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ANALYSE THE IMPORTANCE AND IMPACTS OF CORPORATE SOCIAL
RESPONSIBILITY (CSR) IN BUSINESS TOWARDS THE SOCIAL AND
ENVIRONMENTAL ISSUES IN VIETNAM.
BY
DUONG THUY ANH
E0700254
Graduation Project Submitted to the Department of Business Studies HELP
University College, in Partial Fulfillment of Requirements for The Degree of
Bachelor of Business (Accounting) Hons OCTOBER 2011

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DECLARATION OF ORIGINALITY
AND WORD COUNT I hereby declare that the graduation project is based on my original work except for

them, I could not finish my project.
Finally, I also want to express my gratitude to my family, who are always on my side
to support and believe me. 4

Analyze the importance and impacts of Corporate Social
Responsibility (CSR) in business towards the social and
environmental issues in Vietnam.
By
DUONG THUY ANH
OCTOBER 2011
Supervisor: Dr. Pham Duc Hieu
ABSTRACT
CSR and its components have become important issues in the world as well as in
Vietnam, a developing country. This study aims to understand the environmental
tasks and attitudes of citizens towards environment. We realized that, beside
manager, the awareness of citizens and workers about the social responsibility to the
environment is increasing. The implementation of social responsibility is a task that
is impossible to be neglected on the way of approach to the business integration in
Vietnam, because it’s beneficial for business and society, especially in improving the
competitiveness of enterprises. Therefore, day by day, Vietnam will have more
responsibility for social and environmental issues due to the increasing of awareness
and positive attitudes of managers, employees and citizens that shown in this survey.

2.4.1 Manager’s awareness of CSR and CSR reporting…………… 23
2.4.2 Employee’s awareness of CSR and CSR reporting……………. 24
2.4.3 Citizen’s awareness of CSR……………………………… 25
Chapter 3: RESEARCH METHODOLOGY………………………………… 26
3.1 Research methodology…………………………………………… 26
3.1.1 Qualitative methodology………………………………………… 26
3.1.2 Quantitative methodology………………………………………. 28
3.2 Data source………………………………………………………… 29
3.2.1 Primary data…………………………………………………… 29
3.2.2 Secondary data………………………………………………… 30
3.3 Data collection…………………………………………………… 30
3.3.1 Questionnaire…………………………………………………… 31
3.3.2 Personal interview………………………………………………. 31
3.3.3 Annual report………………………………………………… 32
Chapter 4: RESULTS AND DISCUSSION…………… …………………… 33
4.1 Sampling………………………………………………………… 33
4.1.1 Sample population………………………………………………. 33
4.1.2 Sample frame.………………………………………………… 33
4.1.3 Sample size………………………………………………………. 33
4.1.4 Sample techniques………………………………………………. 33
4.1.5 Limitation……………………………………………………… 33
4.2 Management……………………………………………………… 34
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4.2.1 Finding from questionnaire survey…………………………… 36
4.2.2 Finding from managers interview……….…………………… 38
4.2.3 Actual CSR disclosures by firm……….……………………… 41
4.2.4 Overall evaluation of management’s respo……………………. 42
4.3 Employee………………………………….……………………… 42


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LIST OF ABBREVIATION
CSR Corporate social responsibility
SRI Social responsibility investing 10

