final assignment corporate social responsibility

The types of reasons that make businesses usually do CSR and whatspecific actions they focus on.. However, one of the issues raised is the effectivenessand practicality of these CSR acti

UNIVERSITY OF ECONOMICS AND BUSINESS

FINAL ASSIGNMENT CORPORATE SOCIAL RESPONSIBILITY

Course code: BSA 3040-E*

Lecture:

Student:

Student code:

Class:

Ph.D Tran Thi Hien Ph.D Vu Thi Van Anh Mai Phuc Thao 21050325 QH– 2021- E QTKD CLC1

Ha Noi, 6/2024

MỤC LỤC

1 Introduction 2

1.1 The current situation of CSR in Vietnam 2

1.2 The types of reasons that make businesses usually do CSR and what specific actions they focus on .4

1.2.1 The types of reasons that make businesses usually do CSR 4

1.2.2 Some specific actions Vietnamese businesses focus on 5

2 Discuss and make clear about this challenge 7

3 Problem solving recommendations 8

3.1 Government actions 8

3.2 Community actions 9

4 Concluding remarks 11

5 References 12

Topic 4

Currently, CSR is receiving more and more attention from businesses Many businesses, especially large enterprises, increasingly see the importance of CSR However, one of the issues raised is the effectiveness and practicality of these CSR activities

Many businesses really bring a lot of value to society and the community, but many businesses, when implementing CSR, have not yet brought the desired effects, even just considering CSR as a tool to build their image without paying attention to the real impact of CSR on the community This has consequences, adversely affecting businesses implementing true CSR and making society to have great scrutiny with CSR activities

How can Vietnamese businesses

1 Improve the real effectiveness of CSR and minimize the cases of taking advantage of CSR for personal purposes, not towards the community?

2 Promote CSR to spread strongly to the business community, not only large enterprises?

1 Introduction

1.1.The current situation of CSR in Vietnam

As the country continues to grow economically, Vietnamese businesses are increasingly recognizing the importance of integrating CSR into their core strategies In detail:

Firstly, there is a growing awareness among Vietnamese businesses about the importance of CSR This is driven by a combination of market pressures, regulatory requirements, and the influence of international business standards More companies are adopting CSR policies and publishing annual sustainability reports to highlight their CSR efforts and impact

Secondly, CSR practices vary widely among different sectors and types of businesses Larger corporations and multinational companies tend

to have more structured and comprehensive CSR programs compared to small and medium-sized enterprises (SMEs) Due to limited financial, technical, and human resources to build and implement CSR programs, these SMEs focused more on making profits than fulfilling social responsibility For example, Vinamilk and Unilever Vietnam have well-established CSR strategies, while many SMEs are still in the early stages of integrating CSR into their business models

Thirdly, the Vietnamese government has been promoting CSR through various policies and strategies aimed at encouraging businesses to integrate social and environmental concerns into their operations, including environmental protection laws, labor regulations, and incentives for businesses engaging in CSR These efforts are part of Vietnam's broader sustainable development goals Vietnamese companies increasingly align their CSR practices with international standards such as ISO 26000, which helps improve credibility and competitiveness in global markets

The future of CSR in Vietnam is likely to see continued growth as businesses recognize the importance of sustainability in long-term profitability and societal impact However, ongoing efforts are needed to address challenges and ensure that CSR initiatives contribute effectively to community

1.2 The types of reasons that make businesses usually do CSR and what specific actions they focus on

1.2.1 The types of reasons that make businesses usually do CSR

The first is competitive advantage For creating differentiation in the market to attract consumers who prioritize ethical consumption, businesses will implement environmentally friendly production processes, develop sustainable products For example, Vinamilk commits to reducing its carbon footprint and producing organic dairy products

The second is for cost savings Sustainable practices often lead to cost reductions such as investing in energy-efficient technologies, waste reductions and recycling programs For example, factories adopting solar energy to reduce electricity costs

