corporate social responsibility strategies for sustainable development for small and medium enterprises in the village of bac ninh province, vietnam

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corporate social responsibility strategies for sustainable development for small and medium enterprises in the village of bac ninh province, vietnam

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CORPORATE SOCIAL RESPONSIBILITY: STRATEGIES FOR SUSTAINABLE DEVELOPMENT FOR SMALL AND MEDIUM ENTERPRISES IN THE VILLAGE OF BAC NINH PROVINCE, VIETNAM BY TRINH THI THANH HUYEN E0600084 Graduation Project Submitted to the Department of Business Studies, Help University College, in Partial Fulfillment of Requirements for The Degree of Bachelor of Business (Accounting) Hons OCT 2011 DECLARATION I hereby declare that the graduation project is based on my research and experiences except the acknowledged aquotations and citations And, this graduation project has not been used at previously or concurrently submitted for any other course/degree at Help University College or other institutions The word count is 10,968 words _ TRINH THI THANH HUYEN Date: October 2011 CORPORATE SOCIAL RESPONSIBILITY: STRATEGIES FOR SUSTAINABLE DEVELOPMENT FOR SMALL AND MEDIUM ENTERPRISES IN THE VILLAGE OF BAC NINH PROVINCE, VIETNAM By TRINH THI THANH HUYEN Oct 2011 Supervisor: Dr Le Van Lien ABSTRACT The constantly innovation to improving the ability to adapt to the trend of sociaty is one of the leading principles in today’s business world During the renovation of the country, Vietnam has faced to many challenges on the economic, political, social, environment, culture Especially on 7/11/2006 Vietnam has become a member 150th of World Trade Organization (WTO) The business man face to challenges, competition which will take place more severe, more competitors at broader and deeper level That is the competition between the products in the market, between the domestic businesses and the international market Relate to fact of small and medium enterprises, cooperatives, manufacture owners in the village of BacNinh face to a lot of difficulties in the business because small-scale trading, market relationships are limited, public management is still insufficient, the application of information technology is poor, they not know where to start, yet? How the growth of businesses like? How to develop product? How to competitive? The development of enterprises which had difficulties when it is more and more difficult to determine a direction for sustainable development, long-term benefit for the enterprise itself and managers Besides, the challenges of the 21st century such as weather change, declining natural resources, and energy crises as well as business requirements of small and medium enterprises to change the basic way they operate It is no longer acceptable simply to maximize profits in the short term Instead, businesses must pay attention to the impact of economic, social and environmental aspects of their activities - known as sustainability or corporate social responsibility (CSR) The purpose of this study is to discuss the role of CSR in helping small and medium enterprises in the villages of Bac Ninh - Vietnam to achieving competitive advantage Also research and synthesis, analysis, logic, strategy and business development for small and medium enterprises in villages in Bac Ninh province Vietnam Simultaneously suggest directions and solutions to promote business development of special attention to products with different villages of products to create sustainable development for the enterprises TABLE OF CONTENTS Pages Declaration Abstract Table of content List of figures 10 Chapter INTRODUCTION 11 Definitions 11 1.1 The definition of sustainable development 11 1.2 Some models of sustainable development 12 1.2.1 Three circles model of economic and social, 12 environment of intersection of Jacobs and Sadler (1990) 13 1.2.2 Carroll's 1979 conceptualization 14 1.2.3 Model of three target groups of economic, social and environment of World Bank 1.2.4 The model of sustainable development in Vietnam 1.3 Small and medium enterprises 14 15 16 1.4 Villages, traditional villages 17 Chapter LITERATURE REVIEW 17 2.1 Model three - level analysis, PEST model 2.1.1 Economic environment 18 18 2.1.2 Environmental technology 2.1.3 Socio-cultural environment 19 2.1.4 Natural Environment 19 2.1.5 The political and legal environment 20 2.1.6 Global Environment 20 2.2 General analytical model inside and outside – SWOT 21 23 2.2.1 SO strategy 23 2.2.2 WO strategy 23 2.2.3 ST strategy 23 2.2.4 WT strategy 25 Chapter RESEARCH METHODOLOGY 3.1 3.2 25 Research objective Research methodology 25 26 3.3 The scope of research Chapter ANALYSIS AND DISCUSSION 4.1 Overview of small and medium enterprises in craft 27 27 villages in Bac Ninh 4.2 PEST model applied to analyze the business 33 environment of the handicraft industry of small and medium enterprises in the village of Bac Ninh 4.2.1 Environmental politics and law 33 4.2.2 Economic environment 34 4.2.3 Environmental science and technology 35 4.2.4 Socio-cultural environment 36 4.2.4.1 Society of the population and labor 36 4.2.4.2 Population quality 37 4.2.4.3 Cultural Environment 37 4.2.5 4.3 International Environment The key issues related to the current situation and 38 39 development prospects of small and medium enterprises in craft villages in Bac Ninh: Identify strengths, weaknesses and determine opportunities and challenges; Position the stand point of industry 39 4.3.1 Current