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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) IN
VIETNAM: CASE AND EVIDENCES

BY
NGUYEN HA QUYEN Graduation Project Submitted to the Department of Business Studies, HELP
University College, in Partial Fulfillment of the Requirements for the Degree of
Bachelor of Business (Accounting) Hons
April 2011
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Declaration of Originality and Word Count
DECLARATION

I declare that this graduation project is based on my original work except for

cases and evividences.Without their contribution, I could not be able to gather much
information for my research
Lastly, I would like to extemd my heartfelt gratitude to my friends for
their continuous support, encouragement and contribution, which have
been crucial during the presentation of this report.
My thesis cannot be finished without your supports.
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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) IN
VIETNAM: CASE AND EVIDENCES
BY
NGUYEN HA QUYEN
April 2011

Supervisor: Dr. Pham Duc Hieu

Corporate Social Responsibility (CSR) has been the subject of substantial academic
debate for over two decades. In recent year, Corporate Social Responsibility (CSR)
becomes the term that might be familiar with developed countries especially capital
countries. However in Vietnam, Corporate Social Responsibility is not popular with
most of enterprises although some businesses have adopted CSR policies and rules of
ethics, but they are often based on approaches from the top down.
Suppliers apply moral rules upon request from customers rather than developing
their own CSR to expand the market share. And this could require many businesses
to adopt rules and ethics vary, depending on the number of customers that
their transactions, and sometimes they have contradictory.
Moreover, the understanding of the concept of CSR in Vietnam has significant
changes, both nationally and in enterprises. However in recent years when the
economy is more open and there are many critical cases and evidences concerning
with Corporate Social Responsibility as the result of the economic crisis and in

Declaration of Originality and Word Count 2
Abstract 3
Table of contents 6
CHAPTER 1: INTRODUCTION 10
1.1 Research Background 10
1.2 Problem Statement 12
1.3 Objective of research 13
1.4 Range of Research 14
1.5 Research Methods 14
1.6 Structure of Research 15
CHAPTER 2: LITERATURE REVIEW 16
2.1 Research’s related concepts 16
2.1.1 CSR definition 16
2.1.2 Investment Decision 17
2.1.3 CSR reporting 17
2.2 Researches and Studies 18
2.2.1 Business Ethics in Vietnam 18
2.2.2 CSR, PR of Foreign Invested Companies 20
2.3 Researches Summary 22
CHAPTER 3: RESEARCH METHODOLOGY 24
3.1 Research Objectives 24
3.2 Theoretical Framework and Measurement 24
3.2.1 CSR Importance 25
3.2.2 CSR perception 25
3.2.3 Investment Decision 26
3.2.4 CSR Reporting 27
3.3 Measurement and Quality Design 28
3.3.1 Section 1 28
3.3.2 Section 2 29
3.3.2.1 CSR Perception 29

Table 4: Question 2 - Result and Analysis 37
Table 5: Question 3 - Result and Analysis 38
Table 6: Question 4 - Result and Analysis 39
Table 7: Question 5 - Result and Analysis 40
Table 8: Question 6 - Result and Analysis 42
Table9: Question 7 - Result and Analysis 43
Table 10: Question 8 - Result and Analysis 44
Table 11: Question 9 - Result and Analysis 46
Table12: Question 10 - Result and Analysis 47 9

List of Abbreviations

FPTS
FPT Securities Company
CSR
Corporate Social Responsibility
RI
Responsible Investment

in CSR, responsible investors, policy makers and nongovernmental organizations
around the world increasingly concerned about the impact of globalization on the
lives of workers, environmental and community development. CSR is considered an
important factor as the other traditional factors such as cost, quality in business. CSR
is integrated into business strategy and becomes mandatory conditions for enterprises
to survive and grow. CSR become the main factor to consider in the decisions of
responsible investment. In addition to good reputation, businesses also get other
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benefits such as labor relations are improving, labor productivity increases and
workers increasingly attached to the enterprise.
Moreover, with the join of Viet Nam to the World Trade Organization (WTO) in
2007, CSR is getting more concerns from businesses because of the requirements
from the foreign clients and partners (WTO website, 2006). From year 2005, Viet
Nam has an award “CSR – towards the sustainable development” established by Viet
Nam Chamber of Commerce and Industry (VCCI) to reward the companies which
actively implement CSR in the international economics integration circumstances.
According to MR.Nguyen Quang Vinh- Deputy Director of
the Office for the enterprise for sustainable development (VCCI) “Enterprises of
Vietnam need to be backed implement CSR,
manufacturing business toward sustainable development is a prerequisite, Vietnam‟s
enterprise survival in the context of international
economic integration. Today's economic profit
can not help companies survive because consumers as well as other partners require
businesses to implement their social responsibility in business processes.
Through the award for "Business social
responsibility" to uphold VCCI, honoring those companies have done this
work, VCCI awards will be held annually as an
encouragement, incentives for businesses. Enterprises for the Office of Sustainable
Development - VCCI is committed to co-administration of enterprises; always

