Nguyen H oang Anh

HA N O I-2 0 1 1


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: THEORETICAL ISSUES SOCIAL RESPONSIBILITY
B IS IN E S S ...............................................................................................................................5
1.1. Introduction.....................................................................................................................5
ỉ. I I . About Business E th ics................................................................................................. 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 Affairs.................................................................................... 13
1.2.3. The process o f globalization and market pow er................................................ 14
1.3. Tools to im plement and evaluate the effectiveness of CSR activities...... 15
1.3.1. These tools make corporate social responsibility’................................................ 15
1.3.2. Rating Tool corporate social responsibility..........................................................16
1.4. The effects o f the implementation 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
and reputation o f the business............................................................................................ 22
1.4.3. The implementation o f corporate social responsibility to help increase
profits fo r businesses............................................................................................................ 24


( 'orporate social responsibility to contribute to attract qood workers..........25
1.4 .\ Social responsibility contribute to improving the national linage................... 26
CONCLUSIONS 1 ..............................................................................................................26
C H APTER 2 IM P L E M E N T A T IO N OF C O R PO R A TE SOCIAL
R ESPO N SIB IL IT Y THE W O RLD AND IN V IETN AM

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 plementation o fC S R in a number 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 Mountain Coffee Roasters....................................................................... 33
2.1.2.4. Sanlu G roup............................................................................................................. 34
2.2.

Status of implementation of Corporate Social Responsibility in V ietnam ....36

2.2. /. The implementation 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 field .......................................................................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 community........................................... 52
2.2. . 2.5. Corporate social responsibility for environmental issues...........................53
2.2. .3. The implementation o f a CSR o f enterprises in Vietnam...................................56
2.2..3.Ỉ. Honda Vietnam Company..................................................................................... 56
2.2..3.2. Unilever Vietnam Company..................................................................................58
2 .2 .3 3 . Vietnam Dairy>Products Company (Vinamilk)................................................. 61
C O N C L U S IO N S 2 ...............................................................................................................63
CHIARTER 3: SO LU TIO N S IM PROVE EFFICIENCY OF CORPORATE
SOiCIAL RESPO NSIBILITY 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 present gain......................................................................................................... 64
3.1.

.1 .1. Number o f enterprises engaged in CSR b o o st...........................................64

3 .1 .. 1.2. Practice has p roved that CSR can impact business........................................ 64


3. /. /.J. The enterprise actively engaged in community developmentwork over.........65
3. /. / .4. The media for C S R ................................................................................................. 65
3.1.2. These problems exist.................................................................................................. 65
3.1.2. /. Restrictions in labor issu es...................................................................................65
3.1.2.2. CSR for consum ers................................................................................................. 66
3.1.2.3. CSR to the environm ental.....................................................................................66
3.1.3. The cause o f the existence in the past................................................................... 66
3.2. Opportunities and challenges when im plementing CSR inVietnam ..........69
3 .2 .1.O pportunity.................................................................................................................. 69
3.2.2. The challenges that businesses face when conducting CSR inVietnam........ 71
3.3. Some solutions to develop and improve the efficiency of CSR
implementation in Vietnam .............................................................................................. 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 LU SIO N .................................................................................................................... 85
R E FE 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 eath ...............45


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

Bao hiêm (BH)

Insurance

Bảo hiêm xã hội (BHXH)

Social insurance

Bao hiêm y tê (BHYT)

Health insurance

Cô phân (CP)

Stock

Tráeh nhiệm xã hội doanh nghiệp

Corporate social responsibility (CSR)

Đạo đức kinh doanh (ĐĐKD)

Business Ethics

Người tiêu dùng (NTD)

Consumers

Hợp tác xã (HTX)

Cooperative

Khu công nghiệp (KCN)

Industrial

Proeter&Gamble

Procter & Gamble (P&G)

Trách nhiệm Hữu hạn (TNHH)

Limited

Tai nạn lao động (TNLĐ)

Workers’ compensation


THE BEGINNING
1. Urgency 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
growing 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 of 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 th e company's understanding o f corporate social responsibility and CSR theory
m eets 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
extends the scope o f the theory o f public relations. Since it focuses on concepts
such 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 SR research in Vietnam .
In Vietnam, may include a number 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
fo r development ", Trade Magazine, No. 26/2007. Authors demonstrate the
imiportance o f CSR in the business to the development 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
an 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
an 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 of
every 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.
1lowever, 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
Vietnam for economic development - economic development in Vietnam in the
ne:ar future.
4. Objects 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 of
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 of 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 urrent situation a n d solutions". Besides an introduction, conclusion,
appendices

and

references,

divided

Chapter /: The basic theoretical

into

three

chapters

review

course:

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


CH APTER 1
T H EO R E T IC A L ISSUES SOCIAL RESPONSIBILITY 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 wrong, rules or
standards level dominates the behavior o f members o f a profession"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 of
opinions, motives, goals and behavior.

