the relationship between corporate social responsibility implementation and the development of five selected companies in hanoi

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the relationship between corporate social responsibility implementation and the development of five selected companies in hanoi

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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 i 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 Hieu, in Viet Nam Commercial University He has kindly guided, supported, and encouraged me from the very beginning of this study Furthermore, I would like to give my thankfulness to Ms Sumathi and Ms Shenba at Help University College, who initiated the project and give me instruction and support Lastly, I also want to thanks my friends, who support and encourage me to finalize this research, and managers of Tam Viet Ltd., and Vietnam Dairy Products Joint – Stock Company, and other people who spend time to answer my questionnaire ii THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION AND THE DEVELOPMENT OF FIVE SELECTED COMPANIES IN HANOI By HO PHAM QUYNH NGA April 2011 Supervisor: Dr Pham Duc Hieu ABSTRACT Corporate social responsibility (CSR) was introduced years ago and became familiar concept in international business environment, but it is quite new to Vietnamese enterprises Therefore, with the intension to find out CSR implementing situation of companies in Ha Noi, this study is conducted The objective of this study is to assess the understanding of Vietnamese individual people and company on CSR concept, the CSR implementation of companies in Ha Noi and its impacts to the development of the companies And in order to collect data for the research, questionnaire will be used as helpful method After that, some recommendation for selected companies and future research is presented iii 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 iv 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 3.1 Research Objectives……………………………………………………….…29 3.2 Research methodology……………………………………… … ……….…29 3.3 Data source……………………………………………… ……………….…30 3.3.1 Primary data…………………………………………………… ………30 3.3.2 Secondary data……………………………………….…………… ……31 3.4 Research strategy………………………………….…………… ….………32 3.5 Research instruments…………………………………………… …………32 3.6 Data collection………………………………………………………….……33 3.7 Sampling………………………………………………… ….… …………33 3.8 Limitation of research………………………………………… …… ……33 CHAPTER 4: DESCRIPTION AND ANALYSIS OF RESULT………….… ……35 4.1 Introduction about Vinalmilk and Tam Viet…………………………………38 4.1.1 Introduction about Vinamilk……………………………………………38 4.1.2 Introduction about Tam Viet…………………….………………………39 4.2 Description of Respondents’ information……….………………… ………39 4.2.1 Description of respondents’ age …………………….………… ………40 4.2.2 Description of respondents’ gender…………………… ………….……40 v 4.3Description and Analysis of respondents’ understanding about CSR concept.41 4.4 Assessment on CSR implementation……………………… ………………41 4.4.1 Description and Analysis of Questionnaire about Vinamilk……….……41 4.4.2 Description and Analysis of Questionnaire about Tam Viet……….……44 4.4.3 Description and Analysis of Questionnaire for managers of Vinamilk and Tam Viet………………………………………………………………….…………46 4.5 Assessment on the development of company and CSR implementation.……47 4.5.1 Description and Analysis of Questionnaire about Vinamilk………….…47 4.5.2 Description and Analysis of Questionnaire about Tam Viet…………….49 4.5.3 Description and Analysis of Questionnaire for managers of Vinamilk and Tam Viet…………………………………………………………………….………52 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 vi 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 vii LIST OF CHARTS Chart 4.1 Age frequency of respondents 31 Chart 4.2 Gender frequency of respondents 31 Chart 4.3Description of Result – Question 32 Chart 4.4 Description of Result – Question – Questionnaire for consumers of Vinamilk 33 Chart 4.5Description of Result – Question – Questionnaire for consumers of Vinamilk 34 Chart 6Description of Result – Question – Questionnaire for consumers of Tam Viet 35 Chart 4.7Description of Result – Question – Questionnaire for consumers of Tam Viet 36 Chart 4.8Description of Result – Question – Questionnaire for consumers of Vinamlik 38 Chart 4.9Description of Result – Question – Questionnaire for consumers of Vinamilk 39 Chart 4.10Description of Result – Question – Questionnaire for consumers of Vinamilk 39 Chart 4.11Description of Result – Question – Questionnaire for consumers of Tam Viet 40 Chart 4.12Description of Result – Question – Questionnaire for consumers of Tam Viet 41 Chart 4.13Description of Result – Question – Questionnaire for customers of Tam Viet 42 Chart 4.14Description of Result – Question – Questionnaire for managers of Tam Viet and Vinamilk 43 Chart 4.15 Description of Result – Question - Questionnaire for managers of Tam Viet and Vinamilk 44 viii LIST OF ABBREVIATION CSR Corporate Social Responsibility WTO World Trade Organization WBCSD World Business Council for Sustainable Development SD Sustainability development PR Public relation TBL Triple bottom line ix CHAPTER 1: INTRODUCTION In this