1
THE IMPORTANCES AND IMPACTS OF CORPORATE SOCIAL
RESPONSIBILITY ACTIVITIES OF HANOI CONSTRUCTION &
INVESTMENT COMPANY (HACINCO)

BY

TRUONG VU HOA BINH

E0600053

Supervisor: Dr. Le Van Lien
DECLARATION
I declare that this graduation project is based on my original work except for
quotations and citation which have been duly acknowledged. I also declare that it
has not been previously or concurrently submitted for any other courses/degrees at
HELP University College or other institutions.
Word Count: 10,015 words.

____________________
Truong Vu Hoa Binh

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October, 2010

4 TABLE OF CONTENTS

1. INTRODUCTION 5
1.1. CSR in the world 5
1.2. CSR in Vietnam 6
1.3. CSR in Hacinco 6
1.4. Problem statement 11
1.5. Objective of research 11
1.6. Sphere of research 11
1.7. Research methods 11
1.8. Structure of the research 12
2. LITERATURE REVIEW 13
2.1. The evolution of the CSR concepts 13
2.2. CSR elements 15
2.3 Benefits of CSR 17
2.4. Ethics and social responsibility in business 21

5. CONCLUSION 43

5
REFERENCE: 45
1. INTRODUCTION
1.1. CSR in the world

Recently, the social publics have put their interest and raise their concern
to numerous violations of business ethics, environment and harm human health at
serious level. Specifically, in 2008, people in the world were totally shock by the
“putting” contaminated items into the milk products by the Chinese companies,
which caused death to 6 babies, ill and poisonous condition to many people, the
pains suffered by the victims‟ families and the psychological panic to the
unsecured, substandard and unhygienic foods by the social communities. In 2009,
Vedan Vietnam was found guilty as they pumped directly the untreated and
poisonous waste into the Thi Vai River for years, which damaged the living and
working environment of the agriculture workers and the households living around.
In 2010, BP was found irresponsible as its spit oil into the Gulf, which caused
death to a lot of sea creatures and damaged the sea environment.
Now, people in the world care more and more about the responsibility of
the companies: how they do the business, what are the impacts on the
environments and how they solve it, what did they do to contribute to the society.
Corporate Social Responsibility – CSR is not a strange term for the
developed countries in the world. There is a club named “One percent” in the US
which is a group of business entities willing to contribute one percent of their
annual profit to the social activities funds. In France, France Télécom, RATP are
examples of the companies raising funds for the French modern arts. 6

and the company still has it efficiently operated.
For years, Hacinco has been successful in gaining construction bids of key
project in Hanoi such as project of Dong Xuan Market - Bac Qua, Hacinco hotel,
Binh Minh 1 hotel in Hanoi, Nam Trung Yen new urban area, Me Tri Ha new
urban area, renovate the offices of the National Assembly at 35 Ngo Quyen
street…
Seeing the development trend of eco-tourism, sustainable tourism,
humanities, Hacinco is also implementing projects such as the Kinh Bac cultural
tourism at Dam temple, Tu Son, Bac Ninh with area of 70 ha to contribute to
preserving and promoting cultural values.
The company built two blocks B3 and B4 in Cau Dien, Hanoi create
residential housing for low-income people having difficulties in finding houses.
The old dormitory has been a potential threat to the people living around
and also make the bad images.
The dormitory of old, fell saggy potential threat to people living here and
also sleazy, take the urban landscape. Hacinco project to renovate dormitory
Literature target variable neighborhood deteriorated badly for this area become an
urban modern civilization.
Do not bound feet in Hanoi, Hacinco also involved in building many of the
other local hospitals in Dien Bien, traffic control centers in the city of Thai
Nguyen, Binh Minh 2 Hotel in Ha Long…
The dynamics of a flat world Hacinco helped reach more Phonni building
market in Vientiane, Laos and building high-rise housing project in Sofia,
Bulgaria. The company also expanded its business into the field office for rent,

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houses, business hotels, restaurants and other tourist services, passenger
transport…
Hacinco goal of perfecting and developing all areas of their operations to
take the company into a multi-business company reputation in the market.

concrete batching plants, concrete trucks, concrete pump car capable of reaching
44 m high, tower cranes, cage hoists, raised floor, self-propelled cranes and other
construction materials laboratory to help build modern Hacinco qualified
investment execution and construction of projects in Group A, B, C.
With solid experience in the construction and development, today Hacinco
is indeed a powerful company in the members of the Corporation for Investment
and Development of Hanoi, is on the rise a collective position powerful economic
groups in the country.

CSR activities of the Hacinco included providing low-price tourism
services for invalids and their families, providing low-price but high quality
housing for students – Student Village, organizing sports events, cultural and
artistic exchange events for the staffs and the students, raising fund for
scholarship to poor students, …
There is a shortage of housing for colleges and universities students in
Hanoi for years. The number of the colleges and universities in Hanoi having their
own dormitories for students to live in is limited and the rooms supply rarely
meets the students living demand. Most of the school dormitories are old and last
at least 15 years; some of them are one-floor apartments. The quality of the rooms
and the services provided are rather poor; utility supply systems work inefficiently
led to the shortage of water and electric for living.

