Corporate social responsibility of enterprises in vietnam the case of bank for development and investment of vietnam

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY *** - MASTER THESIS CORPORATE SOCIAL RESPONSIBILITY OF ENTERPRISES IN VIETNAM: THE CASE OF BANK FOR DEVELOPMENT AND INVESTMENT OF VIETNAM MAJOR: INTERNATIONAL ECONOMICS NGUYEN THU THUY Ha Noi - 2023 MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY *** - MASTER THESIS CORPORATE SOCIAL RESPONSIBILITY OF ENTERPRISES IN VIETNAM: THE CASE OF BANK FOR DEVELOPMENT AND INVESTMENT OF VIETNAM Major: International Economics Code: 8310106 Full name: Nguyen Thu Thuy Supervisor: Assoc Prof Dr Nguyen Thi Tuong Anh Ha Noi – 2023 i STATEMENT OF ORIGINAL AUTHORSHIP I hereby declare that the thesis entitled “Corporate Social Responsibility of Enterprises in Vietnam: The Case of Bank for Development and Investment of Vietnam” is my own research work The cited data, and research results presented in the thesis are put forward honestly and have a clear origin Hanoi, July 2023 Nguyen Thu Thuy ii ACKNOWLEDGEMENTS Master's thesis with the topic “Corporate Social Responsibility of Enterprises in Vietnam: The Case of Bank for Development and Investment of Vietnam” has been completed under the sincere guidance of the Graduate Faculty - Hanoi Foreign Trade University In addition to my efforts in the process of studying as well as implementing this thesis, I have received enthusiastic guidance from Assoc Prof Dr Nguyen Thi Tuong Anh - Foreign Trade University I would like to express my deep and sincere gratitude to my research supervisor for supporting and providing me with precious supervision, valuable advice, and endless inspiration during the course of my research study The researcher’s gratitude also extends to colleagues at the Bank for Development and Investment of Vietnam for their assistance in completing this thesis I would like to give thanks for the time and knowledge that respondents have given me to conduct this thesis Without their openness to respond to our inquiries, this thesis would not have been feasible Last but not least, I am very thankful to my dearest parents for their consideration for finances and undying support throughout the conducting of the research study Hanoi, July 2023 Nguyen Thu Thuy iii TABLE OF CONTENTS STATEMENT OF ORIGINAL AUTHORSHIP i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii LIST OF FIGURES AND TABLES v LIST OF FIGURES v LIST OF TABLES v LIST OF ABBREVIATIONS vi SUMMARY OF THESIS RESEARCH RESULTS viii INTRODUCTION CHAPTER 1: THEORETICAL FRAMEWORK IN CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION OF ENTERPRISES 1.1 Corporate Social Responsibility theory 1.1.1 Differential viewpoints on Corporate Social Responsibility 1.1.2 Corporate Social Responsibility’s outstanding viewpoint 1.2 Implementation of Corporate Social Responsibility 11 1.2.1 Environment protection 11 1.2.2 Community and society contribution 11 1.2.3 Customers and partnership benefits insurance 12 1.2.4 Labour rights protection 12 1.2.5 Corporate Social Responsibility benefits to enterprises 13 1.3 Corporate Social Responsibility implementation experience of several firms 18 1.3.1 Cases of several International firms 18 1.3.2 Cases of several International banks 23 1.3.3 Cases of several Vietnamese firms 25 1.3.4 Cases of several Vietnamese banks 30 CHAPTER 2: BIDV'S CSR IMPLEMENTATION 39 2.1 Overview of BIDV 39 2.1.1 Historical background 39 iv 2.1.2 Organizational structure 42 2.1.3 Business outcome 44 2.2 Corporate Social Responsibility implementation of BIDV 46 2.2.1 Environment protection 46 2.2.2 Community and society contribution 50 2.2.3 Customers and partnership benefits insurance 54 2.2.4 Labor rights protection 61 2.3 Assessment of Corporate Social Responsibility implementation of BIDV 73 2.3.1 Achievements 73 2.3.2 Shortcomings 75 CHAPTER 3: SOLUTIONS TO IMPROVE THE CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION OF BIDV 77 3.1 Orientation for the development of BIDV 77 3.1.1 Orientation towards shareholders and workers 77 3.1.2 Orientation towards customers and partners 77 3.1.3 Orientation towards society 77 3.2 Solutions to improve Corporate Social Responsibility implementation of BIDV 78 3.3 Recommendations to managerial organizations 81 CONCLUSION 84 LIST OF REFERENCES 86 APPENDIX 91 v LIST OF FIGURES AND TABLES LIST OF FIGURES Figure 1.1: The Pyramid of Social Responsibility 10 Figure 1.2: Corporate Social Responsibility value line 13 LIST OF TABLES Table 2.1: Some key business indicators of BIDV in the period of 2020 - 2022 45 Table 2.2: BIDV's employee satisfaction and commitment survey score 72 vi LIST OF ABBREVIATIONS Abbreviation Full word ADB Asian Development Bank ASEAN The Association of South East Asian Nations BIDV Bank for Development and Investment of Vietnam CSR Corporate Social