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CORPORATE SOCIAL RESPONSIBILITY: STRATEGIES FOR
SUSTAINABLE DEVELOPMENT FOR SMALL AND MEDIUM
ENTERPRISES IN THE VILLAGE OF BAC NINH PROVINCE, VIETNAM
BY
TRINH THI THANH HUYEN
E0600084 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

OCT 2011
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DECLARATION
I hereby declare that the graduation project is based on my research and experiences
except the acknowledged aquotations and citations. And, this graduation project has
not been used at previously or concurrently submitted for any other course/degree at
Help University College or other institutions. The word count is 10,968 words.

domestic businesses and the international market.
Relate to fact of small and medium enterprises, cooperatives, manufacture owners in
the village of BacNinh face to a lot of difficulties in the business because small-scale
trading, market relationships are limited, public management is still insufficient, the
application of information technology is poor, they do not know where to start, yet?
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How the growth of businesses like? How to develop product? How to competitive?
The development of enterprises which had difficulties when it is more and more
difficult to determine a direction for sustainable development, long-term benefit for
the enterprise itself and managers.
Besides, the challenges of the 21st century such as weather change, declining natural
resources, and energy crises as well as business requirements of small and medium
enterprises to change the basic way they operate. It is no longer acceptable simply to
maximize profits in the short term. Instead, businesses must pay attention to the
impact of economic, social and environmental aspects of their activities - known as
sustainability or corporate social responsibility (CSR).
The purpose of this study is to discuss the role of CSR in helping small and medium
enterprises in the villages of Bac Ninh - Vietnam to achieving competitive
advantage. Also research and synthesis, analysis, logic, strategy and business
development for small and medium enterprises in villages in Bac Ninh province -
Vietnam. Simultaneously suggest directions and solutions to promote business
development of special attention to products with different villages of products to
create sustainable development for the enterprises.

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2.1.3 Socio-cultural environment
2.1.4 Natural Environment
2.1.5 The political and legal environment
2.1.6 Global Environment
2.2 General analytical model inside and outside – SWOT

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4.2.4.1 Society of the population and labor
4.2.4.2 Population quality
4.2.4.3 Cultural Environment
4.2.5 International Environment
4.3 The key issues related to the current situation and
development prospects of small and medium enterprises in
craft villages in Bac Ninh: Identify strengths, weaknesses
and determine opportunities and challenges; Position the
stand point of industry
4.3.1 Current Competition
4.3.1.1 The pressure of new businesses entering the
market.
4.3.1.2 Pressure from customers

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4.5 Competitive strategy and strategic options
development of small and medium enterprises in the
villages in Bac Ninh
4.5.1 SO (strengths - opportunities)
4.5.2 ST (strengths - threats)
4.5.3 WO (Weakness - Opportunities)
4.5.4 WT (Weaknesses - Threats)

Chapter 5 RECOMMENDATIONS, SUGGESTIONS
5.1 Strategic Orientation for Sustainable Development of
small and medium enterprises in Bac Ninh
5.1.1 Vision
5.1.2 Mission (functions)
5.1.3 The strategic objectives in 2011 and 2020
5.1.4 The strategy function
5.1.4.1 Product development strategy to make a
difference, combining traditional elements with modern
elements, preserving the national identity
5.1.4.2 Strategy for raising capital for businesses
5.2 A number of measures to improve management
structure and resources of small and medium enterprises in the

5.2.4 Solution development and combination of
economic, production and business organizations.
5.2.5 Some measures to improve the layout using the staff
and management mechanisms

5.3 Recommendations to address existing problems
5.3.1 For businesses
5.3.2 For industry - State and local
5.4 Proposed measures to reduce environmental pollution
5.4.1 Worker training and awareness of people
5.4.2 Production planning area
5.4.3 Planning the village towards the development of
cultural tourism
5.4.4 Planning within the enterprise
5.4.5 The technology measures
5.4.6 Management Environmental of dirty water
5.4.7 Solid Waste Management
5.4.8 Management of air pollution
5.4.9 Solutions to environmental management

Chapter 6 CONCLUSION
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Figure 1.1
Figure 1.2
Figure 1.3
Figure 1.4

Chapter 2
Figure 2.1

Chapter 3
N/A

Chapter 4
Figure 4.1
Figure 4.2

Figure 4.3
Figure 4.4

Chapter 5
NA
Chapter 6
NA Three circles model of CSR
A hierarchy of CSR (adapted from Carroll, 1991)
Three target groups of CSR
The model of CSR in Vietnam

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Chapter 1
INTRODUCTION

1. Definitions
1.1 The definition of sustainable development
Sustainable development is a new concept to define a development in all aspects of
the current which is to ensure continued development in the distant future. This
concept is currently targeted towards countries in the world, each country will base
on specific economic, social, political, geographical, cultural own strategy to best
suit that country. The term “sustainable development” first appeared in 1980 in the
publication World Conservation Strategy (published by the Association for
Conservation of Nature and Natural Resources International – IUCN) with a single
content.Simplified: "The development of mankind can not just focus on economic
development but also to respect the essential needs of society and the impact on
ecological environment."
This concept was popularized in 1987 by the Brundtland Report (also known as Our
Common Futur Report) of the Commission on Environment and Development World
- WCED (Brundtland Commission now). This report clearly sustainable development
as "development that meet the current needs without compromising the damage to

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1.2.3 Model of three target groups of economic, social and environment of World
Bank

Figure 1.3 - Three target groups of CSR
1.2.4 The model of sustainable development in Vietnam:

Figure 1.4 - The model of CSR in Vietnam
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The carrying out of construction and operation concept of "sustainable development"
in accordance with the actual country and the world scene is of paramount
importance. Models of sustainable development in Vietnam is formed on the basis of
empirical research and, in accordance with the actual and desired by local managers.