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with the industrial chemical melamine, used in plastics and glue, gave children
kidney stones. This scandal caused not small affection on the production of China‟s
milk in particular as well as more general that is affected on the whole milk industry
of the world.
1.3 Objective of research

With the objectivity is to provide the concept of CSR as a whole, this research also
supports more cases and evidences aims to enhance the competitive ability of
enterprises of Vietnam especially when in a period of Vietnam has become a formal
member of World Trade Organization (WTO). By conducting some of the basic steps
following
-To sum up the concept and definition of Corporate Social Responsibility.
- To survey the understanding as well as the perception of Vietnamese individual
investors of CSR concept, its importance and implementation.
- To Set up theoretical model and inspect the relationship between CSR
importance for Vietnamese investors and other contributions such as CSR
awareness, investment decision and CSR reporting. Beside that, the project
searches the conceptual enhancing path of theories on corporate social
responsibility (CSR) and to reflect on the implications of the development.
-To improve he understanding of individual investors on CSR issues, concepts
and its importance.
- To recommend some solutions for the organizations to improve the perception
and understanding of investors CSR concepts and its importance, solutions for
the firms to have better investor relation.
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1.4 Range of Research
Because of the project has large range so the object of the research is any Vietnamese

Moreover, using primary data can collection method is to provide the appropriate
information that match with the requirements of this project. Beside that, secondary
data will support the application Corporate Social Responsibilities in Vietnam
perspective as a whole. The secondary data will be collected at the low cost as well
as possible from the relating sources such as: books, Internet, newspaper, magazines,
and other convenient formulation.
1.6 Structure of Research
In order to understand clearer about the concepts of CSR as well as its importance
this project is divided into five following chapters:

Chapter I: Introduction
Chapter II: Literature Review
Chapter III: Research Methodology
Chapter IV: Result Analysis
Chapter V: Conclusion and Recommendation

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CHAPTER 2: LITERATURE REVIEW
2.1 Research’s related concepts
2.1.1 CSR definition
As far as concern above, because CSR is the quite new term for Vietnam‟s
enterprises so it is necessary to understand the concept. In fact there are many
definitions of CSR made by different researchers and organizations throughout the
world but in all of them the most approximately exactly definition that is widely used
by World Business Council for Sustainable Development (WBCSD) which is
mentioned in the first part : According to World Business Council for Sustainable

2.1.3 CSR reporting
According to Tim Smith- Walden Asset Management (July 27, 2010) “CSR
reporting illustrate the expanding belief that quote CSR has become vitally
important for a company‟s business, and that transparent reporting is, as one CEO
said, one of the prices of doing business today.” CSR reporting is emerging need for
the business in the world today. That is because of the demands by investors,
consumers and society for CSR reporting. There are many reporting schemes and
standards which are used in different organizations and countries. Those CSR reports
help the company to better communicate with the investors and other stakeholders.
They also increase the image and reputation of the organizations which issue the
reports.
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2.2 Researches and Studies
Although, CSR becomes popular with enterprises all over the world. In any field or
any industry, when firms are establish, they must concentrate and care about their
responsibility with preserving and developing cultural identity company, protect the
rights for workers, anti-corruption, environmental
protection, create favorable working conditions for employees, bridging the
gap staff and leadership and for the benefit community. But how CSR in Vietnam? In
fact, there are not so many researches conducted on this topic of CSR in Viet Nam so
that the research faces with many difficulties in finding enough studies and
researches to use for reference and foundation. As the limitation of conducted studies
and researches, the researcher has to use some case and evidences or studies which
are consisted of more than one topic. Those topics usually are quite related such as
business ethics, corporate culture. However, CSR is mostly discussed, studied or
even argument in those researches hence, it is still appropriate to use them.
2.2.1 Business Ethics in Vietnam
Research ethics is a long tradition in human society, starting
from religious beliefs, cultural and philosophical ideas. Ethics related to moral

