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 ASSIGNMENTCORPORATE SOCIAL RESPONSIBILITY

Course code: BSA 3040-E*Lecture:

Student:Student code:Class:

Ph.D Tran Thi HienPh.D Vu Thi Van AnhMai Phuc Thao21050325

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 whatspecific 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 theimportance of CSR However, one of the issues raised is the effectivenessand 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 thedesired effects, even just considering CSR as a tool to build their imagewithout paying attention to the real impact of CSR on the community.This has consequences, adversely affecting businesses implementing trueCSR 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 takingadvantage of CSR for personal purposes, not towards the community?2 Promote CSR to spread strongly to the business community, not onlylarge enterprises?

1 Introduction

1.1.The current situation of CSR in Vietnam

As the country continues to grow economically, Vietnamesebusinesses are increasingly recognizing the importance of integrating CSRinto their core strategies In detail:

Firstly, there is a growing awareness among Vietnamese businessesabout the importance of CSR This is driven by a combination of marketpressures, regulatory requirements, and the influence of internationalbusiness standards More companies are adopting CSR policies andpublishing annual sustainability reports to highlight their CSR efforts andimpact.

Secondly, CSR practices vary widely among different sectors andtypes of businesses Larger corporations and multinational companies tendto have more structured and comprehensive CSR programs compared tosmall and medium-sized enterprises (SMEs) Due to limited financial,technical, and human resources to build and implement CSR programs, theseSMEs focused more on making profits than fulfilling social responsibility.For example, Vinamilk and Unilever Vietnam have well-established CSRstrategies, while many SMEs are still in the early stages of integrating CSRinto their business models.

Thirdly, the Vietnamese government has been promoting CSRthrough various policies and strategies aimed at encouraging businesses tointegrate social and environmental concerns into their operations, includingenvironmental protection laws, labor regulations, and incentives forbusinesses engaging in CSR These efforts are part of Vietnam's broadersustainable development goals Vietnamese companies increasingly aligntheir CSR practices with international standards such as ISO 26000, whichhelps improve credibility and competitiveness in global markets.

The future of CSR in Vietnam is likely to see continued growth asbusinesses recognize the importance of sustainability in long-termprofitability and societal impact However, ongoing efforts are needed toaddress challenges and ensure that CSR initiatives contribute effectively tocommunity.

1.2 The types of reasons that make businesses usually do CSR andwhat 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 themarket to attract consumers who prioritize ethical consumption, businesseswill implement environmentally friendly production processes, developsustainable products For example, Vinamilk commits to reducing its carbonfootprint and producing organic dairy products.

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

The third is improving community relations By contributing to socialcauses, they build goodwill and enhance their public image, such assupporting local education initiatives and providing healthcare services tounderprivileged communities FPT Corporation regularly participates ineducational and social welfare projects.

The forth is regulatory influence Compliance with Vietnamesegovernment 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 CSRactivities, like businesses involved in renewable energy projects will receivefinancial support.

The fifth is global market standards For Vietnamese businesseslooking to expand internationally, aligning with global CSR standards (ISO26000) helps in meeting the requirements of international partners and

accessing new markets For example, as a member of Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam hasagreed to encourage corporate operating within its territory to voluntarilyincorporate CSR into their policies and to actively fill legislation gaps incompliance with international standards on issues associated with laborrights and environmental deterioration.

The sixth is for meeting consumer pressure Modern consumers aremore informed and concerned about the ethical practices of the companiesthey support Businesses engage in CSR to meet these evolving consumerexpectations and maintain customer loyalty.

Finally, engaging in CSR can boost employee morale, leading tohigher job satisfaction and retention rates Businesses that involveemployees in volunteer programs often see improved workplace morale andteam cohesion Moreover, do CSR help businesses build a positive corporateculture centered on sustainability and responsibility.

1.2.2 Some specific actions Vietnamese businesses focus on- For environmental sustainability:

 Reducing carbon footprint: Implementing energy-efficient technologiesand practices to reduce greenhouse gas emissions, transitioning torenewable energy sources such as solar or wind power Vinamilk hasinvested in solar energy systems to power its production facilities,significantly reducing its carbon footprint.

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

 Water conservation: Installing water-saving technologies and practices inproduction processes, engaging in watershed protection and restorationprojects to ensure sustainable water sources Companies in the textileindustry, such as Vinatex, have adopted water recycling systems toreduce water usage and pollution.

 Supporting education through scholarships and building schools: FPTCorporation supports numerous educational initiatives, includingproviding 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 suchas roads, bridges, and community centers, supporting social enterprisesthat address local issues like poverty and unemployment Vingroup hasfunded numerous community projects, including building homes andproviding financial support for low-income families.

