Le Thi Quynh Anh A STUDY ON CORPORATE SOCIAL RESPOSIBILITY OF VIETNAMESE CORPORATIONS 2008 Le Thi Quynh Anh * Master of business administration thesis * VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Master of business administration thesis Hanoi - 2008 VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS LE THI QUYNH ANH A STUDY ON CORPORATE SOCIAL RESPOSIBILITY OF VIETNAMESE CORPORATIONS Major : Business Administration Code : 60 34 05 Master of business administration thesis Supervisor: Dr VU XUAN QUANG Hanoi – 2008 i TABLE OF CONTENT ACKNOWLEDGEMENT i ABSTRACT ii TÓM TẮT iv TABLE OF CONTENT vi LIST OF ABBREVIATIONS viii LIST OF TABLES ix LIST OF FIGURES AND GRAPHS x CHAPTER INTRODUCTION 1.1 Statement of the study .1 1.2 Objectives and Aims 1.3 Research questions 1.4 Scope of Work 1.5 Data Sources and Processing 1.6 Method 1.7 Significance and implications 1.8 Limitations 1.9 Expected Results .4 1.10 Disseminations 1.11 Follow-up 1.12 Short Introduction CHAPTER THEORETICAL FOUNDATION 2.1 The meaning of Corporate Social Responsibility .6 2.2 History of Corporate Social Responsibility 2.3 Fundamental Principles of Corporate Social Responsibility 10 2.4 The significance of Corporate Social Responsibility 12 2.5 Modern Forms of Corporate Social Responsibility 14 2.6 Benefits of CSR .17 2.7 Overview of Corporate Social Responsibility in the World 18 CHAPTER RESEARCH AND DISCUSSIONS 23 vi 3.1 Review of Corporate Social Responsibility studies 23 3.2 The Case study of FPT 27 3.2.1 The case of FPT 27 3.2.2 CSR in FPT 29 3.3 The case study of Vinamilk 34 3.3.1 The case of VNM 34 3.3.2 Social activities in VNM .37 3.4 The case study of Asia Commercial Bank (ACB) 40 3.4.1 The case of ACB 40 3.4.2 CSR in ACB 42 3.5 The case study of ITA Group 46 3.5.1 The case of ITA Group 46 3.5.2 CSR in ITA Group 49 3.6 Discussions 52 3.6.1 Overview of CSR implementation in Vietnamese Corporations 52 3.6.2 Comparisons among case studies 53 3.6.2.1 Similarities .54 3.6.2.2 Differences .57 CHAPTER CONCLUSIONS AND RECOMMENDATIONS 60 4.1 Conclusions .60 4.2 Recommendations 61 4.2.1 For the Studied Corporations 61 4.2.2 For the Vietnamese Government and Social –oriented organizations 62 APPENDIX .65 APPENDIX .66 READING REFERENCES 67 vii LIST OF ABBREVIATIONS ACB Asia Commercial Bank AFTA ASEAN Free Trade Area APEC Asia-Pacific Economic Cooperation CBT Computer-Based Training CEO Chief Executive Officer CoCs Code of Conducts CSR Corporate Social Responsibility EU European Union FDI Foreign Direct Investment FPT FPT Corporation IFC International Finance Corporation ITA Tan Tao Group MOLISA Ministry of Labor, Invalids and Social Affair SAP Social Action Program SMEs Small and Medium Enterprises VNM Vinamilk Corporation UNIDO United Nations Industrial Development Organization WTO World Trade Organization viii LIST OF TABLES Table 2.1 Foundation principles of CSR and their modern expressions 14 Table 3.1 Challenges at different levels to CSR application in Vietnam 24 Table 3.2 Highlight from social activities of FPT Corporation 32 Table 3.3 Comparisons among case studies 53 Table 3.4 Similarities and Differences 54 ix LIST OF FIGURES AND GRAPHS Figure 2.1 All about CSR 22 Figure 3.1 CSR tools and instruments in Vietnam 25 Figure 3.2 Organization chart of FPT 28 Figure 3.3 Corporate structure of Vinamilk 35 Figure 3.4 Revenue vs CSR cost of FPT 56 Figure 3.5 ACB’s Funds for social activities 58 x CHAPTER INTRODUCTION 1.1 Statement of the study Corporate Social Responsibility (CSR) has become an inescapable demand made by society for businesses all over the world Whether the business is large or small, makes goods or provides services, operates at home or abroad, always tries to be socially responsible Many companies have already done much to improve the social and environmental consequences of their activities and are being encouraged by the society, government and related organization to become more socially responsible As a result, these companies gain more and more benefits from CSR such as being more productivity, more loyalty of employees and fame without