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MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS CORPORATE SOCIAL RESPONSIBILITY IN THE VIETNAMESE FOOD INDUSTRY SITUATION AND POLICY RECOMMENDATIONS Specialization Internatio[.]
MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS CORPORATE SOCIAL RESPONSIBILITY IN THE VIETNAMESE FOOD INDUSTRY: SITUATION AND POLICY RECOMMENDATIONS Specialization: International Trade Policy and Law LE THI KIM PHUNG Hanoi – 2019 Luan van MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS CORPORATE SOCIAL RESPONSIBILITY IN THE VIETNAMESE FOOD INDUSTRY: SITUATION AND POLICY RECOMMENDATIONS Specialization: International Trade Policy and Law FULL NAME : Le Thi Kim Phung Student ID’s number : 1606060030 Supervisor : Dr Ly Hoang Phu Hanoi – 2019 Luan van i DECLARATION I hereby declare that this master thesis is the scientific research of my own which made on the basis of the theoretical studies, field surveys and under the direction and supervision of Dr Ly Hoang Phu The research contents and results of this thesis is completely honest These data and documents for the analysis, review and evaluation were collected from various sources which are fully listed in the reference list I am fully responsible for the content of this master thesis as well as this declaration Hanoi, 14 March 2019 Author Le Thi Kim Phung Luan van ii TABLE OF CONTENTS DECLARATION i TABLE OF CONTENTS ii ACKNOWLEDGEMENT v LIST OF ABBREVIATIONS vi LIST OF TABLES vii LIST OF FIGURES vii ABSTRACT viii INTRODUCTION .1 Research Rationale Literature Review 3 Research objectives .6 Research questions .6 Scope of research Research methodology 7 Thesis outline CHAPTER 1: THEORETICAL BACKGROUND OF CORPORATE SOCIAL RESPONSIBILITY 1.1 Background 1.1.1 Definition 1.1.2 Determinants of CSR .11 1.2 Models of CSR .13 1.2.1 Carroll’s CSR pyramid 13 1.2.2 Wayne Visser’s CSR 2.0 Model 15 1.2.3 The Consumer-driven Corporate Responsibility (CDCR) Model 16 1.3 CSR Practices in Developing Countries .18 1.3.1 Content Theme .18 1.3.2 Knowledge Type .18 1.3.3 Various drivers for CSR in developing countries 19 1.3.4 CSR Pyramid for developing countries 23 Luan van iii .23 CHAPTER 2: CSR APPLICATION IN VIETNAMESE FOOD INDUSTRY 26 2.1 Overview of Vietnamese food industry 26 2.2 Vietnam research context 29 2.2.1 CSR in Vietnam .29 2.2.2 Key stakeholders in CSR in Vietnam 35 2.3 CSR in Vietnamese food industry 37 CHAPTER 3: CASE STUDIES 40 3.1 Vietnam Dairy Products JSC 40 3.1.1 Overview of Vietnam Dairy Product JSC .40 3.1.2 Human nutrition and safety 40 3.1.3 Environment and energy 42 3.1.4 Local economic development 43 3.1.5 Employees 44 3.1.6 Support and community development 45 3.2 C.P Vietnam Corporation .46 3.2.1 Overview of CP Vietnam 46 4.2.2 Heart 47 3.2.3 Health .49 3.2.2 Home 50 3.3 Heineken Vietnam 51 3.3.1 Overview of Heineken Vietnam 51 3.3.2 Prosperity of people 51 3.3.2 Prosperity of planet 53 3.4 Vedan Vietnam .54 3.4.1 Overview of Vedan Vietnam 54 3.4.2 Social responsibility activity 54 3.4.3 Environmental protection .54 3.4.4 Employee activity .55 CHAPTER 4: POLICY IMPLICATION .56 Luan van iv 4.1 Evaluation of CSR application in Vietnam food industry 56 4.1.1 Achievements 56 4.1.2 Existing issues 64 4.2 Future CSR development and challenges in Vietnamese food industry .65 4.3 Recommendations 67 4.3.1 Recommendations to the companies .67 4.3.2 Recommendations to the government bodies 70 CONCLUSION 72 REFERENCES Luan van v ACKNOWLEDGEMENT During the completion of this master thesis, I received the guidance and valuable help from the lecturers, siblings and friends With great respect and deep gratitude, I would like to express sincere thanks to: Dr Ly Hoang Phu, who wholeheartedly helped, supported and encouraged me from the initial to the final level of this dissertation He provided me with comprehensive guide from choosing the topic, outlining the thesis and editing this research Professors and lecturers, who not only spread profound knowledge and information in the