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DECLARATION OF ORGINALITY AND
WORD COUNT I hereby declare that the graduation project is based on my original work except for
quotations and citations which have been duly acknowledged. I also declare that it
has not been previously or concurrently submitted for any other course/degree at
HELP University College or other institutions. The word count is 10,048 words. HO PHAM QUYNH NGA
28 March, 2011 ii

ACKNOWLEDGEMENT

This study would not have been made without the assistance, support and
encouragement of many people. I greatly appreciate their kindness and want to take
this opportunity to thank all people who help me during the time I carry out this
study.
First of all, I would like to express my gratitude to my supervisor, Dr.Pham Duc


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TABLE OF CONTENTS

DECLARATION OF ORGINALITY AND WORD COUNT……………………… i
ACKNOWLEDGEMENT……………………………………………………………ii
ABSTRACT…………………………………………………………………………iii
CHAPTER 1: INTRODUCTION……………………………………………… …10
1.1 Research background……………… ………………………………………11
1.2 CRS in Vietnam……………………………………………… ……………12
1.3 Problem statement……………………………………………………………13
1.4 Research questions…………………………………………………… ……14
1.5 Research objectives……………………………………………………… …14
1.6 Research structure…………………………………………………….… …15
CHAPTER 2: LITERATURE REVIEW……………………………………………16
2.1 Definition and components of CSR……………………………… … ……17
2.2 The concepts related to CSR…………………………………… ….………18
2.2.1 Business Ethics……………………………………….……….…………18
2.2.2 Environment Protection…………………………………………….……19
2.2.3 Sustainability Development……………………… ….…………………19
2.2.4 Public Relation…………………………………… ……………………20
2.3 Theories related to CSR…………………………………… ………………21
2.3.1 Carroll’s “Pyramid of CSR” ……………………………………………21
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2.3.2 Stakeholder theory………………………………………………………23
2.3.3 Triple bottom line theory……………………………… ………………24
2.3.4 Three P's theory……………………………………….…………………26
CHAPTER 3: RESEARCH METHODOLOGY……………………………………28

CHAPTER 5: CONCLUSION AND RECOMMENDATION………… …………55
5.1 Conclusion…………………………………………………… ……………56
5.2 Recommendation………………………………………… …… …………57
5.3 Limitation of study…………………………………… ……………………57
5.4 Suggestion for future research………………………… ……………… …58
REFERENCE…………………………………………………….…………………59
APPENDICES………………………………………………………………………62 vii

LIST OF FIGURES AND TABLES

Figure 2.1 The Carroll’s “Pyramid of CSR” 12
Figure 2.2 The triple bottom line 15
Figure 2.3 Planet – People- Profit in three P’s theory 17
Table 4.1 General information about Vinamilk 29
Table 4.2 General information about Tam Viet 30

Chart 4.10Description of Result – Question 6 – Questionnaire for consumers of
Vinamilk 39
Chart 4.11Description of Result – Question 4 – Questionnaire for consumers of Tam
Viet 40
Chart 4.12Description of Result – Question 5 – Questionnaire for consumers of Tam
Viet 41
Chart 4.13Description of Result – Question 6 – Questionnaire for customers of Tam
Viet 42
Chart 4.14Description of Result – Question 4 – Questionnaire for managers of Tam
Viet and Vinamilk 43
Chart 4.15 Description of Result – Question 5 - Questionnaire for managers of Tam
Viet and Vinamilk 44

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LIST OF ABBREVIATION

CSR
WTO
WBCSD
SD
PR
TBL
Corporate Social Responsibility
World Trade Organization
World Business Council for Sustainable Development
Sustainability development
Public relation
Triple bottom line


In general, CSR focuses in three issues which are labor, environment, and finance.
And by combining fluently these three issues, a company not only performs CSR but
also increase advantages in the market. By carry out CSR and aligning CSR concepts
into business strategy, a company can have more advantages than competitors who
do not. A company which cares about employees, their lives, and their working
environment can raise employees’ loyalty, increase productivity. By protecting
environment and contributing back to society, the company makes itself more well-
known and more reliable. Therefore, the company guarantees shareholders’ profit
from their investment. From these benefits, it can be said that there is a relationship
between CSR and sustainability development of company. Many companies in the
world have recognized this relationship, and in order to join international business
environment, Vietnamese companies should pay attention to CSR implementation. 3

1.2 CSR in Vietnam
Since Vietnam joined World Trade Organization (WTO) in 11
th
January 2007, the
competition between foreign companies and local companies becomes stronger than
ever. According to Dr. Le Dang Doanh, Member of the Board and Senior Research
Fellow of the Vietnam Institute of Development Studies, joining WTO, Viet Nam
has to accept higher level in competition, but this competition will enhance economic
development. So, in order to survive in the strong competition, Vietnamese
companies should have more understanding about CSR, and apply CSR in making
business decision.

few. Then this project is formed with the willingness to contribute in Vietnamese
CSR research. However, in Vietnam there are many companies, with limited time
and capacity, the scope of this research only focuses on five selected companies in
Ha Noi.
5

1.4 Research question
With the purpose of analyze the relationship between CSR implementation and the
development of company, sub-problem of the research is considered as follows:
Sub-problem 1: Why and how does CSR related to company’s growth?
Sub-problem 2: What actions considered as CSR actions did these selected
companies do?
In order to accomplish this research, primary data source and secondary data source
will be used as data to analysis.

