Một NGHIÊN CỨU NHẬN THỨC VÀ THỰC HIỆN TRONG CSR ty đa quốc gia HOẠT ĐỘNG TẠI VIỆT NAM

i A STUDY ON AWARENESS AND IMPLEMENTATION OF CSR IN A MULTINATIONAL COMPANIES OPERATING IN VIETNAM BY DINH THI HUYEN TRANG Graduation Project Submitted to the Department of Business Studies, HELP University College, in Partial Fulfillment of the Requirements for the Degree of Bachelor of Business (Accounting) Hons ii April 2011 Declaration of Originality and Word Count DECLARATION I declare that this graduation project is based on my original work except for quotations and citation which have been duly acknowledged. I also declare that it has not been previously or concurrently submitted for any other courses/degrees at HELP University College or other institutions. Word Count: 16,970 words. DINH THI HUYEN TRANG Date 28/03/2011 iii Acknowledgements As a student, our main responsibility is to absorb and learn as much as we can from the assistance, support and encouragement of many people such as our mentors and teachers around us. They help us to learn, to apply our knowledge and to grow. In addition, this project would not have been made without them. I want to thank to thank all the people who have guided me in the right direction and kept me motivated during the time of completing the dissertation.  First, I would like to express my deep gratitude to my supervisor, Dr Le Van Lien from International School at Vietnam National University, Hanoi who guide me in my choice of assignment. His guidance throughout and inspiration for me to create new ideas has helped me to learn and grow personally.  I also would like to express my thank to Ms. Sumathi and Ms. Shenba at Help University College, who initiated the project and give so much instruction and support. iv Abstract A STUDY ON AWARENESS AND IMPLEMENTATION OF CSR IN A MULTINATIONAL COMPANY OPERATING IN VIETNAM BY DINH THI HUYEN TRANG April 2011 Supervisor: Dr. Le Van Lien As we know that CSR (Corporate Social Responsibility) is no longer a familiar term for the developing countries in the world. CSR has had a long history and developed more and more all over the world. Nowadays, many business entities want to implement CSR in their business operation. Although CSR has became a new trend in the world but it is a new term with Vietnamese and many business entities. The knowledge of CRS in Vietnam is limited because there are not many researchers on the CSR field. Many recent years, taking part in many organizations and political economy in the world WTO, ASEAN has attracted many investors and business organizations to operate in Vietnam that CSR is familiar with them. Their awareness can be consider is full but some multinational companies operating in Vietnam took advantages of unknown of Vietnamese to not implement CSR such as polluting environment. The economy is so open that there are many critical case and scandals concerning about CSR such as case of Vedan Company, Thanh Cong Company, Sabeco Song Lam Company and Tung Khuang Company. It can be consider as the result of the economic boom. This means that CSR has become a hot title for the researchers to conduct the survey about CSR. v The objective of the research is to access the understanding the completed concept of corporate social responsibilities and other relevant components under this area. Besides, the objective understands awareness and implementation, CSR reporting of CSR in a multinational company operating in Vietnam by asking respondents' understanding and opinion. From conducting the research, it is able to show the understanding and awareness about CSR concept of multinational companies operating in Vietnam is unlimited but their implementation is limited. These multinational companies have to find hard to use CSR as a tool to value firm, implement CSR in Vietnam as much as they can, and especially have to follow Vietnam regulation and law to protect the environment and community to be better. vi TABLE OF CONTENT Declaration of Originality and Word Count ii Acknowledgements iii Abstract iv TABLE OF CONTENT vi List of Figures and Tables x List of Abbreviations xi CHAPTER I: INTRODUCTION 1 1.1 CSR in