chapter, the whole picture of this research is presented in order to help readers feel easy to understand This chapter includes six parts, which are summarized as follows: 1.1 Research background 1.2 CRS in Vietnam 1.3 Problem statement 1.4 Research questions 1.5 Research objectives 1.6 Research structure Question 80 75% 66.67% 60 40 Tam Viet 33.33% 25% Vinamilk 20 Strongly Agree Agree Neutral Disagree Strongly Disagree Chart 4.15 Description of Result – Question - Questionnaire for managers of Tam Viet and Vinamilk Question is put in the questionnaire for managers of two companies in order to ask whether the managers “understand the important of implementation CSR to the development of their company” Only one manager of Tam Viet and Vinamilk chose “Strongly Agree” as the answer, which contributes 25% and 33.33% respectively Other three managers of Tam Viet and two managers of Vinamilk chose “Agree” as their answer, containing 75% and 66.67% to result of this question Question Question in questionnaire for managers of Tam Viet and Vinamilk are slightly different Managers of Tam Viet were asked “Implementing CSR (by building softskills to staffs and people in society) brings positive impacts to Tam Viet in what aspect?” while managers of Vinamilk were asked “Implementing CSR (by helping poor children) brings positive impacts to Vinamilk in what aspects?” Almost managers of two companies stated that implementing CSR has positive impacts to relationship of company and local community, the sales volume of two companies 44 also increases since they performed CSR Besides, managers of Tam Viet also chose “Intra-relationship”, and “Working enthusiasm” as positive impacts that CSR implementation brings to company So far, in Vietnamese developing business environment, Tam Viet and Vinamilk are two among few Vietnamese companies performing CSR, and they have aligned CSR implementation into business strategy of company Managers of two companies have understanding about CSR and “Sustainability development”, which are two essential concepts managers should know when running company Moreover, they also have ideas about the important of CSR implementation into company’s development By implementing CSR, Tam Viet and Vinamilk not only bring benefits to society, make companies more well-known, but also increase intra-relationship between managers and staffs/staffs and staffs, and raise working enthusiasm between people in company 45 CHAPTER 5: CONCLUSION AND RECOMMENDATION Finally, in chapter 5, conclusion of the study, recommendation for selected companies, limitations, and suggestions for future research is stated The components of Chapter are as follows: 5.1 Conclusion 5.2 Recommendation 5.3 Limitation of study 5.4 Suggestion for future research 46 5.1 Conclusion In Viet Nam, the number of companies, managers of company, people in society which are aware of CSR is quite limited It is the reason why the implementation of CSR in Viet Nam is not smooth or not sufficient However, the Government of Viet Nam helps companies, which mainly are small and medium enterprises, to understand more about CSR by open CSR website, issue regulations, laws to guide them how they should implement CSR According to data description and analysis from Chapter 4, a puzzle in picture of CSR implementation in today business environment of Viet Nam can be seen In this puzzle, Tam Viet and Vinamilk have considered as two companies which not only continuously developing but also successful in aligning CSR in company strategy The contribution of these two companies will make others pay attention to CSR and implement CSR together with running business Through collected data, it can be said that Tam Viet and Vinamilk has well performed social responsibility With the contribution of Tam Viet, people in society can be equipped soft-skills, which are necessary in communicating with other people Understanding and applying soft-skills in real life will help people more confident then can achieve more success in life Not only bring good quality milk products to customers, Vinamilk also create opportunity for poor children to drink milk everyday This kind action is considered as contribution to future of Viet Nam 47 5.2 Recommendation Besides positive respond about actions of Tam Viet and Vinamilk, there are some negative ones For example, some respondents not think Milk Fund of Vinamilk is to execute social responsibility They consider it as a PR program of Vinamilk Therefore, Vinamilk should widen area in which they perform CSR rather than too focus in the area related to milk It will make actions of Vinamilk be more valuable There are companies in Viet Nam wants to perform CSR and contribute back to society but among many ideas about CSR they are confusing how to star doing social responsibility At first, these companies should understand what is CSR, how to perform CSR, and the benefits of performing CSR After this essential understanding, company managers can choose suitable method to implement CSR for the company Like Tam Viet and Vinamilk, they are quite wise when choosing to perform CSR in aspect relating to their business By doing this, these two