Corporate social responsibility (CSR) is one of the de rigueur requirements of many importers imposing on its partners. A seminar on CSR has attracted the participation and attention of many domestic companies.
Although the importance in improving the living standards for labourers and bettering the environment for labourers is no longer new to Vietnamese enterprises, the concept of CSR is still quite strange to many. Many companies thought that social responsibility reassembles charity or humanitarian activity and the improvement in uplifting workers’ lives is provisional.
Besides, the realisation of the CSR still faces high hurdles when more than 90 per cent of Vietnamese companies are ranked small and medium sizes and have low profits. Hence, business owners lack finances to improve working conditions and environment and to make contributions to the society.
In reality, CSR should be understood that enterprises carry out provisions in the Labour Code and international conventions on labourers’ rights. CSR in Vietnam mainly relates to labour issues, working conditions, community support development and environment. To effectively implement the CSR, enterprises themselves should be placed in the central position, guaranteeing economic and social benefits of all related sides. In an enterprise, direct related sides are its labourers, the community, the Government and the importers.
Deputy Minister of Industry Bui Xuan Khu said: “We are carrying out international integration programmes; therefore, Vietnamese enterprises also must follow these requirements. In particular, the garment, textile and footwear industries are among the most labour intensive industries.”
The idea of corporate social responsibility came in Vietnam in 2002 with the survey in 24 footwear and garment-textile companies. Footwear and garment-textile industries play important roles in developing the Vietnamese economy. The most clear-cut evidence is that 345 footwear companies nationwide are employing 430,000 labourers. After the survey, the footwear industry encouraged its companies to apply CSR standards and in fact the companies themselves benefited from the application. Their revenues increased 25 per cent while the individual worker productivity also increased by VND34-36 million a year. The successful export reached 94-97 per cent.
Hence, the application of labour standards has brought in certain benefits while the working relationship is improved. Employees are working in a healthy labour environment. The number of workplace accidents and sick leaves has been reduced. These are synonymous with higher productivity.
The application of CSR is an indispensable trend and is essential for each Vietnamese enterprise during the process of international economic integration. The implementation of CSR needs careful consideration as a long-term investment for each enterprise.
Lan Anh
Vietnamese