spending much money on advertising In Vietnam, CSR is still reported mostly being applied by textile and shoe production companies as a way to enter international market like USA or European Union These activities are supported with many training courses held by organizations like World Bank, UNIDO and Ministry of Labor and Social Welfare In fact, CSR has been applied more widely in business community under multiple kinds from sponsorship or philanthropy activities to environment protection or social works For a better knowledge, this study will look into the theory of CSR, compare it with undergoing CSR activities and then give a full picture of CSR application in Vietnam However, CSR is still a very new concept to many Vietnamese enterprises; a few large corporations have enough willingness and financial conditions to implement it As a result, four leading corporations representing for industries like Information Technology - FPT Corporation, Food and Beverage -Vinamilk, Banking - Asia Commercial Bank and Real estate - ITA Group will be taken as examples to identify how Vietnamese corporations have applied CSR along with their business and what benefits they have achieved through CSR 1.2 Objectives and Aims In order to get a full knowledge of CSR application in Vietnam, the study will aim to achieve the following objectives: Understanding the definition of CRS and its elements in term of theory Figuring out what modern activities related to CSR all over the world Analyzing CRS activities of certain Vietnamese corporations and their achievements Giving conclusions and recommendation for promoting CSR activities in Vietnamese business community 1.3 Research questions To fulfill the objectives of the study, the following research questions need to be answered: • What is CSR and what are its forms? • How does CSR develop and achieve all over the world and in Vietnam? • How have Vietnamese corporations applied CSR in their businesses? • What these corporations aware about CSR and what they gain from CSR implementation? 1.4 Scope of Work Four case studies will be taken in the research to describe and to discuss on CSR implementation in Vietnamese Corporations They include: • Information Technology – represented by FPT Corporation (FPT) • Food and Beverage – represented by Vinamilk (VNM) • Banking – represented by Asia Commercial Bank (ACB) • Real Estate – represented by Tan Tao Group (ITA Group) 1.5 Data Sources and Processing • Documents/Reports of UNDP/World Bank/ UNIDO on CSR from 2002 to 2008 • Reports of Vietnamese government on CSR in 2003, 2005 and 2007 • Documents of FPT, VNM, ACB and ITA Group from 2002 to 2005 1.6 Method This study is an empirical research which applied methods: • Review of related literature/documentation • Interviewing relevant person Review of Related Literature/Documentation: This will examine the multidisciplinary theories of and empirical studies on corporate social responsibility in the literature Beside, it will help to compare between theory and practical activities Interview: Questions will be developed and structured interviews are conducted 1.7 Significance and implications This study will contribute to the body of knowledge and understanding on CSR in Vietnam It will also help Vietnamese enterprises enrich their knowledge on CSR for better application in cooperation with business activities 1.8 Limitations While the study examines different industries, represented by leading corporations, there are limitations on data sources for analyzing and giving ... .6 2.2 History of Corporate Social Responsibility 2.3 Fundamental Principles of Corporate Social Responsibility 10 2.4 The significance of Corporate Social Responsibility 12 2.5... NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS LE THI QUYNH ANH A STUDY ON CORPORATE SOCIAL RESPOSIBILITY OF VIETNAMESE CORPORATIONS Major : Business Administration Code : 60 34 05 Master of business... Modern Forms of Corporate Social Responsibility 14 2.6 Benefits of CSR .17 2.7 Overview of Corporate Social Responsibility in the World 18 CHAPTER RESEARCH AND DISCUSSIONS