CHAPTER I: INTRODUCTION
1.1 CSR in business and environment issue in the world

environmental pollution of various companies, but most authorities are not strong
enough measures to handling these cases, while most businesses are finding ways to
evade all responsibility. Many people believe that talking about self-discipline of
enterprises in environmental protection seems like a distant story and not fact. But
the environmental pollution from production and processing of products of the
business now has reached alarming levels; demonstrating corporate social
responsibility for environmental protection is very limited.
Lack of social responsibility, lack of moral and cultural of many enterprises that
were to happen a series of events related to agricultural products and food does not
guarantee protection food safety, such as black soy sauce containing 3-MCPD (a
substance that can cause cancer), food preservation borax, irrigated vegetable growth
stimulants, fish were reared in environmental pollution, agricultural food products
processed using toxic preservatives, antibiotics or pesticides in excess material and
allow the most recent batch of milk products tainted with melamine- a toxic
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substances caused kidney stones in children, can lead to death. In China on 2008, at
least six children died and 300,000 others fell ill after drinking melamine
contaminated. Industrial chemicals were added to milk products to make them seem
to increase protein content.
For above reasons, social responsibility is a very urgent problem today. However, by
to endeavor, Vietnam had CSR Awards, which was organized by Vietnam Chamber
of Commerce and Industry, Ministry of Labor-Invalids and Social Affairs, Vietnam
Ministry of Industry and Trade since 2005, together with Vietnam Leather &
Footwear Association, and The Vietnam National Textile and Garment Group, in
order to honor enterprises and all limited companies that effective done of CSR and
environment duties. On August 21, on Sunday has program “not nylon bag” in
Hanoi, the Corporation Hanoi Trade for free environmentally friendly bags to
consumers at five centers. This program by three units specialized in manufacturing
non-woven products accompany Hapro. Mr. Nguyen Trung Thanh, head of business

regulations required for companies to fulfill their responsibilities to society. Second,
it is also due to the lack of knowledge of the company about social responsibilities
and environmental duties. They do not have enough knowledge and experience.
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1.3 Problem statement
The thesis focuses on the following problems related to CSR and environmental
issues in the context of Vietnam. They are:
i, How is CSR important?
ii, Why should business companies engage in CSR?
iii, What is CSR brings to businesses?
iv, Does each person need to care about CSR? 1.4 Research objective
Through this project, I want to focuses on environment degradation and the need for
corporate organizations to fulfill their social responsibilities. Using the system
theory, the interdependence among the environment, organization and sustainable
development was examined. System theory has been modified to emphasize the need
for businesses to foresee the potential environmental consequences of a process, or
production activities from the planning stage to ensure the implementation strategies
to respond fully and promptly.
Pollution can be defined as the release of undesirable products of industrial
production decreased quality of the natural environment or society. This release can
be to air, water and soil, but noise pollution, light pollution, visual pollution and
radioactivity can also be distinguished. Pollution can harm flora, fauna, and human
health risk leading to extinction occurs. Substances, often non-existent in the natural

experimental efficiency in the health of human such as cancer, allergies, and other
respiratory diseases.
Thereby, the first goal of this project is to provide a theoretical framework for
understanding the concept of environmental pollution and fulfill the social
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responsibility of business and related components follow this area to build a
framework for companies to have better understanding of CSR and they can avoid
violating any issues related to CSR.
The second goal of this project is to evaluate the impact of CSR in the environmental
issues in companies in Vietnam. On the other hand, given what they can achieve and
what their advantages when they implement CSR.
The last goal of this project is to obtain views from all of industry companies in
Vietnam is how the companies are related to social responsibility. This project will
also try to find the components of this cognitive impact. The questions are designed
to get more people thinking in receiving CSR as an annual activity of the company.
Thereby, this paper also enhancing the sense of responsibility of people to society.

1.5 Thesis structure:
My thesis structure is divided into chapters as follow:
Chapter 2 is Literature Review
Chapter 3 is Research methodology
Chapter 4 is Result and discussion
Chapter 5 is Conclusion 17