fields of economy and law but generated strong motivation for me while I was taking this course as well Last but not least, I would like to express my sincere thanks to my family, my colleagues and my friends, who have always by my side encouraging, supporting, contributing valuable ideas and giving me favourable conditions for me to complete this scientific research Luan van vi LIST OF ABBREVIATIONS Abbreviation Full name ASEAN Association of South East Asian Nations CIEM Central Institute for Economic Management CDCR Consumer-Driven Corporate Responsibility CSR Corporate Social Responsibility FDI Foreign Direct Investment GDP Gross domestic product GMP Good Manufacturing Practices ISO International Organization for Standardization HACCP Hazard Analysis and Critical Control Points SME Small-and-Medium-Size Enterprise VCCI Vietnam Chamber of Commerce and Industry VGCL Vietnam General Confederation of Labour UN United Nations UNIDO United Nations Industrial Development Organization WB World Bank WTO World Trade Organization Luan van vii LIST OF TABLES Table 3.1: Occupational health and safety index in Vinamilk 43 Table 3.2: Occupational health and safety index in Vinamilk 45 Table 4.1: Summary of CSR system and activities of Vinamilk 57 Table 4.2: Summary of CSR system and activities of CP Vietnam 59 Table 4.3: Summary of CSR system and activities of Heineken Vietnam .61 Table 4.4: Summary of CSR system and activities of Vedan Vietnam 63 LIST OF FIGURES Figure 1.1: Era of CSR Figure 1.2: Carroll's CSR Pyramids 14 Figure 1.3: Visser’s CSR 2.0 Model (Visser 2012) 15 Figure 1.4: The Consumer-drive Corporate Responsibility model (Claydon 2011)17 Figure 1.5 CSR Pyramid for developing countries (Visser, 2008, 489) 23 Figure 3.1: Production cycle of Vinamilk 41 Figure 3.2: The supply chain system of CP Vietnam .47 Luan van viii ABSTRACT Corporate social responsibility is the corporates commitments for stable economic development through that improve the quality of life of workers, their family, community, and society in a manner that benefits both corporate and social development The good application of CSR by the companies does not only ensure their sustainable development but also the society Today big enterprises in Vietnam often brings the CSR into their own business strategy and the ones with export market Meanwhile, opportunities and benefits of the CSR have not been seen by the medium and small enterprises, some of them have even misunderstood or intentionally misunderstood the importance of CSR It is the fact that for public businesses who implement social responsibility well, their benefits not decrease but increase The benefits that businesses gain when implementing social responsibility include reducing costs, growing revenue, increasing brand value, decreasing the rate of quitting jobs, improving productivity and more possibilities to access the new markets This thesis focused on analyzing the corporate social responsibility, roles of the implementing the CSR and some matters of implementing the CSR in Vietnam food industry Using qualitative methodology with a multiple case-study approach, this thesis explores the driving factors of CSR strategies and implementation in the Vietnamese food industry, which is intended to conduct only four cases of big corporations The thesis contributes to the body of knowledge and slight reality on CSR practices in a developing-country context as well as Vietnamese food industry Luan van ...MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS CORPORATE SOCIAL RESPONSIBILITY IN THE VIETNAMESE FOOD INDUSTRY: SITUATION AND POLICY RECOMMENDATIONS... analyzing the corporate social responsibility, roles of the implementing the SCR and some matters of implementing the SCR in Vietnam To more detail, Corporate Social Responsibility in the Vietnamese. .. by Vietnamese food companies? Scope of research Regarding the content of the dissertation, it focuses on the real situation of CSR in the Vietnamese Food Industry and policy recommendation The