Competition 39 4.3.1.1 The pressure of new businesses entering the 40 market 41 Pressure from customers 42 4.3.1.3 The pressure of suppliers 43 4.3.1.4 Competition among same field enterprises 43 4.3.1.2 4.3.2 The factors in the industry 4.3.2.1 Relations with investors and representatives of 43 customers, relationship with joint venture partners 44 4.3.2.2 44 Manufacturers Capability 4.3.2.3 Organization of production 44 4.3.2.3 Criterion on price 45 4.3.2.4 The ability to provide credit, capital 4.4 Apply the SWOT model to evaluate the general 46 position of small and medium enterprises in the villages in 46 Bac Ninh 4.5 Competitive strategy and strategic options 47 development of small and medium enterprises in the 48 villages in Bac Ninh 48 4.5.1 SO (strengths - opportunities) 49 4.5.2 ST (strengths - threats) 4.5.3 WO (Weakness - Opportunities) 49 4.5.4 WT (Weaknesses - Threats) 49 Chapter RECOMMENDATIONS, SUGGESTIONS 5.1 Strategic Orientation for Sustainable Development of small and medium enterprises in Bac Ninh 49 50 50 5.1.1 Vision 5.1.2 Mission (functions) 5.1.3 The strategic objectives in 2011 and 2020 51 5.1.4 The strategy function 52 5.1.4.1 Product development strategy to make a difference, combining traditional elements with modern 53 elements, preserving the national identity 53 5.1.4.2 Strategy for raising capital for businesses 5.2 A number of measures to improve management structure and resources of small and medium enterprises in the 55 55 56 villages in Bac Ninh 5.2.1 On the market 5.2.2 Technical solutions 57 5.2.3 Solution of labor 5.2.4 Solution development and combination of economic, production and business organizations 5.2.5 Some measures to improve the layout using the staff 58 58 58 60 and management mechanisms 61 5.3 Recommendations to address existing problems 5.3.1 For businesses 61 62 5.3.2 For industry - State and local 5.4 Proposed measures to reduce environmental pollution 62 5.4.1 Worker training and awareness of people 63 5.4.2 Production planning area 63 5.4.3 Planning the village towards the development of 64 64 cultural tourism 5.4.4 Planning within the enterprise 65 5.4.5 The technology measures 5.4.6 Management Environmental of dirty water 5.4.7 Solid Waste Management 5.4.8 Management of air pollution 5.4.9 Solutions to environmental management Chapter CONCLUSION 67 LIST OF FIGURES Figure Title Page Figure 1.1 Three circles model of CSR 12 Figure 1.2 A hierarchy of CSR (adapted from Carroll, 1991) 13 Figure 1.3 Three target groups of CSR 14 Figure 1.4 The model of CSR in Vietnam 14 Analysis of factors inside and outside 22 Figure 4.1 The medium and small villages in BacNinh province in 28 Figure 4.2 2008 Chapter Chapter Figure 2.1 Chapter N/A Chapter Value of production of small and medium enterprises in the 30 Figure 4.3 villages in BacNinh 30 Figure 4.4 Number of enterprises in the village Number of households - labor small industry production in Chapter 2008 NA NA Chapter NA NA 10 31 region that they have to So businesses need to your homework and understand the aesthetic tastes of each customer in particular of lightweight, nice packaging protection 5.2.2 Technical solutions The innovation and application of modern technology combined traditional technology in craft villages is essential The strength of modern technology is creating a series of products, good quality and uniformity, higher labor productivity, in accordance with terms exchange The close technology to of integration and combination between expansion modern create products with high technology with traditional quality, for consumer tastes, but still not losing national identity of international consistent demand Enterprise to study the information and technology transfer, avoid entering the old technology, disposal of foreign countries Also not enter the domestic machinery that can produce good quality, reasonable price In addition, enterprises should strengthen the training of technical workers, raise expanding training the cultural and invited experts on expertise of employees and vocational programs consistent with technology transfer to give the employee is qualified to acquire and master new technologies 5.2.3 Solution of labor Enterprises should have a policy on the employer training and improving the quality of labor, method of payment, social insurance 55 Enterprises should be remuneration for artisans and skilled workers to give them peace of mind to work, their dedication to traditional vocational training for young people Need time to reward those who create quality products, there are technical innovations, inventions, improvements and machinery and equipment manufacturing technology + Planning details of production, the use of specialized labor, labor, women, seasonal workers and reasonable to overcome the lack of excess production + Need pay, increased income for workers, concern for employees, should have clear regulations Training of employees: Businesses should make use of available labor resources, attracting local employees Enterprises should have its own training program, consistent with its business products Need to improve skills for workers in many diverse forms of training Vocational traditional: Invite the artisans, skilled workers locally, where other classes of self - organization, or sending people to the other business school facilities in a while Planning for needs to include school employees are concentrated in vocational schools, universities, research institutions, to improve the technical level, the level of fine art, creating the product design