Student ID 1207383
BOLTON BUSINESS SCHOOL
Faculty of Well being and Social Sciences
Course level: BA
Module title: Contemporary Management Issues (CMI)
Module code: BAM3011
Level HE6
Credits 20
Assignment title: Corporate Social Responsibility essay (2500 words)
Date issued Date due in Extension date agreed
(tutor to sign)
Actual submission
date18/10/2012
17/09/ 2012 19/10/ 2012
Interim mark awarded
(This mark is subject to internal and external moderation)
General Comments: (brief comments on the performance)
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For Student Use:
Student Number Student Name
1207383
Declaration:
I confirm that I have read the University policy on plagiarism and that the work presented here is my own. I
acknowledge that the University uses plagiarism detection software.
Student Signature _____Signed___________________________Date18/10/2012
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Student ID 1207383
Corporate social responsibility (CSR) plays an important part in business operation,
society and environment protection. Thus, a developing country like Vietnam, its
government has found out the important CSR’s role and has programs for CSR
hosted by Vietnam Chamber of Commercial Industry (VCCI); especially, Ha (2012)

Nevertheless, Friedman (1970) had different views, he stated that there is always the
conflicts between CSR`s projects and companies’ finance. As the nature of business
is to maximize profit, the opposite ideas claim that CSR is stable growth and long run
business strategy. Anyway, its final purpose still aims to profit. Gallagher (2005)
agreed with Fiedman’s points that company is only responsible for its shareholder
not to society. And all under circumstances, shareholder’s wealth is always the top
mission of firm’s operation.
Also, McGuire et al. (1988) pointed that for companies engaging in CSR expenditure,
they get economic disadvantages compared to the firms less responsible for CSR.
When CSR is invested, it could take a huge cost; thereby it’s against shareholder’s
benefits.
In the aspect of profit from TBL theory, CSR brings the potential benefits by
operating perspective such as reducing cost, recycling products. For example,
General Mills (GM) is one of the large food production companies in USA, it has
program reduction of energy usage by 20% to 2015 after installing energy monitoring
meters on its equipment at Covington, Ga.plant, and GM saved estimated $2.5mil in
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2011 (General Mills environmental sustainability, 2011). With the savings cost, it
could be used to re-invest or keep reserving account to prevent abnormal situations.
Furthermore, CSR is adopted as competitive advantage tool when the other
competitors are influenced by factors or scandals; for instance, economic downturn,
unhealthy products or harmful environment activities etc. In particular, General
Electric, an electricity company, has released fluorescent light bulbs which are
friendly environment and consume less energy in comparison with normal bulbs. (GE
EcoMagination report, 2005) these products brought for GE $10.1 billion earning
before tax. This shows that for a company whose products and services are
preferred than others already has good CSR.
Moreover, Company applying CSR well often takes the initiative in innovative
products which create brand differentiation among the competitors since the

In addition, CSR is used as a norm method about human rights to protect labor in
developing countries from multinational companies where the law for protecting
labors is poor. Kenyon (2000) Nike footwear company shoes is a good example for
sweatshop; it hires child labors and let them work in poor working condition in
Cambodia, which is discovered by Panorama team; consequently, Nike faced the
criticism for those actions. After that Nike issued first CSR report (CSR wire, 2001)
about the labor rights and working condition. Nike tried to recovered image and
reputation; however, its goodwill is already damaged in the public eyes.
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Another view about planet is that CSR makes firms more perceptive of habitat
protection and its importance. Companies such as General Mills and General
Electricity know how to combine product and environment, and all of their products
are environmentally friendly and emits less pollution to the air; consequently, they get
both profit and reputation. It’s win-win situation.
However, Apple is another story for making maximize profit without engaging CSR.
This case study supported Friedman‘s argument.
Duhigg & Kocieniewski (2012) Apple Inc. , a computer company, took billions of profit
offshore in Ireland, Netherland and China by tax evade. Instead of operating in USA
where Apple has to care much about higher wage, working condition and code of
conduct obligations, it contracts supply chains in developing countries where it
benefit greatly from low tax and fewer law protection to save cost, expense and
increase profit. Gewizt (2012), from Peter Oppenheimer CFO, $64bilions Apple’s
income was offshore.
Karnani (2012) said that some companies do not take responsibility for public`s
interest still get profit .This is fundamentally flawed. For example, Blanchard (2012),
Foxconn factory where most of Apple’s products were assembled, had three workers
who died in a blast last year when polishing iPads ignited, and 18 workers committed
suicide in 2010.
After those scandals, Blodget (2012) workers still want to work there, because they

Student ID 1207383
those problems, the government has committed to stable growth and the
environment protection; As a result, Vietnam Agenda 21 was issued. On the other
hand, government strongly encouraged firms to join to protect environment, improve
labor condition and safety workplace (Ministry of planning and investment, 2008).
Despite the positive government actions, there are still many challenges and
difficulties in implementing CSR.Firstly, government has less law enforcement to
ensure firms to do right things as well as their cooperation. (NREN ,2009) Thi Vai
river was polluted by VeDan Company was taken as a good example for lacking of
watchdog groups and local corruption.
Dien (2010). At that time, there was a huge boycott for claiming compensation due to
poisoned river and destroyed habitat. The government forced Vedan to make up for
the lost they caused; however Veda still postponed paying damaged to resident.
Secondly, the main reason companies do not implement CSR is that they don’t
understand its meaning as well as its key role to company’s growth.
One-third of 400 companies 39.8% have no idea about the CSR, the other one-third
have little bit knowledge and just 10% know about it. Less than one-fifths of them
were certified with ISO9000 while the company certified with SA8000 or ISO14000
made up 10%. (Baseline survey report, 2010).
Moreover the Vietnamese stakeholder’s awareness about CSR is quite poor. Only
Service and Export enterprises such as leather and footwear, garment and textile
carry out CSR seriously because of high requirement from foreign partners.
(Baseline survey report, 2010).
Thirdly, Kim (2011) 98% companies are small and medium sized (SMEs) in Vietnam;
and Tuoitre (2012) 53000 SMEs go bankrupt in H1/2012 due to capital shortage,
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inventory products and high interest rate. Actually, surviving, improving financial
performance, paying debt and entering into the market are their top goals because of
economic downturn in recent years. Hence, CSR implementation is not their big

establish brand differentiation in the customer’s mind and loyalty. However, CSR is
supposed a green wash, type of marketing strategy to deliver brand recognition and
public relation.
On the other hand, CSR can violate profit and make the conflicts between
shareholders’ wealth and stakeholder. Government’s role for protecting society and
environment is still the most important. In fact, the real CSR doesn’t have purposes
and fraud actions.
In Vietnam, the code of conduct is less strict in spite of having positive actions from
state. There is lacking of understanding and being aware of CSR well as well as
capital, technology from small and medium enterprises.
Recommendation, this essay reviews the CSR`s importance, its negative impacts on
global business, and the difficulties of adopting it in Vietnam where CSR concept is
quite new and hard to understand.
This essay has some limitations because it only focuses on some aspects of CSR,
which is considered key points and major topic for arguments in the real world. Some
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points are mentioned generally and not discussed in detail both in Global and
Vietnam context. Therefore, it needs more survey, research and data base in order
to understand more clearly about the issue of CSR.
Words count: 2468
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Bibliography
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