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A STUDY ON CORPORATING SOCIAL RESPONSIBILITY (CSR) IN A
MULTINATIONAL COMPANIES OPERATING IN VIETNAM
A CASE STUDY ON UNILEVER VIETNAM


previously or concurrently submitted for any other courses/degrees at HELP University
College or other institutions.
Word Count: 11,638 words. NGUYEN THI VAN TRANG
Date 17/10/2011

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Acknowledgements
Many people have helped me to finish this project. I wish to take this opportunity to
thank all the people who have helped, tough and guided me all the time.
 Firstly, I want to express my deep gratitude to my supervisor, Dr Le Van Lien from
International School at Vietnam National University, Hanoi. He helped me to gather
and analyze information, guide and correct me when I'm wrong. I can learn so much
from him such as his knowledge, inspiration and attitude of working.
 Secondly, I also would like to express my thanks to Ms. Sumathi, Help University
College, who initiated the project and give me so much instruction and support.
 Lastly, I want to thank to all managers and employees at Unilever Vietnam, who are
very friendly and cooperative.


from that can give conclusion and recommend some suggestions.

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TABLE CONTENTS
Page
Declaration of Originality and Word Count ii
Acknowledgement
Error! Bookmark not defined.
Abstract iv
Table of contents vi
List of Figures and Tables vii
List of Abbreviations viii

CHAPTER 1 : INTRODUCTION Error! Bookmark not defined.2
1.1 Research Background 13
1.1.1 CSR in the world 13
1.1.2 CSR in Vietnam 14
1.1.3 CSR in multination company in Vietnam 15
1.2 Problem Statement 16
1.3 Objectives and scope of the research 18
1.3.1 Objectives of the research 18
1.3.2 Scope of the research 19
1.4 Research Methods 19


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3.7.2 Sample frame 37
3.7.3 Sample size 37
3.8 Limitations 38
3.9 Hypothesis 38
3.9.1 Manager’s attitude toward CSR 38
3.9.2 Employee’s attitude toward CSR 39

CHAPTER 4 : ANALYSIS 40
4.1 Questionnaires collection and respond 41
4.2 Description of result 41
4.2.1 Age 42
4.2.2 Gender 42
4.3 Managers 43
4.3.1 Level of awareness 43
4.3.2 Implementation 46
4.4 Employees 53
4.4.1 Level of awareness 53
4.4.2 Implementation 56
4.5 Overall evaluation 59

CHAPTER 5: CONCLUSION AND RECOMMENDATION 61
5.1 Conclusion 62
5.2 Recommendation 63
5.3 Limitation of Sutdy 64

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5.4 Suggestion for Furture Research 64
REFERENCES ( Harvard referencing system) 65
APPENDICES 70


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LIST OF ABBREVIATIONS

CSR
Corporate Social Responsibility
VND
Viet Nam Dong
TBL
Triple Bottom Line
MNCs
Multinational Companies
NGOs
Non Government Organizations
WCED
World Commission and Environment and
Development
SRI
Socially Responsible Investment
UVF
Unilever Vietnam Foundation
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1.1 Research background
1.1.1 CSR in the world
Globalization and the rapid advancement of technology offer opportunities for economic
development and society. Simultaneously, it also brings serious challenges as the
financial crisis, insecurity, poverty, exclusion and status inequalities among societies.
That significant obstacle to the further integration and to participate fully in the global
economy still exists in some developed countries. If the benefits of economic
development, society can not be guaranteed, there still more and more countries and areas
are marginality from the global economy. CSR in many countries has grown to the
specific level of corporate responsibility in the code of conduct and internationally
quality standards. The provisions of this standard have been adopted as the required
conditions in business. CSR is the corporate commitment to business ethics and
contribute to sustainable economic development, enhance quality of life for employees
and their families, communities and the society in common (WBCSD). Social
responsibility of business (Corporate Social Responsibility – CSR) is no stranger to the
developed country. In the United States, there is “One Percent Club” where the members
committed to use at least 1% of their profits into social work. In France, a series of
cultural funds of enterprises such as RATP (subway company), France Télécom (France


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improve business communications has shown that, CSR is still new in Vietnam, but
particularly important for the sustainable development of Vietnamese enterprises. CSR
does not depend on the extent to which it is located but in the perception of each
business. However, there are some obstacles in the implementation of CSR in Vietnam
such as the concept of CSR is still new to a lot of business in the business community in
Vietnam, while the related parties do not have long-term plan and strategies to implement
CSR programs; management capacity and expertise in implementing CSR is limited…
To succeed in the application of CSR in Vietnam, business owners should implement
CSR for their labor first as the observance of laws and policies on wages, social insurance
and then building a relationship based on trust and sympathy between the employee and
enterprise. To promote the implementation of social responsibility of business, it is best
to have an association or organization to monitor and advise businesses. Besides, the
Government should create policies to support enterprises in implementing CSR.