beautiful, rich and highly artistic 5.2.4 Solution development and combination of economic, production and business organizations Enterprises need to create the relationship of economic links between the types of businesses in the village, linking with other businesses in the area, other locations in 56 the country The combination can cause processing for large enterprises, urban businesses, links and support each other in capital, on consumption, while improving the link production and business efficiency, both promoting the role of the strength of all the economic types, and also avoids the compression of the traders for enterprises, especially small and medium enterprises in the villages 5.2.5 Some measures to improve the layout using the staff and management mechanisms + Really enhance the responsibility of business leaders associated with economic interests + To take measures to recruit management staff, technical staff skilled technology + Drawing up plans and regulations talent, attracting artisans and skilled workers, staff of highly qualified science and technology; layout rotation policy, training, coaching and training to detect planning and fostering talent long service to the enterprise + Review of regulations on wage payments, to encourage, improve responsibility of officers and employees, develop and implement regulations on discipline and reward activities + Develop additional rules and regulations on the work of staff, appointment and dismissal mechanism securities products, authorized for grant under the partial execution of work, building the financial regulations, financial services, auditing, contracting, wage policy, management and use of equipment 57 5.3 Recommendations to address existing problems Prior conditions and current circumstances, small and medium enterprises in the village of Bac Ninh province, there are many opportunities, but challenges are not small and complex, they have many strengths, but also many limitations and weaknesses The authors suggest a number of reviews address the existing problems: 5.3.1 For businesses - Should be strongly addressed, the existing process, boldly recognize shortcomings, particularly the issue of human resource management, organizational structure, high cost, low efficiency, to healthy corporate finance industry - Have a plan for training to raise skill levels, techniques team of engineers, artisans, skilled workers and skilled workers - Strengthen training staff training, leadership, good foreign language in preparation for overseas markets, integration - Improved environmental technologies, information 5.3.2 For industry - State and local First, need the innovation in institutional investors, to publicize the investment incentives, investment growth rate of the Central Province to the traditional villages Second, the institutional reform of land and production support space, business planning, blueprint, plan public areas, industrial villages to the open access business lease land surfaces, factory production Develop system of land registration in the 58 country to speed up certification of land use rights and encourage the registration of land transactions Implement policies to support investment in upgrading and building infrastructure to develop rural tourism market and normal commercial exchange Support to the polluting enterprises out of the area of urban development, people's life For free, deferred payment of land rents and reduced to its lowest level in accordance with current legislation Third, institutional innovation of capital, diversification of types of loans, creating the most favorable conditions for businesses are entitled to loans at banks - Credit, the financial institutions in accordance with the law, corporate restructuring of stateowned commercial banks to provide capital and banking services for business efficiency Establishment of financial institutions, as well as support the creation of capital in the form of equity Accelerate the establishment of credit guarantee funds, amend the regulations to establish and operate a credit guarantee fund under the direction of selection and more feasible Promote the credit information center, modernization of information systems, extension services provide information for business credit Increasing support for loans from the National fund for employment especially for small and medium enterprises Fourth, institutional innovation and technology, should review the general technical regulations for imported equipment used in the decision of the Ministry of Science and Technology, Ministry of Environment and Natural Resources to suit the conditions in Vietnam, creating favorable conditions for enterprises to improve production conditions, enhance product quality, research, issued a decree guiding the implementation of measures on product quality differences and necessary guidelines, 59 which prescribe procedures for determining product quality and application for certification Research and draft ordinances promulgated standardized technique to develop uniform standards system, enabling businesses to easily apply in their production processes Fifth, on the ecological environment: The state should soon be planning the construction of industrial production for village enterprises, the small industrial focus with a complete system basis; It's easy for pollution control, environmental treatment, encourage the enterprises to contribute production facilities and state support for wastewater treatment, environmental hygiene and particularly the industrial zones