 Creating job opportunities in local communities: Companies KOTO(Know One, Teach One) provide training and employment opportunitiesto at-risk youth, helping them build sustainable livelihoods.

 Supporting local businesses: Sourcing materials and services from localsuppliers to boost the local economy, providing microfinance andbusiness development support to SMEs Many Vietnamese retail chainsprioritize sourcing products from local farmers and artisans to supportlocal economies.

- Ethical Practices:

 Ensuring fair wages and safe working conditions Many largeVietnamese corporations, such as PetroVietnam, offer fair wages andextensive benefits to their employees, promoting a positive andsupportive work environment.

 Promoting gender equality and diversity in the workplace: UnileverVietnam has implemented diversity and inclusion programs to ensurethat their workforce is representative and inclusive.

 Maintaining transparency and accountability in business operations.Vinamilk publishes annual sustainability reports that provide adetailed account of their CSR activities, achievements, and futureplans.

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 ofthese CSR activities are often questioned Some businesses truly bring valueto society, but many others use CSR as a mere image-building tool withoutachieving real community impact In detail:

Many businesses view CSR as a tool for enhancing their corporateimage and public relations rather than as a genuine commitment to socialresponsibility This approach is often driven by competitive pressures andthe desire to attract socially conscious consumers Businesses may prioritizehigh-visibility CSR projects, such as charity events or one-off donations,that garner media attention but lack depth and sustainability These effortsoften do not address long-term community needs or produce measurablebenefits.

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

initiatives can become fragmented and ineffective CSR activities are notoften integrated into the overall business strategy, resulting in projects thatdo not leverage the company’s strengths or address the most pressing needsof the community.

Small and medium-sized enterprises (SMEs) face financial and humanresource limitations that hinder their ability to implement comprehensiveand impactful CSR programs SMEs might resort to low-cost, low-impactactivities that serve as token gestures rather than substantive contributions tosocial or environmental causes.

Companies may not engage sufficiently with the communities theyaim to help, leading to a mismatch between CSR activities and actualcommunity needs Projects that do not involve stakeholder input can resultin initiatives that are irrelevant or less impactful, wasting resources andmissing opportunities for meaningful engagement.

3 Problem solving recommendations

The second is providing incentives for genuine CSR

The government can research and issue appropriate financial supportfor businesses implementing technological innovations to produceenvironmentally friendly or non-polluting products This can be donethrough consumer subsidy programs, reducing import taxes on equipment, orother investment incentives Support can also be provided by introducingnew projects and partners that align with the business’s mission andobjectives, thereby promoting the widespread adoption of good CSRpractices among enterprises.

The third is facilitating public-private partnerships

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

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

Creating independent bodies or engage third-party auditors to monitorand evaluate the impact of CSR activities Developing clear metrics andindicators for assessing the social, environmental, and economic impacts ofCSR projects Urging businesses to adopt transparent reporting practices,including the publication of detailed CSR reports, reports should includegoals, activities, outcomes, and future plans, and be accessible to allstakeholders.

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

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

(non-The forth is recognizing and rewarding genuine CSR effort (based onISO 26000 Principle: Ethical behavior and community involvement anddevelopment)

Establishing awards or recognition programs for businesses thatdemonstrate a genuine commitment to impactful CSR efforts, developingcriteria based on the effectiveness, sustainability, and community impact ofCSR projects Using local media and social platforms to highlight successfulCSR projects and their positive impacts on the community (share stories,

testimonials, and case studies) to raise awareness and encourage otherbusinesses to adopt similar practices.

4 Concluding remarks

To improve the real effectiveness of CSR and ensure it serves thecommunity rather than personal or corporate image-building purposes,Vietnamese businesses need to adopt several strategies Firstly, developing astrategic approach to CSR is crucial This involves aligning CSR activitieswith the core values and business objectives, ensuring that initiatives arewell-planned, sustainable, and address the genuine needs of the community.Stakeholder engagement is vital in this process, allowing businesses tounderstand and prioritize community needs effectively.

Moreover, transparency and accountability are essential in enhancingthe credibility of CSR efforts Businesses should commit to regular, detailedreporting on their CSR activities, outcomes, and future plans, verified bythird-party auditors to ensure integrity This openness not only builds trustbut also allows for constructive feedback and continuous improvement ofCSR strategies.

Promoting CSR across the broader business community, includingSMEs, requires concerted efforts from both the government and largerenterprises The government can play a pivotal role by establishing clearguidelines, providing incentives, and facilitating public-private partnershipsto encourage genuine CSR initiatives Large enterprises, on the other hand,can support SMEs by sharing best practices, providing mentorship, andfostering collaborative projects that amplify the impact of CSR efforts.

Ultimately, the collective effort of businesses, the government, andthe community is essential to fostering a culture of genuine CSR thatbenefits society as a whole By focusing on real, impactful CSR practices