Responsibility DCB Bank Development Credit Bank DNA Deoxyribonucleic Acid FPT Financing and Promoting Technology FYT FPT Young Talents Training Center Honda Y-E-S Honda Award for Young Engineers and Scientists HSBC Hongkong and Shanghai Banking Corporation Limited IFC International Finance Corporation IKEA Ingvar Kamprad Elmtaryd Agunnaryd IT Information Technology IWAY IKEA Way on Purchasing Products, Materials and Services JICA Japan International Cooperation Agency KfW Kreditanstalt fur Wiederaufbau LGBT Lesbian, gay, bisexual, and transgender REPD Renewable Energy Planning Database vii SHB Saigon – Hanoi Commercial Joint Stock Bank SMEs Small and medium-sized enterprise TPBank Tien Phong Commercial Joint Stock Bank UN United Nations UNICEF United Nations Children’s Fund Vietcombank Joint Stock Commercial Bank for Foreign Trade of Vietnam Vinamilk Vietnam Dairy Products Joint Stock Company VnSAT Sustainable Agriculture Transformation Project in Vietnam VPBank Vietnam Prosperity Joint Stock WB World Bank WHO World Health Organization viii SUMMARY OF THESIS RESEARCH RESULTS The thesis topic “Corporate Social Responsibility of Enterprises in Vietnam: the case of Bank for Development and Investment of Vietnam” is presented in three chapters In the introduction, the author mentioned the urgency of the topic, the situation of CSR research in the world and in Vietnam, the research purpose, the research object and scope, the research methods, and finally, the thesis layout Chapter is the theoretical basis of Corporate Social Responsibility In this chapter, the writer also points out some experiences on the implementation of Corporate Social Responsibility at other banks from which to have an overview of the situation of implementing Corporate Social Responsibility of banks in Vietnam In Chapter 2, the author mentions the reality of implementing social responsibility at the Bank for Development and Investment of Vietnam In general, the Bank for Development and Investment of Vietnam has taken the initiative in implementing social responsibility, thereby bringing satisfaction to relevant stakeholders including customers, employees, shareholders, partners, and the whole society However, the implementation of Corporate Social Responsibility at the Bank for Development and Investment of Vietnam still has many limitations, mainly due to the lack of CSR implementation in a synchronous and planned manner Therefore, in Chapter 3, the author proposes some measures to improve the implementation of social responsibility at the Bank for Development and Investment of Vietnam In this chapter, the author focuses on some specific and highly practical solutions based on the resources available at the Bank for Development and Investment of Vietnam 82 It is essential to routinely remind workers about the law's provisions on their rights and obligations at work, as well as to educate them on the enterprise's policies and standards in this regard For the stakeholders concerned, there is a need to raise awareness, knowledge, and expertise about the value of adopting social responsibility; also, the management system has to be improved to comply with the code of conduct and regulatory requirements In addition to strengthening their bond with the bank, workers who participate more in CSR initiatives also give leaders a greater understanding of their goals, desires, and perspectives Employees then aggressively encouraged employee initiative in all facets of the Bank's operations At that point, BIDV's social responsibility initiatives will be modified in accordance with employee goals and in close coordination with their duties and privileges As a result, the Bank's CSR will be implemented in a more sustainable manner 3.3.3 Creating a department in charge of social responsibility Social responsibility actions are not carried out consistently and frequently when there is no department or department in charge of social responsibility This department must include people who are knowledgeable about the important areas that BIDV chooses to carry out its social duty and should be developed with a structure and composition suited to the size of the Bank The organization of this department may comprise 10 members, in charge of each subject area or divided in charge by region It has around 25,700 personnel and more than 190 branches, transaction offices, representative offices, and member units at home and abroad Particularly, the Board of Directors of BIDV ought to have a representative from this specialty department or department This is so that social responsibility policies and initiatives may be implemented in a sustainable manner, which requires strong support and commitment from the Bank's top officials Additionally, this department should include staff members who have a thorough grasp of social responsibility and the ability to employ additional outside specialists if necessary 83 Although the creation of extra departments may result in overlapping responsibilities in the organizational structure and increased management expenditures, it is effective in the long run In order to make the best choices for themselves, banks must carefully weigh their options 3.3.4 Creating the technological and material foundations The use of IT innovations has helped BIDV achieve several successes In order to support the CSR objectives specified by the Board of Directors, BIDV must optimize the development of high-tech IT infrastructure and promote the role of the IT system IT innovations can reduce the convoluted approach with several sample forms with complicated signature comparison by using AI and digitalized algorithms Furthermore, technology enhancement can promote the use of customers with the immediate registration of banking system, which can help to achieve larger transfer and upgrade the withdrawal limit immediately Last but not least, technology development can improve the social security activities as well as the measurement of banking activities 3.3.5 Establishing funds for Corporate Social Responsibility initiatives BIDV already has its own funds for CSR-related operations such as the Social Welfare Fund, Unemployment Support Fund, Retirement Fund, etc However, the business should create a special fund to provide CSR services for the bank's CSR initiatives This fund will assist the bank in having a budget that is plentiful, consistent, centralized, and simple to administer so that the budget may be used more efficiently 84 CONCLUSION In the end, it was discovered that the majority of established enterprises are conscientious and work to benefit society By more emphasis is placed on the subject of enterprises' contribution to both sustainable global development and the process of national economic development in general, the mismatch between economic progress and human and social development, as well as between economic and social gains, is one of the dangers and disadvantages that social responsibility is thought to help reduce The writer has used analytical and synthetic methods to find specific research subjects - Bank for Development and Investment of Vietnam - with an approach to corporate social responsibility based on a breakdown of the responsibilities that businesses need to perform for relevant stakeholders inside and outside the business, thereby affirming that every business that wants to operate sustainably cannot without social actions This further demonstrates that CSR is the company's responsibility and is always linked to society through specific manifestations of responsibility to partners, customers, the law, society, and the environment, as well as show production and business ethics In regard to social duty, the article supports Carroll’s position: Economic duty, legal obligation, ethical responsibility, and community involvement are the four basic responsibilities that make up corporate social responsibility The individual or combined application of the aforementioned primary obligations is the implementation of social responsibility for each specific issue The thesis has identified a number of issues that still exist at the Bank by comprehending the origins and development of CSR and examining the actual implementation of CSR activities at the Bank for Development and Investment of Vietnam From these issues, the thesis offers some solutions to enhance the implementation of CSR at banks Some broad recommendations were made, including creating a focused and methodical CSR plan, educating the Bank's staff about CSR, and creating a department or department in charge of carrying out a duty Depending on the subjects to be applied, specific solutions are also provided 85 Some limitations of the thesis: During the research process, the study has some limitations as follows: - The scope of research is still limited at the Bank for Development and Investment of Vietnam There are no performance figures for other banks from which to make relative comparisons - Research method using qualitative method, mainly collecting and analyzing data The questionnaire is small, which may cause the analysis data to be skewed The writer has thoroughly grasped the reality of CSR implementation at the Bank for Development and Investment of Vietnam Therefore, the topic's next step will be to conduct a more thorough examination of the state of CSR implementation in each discrete area of the Bank's activities related to development objectives in the near term to understand the challenges the Bank faces in greater detail, providing targeted and extremely useful solutions 86 LIST OF REFERENCES Abraham, Development of employee engagement programme on the basis of employee satisfaction survey, Journal of economic development, management, IT, finance, and