i
A STUDY ON AWARENESS AND IMPLEMENTATION OF CSR IN A
MULTINATIONAL COMPANIES OPERATING IN VIETNAM

BY
DINH THI HUYEN TRANG
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

ii
April 2011
Declaration of Originality and Word Count
 I also would like to express my thank to Ms. Sumathi and Ms. Shenba at Help
University College, who initiated the project and give so much instruction and
support.

iv
Abstract

A STUDY ON AWARENESS AND IMPLEMENTATION OF CSR IN
A MULTINATIONAL COMPANY OPERATING IN VIETNAM
BY
DINH THI HUYEN TRANG
April 2011
Supervisor: Dr. Le Van Lien
As we know that CSR (Corporate Social Responsibility) is no longer a familiar term for
the developing countries in the world. CSR has had a long history and developed more
and more all over the world. Nowadays, many business entities want to implement CSR
in their business operation. Although CSR has became a new trend in the world but it is a
new term with Vietnamese and many business entities. The knowledge of CRS in
Vietnam is limited because there are not many researchers on the CSR field. Many recent
years, taking part in many organizations and political economy in the world WTO,
ASEAN has attracted many investors and business organizations to operate in Vietnam

Declaration of Originality and Word Count ii
Acknowledgements iii
Abstract iv
TABLE OF CONTENT vi
List of Figures and Tables x
List of Abbreviations xi
CHAPTER I: INTRODUCTION 1
1.1 CSR in the world 2
1.2 CSR in Vietnam 3
1.2.1 Government actions 3
1.2.2 CSR practices and challenges 4
1.3 CSR in multinational companies operating in Vietnam 4
1.4 Reasons for further investigation 5
1.5 Problem statement 5
1.6 Objectives and Sphere of research 7
1.6.1 Objectives of research 7
1.6.2 Sphere of research 7
1.7 Research Methods 8
1.8 Structure of research 8
CHAPTER II: LITERATURE REVIEW 9
2.1 CSR definition 10
2.2 Research related concepts 10

vii
2.2.1 CSR and Business ethics 10
2.2.2 CSR and Socially responsible investing 11
2.2.3 CSR and Sustainability investing 11
2.2.4 CSR reporting 12
2.3 Researches and Studies 12
2.3.1 Carroll's 1979-1991 conceptualization 13

4.2.2 Actual disclosure by Dutch Lady 40
4.2.3 Overall evaluation of management's responses 41
4.3 Consumers 41
4.3.1 Finding from questionnaire survey 41
4.3.1.1 Consumers' attitude toward CSR 41
4.3.1.2 Consumers' stated support for social responsible businesses 44
4.3.2 Overall evaluation of consumer's responses 47
4.4 Employees 50
4.4.1 Finding from questionnaire survey 50
4.4.1.1 Employees' attitude toward CSR 50
4.4.1.2 Employees' stated support for social responsible businesses 52
4.4.2 Overall evaluation of employees' responses 54

ix
4.5 Discussion 55
CHAPTER V: CONCLUSION AND RECOMMENDATION 58
5.1 Conclusion 59
5.2 Recommendation 61
5.3 Limitation of study 62
5. 4 Suggestion for the future research 62
REFERENCES 64
APPENDICES 72
Appendix A: Questionnaire sample 72


Figure 4.4: Distribution of response from employees survey 52 xi
List of Abbreviations
CSR Corporate Social Responsibility
WTO World Trade Organizations
ASEAN Association of Southeast Asian Nations
IMF International Monetary Fund
APEC Asia - Pacific Economic Cooperation
ASEM Asia - Europe Meeting
VCCI Chamber of Commerce and Industry of Vietnam
OSHA Occupational Safety and Health Administration
WBCSD World Business Council for Sustainable Development
SRI Socially responsible investing
PR Public relation

xii

1
CHAPTER I: INTRODUCTION
1.1 CSR in the world
1.2 CSR in Vietnam
1.2.1 Government actions
1.2.2 CSR practices and challenges
1.3 CSR in multinational companies operating in Vietnam
1.4 Problem statement
1.5 Objectives and Sphere of Research
1.5.1 Objectives of research
1.5.2 Sphere of research

area of making quality assurance of staff's living standard, a web search “Google" which
treats their staff as golden is a best example. More than that is many corporations raise
funds for charity and donation such as Microsoft, World Bank. Especially, the
billionaires use their fortune to contribute in social activities as Bill Gates, Warren
Buffett.

