Corporate Social Responsibility Promoted for Footwear Makers

The Vietnam Leather and Footwear Association (LEFASO) co-operated with the Centre for Development and Integration (CDI) and Action Aid Organisation to launch a prize programme for ‘Good implementation of corporate social responsibility (CSR) of footwear makers’ on October 5. This is the first official prize in Vietnam launched to honour enterprises, which have produced a high quality performance of their CSR by harmonising the interest of enterprises and that of society, the implementation of regulations by the Labour Code and the requirements of partners, the interest between employees and employers, and between economic and environmental interests. The programme is expected to become an annual activity, serving as a premise for nominating outstanding enterprises to the Asian CSR prize via the Asian Forum on CSR (AFCSR).

 

Bui Xuan Khu, deputy minister of industry, said that footwear was an industry of great export potential, attracting a large number of workers, estimated at around one million. At present, international customers require producers to ensure favourable conditions for their workers, meet hygiene and safety standards, and care for social issues apart from supplying cheap, high quality products. To increase the competitiveness of Vietnamese footwear in the international market, local enterprises have to meet these requirements by implementing CSR in their own enterprises. This is to promote their export and international integration.

The CSR prize programme consists of a Special Prize, worth US$1,500, entitled ‘Comprehensive Social Responsibility; second US$700 worth prize ‘Towards a healthy working environment’. This prize will be awarded to enterprises which have a good environment, hygiene and labour safety implementation, and labour relationship; and other US$500 worth prizes for enterprises with initiatives on ‘Improving education and knowledge of labourers,’ ‘Community development’ and ‘Environmental protection.’

The organisers said they expected that around 50 enterprises would join the programme and 15 of them would be selected for examination and evaluation for prizes. The deadline for registration to the programme is October 31. The qualifying round will take place in November. The prize presentation ceremony will be organised in January 2006.

 

On this occasion, a CSR website was launched at www.vietnamforumcsr.net to help enterprises to exchange ideas and experiences about CSR. The website will provide updated information about CSR activities in Vietnam and foreign countries, especially research reports and the experience of CSR implementation in Vietnam.

The target of the 2005 CSR prize programme is to create a forum and promote CSR implementation among Vietnamese enterprises. This is also to share the experience of labour management and working environment improvement. The programme helps Vietnamese enterprises connect to a regional forum on CSR implementation for a sustainable international integration. Participating in the programme, enterprises will enjoy many benefits such as increased reputation, trademark value, commitments of labourers with enterprises, financial capability with a reduction of operational costs and an increase in share value. Their sustainable development is ensured with managed risks and increased productivity.

 

During our business and production activities, we focus not only on profits, but also on our responsibility towards our labourers and the community in which we operate. Apart from developing production and generating jobs for workers, enterprises, especially enterprises in the footwear industry should meet requirements on working conditions and environmental hygiene, thus meeting requirements on quality of products and reasonable use of labour. The 2005 CSR prize programme is a good opportunity for enterprises in the footwear industry to perform their CSR and gain experience from outstanding enterprises.

 

In 2004, the total export turnover of Vietnamese footwear reached US$2.64 billion, up by around 15 per cent against 2003. This year’s total export value is estimated at US$3 billion. At present, foreign customers require producers to ensure favourable conditions for their workers, meet hygiene and safety standards, and care for social issues apart from supplying cheap, high quality products. To increase the competitiveness of Vietnamese footwear in the international market, local enterprises have to meet these requirements by implementing CSR in their own enterprises. This is to promote their export and international integration. CSR is expressed via the SA 8000 standard, consisting of regulations on child labour, working time and discrimination.