companies operate business and contribute to society at the same time 5.3 Limitation of study This study may contain some limitations which affects to its sufficiency and accuracy Firstly, number of selected companies in narrow area may be a limitation At first, the number of selected companies is set as five companies, but since the limit of time and researcher’s capacity, there are only two companies are selected Secondly, the sample size of the research can be considered as other limitation, because there is only more than 100 people in comparison with million people in Ha 48 Noi Thirdly, respondents, other than managers, are randomly chosen, so some of them may be asked to answer the questionnaire in wrong-time, and they answered as quickly as possible It may affect to the result of each question The fourth limitation is that the questionnaire is formed in English at first then translated into Vietnamese to issue to respondents Therefore, respondents may feel hard to totally understand the question, and they tend to choose clear option rather than the one which is most appropriate for them 5.4 Suggestion for future research In order to carry out better research in future, some suggestions is going to be stated First of all, further research should take large sample size to increase the accuracy of collected data Moreover, survey in future research should be conducted in suitable time for respondents, not insist asking them to answer Furthermore, when the questionnaire issuing to respondents and original one are not in the same language, the translation should be very careful 49 REFERENCE Antonio Tencati, Russo A., Quaglia V., Is Sustainability Always Sustainable along the Global Supply Chain? The Case of CSR in Viet Nam Asia Pacific Economic Cooperation Secretarial and Center for Development and Integration A case study from Vietnam Bitis in Vietnam, creating values through good CSR initiatives in supply chain, 26th December 2007 Carroll, Archie B., July-August 1991, The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders Business Horizons, 34:39-48, Dang Dinh Cung August 25, 2009 Corporate Social Responsibility The Saigon Times Ho Thien Nga Corporate Social Responsibility, Public Relations of Foreign Invested Companies and Case Study in Bong Mieu Gold Mining Co.Ltd Report Collection of “Student Research Conference” 6th (2008), Da Nang University (pp 97 – 102) http://ezinearticles.com/?What-is-Business-Ethics-All-About?&id=2788888 [Accessed February 1, 2011] http://trachnhiemxahoi.net [Accessed February 27, 2011] http://vceit.com/infodata/primarysecondary.htm [Accessed February 23, 2011] http://vceit.com/infodata/primarysecondary.htm [Accessed March 2, 2011] 50 http://www.blurtit.com/q959688.html [Accessed February 23, 2011] http://www.ecogreenhotel.com/ecogreen-newsletter/EGH_Feb/eco-feature-tbl.html [Accessed March 3, 2011] http://www.ehow.com/about_4685513_primary-data_.html [Accessed February 1, 2011] http://www.ehow.com/about_4685513_primary-data_.html [Accessed February 23, 2011] http://www.fao.org/docrep/w3241e/w3241e03.htm [Accessed February 23, 2011] http://www.mallenbaker.net/csr/definition.php [Accessed February 27, 2011] http://www.mallenbaker.net/csr/page.php?Story_ID=857 [Accessed March 2, 2011] http://www.triplepundit.com/wp-content/uploads/2011/02/THE-FRACTALFRONTIER.pdf [Accessed March 3, 2011] http://www.vietnamforumcsr.net [Accessed February 15, 2011] http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?type=p&MenuId=M TE0OQ [Accessed March 2, 2011] Joseph Heath, 2004 Stakeholder Theory, Corporate Governance and Public Management – What can the history of state-run enterprises teach us in the postEnron era?, Journal of Business Ethics 53, pp 247-265 Leedy, P.D and Ormrod, J E., 2010 Practical Research: Planning and Design, 9th edn., Pearson Prentice Hall, New Jersey 51 Matthew Rochte, May 4, 2009 PR v CSR Michael C Jensen, July 24, 2000 Value Maximization and Stakeholder Theory Robins, F 2006 The challenge of TBL: A responsibility to Whom?, Business and Society Review 111:1 1-14 Rolf Jucker, 2003, UNESCO Teaching and Learning for a Sustainable Future: A Critical Evaluation, Trumpeter, Vol 19 No Sauders, M, Lewis, P and Thornhill, A., 2009 Research Methods for Business Students, 5th edn., Financial Times Prentice Hall, Harlow Sheldon Rose, January 8, 2004 Guide to Managing Media and Public Relations in the Linux Community Vanclay, F 2004 Impact assessment and the Triple Bottom Line: Competing pathways to sustainability?, Cheney, H., Katz, E & Solomon, F (eds) Sustainability and Social Science Round Table Proceedings World Commission on Environment and Development (1987) Our Common Future 52 APPENDICES Appendix A: Questionnaire Sample about Vietnam Dairy Products Joint – Stock Company (Vinamilk) The survey on relationship between CSR implementation and the development of Vietnam Dairy Products Joint – Stock Company (Vinamilk) in Ha Noi, Viet Nam I, Information of Respondent 1, Name: 2, Age: _ 3, Gender: Male □ Female □ II, Questions to answer: Please tick the most appropriate box: Question 1: I understand the meaning of “Corporate Social Responsibility” Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 