3
1.2 CSR in Vietnam
The globalization is a trend, which has created many development
opportunities for all countries in the world. Vietnam is in the process of
industrialization and modernization in order to create facilities for a period of
transition to socialist household in many areas such as economy, education,
culture…The evidences is taking part in many organizations and political economy in
the world such as World Bank, IMF, APEC, ASEM, ASEAN. This encourages
Vietnamese economic development rapidly in the harmony way with the global trend.
However, CSR is still a relative new concept. The awareness and implementation
about CSR is limited. According to Nguyen Hong Ha, deputy director of the Chamber
of Commerce and Industry of Vietnam (VCCI) in Ho Chi Minh City “CSR must be
placed on the business strategies of each business. It was, is and will be an essential
part to the success of the enterprise".
1.2.1 Government actions
Vietnam is a potential to many investors all over the world. With open-door
policies and Doi Moi reforms, which are implemented in 1986, Vietnam economy has
attracted many investors to operate and then achieve high economic growth. Besides
many achievements, Vietnam has to face may problems, especially social problem. With
the commitment " Sustainable development and protecting the environment" which was
set in the national strategy SRV 1993: 45, Vietnam government had created many

The last lesson was Vedan and China's Melamine Milk. As was the case broken, the
agency aggressively seek new management plan for resolving the consequences of the
consumer and society has suffered. So multinational companies operating in Vietnam
businesses should adopt CSR. After applying CSR, some businesses have established
environments more stable and higher labor productivity. Moreover, they received many
supports from consumers and society in the common interests that bring businesses to the
community.
1.4 Reasons for further investigation
Vietnam is among the world's fastest-growing economy so that CSR become even
more important to develop sustainably. All companies include Vietnam companies or
multinational companies operating in Vietnam have awareness and implementations
about CSR.
1.5 Problem statement
With the joint of Vietnam to the World Trade Organization (WTO) in 2007, CSR
is getting more concerns from businesses because of requirements from foreign clients
and partners (WTO website, 2006). Nowadays, the open-door policy of Vietnam
government attracts many multinational companies operating in Vietnam. Therefore,
CSR draws more attention from not only businesses, investors but also media, customers,
society. With the commitment " Sustainable development and protecting environment",
Vietnam government always expect that businesses operating in Vietnam not only make
profits but also protect the environment and care for the society's welfare. Many
multinational operating in Vietnam try their best to implement CSR in their business.

6
However, there are many wrongdoing things related to CSR which made by
multinational companies. The first one is related to polluting the environment. The hottest
scandal, which draws attention from society, is polluting Thi Vai river of Vedan
International company-Taiwan-owned firm. This company was caught by the
environmental police for discharging directly water into Thi Vai river in Dong Nai
province. It used two pumping systems: one is direct while other goes through refining

- Recommend some solutions for multinational companies operating in Vietnam to
raise the awareness and have better CSR implementation.
1.6.2 Sphere of research
- Research conducting place: Dutch Lady Vietnam, Binh Duong Province,
Vietnam. From Foremost to Dutch Lady, the name of the operating company
Dutch Lady Vietnam (DLV) has a rich history of significant milestones. The
dream to build a healthy community has long existed since the first 150 cartons of
Dutch Lady Sweetened Condensed Milk were imported and sold in Vietnam in
1924. In 1993, the representative office of Dutch Lady Vietnam was established at
No 27 Don Dat Street, Ho Chi Minh City. On 28th February 1996, the first
Commercial Invoice was officially issued marking its journey of wining