the world 2 1.2 CSR in Vietnam 3 1.2.1 Government actions 3 1.2.2 CSR practices and challenges 4 1.3 CSR in multinational companies operating in Vietnam 4 1.4 Reasons for further investigation 5 1.5 Problem statement 5 1.6 Objectives and Sphere of research 7 1.6.1 Objectives of research 7 1.6.2 Sphere of research 7 1.7 Research Methods 8 1.8 Structure of research 8 CHAPTER II: LITERATURE REVIEW 9 2.1 CSR definition 10 2.2 Research related concepts 10 vii 2.2.1 CSR and Business ethics 10 2.2.2 CSR and Socially responsible investing 11 2.2.3 CSR and Sustainability investing 11 2.2.4 CSR reporting 12 2.3 Researches and Studies 12 2.3.1 Carroll's 1979-1991 conceptualization 13 2.3.2 Wood 1991 conceptualization 16 2.4 Hypothesis 18 2.4.1 Management's attitude toward CSR 18 2.4.2 Consumers' attitude toward CSR 19 2.4.2 Workers' attitude to CSR 19 CHAPTER III: RESEARCH METHODOLOGY 22 3.1 Research objectives 23 3.2 Research methodology 23 3.3 Data source 23 3.3.1 Primary data 23 3.3.2 Secondary data 24 3.4 Research method 24 3.5 Research tool 25 3.5.1 Questionnaire 25 3.5.2. Annual report 25 3.6 Data collection 26 3.7 Sampling 26 viii 3.7.1 Sample population 26 3.7.2 Sample frame 26 3.7.3 Sample size 27 3.7.4 Sample techniques 27 3.8 Limitations 27 CHAPTER IV: FINDING AND ANALYSIS 29 4.1 Responds summary 30 4.2 Management 31 4.2.1 Finding from questionnaire survey and interview 31 4.2.1.1 Management's attitude toward CSR 31 4.2.1.2 Implementation of CSR 34 4.2.2 Actual disclosure by Dutch Lady 40 4.2.3 Overall evaluation of management's responses 41 4.3 Consumers 41 4.3.1 Finding from questionnaire survey 41 4.3.1.1 Consumers' attitude toward CSR 41 4.3.1.2 Consumers' stated support for social responsible businesses 44 4.3.2 Overall evaluation of consumer's responses 47 4.4 Employees 50 4.4.1 Finding from questionnaire survey 50 4.4.1.1 Employees' attitude toward CSR 50 4.4.1.2 Employees' stated support for social responsible businesses 52 4.4.2 Overall evaluation of employees' responses 54 ix 4.5 Discussion 55 CHAPTER V: CONCLUSION AND RECOMMENDATION 58 5.1 Conclusion 59 5.2 Recommendation 61 5.3 Limitation of study 62 5. 4 Suggestion for the future research 62 REFERENCES 64 APPENDICES 72 Appendix A: Questionnaire sample 72 x List of Figures and Tables Figure 2.3a: A hierarchy of CSR (adapted from Carroll, 1991) 15 Figure 2.3b: The Wood's CPS Model (adapted from Wood, 1991) 17 Table 1: The important factors for employees (Ewin.com survey)………………….21 Table 2: Respondents 30 Table 3: Consumer category 31 Table 4: Employee of category 31 Table 5: Distribution responses of management's attitude toward CSR……………32 Figure 4.2: Distribution of response of management's attitude toward of CSR 34 Table 6: Question 1 - Result and analysis consumer's attitude toward CSR 42 Table 7: Question 2 - Result and analysis consumer's attitude toward CSR 42 Table 8: Question 3 - Result and analysis consumer's attitude toward CSR 43 Table 9: Question 4 - Result and analysis consumer's attitude toward CSR 44 Table 10: Question 5 - Result consumers' stated support for social responsibility 45 Table 11: Question 6 - Result consumers' stated support for social responsibility 45 Table 12: Question 7 - Result consumers' stated support for social responsibility 46 Table 13: Question 8 - Result consumers' stated support for social responsibility 46 Figure 4.3a: Distribution of response of consumers' attitude toward of CSR 48 Figure 4.3b: Distribution of response of consumers' stated support for social responsibility 48 Table 14: Distribution of responses from employees' survey………………… … 50 Figure 4.4: Distribution of response from employees survey 52 [...]... INTRODUCTION 1.1 CSR in the world 1.2 CSR in Vietnam 1.2.1 Government actions 1.2.2 CSR practices and challenges 1.3 CSR in multinational companies operating in Vietnam 1.4 Problem statement 1.5 Objectives and Sphere of Research 1.5.1 Objectives of research 1.5.2 Sphere of research 1.6 Research Methods 1.7 Structure of Research 1 1. 