Tài liệu Implementing corporate social responsibility in vietnam situation and solutions

VIETNAM NATIONAL UNIVERSITY, HANOI INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES -----------c a C S s o ----------- BUI THI PHUONG Implementing Corporate Social Responsibility in Vietnam: Situation and Solutions M A S T E R ’S T H E S I S Major: Vietnamese Studies Code: 60.31.60 02ũs)sfũO O O l3 Supervisor: Associate prof. Dr. Nguyen H oang Anh HA N O I-2 0 1 1 TABLE OF CONTENTS m ; B E G IN N IN G ..............................................................................................................1 1. Jruency o f the subject..................................................................................................... 1 2. Research situation............................................................................................................. 1 3. Research purposes............................................................................................................... 3 4. Objects and scope o f the research.................................................................................... 3 5. Research methods................................................................................................................4 6. he structure o f the subject............................................................................................... 4 CHAPTER1: THEORETICAL ISSUES SOCIAL RESPONSIBILITY B IS IN E S S ...............................................................................................................................5 1.1. Introduction.....................................................................................................................5 ỉ. I I . About Business E th ics................................................................................................. 5 /. / 2. The concept o f social responsibility......................................................................... 7 /. Ì 3. The content o f corporate social responsibility....................................................... 8 1.13.1. Incidence o f corporate social responsibility........................................................8 /. / 3.2. The contents o f the CSR........................................................................................... 9 I. I 3.3. The object o fC S R ............................................................................................... 1 1 ỉ. Ỉ.4. The relationship between corporate social responsibility and business ethics..............11 1.2. Factors affecting corporate social responsibility............................................13 1.2.1. P rescribed bv law...................................................................................................... 13 1.2.2. Perceptions o f Social Affairs.................................................................................... 13 1.2.3. The process o f globalization and market pow er................................................ 14 1.3. Tools to im plement and evaluate the effectiveness of CSR activities...... 15 1.3.1. These tools make corporate social responsibility’................................................ 15 1.3.2. Rating Tool corporate social responsibility..........................................................16 1.4. The effects o f the implementation of corporate social responsibility........21 1.4.1. Corporate social responsibility contributes to adjust the behavior o f business entities...................................................................................................................... 21 / 4 2. Corporate social rcsp()nsihị / ị ’ myitrihnjp to ịrvỊrtrnyịvỊơ nuni[t\> hynvỊrị ynlỵp and reputation o f the business............................................................................................ 22 1.4.3. The implementation o f corporate social responsibility to help increase profits fo r businesses............................................................................................................ 24 ( 'orporate social responsibility to contribute to attract qood workers..........25 1.4 .\ Social responsibility contribute to improving the national linage................... 26 CONCLUSIONS 1 ..............................................................................................................26 C H APTER 2 IM P L E M E N T A T IO N OF C O R PO R A TE SOCIAL R ESPO N SIB IL IT Y THE W O RLD AND IN V IETN AM 27 2.1. About the im plem entation o f CSR in the w orld................................................ 27 2.1.1. The international organization o /C S R .................................................................. 27 2.1.2. The im plementation o fC S R in a number o f businesses..................................... 29 2.1.2.1. Procter & Gamble (P&G).....................................................................................29 2.1.2.2. CSC G roup................................................................................................................ 31 2. Ì .2.3. Green Mountain Coffee Roasters....................................................................... 33 2.1.2.4. Sanlu G roup............................................................................................................. 34 2.2. Status of implementation of Corporate Social Responsibility in V ietnam ....36 2.2. /. The implementation o fC S R in Vietnam.................................................................36 2.2. ỉ-1. Overview o f implementation o /C S R in Vietnam.............................................. 