of paper Phong Khe, Da Hoi iron, aluminum Van Mon, Dong Ky Wood study and construction of industrial villages associated with urban and environmental protection Sixth, the State and Central Government, Local, all branches of business support joint ventures and economic cooperation, strategic planning needs of rural industrial development associated with the development strategy, regional economic strategy and local society, should adopt policies and measures, addressing social issues in the village for industrial development, support the establishment of professional associations, business support, professional associations participating in trade fairs and exhibitions, introducing, promoting products Support visits to businesses learn of the typical business, understand the market and sell their products, acquire new technology, looking for any source material 60 5.4 Proposed measures to reduce environmental pollution To address a comprehensive environmental pollution and ensure sustainable development for the village production is small and needs a master plan and long term in terms of technology and policy and legislation Some of the solutions proposed for the village are summarized below: 5.4.1 Worker training and awareness of people Number of employees trained in the villages also accounted for the low rate, most employees work only based on practical experience but little basic training Characteristics of the handicrafts are traditional, hereditary forms of vocational training is word of mouth and practice in place The village is worker training classes all the way in which outside expertise is needed to train and how the sense of environmental protection work and hamlets 5.4.2 Production planning area To limit the impact on the environment and people's health is the most basic measures for the village is planning to implement production management as appropriate Solving the master plan will play an important role in reducing the harmful effects of air pollution, water and soil environment caused by production Best of the village should focus on the planning of land outside residential areas to the organization of production, especially production has most affected the environment, such as boiling, dyeing, drying hun sulfur dip glue, spray products, the concentration of metal to handle the waste before emptying into the 61 environment The non-polluting processes can be allocated to households in the home 5.4.3 Planning the village towards the development of cultural tourism The villages should be planned in the direction of space remains available, minimizing the space changes such as expanding accommodation, high-rise building, expand the road to excessive conservation alleys space communications ancient system of traditional craft villages of Vietnam and facilitate the development of cultural tourism village later Planning towards integration of tourism activities with village production will focus on guiding the production facilities aimed at producing spatial planning in place so that the production of convenience, has no polluting environmental damage, both maintain the cultural characteristics of the newly created beauty for tourism 5.4.4 Planning within the enterprise After planning the production layout, the application of planned measures in the management of production facilities is necessary as space planning rationale, sort of area likely to pollute such as smoke, smoke sulfur and spray location away from the labor of workers, put the end to wind mitigation as well as ventilation buildings to avoid local pollution 62 5.4.5 The technology measures Encourage technological innovation and application of advanced technologies, cleaner production technologies to reduce emissions, reduce the consumption of raw materials To create conditions for all the production facilities were trained in technology and production equipment in medium and small scale Using coal to fuel furnaces need to select the type of coal has low sulfur content to reduce SO2 generated, providing enough air for combustion For villages polluted by toxic gases such as SO2, CO to restrict the use of coal, oil and replace it with other fuels such as gas, electricity 5.4.6 Within Management Environmental of dirty water the household, cited wastewater ponds, garden ecology VAC model Segregation of waste water production and waste water In addition to campus households should build wastewater collection system in the form of ditches or sewers knit cap prefabricated ponds leads the overall process If the waste water produced can handle, then pre-deposition method using biological clock to ensure hygienic conditions before being discharged into irrigation ditches or rivers In the household production of waste water containing toxic substances, and persistent organic substances, they must be collected and processed in the local production facilities before being discharged into the canal system of the village common In the large production areas should be the concentrated waste water treatment for residential areas before being discharged into the environment 63 5.4.7 Solid Waste Management To solving the pollution problems of solid waste planning to place the focus on garbage collection process Concentrated waste area must be handled, avoiding only the concentrated waste planning, no infrastructure investment, leading to soil and groundwater pollution in the long run The location of waste treatment facilities required to transport traffic advantages, the end of the monsoon, surrounded by green trees to reduce