1CSR in the world Corporate Social Responsibility (CSR) is longer a... society Everyday, there are many activities related to CSR Enterprises use CSR as a tool to develop their reputation in the global market Investors use CSR as a main factor to consider in the decision of enterprises to invest responsibility Customers and entire society consider CSR as an important factor to determine the cost, quality and progress of an enterprise Because of the important of CSR, many... lot of money for CSR to become a perfect business model, responsible for society, and to have beliefs of community Implementing CSR includes having quality assurance of staffs' living standard, protecting environment, making useful products for customers and environment, raising fund for charity and donation for society and community In making useful products for customers and community, there are many... does not require companies operating in Vietnam formally issue CSR reporting Thus, all multinational companies operating in Vietnam have to follow the law and regulations in Vietnam 1.2.2 CSR practices and challenges With acknowledging the important of CSR from many successful corporations in the world, which implement CSR, almost multinational operating in Vietnam also knows the way to go It is easy to... is that Vietnamese's knowledge about CSR is limited so that these multinational companies did not implement CSR 1.3 CSR in multinational companies operating in Vietnam With the growing of Vietnam economy, it has attracted many multinational companies to operate in Vietnam such as Dutch Lady, Honda, Vedan Although they are multinational companies but their adoption and implementation of CSR have not... consumer and society has suffered So multinational companies operating in Vietnam businesses should adopt CSR After applying CSR, some businesses have established environments more stable and higher labor productivity Moreover, they received many supports from consumers and society in the common interests that bring businesses to the community 1.4 Reasons for further investigation Vietnam is among the... 2.1 Definition of CSR 2.2 Research’s related concepts 2.2.1 CSR and Business Ethics 2.2.2 CSR and socially responsible investing 2.2.3 CSR and Sustainability investing 2.2.4 CSR reporting 2.3 Researches and Studies 2.3.1 Carroll is 1979-1991 conceptualizations 2.3.2 Wood 1991 conceptualization 2.4 Hypothesis 2.4.1 Management's attitude toward CSR 2.4.2 Consumer's attitude toward CSR information and... community persons ( Schultz et al, 2005) Nowadays, CSR becomes a familiar concept with society so CSR reporting is a model, which is used widely all over the world CSR reporting has become important because it help the companies to communicate with society, consumers, workers, investors The CSR reporting will show the companies develop sustainably and protect environment or not From the information in CSR. .. trend However, CSR is still a relative new concept The awareness and implementation about CSR is limited According to Nguyen Hong Ha, deputy director of the Chamber of Commerce and Industry of Vietnam (VCCI) in Ho Chi Minh City CSR must be placed on the business strategies of each business It was, is and will be an essential part to the success of the enterprise" 1.2.1 Government actions Vietnam is a potential... employees, customers, society and the nature environment if they fully understand CSR 2.2 Research related concepts 2.2.1 CSR and Business ethics It can deny that CSR represents a new perspective on traditional notions of morality in the business world Benjamin W Heineman, a senior vice president for law and public affairs at General Electric Co., describes three elements of CSR: “1 Strong, sustained 10 economic . I: INTRODUCTION 1.1 CSR in the world 1.2 CSR in Vietnam 1.2.1 Government actions 1.2.2 CSR practices and challenges 1.3 CSR in multinational companies operating in Vietnam 1.4 Problem statement. REVIEW 9 2.1 CSR definition 10 2.2 Research related concepts 10 vii 2.2.1 CSR and Business ethics 10 2.2.2 CSR and Socially responsible investing 11 2.2.3 CSR and Sustainability investing. society consider CSR as an important factor to determine the cost, quality and progress of an enterprise. Because of the important of CSR, many corporations can pay a lot of money for CSR to