Economic Sector

Last updated: Monday, January 21, 2019


Promoting Social Responsibility in Electronics Businesses

Posted: Monday, February 05, 2018

Today, the number of electronics businesses in Vietnam has increased significantly, and the level of competition has also increased. Implementing social responsibility in labour becomes ever more necessary to enhance added value and deepen participation in global supply chains.

CSR: Many benefits for businesses
Corporate Social Responsibility (CSR) means that in addition to the individual development benefits of each enterprise in accordance with applicable law, it must be linked to the common development interests of the social community.

The main content of CSR is specified by the following four tasks: Responsibility for the market and consumers; responsibility to protect the environment; responsibility for labourers; joint responsibility with the community.

According to economists, businesses in general and enterprises in the electronics sector in particular gain many benefits from social responsibility. First, CSR will protect the brand from being criticised by society; enhance the prestige of the product in a sustainable way; expand market and create price advantage; participate in corporate development investment programmes for social responsibility.

Second, taking social responsibility will help electronics businesses maintain or sign economic contracts with partners and investors; have additional conditions to expand production scale, modernise technology, increase productivity and product quality; increase employment, reduce employee turnover; increase the prestige of the society so that enterprises can compete and operate more easily.

Third, taking social responsibility will help enterprises have more material conditions to improve workers' lives. In particular, it will help them increase income, improve quality of life and health for workers and their families; support workers to better implement labour laws and expand their ability to provide social and health insurance.

According to the representative of the Vietnam Electronic Industries Association, in his speech at the ceremony of setting up the Social Responsibility Alliance in Vietnam's electronics industry, "Social responsibility in labour in the electronic industry will not only create the momentum for Vietnam's electronics industry to increase competitive advantage in the market, but also give Vietnamese workers more employment opportunities, and improve working conditions and their benefits.”

The good practice is that companies that do well in CSR will not lose, but often have significant benefits, including reduced costs, increased sales, increased brand value, reduced staff turnover, increased productivity and increased access to new markets. The growth circle is formed for these businesses.

Which solution for business?
In fact, corporate social responsibility is being viewed as one of the top business strategies of the business rather than the rules or required charity. This is the voluntary, self-consciousness action of enterprises in production and business to benefit their businesses, for the society, but must ensure the sustainable development for economic and social purposes and environmental protection.

However, reality shows that facing the threshold of comprehensive integration, taking CSR commitments seems to have not been promoted properly. This is worrisome. This is reflected in business fraud, financial reports, unsafe labour, poor quality of production and trading, deliberately polluting the environment. To promote the implementation of CSR in general and enterprises in the electronics industry in particular is a process that changes from perception to corporate action.

According to economists, it is important first to change the perception of CSR implementation, especially for the senior management team in the enterprise. The implementation of social responsibility is not simply a matter of business ethics or philanthropic activities in a traditional way; it is not an activity that requires businesses to spend money without economic benefits, whereas social responsibility will help businesses gain more competitive advantage in the market.

In addition, businesses need long-term strategies in developing and implementing social responsibility standards. Implementing CSR in the full and authentic sense is not a simple matter and lies in the immediate viability of most Vietnamese electronics businesses, due to the limitations of perception and resource elements, including high financial, technical and human resources.

Therefore, businesses need to develop an appropriate road map for step by step implementing CSR not only in line with common standards, but also with relevant stakeholders. The positive contribution to the development of Vietnam’s economy is in the process of deepening and broadening integration into the regional and global economy.

Thu Ha

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