8
Vietnamese consumers’ hearts and minds. Many of Dutch Lady Vietnam products
were launched into the market and quickly welcomed by consumers
- Objective of the research: multinational companies operating in Vietnam.
- Time duration of conducting: from February 12, 2011 to 4 March 4, 2011.
1.7 Research Methods
The project will use the investigation and survey:
The research distributes the questionnaire and conducts the study among the managers
and employees in Dutch Lady Vietnam, and consumers in Hanoi city. The research will
come to each individual to ask them to answer and fill in the survey. The previous
researches and studies are used for making the questionnaire. The measurement is made
in accordance with the past researches. The quantitative is used to carrying out the
research. By surveying the managers and employees in Dutch Lady Vietnam; consumers
in Hanoi, the researcher can analyze the collected data to see the awareness and
implementation of managers, consumers and employees.
1.8 Structure of research
This project will be divided into five following chapters:
Chapter I: Introduction
10
2.1 CSR definition
The nature and scope of corporate social responsibility has changed over time.
CSR has only been used widely since 1960s. In that time, all societies had expectation
that all organization would act responsibly. With the development of CSR through many
years, there have been many CSR definition introduced by many researchers and
organizations all over the world. Everybody can know the concept of CSR, and they can
give the suitable definitions under the understanding of each person “CSR means
something but not always the same thing to everybody" ( Votaw and Sethi, 1973).
According to World Business Council for Sustainable Development ( WBCSD),
the definition of CSR is that " the continuing commitment by business to contribute to
economic development while improving the quality of life of the workforce and their
families as well as community and society at large" ( WBCSD, 1998).
Nowadays, when the economy is a boom development, each organization can have
its awareness and definition about CSR but they cannot deny that the importance and
affect of CSR on their performing, financial status, employees' motivation, customers'
loyalty and company's image. They really realize that they only become perfect business
model and responsible for employees, customers, society and the nature environment if
they fully understand CSR.
2.2 Research related concepts
2.2.1 CSR and Business ethics
It can deny that CSR represents a new perspective on traditional notions of morality
in the business world. Benjamin W Heineman, a senior vice president for law and public
affairs at General Electric Co., describes three elements of CSR: “1. Strong, sustained

11
economic performance 2. Rigorous compliance with financial and legal rules three.
Ethical and other citizenship actions, beyond formal requirements, which advance a

formal channels such as articles in local newspapers, or the word of mouth from
employees, customers and local community persons ( Schultz et al, 2005).
Nowadays, CSR becomes a familiar concept with society so CSR reporting is a
model, which is used widely all over the world. CSR reporting has become important
because it help the companies to communicate with society, consumers, workers,
investors. The CSR reporting will show the companies develop sustainably and protect
environment or not. From the information in CSR reporting, investors will consider to
invest or not. A good CSR report will increase the image and reputation of one business.
However, the organizations know the advantages of CSR reporting so some
organizations did not show the true information about the responsibility with the society,
consumers, workers, natural environment in their CSR reporting. Although they did not
implement CSR well but they said in CSR reporting, they had done well to attract the
investors and increase their reputation.
2.3 Researches and Studies
Because of the importance and effect of CSR in the globalization, there are many
conceptualizations of CSR have researched such as Arthaud-day (2005); Carroll (1979);

13
Jones& Goldberg (1982); Clarkson (1995); Friedman (1970); Wood (1991); Argandona
and Hoivik (2010). Besides, many researches in the world, many researches of CSR in
Vietnam introduced in many recent years such as researches of authors Nguyen Hoang
Anh (2008); Tran Ngoc Chau (2009); Ho Thien Nga (2008).
In the research, only some conceptualizations of CSR are developed and introduced
In the literature review. They are the most famous conceptualizations known in the CSR
area: Carroll's 1979-1991 conceptualizations, Wood 1991 conceptualization, Quazi and
O'Birien (2000) conceptualization.
2.3.1 Carroll’s 1979-1991 conceptualizations
The Carroll's conceptualization was introduced in 1979 as one of the most
comprehensive and widely used in the CSR area. According to Carroll, CSR was
distinguished into four areas: economic, legal, ethical and discretionary, which put into