1.5 Research Method
In order to reach above objectives, the research will answer the following questions:
1, In general, how does CSR implementation affect business development?
2, In detail, how does CSR implementation affect business development of
selected companies in Ha Noi or have branch in Ha Noi?
Together with figuring out the answer, the research will help selected companies to:
3, Realize the strong relationship between CSR implementation and business
development.
4, Reconsider and make more reasonable plans to perform their CSR.
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1.6 Research structure

2.3 Theories related to CSR
2.3.1 Carroll’s “Pyramid of CSR”
2.3.2 Stakeholder theory
2.3.3 Triple bottom line theory
2.3.4 Three P's theory

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2.1 Definition of CRS
The concept of CSR has appeared for a long time, but it is hard to find one common
definition about CSR. In different continents, people define CSR in different ways;
even in different countries, there are ways to define CSR. Even there is a research
about thirty-seven (37) ways to define CSR in “How Corporate Social Responsibility
is Defined: an Analysis of 37 Definitions” of Alexander Dahlsrud, a PhD fellow in
Department of Industrial Economics and Technology Management, Faculty of Social
Science and Technology Management, Norwegian University of Science and
Technology, Trondheim, Norway. According to Alexander Dahlsrud, there are “37
definitions of CSR were found and analyzed, among them definitions were primarily
of European and American origin, but definitions from India and Canada were also
included”, they “originated from 27 authors and covered a time span from 1980 to
2003, although most definitions were published from 1998 onwards”. So in this
research, definition of CSR, which are stated, can be considered as the popular
definition.
CSR can be defined simply by Mallen Baker, a writer, speaker and strategic advisor
on corporate social responsibility and Founding Director of Business Respect as
“how companies manage the business processes to produce an overall positive
impact on society”. CSR also can be understood as "social responsibility of

policies, and business strategies. So, when a company has good values, it will have
business ethics, will obey the law better, and more successful in performing CSR.

2.2.2 Environment Protection
Even environment issue does not stay separately in CSR concepts, but it becomes the
most interest of society and the whole world recently. Therefore society,
governments, and environment organizations require companies to include suitable
plans in production process in order to protect environment. Environment
responsibility of company can be performed by actions which is to save natural
resources by saving materials, increasing productivity; reduce negative effects on
environment by eliminate exhaust to the air and disposal to river, local community.
Besides that, company can produce environment-friendly products, which certainly
get positive respond from customers and society.

2.2.3 Sustainability Development
“Sustainability development” (SD) has related to CSR concept, SD means taking
actions to guarantee better life quality for every people at the moment and next
generations. SD contains three components which are social equity, economic
growth, and environment, when these three components are intersected, SD is
reached. Social equity means the needs of people in society is recognized, and basic
human rights is protected. A company can contribute to SD by issuing supporting
policies and protecting employees’ rights. Economic growth is a sustainable way to
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increase living standard of people in society, and companies has responsibility to
create wealth contributing to society, increase life quality of company’s staffs.
People cannot survive in low quality environment, where there is tsunami,
earthquake, flood, or drought. Therefore, environment needs improving, companies
and society should use recycled productions and input materials instead of natural
resources.

Figure 2.1 The Carroll’s “Pyramid of CSR”
(Source: Crane et al, 2008, pp. 57-58; Carroll, 1991, pp. 39-48)
In Figure 2.1, Carroll pointed out four responsibilities of a company, they are: (1) Be
profitable, (2) Obey the law, (3) Be ethical, (4) Be a good Corporate citizen. The first
responsibility, be profitable, is the goal of any company when establishing, it also
considered as the priority target because any company wants to earn profit. Being
profitable is illustrated by the effective growing of the company. But the economic
aspect in Carroll’s concept mentions about other things rather than only the profit
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earned by company. Under economic aspect, a company has responsibility to provide
high quality products and services that serve customers’ needs and wants at
acceptable price to both the company and customers. And by supplying products and
services required by customers, company also commits to the efficient development
of company, and carries out the promise of maximize the investment of shareholders.
In short, one company should fulfill responsibilities in economic aspect before
moving to other aspects.
The second aspect which sets responsibility of company is legal aspect. In this field,
company has responsibility to obey the law, implement all related Laws, Provisions,
Regulations, Articles, or any other legal documents issued by the Government and
local authorities. Similarity, the process of manufacturing or performing products
and services of company are also meet legal requirements. A company which throws
all disposal of production process directly into environment cannot be considered as
well-performed responsibility in legal aspect. By obeying the law, company will
contribute in customers’ rights protection, environment protection, building fair
competition business environment. And it will help company stay longer in fierce
competition.

and researchers. In contrast to shareholder view, stakeholder view argues that
company should increase the benefits of other parties rather than only focus in
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shareholders. Stakeholder theory states that besides relationship with stockholders,
company also has relationship with employees, suppliers, customers, government,
and society as a whole. Without any of these relationships, company cannot exist for
a long time in competitive business. Therefore, managers of company should include
the goals of increase welfare policies for employees, increase products or services
quality for customers, protect environment, and others into company strategy.

2.3.3 Triple bottom line theory
The meaning of “Triple bottom line” (TBL) was firstly mentioned in 1981, by Freer
Spreckley, but until 1998, in a book of John Elkington “Cannibals with Forks: the
Triple Bottom Line of 21st Century Business” concept of TBL was coined. In TBL
concept, theorist mentions three bottom lines, which are economic line, social line
and environmental line.
Figure 2.2 The triple bottom line
(Source: Susan Patel, Triple Bottom Line and Eco-Efficiency: Where to Start?
1
)

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