1N 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 of huge
companies operating on a global scale, and when they witnessed the growth of
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

of

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 Vietnam - Situation 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 ersp ec 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
remains subject to the rules o f the game, m eaning that participants compete openly
and 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 growing, strong

and 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 improving 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. Gibron/ John M. Ivancevich (2002), "Learn basic m a n a g em en t”, Publisher statistics,
patie 74.
6 John R. Boatright (2007), “Ethics a n d the conduct u f business", Pearson Prentice Hall, N ew Jersey, page 369.

7


nu >)\jlity and charity for the organization at a iỊĨven time"

(Archie B Carol!,

19 7 fJ). In Maiunan I. Ferrell introduces the concept of CSR as follows: "A business
v:i:h social responsibility in deciding and its operators to create and balance the
d ifferent 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 mitm 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 development o f society"'.
This definition would like to emphasize that CSR is "means" to solve
problems

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 content 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
many different sectors o f society. So basically we share the incidence o f CSR with
the following three aspects:

7Joihn R. Boatright (2007), "Ethics and the conduct o f b u sin e ss”, Pearson Prentice Hall, New Jersey, paee 369.
8 Miaignan I. Ferell (2004), "C orporate S o cia l Responsibility' a n d m arketing: cm integrative fra m e work. Jo u rn a l o f
A caidcm y o f m arketing s c ie n c e ”, Vol. 32 N o .l , pp.3 - 19.
1 V V ' W W . w orldbank.org/privatesectot/csr/index.htm .

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 of 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 of
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 of
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 Decision-making & 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.

10o 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 of lethal obligation.
Obligations o f human enterprises, including the acts and activities that
society wants to direct and effective decision dignity of 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
what 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 of
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" of 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)
Input

Output

Basic for dicision

Social impact

How to act

Bussiness ethics

Corporate culture

Social responsibility

The value o f trust

The logos

Obligations

How to solve the problem

The program activities o f Maximum positive impact
the business

Principles and standards

Consensus principle

to the right - wrong

Minimum

negative

impact

Objects concerned

Voluntary compliance

in The scope o f the

society

the organization
Figure 2: R elationship between B usiness E thics and Social R esponsibility'1
(Source: Vu Thi Huong (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 econom 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 of
law would create a legal environment in which businesses operate under a proper
goal, creating trading environment fair, equitable, open and create the closeness
between 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 Social A ffairs.
As social development is synonymous with high living standards o f the
community 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


th 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 of 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 plement and evaluate the effectiveness of CSR activities.
1.3.1. These tools m ake 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

-

environmental

management systems in the enterprise ...
For example, SA 8000 is one o f three criteria required for businesses in the
process of 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. Child labor; 2. Forced labor; 3.
Safety 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 multi-national corporations, organizations and
professional associations', the Code o f Conduct o f Nike (Sports Group), Adidas
(Fashion Group), FTA (Foreign Trade A ssociation).
Code o f Conduct o f the independent organizations such as SAI (Social
Accountability Organizations International), FLA (Franchise)...
Businesses will need to gather sufficient information to choose the
implementation of 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 om piled fro m various sources.

16


Code of 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 of 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 of 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 of
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 of
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

in

hiring, remuneration, to participate in training, promotion, termination

or

retirement 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

17

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ĨIN 7HƯ VIỂN Ị

O c l-O fy O O O O 'll


and provide income for the costs incurred, the suppliers will try to ajve people
mem 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,
net 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.
Moreover, suppliers that need to be provided appropriate support to enable the
child to continue attending school until they are large enough.
8. Prohibition o f forced labor and other Disciplinary 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 and environmental procedures and standards for waste
treatment 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 management 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

M anagem ent

against
must

bribery/corruption

take responsibility

in

all

for the

their
proper

business

activities.

implementation

and

continuous improvement by implementing measures to repair and periodic review
of 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 Vietnam"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 Social responsibility' in V ietn a m ",
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 magazine/clbdn/m ore06.asp.

19

Academic

and

Social

labor,