2: I know about supporting funds of Vinamilk to Vietnamese poor children Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 3: I consider this action of Vinamilk as performing social responsibility Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 4: I think that by raising these funds to help poor children, Vinamilk can build better prestige, and be more well-known Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 5: I think other companies should also contribute back to society as Vinamilk Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 6: I tend to buy more products of Vinamilk after they perform social responsibility Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ 53 Appendix B: Questionnaire Sample for mangers of Vietnam Dairy Products Joint – Stock Company (Vinamilk) The survey on relationship between CSR implementation and the development of Vietnam Dairy Products Joint – Stock Company (Vinamilk) in Ha Noi, Viet Nam I, Information of Respondent 1, Name: 2, Age: _ 3, Gender: Male □ Female □ II, Questions to answer: Please tick the most appropriate box: Question 1: I understand the meaning of “Corporate Social Responsibility” Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 2: Vinamilk performs social responsibility in what issue? Charitable events □ Childcare development □ Education □ Environment □ Health □ Others (Please say: ) □ Question 3: Our company has performed CSR for This year □ – years □ – years □ Others (Please say: _) □ Question 4: I am aware of the link of CSR and “Sustainability development” Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 5: I understand the important of implementing CSR to the development of company Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 6: Implementing CSR (by helping poor children) brings positive impacts to Vinamilk in: 54 Intra-relationship □ Local community relationship □ Sales volume □ Social in general □ Working enthusiasm □ Others (Please say: _) □ 55 Appendix C: Questionnaire Sample about Tam Viet Group (Tam Viet) The survey on relationship between CSR implementation and the development of Tam Viet Ltd., (Tam Viet) in Ha Noi, Viet Nam I, Information of Respondent 1, Name: 2, Age: _ 3, Gender: Male □ Female □ II, Questions to answer: Please tick the most appropriate box: A, Common question Question 1: I understand the meaning of “Corporate Social Responsibility” Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 2: I know about soft-skills building programs/classes of Tam Viet Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 3: I think Tam Viet has performed their social responsibility by organize soft-skills building programs/classes for children, students, office staffs, and Tam Viet staffs Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 4: I think that by carrying out these programs/classes, Tam Viet can build better prestige, and be more well-known Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 5: In my opinion, with the contribution of Tam Viet, soft-skills of people will be well-equipped Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 6: I will introduce Tam Viet to my friends, relatives, partners if they want to study soft-skills Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ 56 Appendix D: Questionnaire Sample for managers of Tam Viet Group (Tam Viet) The survey on relationship between CSR implementation and the development of Tam Viet Ltd., (Tam Viet) in Ha Noi, Viet Nam I, Information of Respondent 1, Name: 2, Age: _ 3, Gender: Male □ Female □ II, Questions to answer: Please tick the most appropriate box: Question 1: I understand the meaning of “Corporate Social Responsibility” Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 2: Tam Viet performs social responsibility in what issue? Charitable events □ Childcare development □ Education □ Environment □ Health □ Others (Please say: ) □ Question 3: Our company has performed CSR for This year □ – years □ – years □ Others (Please say: _) □ Question 4: I am aware of the link of CSR and “Sustainability development” Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 5: I understand the important of implementing CSR to the development of company Strongly agree □ Agree □ Neutral □ Disagree □ Strongly disagree □ Question 6: Implementing CSR (by building soft-skills to staffs and people in society) brings positive impacts to Tam Viet in: 57 Intra-relationship □ Local community relationship □ Sales volume □ Social in general □ Working enthusiasm □ Others (Please say: ) □ 58 ... Vai river); food poisoning (case of Melamine infected in infant milk); and other cheating in selling products to customers (the fraud in selling fuel) After suffering these cases, society requires... individual people and company on CSR concept, the CSR implementation of companies in Ha Noi and its impacts to the development of the companies And in order to collect data for the research, questionnaire... time to answer my questionnaire ii THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION AND THE DEVELOPMENT OF FIVE SELECTED COMPANIES IN HANOI By HO PHAM QUYNH NGA April 2011

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