CHAPTER 2: LITTERATURE REVIEW
2.1 Definition and conceptualization of CSR

socially responsible way, complemented by investment in communities for solid
business case reasons. I think this model is more sustainable because first, social
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responsibility becomes an integral part of the wealth creation process- which if
managed properly should enhance the competitiveness of business and maximize the
value of wealth creation to society. Second, when times get hard, there is the
incentive to practice CSR more and better- if it is a philanthropic exercise which is
peripheral to the main business, it will always be the first thing to go when push
comes to shove.
For instance, the CSR definition used by Business for Social Responsibility is
“Operating a business in a manner that meets or exceeds the ethical, legal,
commercial and public expectations that society has of business”.
The UK Government, 2001 state that CSR recognizes that the private sector’s wider
commercial interest require it to manage its impact on society and the environment in
the widest sense. This requires it to establish an appropriate dialogue or partnership
with relevant stakeholders, be they employees, customers, investors, suppliers or
communities. CSR goes beyond legal obligations, involving voluntary, private
sector-led engagement, which reflects the priorities and characteristics of each
business, as well as sector and local factors.
Corporate social responsibility is achieving commercial success in ways that honor
ethical values and respect people, communities and the natural environment.
(Business for social responsibility, 2003b)
To sum up, these organizations have framed different definitions in different ways
between them, although there are also significant in common. My own definition of
social responsibility is the businesses voluntarily contribute to a cleaner environment
and a better society.
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product structure so often reduces the competitiveness of goods, then in many
developed countries, such as USA, UK, the company apply the technology
investment-friendly environment has significantly increased revenue: Corporation of
America produce light, Haitech Group invested $4.3 billion USD to control
environmental pollution in 1994, which the company’s reputation and increase
exported to $8 billion in 1999. As the world’s major markets more difficult, the
product is required not only ensure quality but also requires “cleaner”. To
successfully penetrate the large market but difficult such as Japan, America and
Europe, companies need to strengthen research capacity to apply international
standards on environment, such as ISO 14000 and environmental standards of the
market to penetrate.

2.3 Corporate Philanthropy_ what does it mean?
Nowadays, companies were more concerned about the CSR, but many others still
choose to secure and most popular is charity (Corporate Philanthropy- CP).
However, there are many businesses use this activity as a way of branding. So, what
has actually achieved real benefits for their existence and their development, or is it
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the value of instant communication? In terms of benefits, CSR brings more value to
business than charity. For example, a large insurance company in Vietnam has
donated 1 billion VND to support food, clothing and cash for poor farmers in the
remote areas. However, charities are only short-term benefit for community groups
need help, not actually help them overcome difficulties in the long -term; not offer
specific benefits to enterprises outside the temporal change of reputation.
Meanwhile, the implementation of CSR is actually contributing and process changes
both inside and outside the enterprise.
Enterprises can implement CSR by internal improved activities, building a strong
system of Governance, efficiency, creating the highest value with the lowest impact
on the environment and society.

stakeholder, consumers, and employees; or to raise the efficiency and effectiveness
on their performance.
Thus, it is recognized that to increase interest in the issue of social responsibility at
the management level, in addition to, managers not only attention to the financial
interests of the owners also pay attention to the interest of other group such as
employees, consumers, Government and general public. These interests are directly
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or indirectly affected by the pursuit of business activities and they are the
shareholders of the enterprises.
In the view point of stakeholders to some extent is affected by the behavior of
managers. In the substance of CSR issues, it is important to have managers’
awareness and commitment to carry out and improve the initiative of CSR. If the
managers are at least partly the proponent of the corporate culture, and integrating
CSR requires culture change, so, it is not easy to imagine the CSR becoming
institutionalized in the organization without the managements’ active support (Harris
and Crane, 2002)
Therefore, managers are very important, who make the right decision to build the
reputation for the business.
Following the above argument, the hypothesis is formulated:
H1: Managers’ awareness of CSR and CSR reporting is positive.
2.4.2 Employee’s awareness of CSR and CSR reporting
Nowadays, for staff, standard for assessing the implementation of CSR is the best
treatment policy for employees as salary, bonus, rent the house for them, etc. No
discrimination based on race, nationality, religion or gender, and working condition
reasonable. It will promotes an environment in which diverse employees can
maximize their individual potential and fosters personnel who are willing to take on a
more active role on the global stage.
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