Corporate Social Responsibility: A Continuing Journey

According to Mr Nguyen Quang Vinh, Director of the Office for Business Sustainable Development (SD4B) under the Vietnam Chamber of Commerce and Industry (VCCI), confirmed that the Project although already completed, still maintains supporting activities for businesses. The project has gained many achievements that are highly appreciated by the Vietnamese business community. The project helps improve capacity and awareness of SMEs on fulfilling CSR. According to incomplete statistics, Vietnam SMEs make up 97 percent – 98 percent of total enterprises in Vietnam. The figure is very high, therefore it is very crucial to enhance their awareness of CSR. It is also considered a condition to integrate the Vietnam’s economy globally. Especially, with ISO 26000 application – quality standard for trade and business applied by many countries in the world, the project has contributed to enhancing connectivity with global supply chain in sustainable production.

 

Besides, the project also introduced a new business model, catching up with current conditions and considering changes in the future. It is the business model for the poor. That means production and trading activities are conducted to create stable jobs and incomes, at the same time ensure factors such as: environment, employment, fair business, consumer issues, management and human right, community participation with the motto “My enterprise – My responsibility – My chance and My success”.

 

Sharing about the project’s results, Mr Florian Beranek, Chief Technical Advisor to the Project said that, although the project had a considerable impact on the business community, it lasted only 3 years (from 2010 to 4/2013). However, the project managed to fulfill many tasks, for example it organised training classes to provide techniques of constructing and implementing CSR for enterprises in many fields like footwear, textiles, electronics…. Hundreds of enterprises are provided with knowledge about CSR through over 100 events including forums, seminars, training courses, consultative workshops. Another success of the project is organising 5 training and advisory classes for 150 members from 70 enterprises that are providers for prestigious brands in the world such as Nike, Puma, Adidas… Especially, the project trained on demand of enterprises like training members from a provider of Li&Fung Corporation. Remarkably, the project trained and granted certificates for 17 experts on CSR, including 10 people from Ho Chi Minh city and 7 people from Hanoi.

 

According to Mr Florian Beranek, despite certain achievements, in the context of current economic difficulties, many enterprises ignore or even do not fulfill CSR. Accordingly, activities such as cheating in business or financial reports, not ensuring working safety, producing and trading low quality goods, polluting environment still occur frequently.

 

Ms Dang Phuong Dung, Vice Chairwoman, General Secretary of the Vietnam Textile and Apparel Association (VITAS) said that the sector has a huge export market and its employees are mainly females, therefore conducting CSR is critical. In the export market, textile enterprises should conducting CSR by committing their products ensure resources and do not violate regulations on environment protection…Referring to employment, textile enterprises should make more commitments on caring for employees. However, in the current context, only large enterprises with high financial capacity can meet requirements. As for SMEs, committing CSR faces many obstacles.

 

Therefore, in the short term, CSR can be acknowledged by enterprises through training and education. Every enterprise, especially its owners, must understand CSR and CSR is not limited only in charity activities. The challenge is how to make CSR enterprises’ intern incentive, a moral activity. Legally, relevant authorities also have to enforce strong laws to make enterprises realise CSR completely and seriously. Besides, Vietnam is a developing country that needs foreign investment, and if it pays too much attention on environmental and social targets, it will be difficult to attract foreign investment. Therefore, it becomes more important to consider carefully two targets which are enhancing foreign investment attraction to boost economic development, or reducing the attraction to avoid long term socio- environmental consequences.