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CORPORATE SOCIAL RESPONSIBILITY (CSR): A STUDY ON
FACTORS EFFECTING CSR IMPLEMENTATION AND CSR
DISCLOSURE IN VIETNAM-CASE AND EVIDENCE
BY
GIANG THI YEN
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
October 2011
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Declaration of originally and word count
DECLARATION
I declare that this graduation project is based on my original work except for
quotations, theories and citations which have been duly acknowledged. I also
declare that it has not been previously or concurrently submitted for any other
course/degrees at HELP University College or other institutions.
The word count is 10,220


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A STUDY ON FACTORS AFFECTING CSR IMPLEMENTATION
AND CSR DISCLOSURE IN VIETNAM
CASE AND EVIDENCES
BY
GIANG THI YEN
OCTOBER 2011

Supervisor: Dr. Pham Duc Hieu

Abstract
:
This project aims to examine how managers and employees from different
Vietnamese companies represent their knowledge and their perceptions of
Corporate Social Responsibility (CSR), also the behavior of Vietnamese
consumers towards CSR positive. The resulting framework based on an expansion
of qualitative research to clear the CSR performance of each situation. It also
provides evidence that there are large proportions of managers and employees
express a highly positive attitude towards CSR and its reporting but consumer’s
perception is rather low in statements and questionnaire. It stills a discrepancy
between what managers say they do and what action they do. However, the
willingness to learn and gain more understanding about CSR found from survey, it
will make the bright future of Vietnam CSR implementation and CSR disclosure.
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CHAPTER 4: RESULTS AND ANALYSIS…………………………… 31
4.1 Results and discussion from survey……………………………………… 31
4.1.1 Sampling……………………………………………………………………31
4.1.2 Description of results……………………………………………………….33
4.1.3 Result from managements’ survey………………………………………….35
4.1.4 Results from employees’ survey…………………………………………….37
4.1.5 Results from consumers’ survey……………………………………………45
4.2 Summary…………………………………………………………………….48
CHAPTER 5: CONCLUSION AND RECOMMENDATION………….49
5.1 Conclusion………………………………………………………………… 49
5.2 Recommendation……………………………………………………………51
5.3 Limitations and Future Development…………………………………… 53
5.3.1 Limitations………………………………………………………………….53
5.3.2 Future Development……………………………………………………… 55

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REFERENCES………………………………………………………………… 56
APPENDICES………………………………………………………………… 59
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LIST OF ABBREVIATIONS

CSR Corporate Social Responsibility
VCCI Vietnam Chamber of Commerce and Industry
WTO World Trade Organization
WBCSD World Council on Sustainable Development
PR Public Relations
NGOs Non Government Organizations
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CHAPTER 1: INTRODUCTION
1.1 THE IMPORTANT OF RESEARCH
In the last 10 years, Corporate Social Responsibility (CSR) is a more concern in

Besides, CSR is also the commitment of business to business ethics and develop
the economics, they ensure to improve the quality of life for employees and their
families, local society and the communities at large (World Council on Sustainable
Development – WBCSD). Thus, CSR become the main factor to consider in the
decisions of responsible investment as well. Business also gets other benefits such
as developing the relationship with the workers, productivity increases and their
employees will enhance attached to the companies.

1.2 PROBLEM STATEMENT
In the circumstance of Vietnam's accession to WTO, in addition to removing
tariffs, environmental laws that companies take and accomplish is the most
reasonable time to implement CSR. There are some enterprises having a highly
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positive attitude towards CSR and it’s reporting, consumers’ perception is at low
state and questionable. However, the implementation CSR in Vietnam is quite
difficult because of misunderstanding of its important role. Therefore the problem
with Vietnam corporations is lacking of information and lead to confusion,
mismanagement in CSR applying. Understand the importance of this issue,
Vietnam’s company also more pay attention to improve the CSR implementation
and disclosure. In fact, the hypothesis testing shows that there seems to be a
discrepancy between what managers say they do and what they actually do. The
typical lesson recently is Vedan case in 2008 as one example. These scandals have
affected a lot on the developing of Vietnam enterprise in general. However, the
willingness to learn and gain more knowledge about CSR found from the survey
has drawn a bright future for CSR implementation and CSR disclosure in
Vietnam.

1.3 OBJECTIVE OF RESEARCH
In order to succeed in the implementation of CSR in Vietnam, business owners
should encourage the CSR for their employees to make a good relationship based

Besides, the time duration of conducting the research will from July 25, 2011 to
October 17, 2011.

1.5 RESEARCH METHOD
Because growing force on many corporations to carry out of the responsibility in
to their activities that has resulted in a rising of large enterprises which starting to
the responsibility in to their activities that has resulted in an increasing number of
large corporations starting to forward the concept of Corporate Social
Responsibility (CSR). Due to the diversification of much previous research, the
purpose of this research was to achieve a better understanding of how the concept
of CSR is incorporated in operations and focus on how it describes, integrates, and
monitors CSR. In order to more clear the issue, the research will provide case
studies of TWO different companies in Vietnam. Besides, many documentations
and interviews were studied as a data collection method for this thesis. The
summaries are made from the findings that were the corporation working tends to
CSR, which is considered as a framework of a number of different circumstances,
and absolute new and therefore it’s not yet fully established. However, CSR is still
considered as an important part of the strategy’s activities. Further more, it was
concluded that the companies work with high CSR in a multi-functional through
different types of networks. The study also shows that there is little uniformity
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between the business CSR monitoring and report systems. As a result, it’s
important for a general system that can facilitate a comparison of CSR efforts
internal companies.
Besides, base on primary data, the research distributes the interview and gives
questionnaire to study through Vietnam companies’ managers, officers and
consumers. This can be examined how they understand the CSR concepts and
what they know of its impact to the development of Vietnam enterprises. At the
same time, this is the fastest way and cheapest collection data without be sued by
any organizations. Furthermore, the information and any sources that use in this

causes. However, the European model is more focused on operating the core
business in a socially responsible way, that base on investment decision for solid
business case reasons. On the other hand, the European Commission encloses with
two definitions into one concept whereby companies decide voluntarily to
contribute to a better society and a cleaner environment. That means it integrates
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social and environmental concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis.
In conclusion, even though there are many differences of norms from the many
studies or other sources, CSR still implement to improve the capacity of business
which motivates the firms to advance their competitive advantages, employee’s
belief and customers’ loyalty as well as the company’s performance.
2.1.2 Stakeholder theory
The concept of stakeholders is core of CSR implementation. In this theory, the
concept “stakeholders” refers to any group or individual who is influenced by the
action of the firms. It may be given by a wider perspective as simply all those
entities with a "critical eye" on corporate actors (BomannLarsen & Wiggen, 2004).
According to the stakeholders theory argues that there are other parties involved,
including governmental bodies, political group, trade associations, trade unions,
communities, associated corporations, prospective employees, prospective
customers, and the public at large. From the ethical perspective, organizations
must have an obligation to treat fairly among stakeholders (Deegan, 2009). This is
a dynamic activity, as expectations and pressure change and is further complicated
by the need for managers to resolve the interests of different stakeholders and to
decide it within the managerial decision making process. In the case of
stakeholder’s conflict of interest, business has duty to achieve balance between
them.
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There are also various analyses and specifications of stakeholders are also
provided by the marketing literature. According to Morgan and Hunt (1994), they

