Starting in 2005, the Corporate Social Responsibility Award (CSR Award) has honoured, polished the image of, and contributed to the sustainable development of each enterprise to which it was granted. Besides, CSR Award also helps raise awareness of the role and benefits of CSR for sustainable development and promote enterprises that seriously engage and respect stakeholders’ interest.
CSR Award 2012 takes place when businesses are facing numerous difficulties but this will not affect the success of this year's award. The award is jointly launched by the Office for Business Sustainable Development (SD4B) under VCCI, the Vietnam Business Council for Sustainable Development (VBCSD), and the UNIDO-VCCI CSR Project (the project helping Vietnamese small and medium-sized enterprises improve awareness and implementation of CSR to strengthen links with the global supply chain for sustainable production). The Vietnam Business Forum interviewed Mr Oliver Edolsa, CR Director of Chang Shin Vietnam, which received the CSR award in 2009, about CSR’s contribution to the success of a company. Thu Ha reports.Mr Oliver Edolsa, CR Director of Chang Shin Vietnam, which received the CSR award in 2009, about CSR’s contribution to the success of a company. Thu Ha reports.
What do you think about CSR practice in Vietnamese companies, and what is the significance of CSR Award to companies?
I think that the implementation of CSR in Vietnam is still in its early development stage for many companies, and a lot of effort is still needed from concerned stakeholders to educate or encourage businesses (most especially SMEs) to implement or engage in CSR.
The Vietnam CSR Award is a very prestigious national recognition of companies who have consistently implemented effective CSR programmes in Vietnam, so this is certainly one way by which the government can encourage businesses to implement or engage in CSR.
In your opinion, what are the difficulties when companies make self-assessment for CSR Award?
A self-assessment by a company is of course very subjective, as it mainly depends on how the assessor understands the criteria described. Hence, there is a need for a thorough review and verification by the Awards Committee in order to ensure more accurate and realistic evaluation and rating.
How does the CSR Award contribute to the success of your company?
Since this is a national-level award, it carries with it much prestige, and definitely helped raise the reputation and standing of our company in the eyes of our customers, the government, the community, our suppliers and our own employees.
A good reputation certainly helped our company recruit and retain good employees, and generated no small amount of pride and positive feelings among the members of our organization, and that contributed to better industrial relations and higher productivity.
As a company which received the award in 2009, what do you advise and share with other companies this year?
The implementation of corporate social responsibility (or "corporate sustainability and responsibility") brings a lot of benefits not only to society and the environment, but also to the business itself. For companies which have not yet implemented CSR, it's time to realize that the world of business is changing fast, and customers or consumers have become more selective and generally lean in favour of responsible companies. For businesses who are already implementing CSR, it could be time to consider transitioning towards a more advanced stage where corporate sustainability and responsibility is actually made part of the core business strategy. And, if in the course of doing so you are recognized by winning the prestigious CSR Award, then that would be a great bonus!
Launching and implementing CSR Award is very important
Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI)
We are requiring business restructuring and one of the most important restructuring requirements is to implementing social responsibility towards sustainable development. To disseminate information and orientate CSR implementation for enterprises, the organisation of CSR Award is of important significance. In the past years, VCCI has collaborated quite closely with other ministries and agencies to launch this award. This honour can encourage businesses to implement and disseminate their experiences to the whole community. If all Vietnamese enterprises exercise social responsibility, the Vietnamese economy will ensure sustainable development.
However, the quality of this award will be necessarily improved in the future. It must approach common international practices on the one hand and put under the context of Vietnam on the other hand. In addition to quality improvement, information about the award and CSR implementation must be spread out to form a business trend. Exemplary models will be spread out onto the entire business community of Vietnam as well as the economy of Vietnam, aiming to create a highly responsible community and economy.
Businesses must build sustainable development strategies from the start
Prof, Dr Nguyen Huu Ninh, sustainable development expert
Investment for sustainable development will bring in great effectiveness for every enterprise. An enterprise that wants sustainable development must know to balance and harmonise economic, social and environmental factors in its business activities. Therefore, right from the start, every business must build specifically stepped strategy to shape both short and long term visions. This is like building a house which we must start from the foundation. The original vision sets out the construction of corporate social responsibility - the very basic foundation of the house and the stronger the foundation is, the higher the building is.
When the enterprise has a position and its reputation is enhanced, it will have loyal customers. Thus, implementing CSR will have a two-way effect: The business contributes to society and the society in turn supports the business to develop. In addition, when the business implements social responsibility and solve environmental problems, it will settle other problems like technology, finance, labour and brand. Exercising CSR from the outset is the fastest path for the enterprise to reach sustainable development.
Investment for exercising CSR is a wise choice
Ms Vu Thi Thuan, Chairwoman of Traphaco
Labour and environment aspects decide the existence of a company. With no regard to these aspects in corporate social responsibility, the company will not be able to have new effective technologies, to use capital effectively, and to create new products to boost revenue growth, enhance competitiveness and protect the brand name. However, many companies currently lack care of workers, frequently meet with workplace accidents, accept substandard working environment, discharge polluting emissions into the surroundings. Many enterprises, especially SMEs, do not regard CSR as their duty and joie de vivre.
Businesses will not spend a handsome sum of money on insurance if they do not see imminent benefits. But with a farther perspective, in case of incidents, that will be a wise investment because it helps them avoid disorder, continue production, ensure employment for workers, and maintain the market. Especially in the current context of difficulties, keeping the market is very important. If the supply is interrupted, competitors will grasp the opportunity to bite into the market share. For that reason, every business should weigh up short-term and long-term benefits to sustain development.
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