1.1.3 CSR in multinational company in Vietnam
Vietnam is a developing country with strong growth in economy so Vietnam has been
attracting many companies to invest in Vietnam in which there are many famous
multinational companies (MNCs) in many different areas such as Samsung, Sony, Dutch
Lady, Unilever, and Toyota… Although CSR in Vietnam has not developed strongly as
in other countries but the government of Vietnam began to care about CSR and
encourages enterprises to do their social responsibility. CSR was launched in Vietnam
through a major multinational companies investing in Vietnam. These companies often
develop codes of conduct and business cultural norms which are universal to be applied

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in many different market areas. Therefore, the contents of CSR that multinational
companies applied in Vietnam are effective and efficient. Some typical examples are:
project “I love Vietnam” of Honda – Vietnam company, educational programs for

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/day.
Moreover, Vedan has sold the waste two time to Taiwan (through the ship) with the total
volume was 130,000 tons in the day 27/09 and 10/13/2008 (Vietnam Agriculture
newspaper). After being uncovered, consumers refused to buy all the products produced
by Vedan.
A recent hot issue that is paid special attention from public is that the instant noodles
contain trans-fat. Recently, the Service Center for analysis laboratory of the Department
of Science and Technology has found that many products instant noodles sold in the
market contain trans-fat up to 38%. Trans-fat is formed during food processing at high
temperature through oil hydrogenation methods – help products to be fresh, preserved
longer and more eye-catching. Therefore, it is also understandable when manufacturers
always prefer to use oils containing trans-fat in their products. This type of fat
metabolism can cause the coronary artery becomes blocked, causing angina, stroke.
(Phunuonline) In Vietnam, there is still no rule in managing products related to trans-fat,
but some instant noodle manufacturers pioneered the specified information that does not

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contain trans-fat on their packing products. This is seen as a step in the awareness of
businesses to protect consumer health.
Vietnam is integrating into the global economy; investors and foreign companies are
setting up operations or seek partners in Vietnam, so the problem of Vietnam’s business
competitiveness in all aspects of the global markets is becoming increasingly important
for businesses. Practice shows that awareness of CSR of the people and management is
poor and legislation is not strong enough (as the fine is low). This has lead to business
easily dodge the law, denied liability and business ethics or environmental pollution in
severity in a long time without being sanctioned.

1.3 Objectives and scope of the research
1.3.1 Objectives of the research


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CHAP 2: LITERATURE REVIEW
2.1 Definition of CSR
2.2 Carroll's 1979-1991 concepts
2.3 Other concepts related to CSR
2.3.1 Triple bottom line
2.3.2 Stakeholder theory
2.3.3 Business ethics and CSR
2.3.4 Sustainable development
2.3.5 Socially responsible investment
2.3.6 CSR reporting

company. By claiming that environmental and social issues have a direct effect on
shareholder value, shareholder activists are moving the rhetoric of their activism out of
the realm of “ethics” or good versus bad behavior, and into that of traditional issues of
profitability, risk and shareholder value” (O'Rourke 2003, p. 230).

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The figure below shows three main factors that companies should do when carrying out
CSR: Figure 2.1: Three main factors of CSR
From many definitions above, we can see that businesses that wish to sustainable
development must always abide the standards of environmental protection, gender
equality, labor safety, labor rights, equal wages, training and staff development,
community development. The economy has seen a decline led to many difficulties for
businesses, especially small and medium companies. In such difficult conditions why are
these companies still interested in CSR? Because consumers, investors, policy makers
and non-government organizations (NGOs) worldwide are increasingly concerned over
the impact of globalization on worker’s rights, environmental and community welfare.
Businesses that fail to comply with CSR can no longer access to international market. 22
2.2 Carroll's 1979-1991 concepts
Social responsibility has now become extremely popular and there are many theories
revolve around this issue. Among them, the pyramid of A. Carroll (1999) is
comprehensive and being used the most. Carroll (1983) says that,

pending, we can not be specified in the law. Therefore, compliance can only be
considered as meeting the requirements, minimum standards that society sets. Enterprises
also need to implement the commitments outside the law. Moral responsibility is
voluntary, but is at the heart of the CSR.
(iv) Discretionary responsibility: is the behavior of businesses beyond the expectations of
society, such as donations to support the weak, funding scholarships, contributions to
community projects… The difference responsibilities between charity and business ethics
is the businesses entirely voluntary. However, the difference is that it is not seen as
unethical behavior if businesses do not contribute their money to humanitarian programs.
(Carroll, 1991)

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Firstly, we can see the model is on comprehensive and high feasibility. Secondly placing
the economic responsibility as the foundation not only satisfy the needs of the theory in
corporate governance, but also resolve doubts about the truthfulness of the CSR programs
of business. Thirdly, boundaries between layers in the pyramid are always influencing
each other. Compliance with the law certainly leads to economic costs for businesses.
The rules of morality outside the law has always extended (by level of social
development), putting pressure on the legal system, forcing lawmakers to always keep
abreast of social practices. And finally, the relationship between charity and social
responsibility are clarified.

2.3 Other concepts related to CSR
2.3.1 Triple bottom line
We have been familiar with the 4P (Product, Price, Place and Promotion) in marketing –
mix or 6P (adding Political environment and Public opinion) by Philip Kohtler or many
other P in the organization and operation of the business… Purpose of this call (P) not
generalize a complete text, but also helps us easily recognize and remember them.
Among them, the letter P is used widely because they involve many different meaning
that related to business operations. There is one theory that has another Ps related to CSR.