to the center of management decisions and policies. It’s also honesty with
compliance or obligation and refers as the role of the leadership. Further more, the
level of implementation is affected by numerous factors that including the CSR
model-implementation keys, the principle’s instructional leadership, the measure
of teachers’ professional community, and the helpfulness of the CSR developers’
assistance. The change in implementation is linked with positive change in
principal’s instructional management.
In Vietnam, CSR implementation is consider as a strategic decision and a means
for authority and it bringing new business opportunities. According to Mr. Pham
Hoang Hai, Action Aid Programmed Officer in the North in charge of CSR said
that in fact “CSR practice is a tool for sustainable development that enterprises can
implement to add more to their economic benefits. The companies do their CSR
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nowadays as it assures the business growth but not damage the environment and
not causing social inequalities”.
Because of joint as a full member of WTO in 2007, CSR practices in Vietnam will
enhance enterprises’ competitive advantages and carry out of the opportunities in
export productivities to foreign markets. Therefore, effective implementation of
CSR is an essential thing for the whole development of Vietnam enterprises. It
should be concern that Vietnam has a lot of challenges when implement CSR in to
business, it is difficult to assemble the demand of the community, of clients and
suppliers toward the industrial development.
In addition, a more important disclose from the government, in terms of public
policy related to CSR is starting to become apparent with indications of increasing
legislative activity in the areas of labour law, corporate governance and
environmental protection. This leading to demonstrated numerous companies can
effectively disclose corporate social responsibility (CSR) information to the
public, but in practice, reporting this type of information is fraught with legal and
ethical uncertainty often unexplored in most literature. The facts of there are many
companies have scandal with CSR disclosure in Vietnam today.

intelligibility are more probable than others to support efforts. Even though if
there is an executive lacks true conviction, they may judge that CSR efforts can
advance the public image of their company and may even increase profit. Making
the competitive business advantages, they also pursue CSR programs simply to
develop the public image of the company and intimate more customers.
Secondly, according to Scholar Peter Weidman of the University Of New Hanover
said “situational conditions often entice companies into CSR measure”. That
means, the managers often respond to external conditions suggesting that the
community will prove sympathetic to CSR reforms. Social consider that direct the
company in a poor light may also make CSR efforts more attractive to a
corporation. At the same time, a company may pursue CSR when the same
industry competitors do so in order to gain better competitive advantage in overall
market.
Finally, it is the factors of ways that one business running to achieve a success.
According to the European Working Conditions Observatory suggests that
“business prosperity historically constructs CSR initiatives seem to be desirable”.
For instance, they consider that there are many companies with upwards of more
than 200 labors who likely understand of CSR and they can appropriate for their
enterprises. According to the European Working Conditions Observatory suggests
that business prosperity historically constructs CSR initiatives seem to be
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desirable. In the recent study, having more companies are also more extremely to
have the available implementation of large social projects and they hire
consultants and experts’ who can advise for their CSR strategies. This as the result
of gain advantages with competition and construct their image on the public.

2.2.2 Business ethics in Vietnam
The study of ethics is a long traditional in society that refers as beginning of
religious, different cultural and philosophical belief. Ethics is considered with
Ethics is concerned with honorable duty, accountability and social justice. It is

advantages with others but also support from government and improve their
reputation in public. This lead to the success of encourages developing business
ethics for themselves and raising the benefits of stakeholders.

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2.3 RESEARCH SUMMARY

In the face of the growing consequence of CSR, there is small concurrence as to
what it really meaning and there are many different names for the same or similar
concept, such as Corporate Social Responsibility, Corporate Citizenship, Business
Sustainability and Corporate Responsibility. Base on the several of summaries,
this research is given small aspects of CSR definition and its important role. They
all pointed towards the same fundamental principle that a company is responsible
for providing more benefits. It has a role to play in treating its employees well,
preserving the environment, developing sound corporate governance, supporting
philanthropy, fostering human rights, respecting cultural differences and helping
to promote fair trade, among others. All of these are meant to have a positive
impact on the communities, cultures, societies and environments in which
companies activate.
What’s more, the search also classifies different presenting the literature
framework of corporate social responsibility in the main point of CSR concept,
CSR concerns, and practices in Vietnam companies.
In common sense, this research also tends to the awareness of Vietnam business in
CSR and how to develop it in nowadays. Even though there are a lot of limitations
but only a few studies in Vietnam focus on factors affecting on CSR practices and
it’s reporting which this study attempts to address.