36 2.7.2. CSR in Vietnam is done by the field .......................................................................38 2 .2 .2 .1. CSR with em ployees................................................................................................38 2.2'.2.2. Corporate Social Responsibility to shareholders............................................ 48 2.2'.2.3. Corporate social responsibility to consum ers.................................................. 50 2.2'.2.4. Corporate social responsibility to the community........................................... 52 2.2. . 2.5. Corporate social responsibility for environmental issues...........................53 2.2. .3. The implementation o f a CSR o f enterprises in Vietnam...................................56 2.2..3.Ỉ. Honda Vietnam Company..................................................................................... 56 2.2..3.2. Unilever Vietnam Company..................................................................................58 2 .2 .3 3 . Vietnam Dairy>Products Company (Vinamilk)................................................. 61 C O N C L U S IO N S 2 ...............................................................................................................63 CHIARTER 3: SO LU TIO N S IM PROVE EFFICIENCY OF CORPORATE SOiCIAL RESPO NSIBILITY IN V IE T N A M ........................................................... 64 3.1.. Assessing the im plem entation o f CSR in V ietnam ....................................... 64 3.1.. I. The present gain......................................................................................................... 64 3.1. .1 .1. Number o f enterprises engaged in CSR b o o st...........................................64 3 .1 .. 1.2. Practice has p roved that CSR can impact business........................................ 64 3. /. /.J. The enterprise actively engaged in community developmentwork over.........65 3. /. / .4. The media for C S R ................................................................................................. 65 3.1.2. These problems exist.................................................................................................. 65 3.1.2. /. Restrictions in labor issu es...................................................................................65 3.1.2.2. CSR for consum ers................................................................................................. 66 3.1.2.3. CSR to the environm ental.....................................................................................66 3.1.3. The cause o f the existence in the past................................................................... 66 3.2. Opportunities and challenges when im plementing CSR inVietnam ..........69 3 .2 .1.O pportunity.................................................................................................................. 69 3.2.2. The challenges that businesses face when conducting CSR inVietnam........ 71 3.3. Some solutions to develop and improve the efficiency of CSR implementation in Vietnam .............................................................................................. 73 3 .3 .1. The measures from the State.................................................................................... 73 3.3 .1. 1■ To supplement and perfect the legal framework in Vietnam to create a solid leqal basis fo r business ethics and CSR.................................................................. 73 3.3. Ỉ .2. Enhance communication to raise awareness about CSR in business ethics and Vietnam............................................................................................................................ 75 3.3.1.3. There are policies to encourage and support the implementation o fC S R in the business............................................................................................................................. 76 3.3.1.4. Perfecting the mechanism o f operation o f the inspection test....................... 78 3.3.1.5. Putting CSR into the curriculum o f universities...............................................78 3.3.2. Solutions from the enterprise...................................................................................79 3.3.2.1. Raising awareness about CSR............................................................................. 79 33.2.2. There are long-term strategy o f building and improving the standard CSR with the appropriate steps....................................................................................................80 3.3.2.3. To build a strong union base.................................................................................81 C O N C LU SIO N .................................................................................................................... 85 R E FE R E N C E S.................................................................................................................... 88 LIST O F T A B L ES Figure Í: Model the components o f C S R ..................................................................... 10 Figure 2: The relationship between business ethics and social responsibility...... 12 Figure 3: Hierarchy o f needs Maslow m o d e l.............................................................. 14 Table 1: Assessments CSR activities in some countries............................................37 Table 2: Economic benefits from investments to improve air and reduce fatigue for workers in a garment company.................................................................................. 