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Most of the dormitories in Hanoi are built and owned by the colleges and
universities under the guidelines and control of the Education Ministry. Since the
returns in this kind of investment are rather low and it takes a long time to recover
the initial outflows, so no private units get interested in these investments. So far,
there have only been 2 private dormitory projects in Hanoi; one is Hacinco
Students Village invested by Hacinco and the other is Thang Long dormitory
invested by Thang Long Company. However, according to recent research, over

view on CSR activities in Vietnam and CSR in Hacinco. Being aware of CSR and
its implementation, directors can enhance the business and management
operations, improve their competitiveness in the marketplace, and thus contribute
to the success of the company.
1.6. Sphere of research

This research was conducted at Hanoi Construction and Investment
Company, Hanoi, Vietnam. And the duration of the research was from 15 July
2010 to 28 September 2010.
1.7. Research methods

Quantitative research was used to gather information on numerical data
and reports, survey and questionnaires was given to related group of people to
obtain information on CSR activities. Other methods will be used are research
questions, data collection, data analysis, population and sampling and variables.

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1.8. Structure of the research

Chapter 1: Introduction
This chapter presents the preview of the problem of research, some
concepts, nature and purpose of research.
Chapter 2: Conceptual frameworks
This part gives a review of the theoretical framework and defined specific
terms.
Chapter 3: Research Methodology
Chapter 3 includes the research methods, data collection.
Chapter 4: Result analysis
Base on the data and information collected, result will be drawn in this
part.

these obligations”.
Through the 1970s and 1980s, the construction of the concepts has grown
impressively as there are more definitions, and alternative themes like Social
corporate performance, stakeholder theory and business ethics theory started to
mature. In 1971, the Committee for Economic Development became the first men
presented the model of CSR in its publication, the Social Responsibilities of
Business Corporations. The model consists of three circles, the inner circle
presents the core aim of making profit of organization, the intermediate circle
presents the responsibilities the organizations must take in case of there is a

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conflict between its economic interests and the social interests; the outer circle
presents the responsibilities that the organizations must pursue to improve the
environment, the social living standards and other issues. In addition, in 1989, the
first social report of the world was published by an ice-cream company, Ben &
Jerry‟s.
From the 1980s up to now, the definitional construct for CSR has still been
developing with many other concepts. For example,
“A concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis.”
The European Commission
“Corporations have a social responsibility and moral duty to use the power
of markets to make globalization a positive force for all.”
United Nations
“Companies are realizing that it is in their business interest to „do the right
thing‟ everywhere they operate. Global firms are keenly aware that their long-
term investment goals can only be achieved within a stable, healthy and free of
social and financial environment. But companies alone cannot solve the
challenges associated with social responsibility. They must work in cooperation

to support the company any more. So, in order not to loose the consumers, the
company should take responsibilities to the goods and products they offer by

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setting a high standard for the manufacturing process and taking good care on the
consumers by providing good after-purchasing services.

2. Responsibilities to the environment

Many companies and firms in the world and also in Vietnam normally just
focus on profit maximization and set the cost at low level. One of the costs that
burden the company is the environmental costs. Environmental costs include cost
of processing the waste and emission, cost of recovery the state of the polluted
environment. In order to maximize the profit, some companies cut down the costs
for waste processing process. They believe that the waste and emission come from
their manufactures are too small and not much enough to damage or cause
pollution to the environment so they ignore the processing process. Some others
think that the responsibilities to the environment belong to the local agencies and
the government and they want the government to take the environmental costs.
However, according to recent scandal in some specific places in the world, some
companies that do not have waste processing process or spend less money for this
part finally have to burden the cost of recovery the state of the polluted
environment. This not only costs the company much more than the first cost but
also cause a bad image of the company. For instance, in Vietnam, many
consumers reject to buy the Vedan products as they are aware that the Vedan
company has cause pollution to the Thi Vai river and still do not want to
compensate for what they have done.

3. Responsibilities to the employees


There is a Chinese proverb says that: “Give a man a fish, feed him for a
day. Teach a man to fish, feed him for a lifetime.” In short-term period, benefits
that CSR can bring to us are the contracts and purchase orders from the companies
that require CSR standards. However, the cost of applying CSR will be able to
affect the business operation result of the company. Leaders who have ability of
foreseeing the future will set the goals of operation that not simply limited by
profits. Their success standards start from the impacts that they create for the
social demands. These businessmen are seeking for solutions to change the
society into a better way and vice versa, their business entities are likely to have
better conditions for more sustainable development.
The main long-term period benefits of CSR for the internal business
entities are improving working relationship at workplace, reducing the working
accidents, decreasing the turnover rate, increasing the labor productivity. In
addition, CSR also help enhancing the prestige of the business in relationship with
the clients and partners, creating competitive advantages in calling for investment,
especially the foreign investment.
How to manage a business entity that has responsibilities to the society?
In order to be success, the term social responsibilities must be built from
the base of the business goals
It‟s much more easier to establish the culture of social responsibilities
from the beginning rather than to change the company culture in the future
The success SCR program should base on the establishment of trusts and
supports from the customers and social community, the staffs, the providers and
distributors, the investors and banks, and finally the government agencies.