marketing, 4(1), 27, 2012 Bank for Development and Investment of Vietnam, Annual Report 2019, 2019 Bank for Development and Investment of Vietnam, Annual Report 2020, 2020 Bank for Development and Investment of Vietnam, Annual Report 2021, 2021 Bank for Development and Investment of Vietnam, Annual Report 2022, 2022 Bank for Development and Investment of Vietnam, https://bidv.com.vn/vn/vebidv/lich-su-phat-trien, 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decision strategic direction of the organization, understand the key factors within the organization that directly affect to unleash the greatest potential in employees Please read carefully and answer the questions below Thank you very much for your support I STAFF INFORMATION (Can be left blank) Branch: ……………………………………………………………………………… Department: ………………………………………………………………………… II CONTENT (mark an X or bold in the selected circle) = Totally disagree = Disagree = Fairly agree = Agree = Totally agree No Criteria Planning and organizing the implementation of BIDV's development strategy The Board of Directors provides a vision along with clear goals to be Satisfaction level 92 achieved for the organization I clearly understand BIDV's development strategy and goals Leadership has all the skills needed to drive organizational change Board of Directors demonstrate strong leadership and high efficiency The organization and assignment of work at BIDV 5 BIDV has a clear working process I have a clear understanding of the departments I need to coordinate at work and the functions and tasks The goals to be achieved for my position are clearly defined and communicated to me I fully understand how my role and responsibility contribute to the whole Bank I clearly understand the functions and duties of the departments that I usually work with Opinions on working conditions, management system and IT infrastructure at BIDV 10 The departments can communicate with each other easily Information in BIDV is transmitted 11 effectively, helping me to timely grasp the necessary information to serve my work 93 12 BIDV has effective processes to help me identify my development needs I am provided with all the tools and 13 support necessary to complete the assigned work Training and development of BIDV 5 I can participate in appropriate and 14 useful training and development programs, helping me gain more knowledge and skills to my job well BIDV's new employees are fully trained 15 to understand the Bank and take on their roles BIDV always creates opportunities for 16 employees to advance and take on more responsibilities I am fully equipped with the necessary 17 skills to provide the best service to internal and external customers of BIDV Implementation of BIDV's salary, bonus, welfare and reward policies BIDV recognizes employees' 18 contributions to the overall success of the bank I receive appropriate rewards (in 19 addition to salary) for my contributions and achievements 94 20 The salary and benefits I receive are competitive compared to other banks My salary and benefits are 21 commensurate with my responsibilities at BIDV 22 My salary and benefits ensure my quality of living Leadership and management styles of managers at BIDV 5 BIDV's Board of Directors is a good 23 example for employees to learn and follow Direct managers always give useful 24 feedback to help me improve work efficiency 25 Direct managers at BIDV always respect and treat employees fairly My line manager is actively interested 26 in my professional advancement and career advancement Direct managers and leaders always 27 encourage and create opportunities for me to exchange and give opinions 28 Direct managers create conditions for me to work with the highest efficiency The shared values of employees working at BIDV 29 At BIDV, learning and development is 95 a top priority I am encouraged to share ideas to 30 improve service quality and business efficiency for the Bank Providing the best service to customers 31 is the top expectation that the bank sets for me and the BIDV staff 32 Teamwork is encouraged and is the working style at BIDV 33 Employees at BIDV are ready to embrace change 34 I feel I can share my honest opinion without fear of negative consequences Your feeling about your job at BIDV 35 5 My work is challenging, interesting and rewarding 36 Motivates me to contribute more in my work than is required Share about your level of attachment to BIDV The working environment at BIDV 37 facilitates me to have a balance between work and personal life 38 It will be difficult for me to leave BIDV Share what you would say about BIDV with family and friends 96 39 I will not hesitate to recommend relatives and friends to work at BIDV 40 I am proud to tell my friends and relatives that I am working at BIDV III ANOTHER OPINION: ……………………………………………………………………………………… ………………………………………………………………………………………