42 Table 3: What happens many local workers’ compensation cases d eath ...............45 LIST O F A B B R E V IA T IO N S Bao hiêm (BH) Insurance Bảo hiêm xã hội (BHXH) Social insurance Bao hiêm y tê (BHYT) Health insurance Cô phân (CP) Stock Tráeh nhiệm xã hội doanh nghiệp Corporate social responsibility (CSR) Đạo đức kinh doanh (ĐĐKD) Business Ethics Người tiêu dùng (NTD) Consumers Hợp tác xã (HTX) Cooperative Khu công nghiệp (KCN) Industrial Proeter&Gamble Procter & Gamble (P&G) Trách nhiệm Hữu hạn (TNHH) Limited Tai nạn lao động (TNLĐ) Workers’ compensation THE BEGINNING 1. Urgency of the subject. In a world o f information technology grows, the trend o f globalization, internationalization becomes an essential objective, the relationship between the economy and more closely attached, exchanges Trade between countries is growing strongly, the competition among enterprises is increasingly fierce. Previously, the company measures used diversify products, improve product quality as an effective measure to gain competitive advantage in the marketplace. Currently, companies pay attention to strengthening the image, enhance reputation, brand development through the construction o f corporate culture, business ethics is a solution is being applied initially to bring positive effect. Businesses want to assert the brand on the market, which they now work towards the implementation o f good corporate social responsibility (CSR - Corporate Social Responsibility). Corporate Social Responsibility is a growing trend in the world, become a requirement "soft" to the enterprise in the integration process, but the problem in Vietnam is still relatively new and has not been businesses due attention. Numerous cases o f environmental violations and violations o f labor rights, violating the interests of consumers ... have been causing severe burning and the community losing confidence in the business. Since then, Vietnam businesses more aware o f the performance benefits o f social responsibility to bring the enterprise is necessary in the context o f our country today. Enterprises to implement corporate social responsibility is to help improve profits for many businesses such as getting more orders, and also measures to promote the names o f such companies. So be aware o f this problem has focused on businesses to put CSR into their business activities. 2. Research situation. 2.1. The situation o f C SR research in the world. The world may go through some typical projects such as: - Matthew J. llirschland, "Corporate Social Responsibility and the Shaping o f Global Public Policy". Hardcover (Dec. 12, 2006). The author discusses the im portance o f CSR in companies like: The prescribed the new global business th e company's understanding o f corporate social responsibility and CSR theory m eets practice - global governance and network o f global public policy. - Oyvind Ihlen, Betteke Van Ruler, Magnus Fredriksson, "Public Relations a n d Social Theory: Key Figures and Concepts" (Routledge Communication Series). The author discusses the problem: public relations and social theory extends the scope o f the theory o f public relations. Since it focuses on concepts such as trust, legitimacy, understanding, and reflection, as well as behavioral issues, energy, and language. - Muhammad Yunus, "Building Social Business: The New Kind o f C apitalism That Serves Humanity's Most Pressing Needs". The author would like to help businesses find the role o f business activities. Through the portrait that bu sinesses paid more attention to social issues trahcs o f the business. 2.2. The situation o f C SR research in Vietnam . In Vietnam, may include a number o f books, articles represent research on C S R as: - Dr. Le Thanh Ha, 2006, "Corporate Social Responsibility in the wage problem," Social Labor Report, No. 290, dated 15/05/2006. The author would like to mention the role o f wages as the wage position has shown, the work has shown th e benefit sharing between the organizations, businesses and workers have shown th e development occupation o f each individual employee. - Hoang Long, 2007, 'Corporate Social Responsibility - The driving force fo r development ", Trade Magazine, No. 26/2007. Authors demonstrate the imiportance o f CSR in the business to the development o f social attention on developm ent o f hard and soft infrastructure, transport, especially in the economic coirridors, human resources development high, the key service sectors such as fimance - banking, telecommunications and other new energy sources and renewable. 2 - I lone Minh, 2007. "Social responsibility and business ethics", this Cultural an d social life. No. 2 / 2007. Fthics and social responsibility issues is clearly indispensable in business. It is difficult to persuade enterprises to better the ethics an d accountability bv the arguments based on the immediate economic benefits. - TS. Neuven Manh Quan. 2004. Professor o f "Business Ethics and corporate culture". Publishing House o f Social Labour. Business ethics and corporate culture are valuable assets an important contribution to the success of every business. It is a system o f values, norms, ways o f thinking to great effect the actions o f the members o f the business. 1lowever, so far no one has studied the subject: "Social responsibility o f enterprises in Vietnam: Status and Solutions". This is the subject o f the first M aster o f the table on this issue. 