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CSR should be initially from the leaders. If the managers do not believe in
the importance of the CSR, if they do not take part in or support the CSR
activities, if they do not behave well at works as well as at their personal life, CSR
will not work.

organizations
According to World Bank research on implementing CSR in textile and
garment industry in Vietnam in 2002, there are some barriers and disadvantages:
There are major differences in the perception and understanding of CSR
within and between enterprises in Vietnam.
A company apply a multiple set of rules of behavior are not effective
Lack of financial resources and technical capacity to implement CSR
standards, especially for small and medium-sized enterprises
The difference between the Labor Code and the Code of Conduct for
customer orders cause confusion for businesses, for example, in the matter of
overtime hours or union activities.
Lack of transparency in the application of CSR in fact hampering potential
market benefits for the enterprises
Inconsistency in the regulations of the State makes the application of the
code of conduct does not have desire effects, such as salary, benefits and
conditions of employment.

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The report also shows the benefits and opportunities that CSR has been
and will bring to Vietnamese enterprises:
Some companies in Vietnam have gained benefits from CSR market,
represented by the new contracts and renewal contracts from overseas companies
orders
These companies also said that labor productivity increased since the
workers have better health and are more satisfied with the job
Customers are looking for solutions that allow collaboration to share costs
and create greater impact in some areas
International economic integration is the process of cooperation and
competition that provide many opportunities but also have many challenges.
When the advantage of low-price labor and abundant resources is not of Vietnam

the crown to determine interest and decided to implement the six core virtues that
will guide their actions.
When guided by the virtue of that, business will keep its reputation in the business
to know the link in the food, treat customers, dealing with colleagues and staff.
Directed that they hold will be explained so that they can pursue persistently, then
the philosophical or ideological "Director of business" will appear.
Actions leading to it based on the philosophy and ethics. Philosophy to help
people freeze, moral help them sustainable. Entrepreneurs have a common moral
strings, a common philosophy, they are a glue to link them together. Ask it the
other team was born. And upon such business again will be a lot of money.

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"Director" business content, location and impact like that.
Currently, we talk about Director of business because of the different levels of
entrepreneurship are very talented, but do not have enough money to basic virtues
of "a normal person." That error is due to history.
At one time, our education was not serious about teaching and molding the
fundamental virtues that for each person to beat them when they are inside the
block they do bad, at the end of the internal dynamics push them to do well. The
way we have to do is apply a force from outside to binding, so when the loss is
forcing other people do not have the energy inside.
For example, to encourage hard work we mentioned the slogan "Labour is
glorious." When you are alone, if a person knows to himself, "we must work
hard", they forced her to do, but if told "to glory" they would say, I do not need to
" go and play! Our business people affected by this common omission. They are
talented, but lack of money, Director of business.
Compared with the fact that we never talk about a military hero because our
people are heroes, so as to discuss the "Act" business society, we see what we
lack.
Seeing the lack of it should also have people with heart and passion for finding

There will come many opportunities and strategic interests when the
business considers the ethics and social responsibility the central of the production
and business activities.
Ethics and social responsibility issues are clearly essential in business. However,

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in fact, these issues have not been cared by enterprises. It is difficult to persuade
enterprises to perform well the issues of ethics and responsibility with the
arguments based on the immediate economic benefits.
Ethics and social responsibility is not only costly but also may be opportunities
for potential business for those who recognize and take as a gift. For example
consumer trends using clean and green products, using safe and less pollution
vehicles is creating a potential market for new products. Toyota's success in the
market hybrid vehicles (electric and petrol) or by TRW on the field of safety
devices in cars comes from the aim of consumer safety and environment strategy
business.
As considering the ethics and social responsibility is an essential part of business
strategy, businesses will feel more active and voluntary in the implementation.
Meanwhile, these problems are no longer a burden or a must-be-done thing but
the source and basis of success. Motorola frequent has breakthroughs in
technology because the company actively invests in training programs and care
for life for employees. The early years of the 1990s, Proctor & Gamble has
pioneered and achieved success through strategic marketing of products and
packaging components that does not harm the environment. Products "green" has
become fashionable after that.
Respecting to the moral and social responsibilities of enterprises will bring mutual
benefits for employees, customers, partners and communities. These are the
crucial components to the survival and development of all businesses. So although
the initial cost can be heavy, the benefits can not be seen immediately, but
certainly in the long run nothing will cause disadvantage when businesses respect