1.3 Small and medium enterprises
Small and medium enterprises are the enterprises with small scale in terms of capital,
labor or revenue. Small and medium enterprises can be divided into three categories
based on size includes micro enterprises, small enterprises and medium enterprises.
According to the criteria of the World Bank Group, micro enterprises are enterprises
with the number of workers under 10 people, small businesses are the number of
employees from 10 to 50 people, while medium enterprises have from 50 to 300
labor. 17

CHAPTER 2
LITERATURE REVIEW
2.1 Model three - level analysis, PEST model
The side effects in three levels: international, national and local relevant.
The content of impact analysis (analysis of Pets):
Impact Areas
Content
Influence to
Politics (P)
- The political stability
- The political line
- Direction
- Population and investors psychology
Economy (E)
- Economic policy
- Economic condition
- Investment Environment
- Development conditions
Technology (T)
- The development of science and technology
-Research and development
- Competitiveness
- Economic effective
Social (S)

The level of economic development is the size, speed economic development of
countries and regions including: GDP, GNP, annual growth, this analysis helps
businesses understand the development trend of the economy.

2.1.2 - Environmental technology
The small and medium enterprises in the village of BacNinh has adapted to the new
mechanism from back in 1986 with market mechanisms and policies, enterprises
have invested heavily in advanced technology application, transfer new technology,
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modern manufacturing processes to modernize traditional technologies, replacing
outdated technology with craft of modern technology in order to improve
productivity, increase business efficiency, more moved his business, replacing old
products with new products. Most enterprises in Vietnam – Chau Khe - Tu Son has
moved from production to production wrought iron and steel, in Phong Khe outside
firms to maintain production of traditional goods such as paper, writing paper Han
Nom They have invested heavily in new technology, the production line paper,
writing paper, duplex paper, packaging of all kinds

2.1.3 - Socio-cultural environment
The small and medium enterprises in the village of Bac Ninh has adapted the trend of
the times, businesses have kept the characteristics of the traditional products,
products with artistic traditions of each villages, it is the traditional symbol of the
people of Vietnam, the village has products preferred by customers as competition
Dai Bai, Dong Ho folk paintings, furniture Dong Ky.

2.1.4 - Natural Environment
Bac Ninh has natural conditions, a favorable geographical position have created for
the Bac Ninh region soon became an agricultural civilization long development, a
unique cultural region, represents a unique Kinh Bac region (Northern of Vietnam).

not uniform, international law is ignorant, weak command of foreign languages
processing, the brand on the market do not have, resulting in the export business was
going through the intermediate steps which leads to reduced productivity
effectiveness.

2.2 General analytical model inside and outside - SWOT
This model is analyzed both within and outside the enterprise (SWOT):
S = Strengths, W = Weaknesses, O = Opportunities, T = Threats.
Considering these factors both inside and outside which play an important role
because they help clarify the business environment as well as working on better
visualize your desired future. SWOT Analysis is the key to strategy development, to
clarify the strength of the enterprise, the weaknesses of the business. 22

The specific target for analysing of the inside and outside factorsin the enterprises
from which we form strategic business development division.

Figure 2.1 - Analysis of factors inside and outside
Matrix strength - weakness, opportunity - thread (SWOT)

- Business culture
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- The strengths and weaknesses
Specific
objectives

Strategy

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best. The diagram above shows the strategy combined SO, ST, WO, WT are as
follows:
2.2.1 SO strategy
SO Strategies use strategies within the enterprise to take advantage of external
opportunities. All managers are keen to organizations where their strengths can be
used inside to take advantage of the trends and events of the external environment,
typically the organization will pursue war WO strategies, ST to hold can be in the
position where they can try to overcome to make them become strengths when
businesses have to deal with the significant threat they will seek to avoid the threat it
can focus on the opportunities.
2.2.2 WO strategy
WO strategy to improve internal weaknesses by taking advantage of external
opportunities. Sometimes, great opportunities exist outside the enterprise but internal
weaknesses prevent it from exploiting this opportunity.
2.2.3 ST strategy
ST strategy is to use the strengths of the business to separate out or reduce the impact
or external threats. This does not mean a business has always faced strong threats
outside.
2.2.4 WT strategy
WT strategy is strategy defensive approach used to reduce the weaknesses and avoid

of theory, strategy and business development at the small and medium enterprises in
the village of BacNinh province, Vietnam.
The research applied the theories and models to analyze and assess the actual
situation of production and business of small and medium enterprises in craft
villages in Bac Ninh province and strategydevelopment towards modernization.
From that identify the general point, impact the proposed solution is mainly to
promote businessdevelopment, paying special attention to the villages of
products (product differentiation)to create the sustainable development of small and
medium enterprises in the province of BacNinh province.

3.2 Research methodology
The research methodologies were used in this research such as:
- Qualitative research method survey, expert methods.
- Methods for meta-analysis, comparing statistics.
- Methods of data collection.