3. Research purposes. The purpose o f the research topics are: - To study the basic theoretical issues on corporate social responsibility, content and how to deploy corporate social responsibility. - Study the state o f corporate social responsibility in the world and in V ietnam in the current period. - To propose solutions to implement Corporate Social Responsibility in Vietnam for economic development - economic development in Vietnam in the ne:ar future. 4. Objects and scope o f the research. - Objects o f research topics is the theoretical issue o f corporate social responsibility as the concept and the components o f corporate social responsibility, th e role o f corporate social responsibility for the survival and development of en terprises. - Scope o f the research topics considered limited to the implementation o f social responsibility o f enterprises; the methods, wavs o f multinational companies bu:ilding standards, the Code o f Conduct and development o f corporate social responsibility. 3 5. Research methods. Dissertation application o f research methods follows: - Desk research method: The secondary information is collected and used mainlv from the following sources: the books and journals related materials from the internet portal, ... - Methods o f empirical research: thesis fieldwork in the workshop to collect opinions of experts in this field: "Roundtable stakeholders BSCI 2010 in Hanoi", dated 06 09 May 2010; The opinion o f those directly involved in implementation o f CSR as: Dang Phuong Dung - Vice President o f Vietnam Textile and Apparel Association, TS. Nguyen I hi Lan Huong - Director, Institute K.HLD and Social Affairs, Ministry o f Labour, Invalids and Social Affairs o f Vietnam. 6. The structure of the subject. Dissertation topic: "Im plem entation o f Corporate Social Responsibility in Vietnam: C urrent situation a n d solutions". Besides an introduction, conclusion, appendices and references, divided Chapter /: The basic theoretical into three chapters review course: issues on corporate social responsibility. Chapter II: Implementation o f Corporate Social Responsibility in the world and in Vietnam. Chapter III: A number o f measures to improve the effectiveness o f Corporate Social Responsibility in Vietnam. The author would like to thank Dr. Nguyen Hoang Anh, she has guided the author as the subject o f this thesis. Author and subject selection faced many difficulties because the authors do not have much knowledge about some business issues. Article by the author's limited knowledge o f inevitable errors, defects to the author so wishes to receive additional comments to the writer o f the article is more complete. 4 CH APTER 1 T H EO R E T IC A L ISSUES SOCIAL RESPONSIBILITY BUSINESS In the context o f a fierce competition, the customer satisfaction becomes a kev asset for businesses and organizations in an effort to improve the quality o f the service, to maintain customer loyalty, improve competitive capacity o f enterprises. Since the early 90s, corporate social responsibility (CSR - Corporate Social Responsibility) has satisfied the needs o f customers for industry, businesses in many developed countries around the world. CSR has proven its important role in becoming the basis for competitive strategy, marketing, brand building, trade promotion at the enterprise level, industry and national level ... To survive in that situation, more and more business people paid much attention to building its image in the public and business ethics or social responsibility are concepts mentioned frequently in the years through. 1.1. Introduction 1.1.1. A b o u t B usiness E thics Ethics is a unique category o f human society. Ethics is a broad category referring to human relationships and the rules o f behavior in relationships between people and people living in these activities. Ethics is the study o f the nature and basis o f morality in human relationships, in which morality is understood as the fair, standards and codes o f conduct. From the scientific perspective, the American Heritage Dictionary Electronic Dictionary "Ethics is a science research on the nature o f the right - or wrong, the philosophy o f right - and wrong, rules or standards level dominates the behavior o f members o f a profession"1. More moral or more is particularly important in building and developing relationships in the business, the scope and nature o f the relationship o f an individual, group become more diverse and complex due to the emergence o f new actors, diversity of opinions, motives, goals and behavior. 1N guven Manh Quan (2004), “B usiness ethics a n d corporate culture ”, Pulishers work - social, page 16. 