in a bottle of Tylenol analgesic brand by Johnson & Johnson (J & J). Although the
case unfortunately this only happens in Chicago and parts of the security that the
perpetrators just put poison in a bottle of Tylenol were sold in the supermarkets, J &
J was determined to proceed with in order to test all 31 million bottles Tylenol was
distributed not only in America but in the whole world, because according to J & J, “
there is no guarantee that the perpetrators just put poison in the bottle of Tylenol at
was sold, but do not put in the time before manufacturing or distribution. All costs to
implement the decision on the $ 100 million. However, the high expression of
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socially responsible company Johnson & Johnson plus proper PR campaign was
helped Tylenol regained the position in the market within 6 months.”
CSR plays a key role in Business Ethic; this issue becomes major part to make the
decision for enterprises succeed. Therefore, awareness of CSR in Viet Nam should
be enhanced through not only the media, business organization and researchers but
also support from governmental offices and departments. Moreover, the enterprises
should be encouraged in raising their business ethics for both their and other
stakeholders‟ benefits.
2.2.2 CSR, PR of Foreign Invested Companies
Due to this topic of CSR, the study also is researched by many researchers of foreign
countries. Almost of them have own concepts about CSR as well as comment on its.
However, they are given the common theory about CSR “responsibilities
of the institutions in shaping, directing and controlling the business in the
direction of respecting individual rights and promote human happiness” Beside many
arguments that are researched long time ago, until recent year,
research consistent with a fairly complete definition of Group Development
Private Sector of the World Bank, “Social responsibility of business is the
commitment of businesses to contribute to sustainable
economic development, through improving the quality of work life of
employees and members of their families, communities and society, in ways

government and local relationship improvement. Because of that, CSR reporting is
important tool for providing information for the investors and society as the whole.
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CSR reporting has been asked in the research to inspect the understanding and also
the needs from investors and other stakeholders. Even though CSR reports are
relatively new, there is an existing need for CSR reports.
2.3 Researches Summary
Base on some summaries of Vietnam researches as well as some researches in the
world, this project is indicated small aspect of CSR‟s concepts and its impotents.
Moreover, the comparison among those researches shows the difference in
presenting the theoretical framework of CSR in main point follow:
According to Nguyen Hoang Anh, CSR was researched in the following area:
Business Ethics concept
 CSR concept
 CSR awareness, practices in Viet Nam
 Solutions to raise CSR understanding and implementation in Viet Nam
For some aspects that rendered the research gave perspective of CSR.
Even though there is understanding of business ethics and CSR concepts among
investors; it is usually limited to the incomplete knowledge on the topic. CSR
sometimes is thought as regulation compliance only.
Other author is Ho Thien Nga who verify quite new definitions of CSR that are
summarized by many researches like (Arthaud-Day, 2005 [11];
Carroll, 1979 [12]; Clarkson, 1995 [13]; Friedman, 1970 [15]; Jones & Goldberg,
1982 [16]). Manakkalathil và Rudolf (1995) [17] Carroll 1979 [12].
This author also zoning her research scope in:
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 CSR practices in Viet Nam
 CSR in foreign-invested business entities

importance varies from countries to countries. That is the reason why the researches
which have been done in Viet Nam will be the major sources of reference for the
researcher to carry out this research. The study will show how individual Vietnamese
investors perceive the CSR concepts and importance. Furthermore, the relationship
between the dependent variable or CSR importance in particular and the three
components which contribute to the importance of CSR for investors including: CSR
perception, investment decision and CSR reporting will be examined to establish a
relationship.
3.2 Theoretical Framework and Measurement
The researcher takes into account not only the researches and studies within in the
border of Vietnam but also in some other places in the world to have better
supporting sources. Using the mentioned information and knowledge, there is a
theoretical framework developed using components of CSR importance in Viet Nam.
They are: CSR perception, investment decision, and CSR reporting. Over these
components, the project can use theories can affirm that with the small and medium
enterprises of Vietnam the conditions necessary to implement CSR is able to
withstand
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Moreover, applying the firm-level data, this project can report the cases and
evidences that are consistent with this hypothesis
3.2.1 CSR Importance
It confirm that today, social responsibility is not new problems for theoretical
enterprises and countries around the world that it is worth here are
just theories that have been practice to go and do well it is worthless. And CSR
importance is the dependent variable in the research.CRS is in the best interest of
developed countries by businesses
that are considered investments generate significant profits (in anyway, according
to Philip Kotler, the supreme goal of a business entity is profit.) This clearly refers
to the logic of the problem is investment -