air emissions and odor pollution 5.4.8 Management of air pollution a / Management of harmful gases First, to reduce the power production of toxic gases such as SO2, CO, CO2, NOx in the village by restricting the use of fuels such as coal and replaced by other sources such as gas, electricity and have a collection system, a chimney high enough to dilute harmful gases into the the air If coal use should encourage people to use clean coal, coal desulfurization b / Dust management For each type of dust produced different needs of different measures to reduce dust With dusty base should be immediately suspended dust system in place, dust, fully equipped labor protection such as masks, eye protection for employees With other forms of production must be reasonable layout of workshops, where the equipment causing dust to places far away places and activities of residents, or treated with the equipment bag, humidifier systems 64 c / Noise management With large noise devices can not overcome by the production characteristics must be moved away from production sites populated areas, does not produce the rest of the population peak These devices have an average noise level must be regular maintenance of machinery, especially the distribution of noise directly and arrange a reasonable running time of the day did not affect the population in villages Limit non-standard facilities in the village and time management activities will limit the impact on residents in the village d / Management of smell With the village production causing unpleasant odors as odor soaked bamboo should soon have the designated area of the village for the soaked and processed material This area away from houses, far from water sources, end of the monsoon The manufacturing facilities that use volatile chemicals as causing unpleasant odors in coastal water, paint, varnish smoked or made must be collected systematically and thoroughly treated, or have relocated away from populated areas 5.4.9 Solutions to environmental management: Currently, virtually no local officials on this issue The management of the environment not as yet set a specific way, seriously So, should set up specialized departments shall supervise the implementation of environmental protection, there sanctioning strict regulations for businesses and households producing violating 65 environmental laws Should make for environmental management in the various items in the conventions of the village 66 CHAPTER CONCLUSION Subject of thesis "Strategic sustainable development of small and medium enterprises in the village of Bac Ninh," had been formed from the study and research at the level of "sustainable development locally." On the basis of documents and knowledge acquired in the course, special instructions, enthusiastic teaching of training lecturers International Studies - University of the national economy, have instructed me Master of Ocean Bay - instructor thesis topic, which the authors completed thesis The authors found that, like sustainable development, it is important that every business itself, the production must seize opportunities, said his best option, said arrangements to build a production and business strategy , training, human factors specialist has just pink The authors hope that this thesis document in conditions also limited but can also provide some part, to create conditions for businesses in villages and those interested in research work sustainable development of small and medium enterprises small industry sector The authors hope to continue to cooperate with enterprises in villages in the development process in the future, to examine the actual business strategy and continue to develop and perfect their business strategies industry 67 The authors would like to express our most sincere thanks to the staff, faculty, colleagues and National Economics University has facilitated support completion of this thesis 68 REFERENCES: Party Congress Resolution XVII of Bac Ninh Planning and economic development - economic development of Bac Ninh province in 2004, 2005, 2006, 2007, 2008 Ministry of Industry 2005, "The strategy and master plan for development of cottage industries Vietnam during the period 2006-2015, vision to 2020 Textbooks: -Amstrong G and Kotler, P., 2007 Marketing: An introduction 5th Edition.Pearson Prentice Hall - Blanco, S.R and Souto, B.F., 2009 Sustainability reporting and assurance: Current situation and future trends TaikomojiEkonomika: SisteminialTyrimai: 2009.3/2 - The State Role in the market economy - Strategic Planning for local sustainable development - Management and sustainable development of human resources Some references on the Internet: *http://www.vietnamforumcsr.net/default.aspx?portalid=1&tabid=17 &itemid=4703 *Vietnam business forum, 2010 CSR: sutruong ton cuadoanhnghiep Available at http://dddn.com.vn/20091230034224173cat81/csr-sutruong-ton-cua-dn.htm 69 ... designed and used models to analysis and synthesis of theory, strategy and business development at the small and medium enterprises in the village of BacNinh province, Vietnam The research applied the. .. enterprises in the village of Bac Ninh 3.3 The scope of research To systematize and clarify some theoretical issues of strategy and business development of small and medium enterprises in Bac Ninh trade... enterprises in craft villages in Bac Ninh province in the 2009-2015 period 26 CHAPTER ANALYSIS AND DISCUSSION 4.1 Overview of small and medium enterprises in craft villages in Bac Ninh Bac Ninh is

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