The third is improving community relations By contributing to social causes, they build goodwill and enhance their public image, such as supporting local education initiatives and providing healthcare services to underprivileged communities FPT Corporation regularly participates in educational and social welfare projects

The forth is regulatory influence Compliance with Vietnamese government regulations ensures that businesses avoid legal issues and

environmental protection has led businesses to adopt greener practices Moreover, businesses can benefit from government incentives for CSR activities, like businesses involved in renewable energy projects will receive financial support

The fifth is global market standards For Vietnamese businesses looking to expand internationally, aligning with global CSR standards (ISO 26000) helps in meeting the requirements of international partners and

accessing new markets For example, as a member of Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam has agreed to encourage corporate operating within its territory to voluntarily incorporate CSR into their policies and to actively fill legislation gaps in compliance with international standards on issues associated with labor rights and environmental deterioration

The sixth is for meeting consumer pressure Modern consumers are more informed and concerned about the ethical practices of the companies they support Businesses engage in CSR to meet these evolving consumer expectations and maintain customer loyalty

Finally, engaging in CSR can boost employee morale, leading to higher job satisfaction and retention rates Businesses that involve employees in volunteer programs often see improved workplace morale and team cohesion Moreover, do CSR help businesses build a positive corporate culture centered on sustainability and responsibility

1.2.2 Some specific actions Vietnamese businesses focus on

- For environmental sustainability:

 Reducing carbon footprint: Implementing energy-efficient technologies and practices to reduce greenhouse gas emissions, transitioning to renewable energy sources such as solar or wind power Vinamilk has invested in solar energy systems to power its production facilities, significantly reducing its carbon footprint

 Implementing waste management and recycling programs: Collaborating with local waste management companies to ensure proper disposal and recycling of waste materials Unilever Vietnam has implemented a zero-waste-to-landfill policy, ensuring that all factory waste is either recycled

or reused

 Water conservation: Installing water-saving technologies and practices in production processes, engaging in watershed protection and restoration projects to ensure sustainable water sources Companies in the textile industry, such as Vinatex, have adopted water recycling systems to reduce water usage and pollution

 Supporting education through scholarships and building schools: FPT Corporation supports numerous educational initiatives, including providing scholarships and upgrading school facilities in rural areas

 Providing healthcare services and medical supplies to rural areas: Hoan

My Medical Corporation conducts regular health outreach programs, offering free medical services to remote communities

 Community development: Investing in local infrastructure projects such

as roads, bridges, and community centers, supporting social enterprises that address local issues like poverty and unemployment Vingroup has funded numerous community projects, including building homes and providing financial support for low-income families

 Creating job opportunities in local communities: Companies KOTO (Know One, Teach One) provide training and employment opportunities

to at-risk youth, helping them build sustainable livelihoods

 Supporting local businesses: Sourcing materials and services from local suppliers to boost the local economy, providing microfinance and business development support to SMEs Many Vietnamese retail chains prioritize sourcing products from local farmers and artisans to support local economies

- Ethical Practices:

 Ensuring fair wages and safe working conditions Many large Vietnamese corporations, such as PetroVietnam, offer fair wages and extensive benefits to their employees, promoting a positive and supportive work environment

 Promoting gender equality and diversity in the workplace: Unilever Vietnam has implemented diversity and inclusion programs to ensure that their workforce is representative and inclusive

 Maintaining transparency and accountability in business operations Vinamilk publishes annual sustainability reports that provide a detailed account of their CSR activities, achievements, and future plans

2 Discuss and make clear about this challenge

CSR has become increasingly important for businesses in Vietnam, particularly large enterprises However, the effectiveness and practicality of these CSR activities are often questioned Some businesses truly bring value

to society, but many others use CSR as a mere image-building tool without achieving real community impact In detail:

Many businesses view CSR as a tool for enhancing their corporate image and public relations rather than as a genuine commitment to social responsibility This approach is often driven by competitive pressures and the desire to attract socially conscious consumers Businesses may prioritize high-visibility CSR projects, such as charity events or one-off donations, that garner media attention but lack depth and sustainability These efforts often do not address long-term community needs or produce measurable benefits