5 In family life and society, human behavior is governed by rules common moralitv. tradition. Meanwhile, professional life has its own laws, its own characteristics, in which human relationships, wider, more complex and different from the relationship purely social. The rules o f morality arc no lormer popular enough to be effective for professional life; it should add the new code o f conduct appropriate to guide human behavior in the new relationship. Business Ethics is only bemin serious research and development into a science, both theory and practice, in the second half o f the twentieth century in the industrialized West, the managers confronted with problems arising from the management of huge companies operating on a global scale, and when they witnessed the growth of companies in the economy o f Asian traditional. Specifically, in 1974 the conccpt o f business ethics official said Norman Bowie - Professor o f Strategic Management and o f Philosophv offers a theme o f "Kingdom o f ends" discussion at a Faculty Meeting school2. In the 1980, 1990 this issue became the subject of lively debate in conferences, seminars, in schools, between businesses, shareholders, employees initially ... in the U.S., then spread to other countries. According to the author o f "Business Ethics" - Vemer Henderson: "Business Ethics is a set o f principles and standards to control the behavior o f an individual business, a group o f people or a certain occupational groups fo r the purpose o f bringing benefits to society"3. According to GS. Philip V. Lewis, U.S. general: "Business Ethics is all the rules, standards, ethics or laws to provide a guide to behavior standards and the integrity o f an organization in certain cases"4. Therefore, we can see, business ethics, including the principles and norms guiding behavior effect in the relationship business; they are the people concerned (investors, customers, management management, employees, legal representatives of agencies, communities, partners ,...) used to judge a particular action is right or wrong, ethical or unethical. Whether the object concerned is not always the case, the judge 2 Nt>uven Hoang Anil, "B usiness ethics in Vietnam - Situation a n d S o lu tio n ", Hanoi Foreign Trade University, page I 1 Verne K. Henderson (1997), "B usiness ethics ", Publishers work - social, page 32. 1 Dr. Niuiyen Hoang Anh (2008), "B usiness ethics in Vietnam - R eality a n d p ersp ec tiv e", www.isbee.orii. 6 ail wavs affect their approval for corporate social and business activities of enterprises. However, different ethics in each person, everv uroup, every society, every culture, so that morality depends on the circumstances. Internal functions o f business ethics as a basis to review the ethical behavior o f businesses and entrepreneurs. However the various ethical in each person, every group, every society, every culture, so that morality depends on the circumstances. /. 1.2. The concept o f social responsibility. An important aspect o f business ethics for business, to assess the business is the social responsibility o f enterprises. Corporate Social Responsibility born after business ethics and is the top concern o f businesses today. So, corporate social responsibility is what? In 1970, in his book "Capitalism and Freedom ", the economist Milton Friedman wrote: ''There is one and only one social responsibility' o f business - that is using its resources and engage in activities to increase its profits so long as it remains subject to the rules o f the game, m eaning that participants compete openly and freely, without deception or fraud"5. According to Friedman's speaking, we consider that this idea only to realize the effect o f the rules in business but not to promote the advantages o f business ethics in business. Here are just pay attention to running for profit "in order to increase profits" in accordance with the constraints o f the enterprises in the "market - no cheating or fraud." It can be said, the concept o f CSR in Friedman's view only a narrow range that is a business, see the benefits before that ignores long-term benefits, such as "fast growing, strong and sustainable" between domestic enterprises and foreign enterprises. After Friedman's definition o f CSR is a series o f concepts that CSR after every concept in each period was initially the more complete content. ''Social responsibility implies improving corporate behavior to a level consistent with the norm s, values and social expectations''6 (Prakash Sethi, 1975). Or "social responsibility o f enterprises, including expectations o f economic society, law, 5 Jame H. Donnelly/ Jane L. Gibron/ John M. Ivancevich (2002), "Learn basic m a n a g em en t”, Publisher statistics, patie 74. 6 John R. Boatright (2007), “Ethics a n d the conduct u f business", Pearson Prentice Hall, N ew Jersey, page 369. 7 nu >)\jlity and charity for the organization at a iỊĨven time" (Archie B Carol!, 19 7 fJ). In Maiunan I. Ferrell introduces the concept of CSR as follows: "A business v:i:h social responsibility in deciding and its operators to create and balance the d ifferent interests of individuals and organizations involved"*. The concept o f CSR was time to expand your audience affect many businesses and organizations involved, and goals set out for businesses that pay attention to their activities that affect such any social issues with communities around like (human rights, labor issues, ...), environmental protection; ... Group Private Sector Development o f the World Bank launched the definition o f Corporate Social Responsibility "Corporate Social Responsibility is th e com mitm ent o f businesses to contribute to sustainable economic development through activities to improve the quality o f life o f workers and members o f their fa m ilie s, communities and society in a way most beneficial to both businesses as we II as the overall development o f society"'. This definition would like to emphasize that CSR is "means" to solve problems between business community, business environment, enterprise customers, support sustainable business development in a sustainable society. The comcept o f choice within the framework o f this thesis is the definition o f Group Priivate Sector Development o f the World Bank will be unanimously selected as it is complete, clear and high level compared with the general other definitions. 