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CSR

Corporate Social Responsibility
Nguyen A Chau


BACKGROUND

•CORPORATE RESPONSIBILITIES
(Social Compliance)

•CORPORATE SOCIAL RESPONCIBILITIES


Media coverage
§
§

§

Continuing media attention on working conditions
and wages of laborers in factories
Brands/retailers with a product focus on marketing to
children have been a prominent target for negative
media attention
Labor practices receiving media attention include:







Utilizing child labor
Paying low wages
Long work hours
Unsafe working conditions
Environmental issues


Recent impacts
Wal-mart?

Source: Internet


Recent impacts
GAP Inc.,?

Source: www.time.com


Recent impacts - Vietnam
VEDAN

Source: Internet


Recent impacts - Vietnam
THANG LOI TEXTILE

Source: Internet


…and much more


NGOs involvements





ILO – International Labor Organization
FLA – Fair Labor Association
Human Right Watch
Clean Clothes

• Others


Why are Brands/Retailers concerned?
• Brands/Retailers express a commitment to “Do the
Right Thing”
ü A standard of excellence in every aspect of their businesses and
in every corner of the world
ü Ethical and responsible conduct in all of their operations
ü Respect for the rights of all individuals
ü Respect for the environment

• Brands/Retailers expect the same commitment from
their supply chain




CODE OF CONDUCT



ETHICAL STANDARDS


What is Social Compliance?
• Definition of Social Compliance
ü

Adherence with the standards
applicable to employment,
manufacturing, and environmental
conditions

• US and European Multinational
brands/retailers
ü
ü
ü

Manufacture and import products in
developing countries
Expect factories to treat their
employees with human decency
Expect suppliers to comply with local
labor laws and standards



Why are supply contractors concerned?
§ Long adhered to quality standards
§ Recognize adherence to social standards is a current requirement
of buyers (brands/retailers)
§ Recognize the same product quality standards must apply to
social standards
§ Directly impacted by damage to brands’/retailers’ images:
Ø Negative media attention can reduce demand
Ø Reduced orders can result in fewer jobs
Ø Reduced demand can result in factories going out of business


Supply Chain Relationships
§ A supply chain consists of the
organizations involved in producing
a product
§ Brands/Retailers are directly
impacted by the actions of their
supply chain partners in the area of
social compliance
§ A brand/retailer’s supply chain can
consist of various types of
manufacturing relationships


Supply Chain Relationships
Sample Manufacturing Structure
Subcontractor


Brand/Retailer

Contract Manufacturers
Subcontractor

Brand/Retailer

Licensees

Manufacturing
Licensees
Licensee Used
Manufacturers


Social Compliance Development
v
v
v
v

1970’s:
1980’s:
1990’s:
2000’s:

Pricing
Pricing + Quality
Pricing + Quality + Environment

Pricing + Quality + Environment + Social Compliance

2005 – 2006 - 2008

PRICE

DELIVERY

2008 -

CSR

QUALITY

COMPLIANCE


Compliance audits
• Internal audits
• Third party audits
v
v
v
v
v
v

STR
ITS
BV

OneStep
SCSA
Others


Social Compliance in Vietnam








Unsafe working condition
Long working hours
Low wages
Insufficient mandatory
benefits
Disciplines
Management system
Environmental issues

Strikes


Social Compliance in Vietnam


CSR Programs

• Safe working condition

Employees

• Good benefits
• Less hours
•Job secures
• Respects

Environment

• Environmental friendly
• Hazardous controls
• Wastes discharge

CSR

REPUTATION
Sustainable

Community

• Cleaner production
• Recycles
• Energy saving

• Awareness Education programs
• Scholarships
• Community funding
• Charity work



CSR Programs


CSR Programs


CSR Programs


CSR Programs
Factory Improvement Program (FIP)


CSR Programs
Factory Improvement Program (FIP)


CSR Programs

…Go green


CSR Programs

Scholarship

Nike Golf – Mini stadium in
Dong Nai



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