Many businesses lack the expertise or resources to develop and implement effective CSR strategies Without proper planning, CSR

initiatives can become fragmented and ineffective CSR activities are not often integrated into the overall business strategy, resulting in projects that

do not leverage the company’s strengths or address the most pressing needs

of the community

Small and medium-sized enterprises (SMEs) face financial and human resource limitations that hinder their ability to implement comprehensive and impactful CSR programs SMEs might resort to low-cost, low-impact activities that serve as token gestures rather than substantive contributions to social or environmental causes

Companies may not engage sufficiently with the communities they aim to help, leading to a mismatch between CSR activities and actual community needs Projects that do not involve stakeholder input can result

in initiatives that are irrelevant or less impactful, wasting resources and missing opportunities for meaningful engagement

3 Problem solving recommendations

3.1 Government actions

The first is establishing clear CSR standards at the industry and national level

There are some countries developing its own set of CSR standards like Japan by setting up a dedicated "CSR Division" under the Ministry of Economy, Trade and Industry (METI) to perform the function of state management of CSR The Vietnamese government can develop and enforce clear standards for CSR activities, needs to draw on international experience such as the OECD, the UN Global Compact (UNGC), ISO 26000, GRI4 Standards; taking into account domestic realities to come up with a set of CSR standards that are practical and applicable for enterprises

The second is providing incentives for genuine CSR

The government can research and issue appropriate financial support for businesses implementing technological innovations to produce environmentally friendly or non-polluting products This can be done through consumer subsidy programs, reducing import taxes on equipment, or other investment incentives Support can also be provided by introducing new projects and partners that align with the business’s mission and objectives, thereby promoting the widespread adoption of good CSR practices among enterprises

The third is facilitating public-private partnerships

Encouraging collaborations between businesses and government agencies can help align CSR efforts with national development goals and ensure that resources are used effectively Public-private partnerships can focus on areas such as education, healthcare, and infrastructure development, leveraging the strengths of both sectors

3.2 Community actions

The first is increasing stakeholder engagement (based on ISO 26000 Principle: Stakeholder identification and engagement)

Establishing community advisory boards or conducting regular consultations with local stakeholders can help businesses design CSR projects that address real needs A community advisory board can meet regularly to discuss community needs and provide feedback on proposed CSR initiatives It might work with a local manufacturing company to identify and prioritize projects such as building a school or improving local healthcare facilities Conducting regular consultations like organizing town hall meetings, focus groups, and surveys to gather input from community members about their needs and priorities It will use the feedback to guide businesses in developing CSR projects that address the most pressing issues

The second is promoting transparency and accountability (based on ISO 26000 Principle: Accountability and transparency)

Creating independent bodies or engage third-party auditors to monitor and evaluate the impact of CSR activities Developing clear metrics and indicators for assessing the social, environmental, and economic impacts of CSR projects Urging businesses to adopt transparent reporting practices, including the publication of detailed CSR reports, reports should include goals, activities, outcomes, and future plans, and be accessible to all stakeholders

The third is building collaborative partnerships (based on ISO 26000 Principle: Community involvement and development)

Facilitating partnerships between businesses and NGOs (non-governmental organizations) can enhance the effectiveness of CSR initiatives by combining resources and expertise Joining projects that pool resources and expertise to tackle complex challenges such as education, healthcare, and environmental sustainability Promoting the creation of initiatives that involve multiple stakeholders, including local communities, businesses, and non-profits

The forth is recognizing and rewarding genuine CSR effort (based on ISO 26000 Principle: Ethical behavior and community involvement and development)

Establishing awards or recognition programs for businesses that demonstrate a genuine commitment to impactful CSR efforts, developing criteria based on the effectiveness, sustainability, and community impact of CSR projects Using local media and social platforms to highlight successful CSR projects and their positive impacts on the community (share stories,