1.1.3. The content o f corporate social responsibility. 1.1.3.1. Incidence o f corporate social responsibility. Corporate Social Responsibility is a broad field involving all subjects rel ated to business activities. Therefore, the incidence o f corporate social responsibility is not confined within the enterprise, it also has great importance to many different sectors o f society. So basically we share the incidence o f CSR with the following three aspects: 7Joihn R. Boatright (2007), "Ethics and the conduct o f b u sin e ss”, Pearson Prentice Hall, New Jersey, paee 369. 8 Miaignan I. Ferell (2004), "C orporate S o cia l Responsibility' a n d m arketing: cm integrative fra m e work. Jo u rn a l o f A caidcm y o f m arketing s c ie n c e ”, Vol. 32 N o .l , pp.3 - 19. 1 V V ' W W . w orldbank.org/privatesectot/csr/index.htm . 8 The scope o f the enterprise: CSR affcct relationships within and outside contract workers and satisfaction between the two parties legal rights and obligations o f workers as jobs, welfare workers, rules work, occupational safety. ... and build environmentally ethical behavior in business. Scope o f business: CSR address the problem in terms o f business relationships with partners, subjects directly related to business activities. Scope o f society. CSR settlement set out the relationship to the customs and cultural traditions, each country's religious, ethnic communities. Consider CSR issues of equal rights and interests in society, ensure the credibility issues in business. ỉ. 1.3.2. The contents o f the CSR. CSR can be understood as a self-aware take on other responsibilities, in addition lo responsibility for the economic and legal. More specifically, the responsibility is reflected in the choice o f the business objectives and evaluate performance, not merely based on the criteria for welfare benefits and old units but also on the criterion o f moral worth or accuracy compared to the expectations of society. CSR is not merely the act o f humanitarian and charity to the communities that constitute CSR element much more broadly, it is the synthesis, combined and supplemented by many other factors involved, which lack one o f these factors can not be regarded as a business with social responsibility. According to the model elements following the model o f CSR CSR is a "tower" with its obligations are in different levels and priorities will in turn made up from the bottom o f the tower top. The implementation o f CSR must be rooted in the economic sense, because this is the goal, nature is why the business exists and is also the basis to perform the following duties o f the CSR. Business activities and is managed by the national legal system to survive so long, the enterprise must comply with the provisions of it. Not stopping there, businesses also need to create an environment o f fairness, honesty and sentiment that in relation to staff and that the responsibilities of business ethics. In addition to the economic obligations, legal and business ethics are bound by obligations humanities. This means the business activities aim to improve the situation o f each person, people and communities. And when making 9 I decisions, businesses must balance these obligations to achieve the highest efficiency. Figure 1: Model components of CSR10 (Source: oc Ferrell, John Fraedrich, Linda Ferrell (2005), "Business E thics Ethical Decision-making & cases", Boston Houghton, p p .48) Corporate Social Responsibility is the obligation a business or individual must make to society in order to achieve the most positive impacts and minimize negative impacts on society. Social responsibility can be considered a commitment o f the firm or individual to society, while business ethics refers to the code o f conduct to be considered carefully in terms o f business organizations industry as a basis for decision making in business relations. Basically, social responsibility includes the obligations o f economic, legal, ethical and humane. Economic obligation is an obligation first and most basic o f business performance related to how CSR allocation in the social system, the resources are used to make products and services. Legal obligations o f business is to fully implement the legal provisions for the official concerned, the competition for the natural environment due to current legal regulations. 10o c Feưell, John Fraedrich, Linda Ferrell (2005), “Business Ethics - Ethical Decision marking & cases", Boston Houghton, pp 48 10 Moral obligation o f the enterprise is defined as behavior or social activities are expected but not specified in the legal obligations. Ethical obligations is the foundation of lethal obligation. Obligations o f human enterprises, including the acts and activities that society wants to direct and effective decision dignity of organizations or businesses. The obligation to humanity to show the desire o f businesses devoted to the society. 1.1.3.3. The object o f CSR. The subject o f corporate social responsibility are: • Employees, officers and employees: business needs to comply fully and strictly with the law provisions on use o f labor problems, ensure occupational safety and building friendly relationships, good beautiful in the enterprise, ... • Related parties (stakeholders)'. The stakeholders including shareholders, consumers, families o f employees... Is responsible for promoting ties and commitments related to the use and scope o f the trust assets, ensuring honest, intelligent and silver in the information in the income that shareholders deserve... responsibility for consumer use consumer goods and services in conformity with what the manufacturer has committed.... • Community: Responsibility to the community is responsible for contributing to enhance, improve and develop community life which is the nearest locality where business activities, contribute to the sustainable development o f the cultural environment - economic - o f the national society. For example, responsibility for environmental protection responsibility surroundings or at least not for economic reasons that cause adverse impacts to the environment, using resources efficiently. 1.1.4. The relationship between corporate social responsibility and business ethics. Social responsibility is an expression o f business ethics, is the realization of the rules and standards o f business ethics into practical action, to promote the most positive impacts and reduce minimize the effects corporate social responsibility is important in evaluating business ethics (DDKD). The concept of' business ethics and social responsibility are very intimate relationship. Manner described in the diagram, business ethics is the basis for the decision, as "input" of the selection process actions (social behavior) o f the enterprise social impact desired contain in social responsibility is the goal o f the action, it is also the "output" o f the operation. The process (Figure 2) Input Output Basic for dicision Social impact How to act Bussiness ethics Corporate culture Social responsibility The value o f trust The logos Obligations How to solve the problem The program activities o f Maximum positive impact the business Principles and standards Consensus principle to the right - wrong Minimum negative impact Objects concerned Voluntary compliance in The scope o f the society the organization Figure 2: R elationship between B usiness E thics and Social R esponsibility'1 (Source: Vu Thi Huong (2009), PhD thesis topics "Business Ethics and Corporate Culture in Vietnam). In mapping the relationship between business ethics and social responsibility on business, business ethics is the basis o f the decision, and the content o f business ethics to create much impact on social issues Assembly. Corporate social responsibility goals that make Business Ethics sets. Map V u Thi Huong (2009), dissertation topics "B usiness E thics a n d C orporate culture in V ietnam ". Research irstiitutes. training econom ic financial, page 7. 12 describes a closed process, intimatelv linked between business cthics and social responsibility, such as the production o f and consumption processes in bioloẹy so. 1.2. Factors affecting corporate social responsibility. 1.2.1. Prescribed by law. Provisions o f law as a basis, the foundation o f CSR. This is the binding criteria for enterprises and should be directed to perform to achieve high economic efficiency. The business, when businesses have to comply with the provisions of law would create a legal environment in which businesses operate under a proper goal, creating trading environment fair, equitable, open and create the closeness between the business together. However, the law can not serve as a basis to judge an action is ethical or unethical in the case that it only set the basic rules for the action is considered responsible business. It is worth noting that legislation often issued later than the actual place, "latency" certain law is an opportunity for business activity occurring illegally, and when things were then the new legal basis on which to build the new regulations. Even if the legal documents were issued to the contents go into "life" also needs a certain time period. In short, the provisions o f law as well as the minimum requirements that individuals and organizations need to make in relation to society. Legal compliance, business efficiency, create more jobs, environmental protection, ... as enterprises complete their social responsibility. 1.2.2. Perceptions o f Social A ffairs. As social development is synonymous with high living standards o f the community is enhanced, so that human needs are also under development. According to Abraham Maslow, the more people try to meet demand and that demand is satisfied the demand appears next, beginning with physiological needs (food, clothing, housing,...) and then to demand safety and protection; social needs (emotional problems) demand respect, recognition, status; ultimately needs to assert self develop and express themselves. 13 (Source: Nguyen Thuong Lang, M anager Magazine, "Theory o f Mas low's needs with the developm ent o f skills to encourage employees") The employee - an indispensable component to maintain the operation o f a business is also growing more aware o f self-worth. On its own or through their trade unions have stood up to reclaim the right to their legitimate interests, the business leaders through business practices are increasingly aware that the jobs for the community as responsible for social work is conducive to the robustness o f the business. 1.2.3. The process o f globalization and market power. The strength o f the market that typically consumers' tastes have been put out o f business for the fierce competition for social responsibility and business ethics based on the combined effects o f o f Conduct, to decide on the selection o f consumers, rather than purely on the impact o f their senses. Therefore, die period o f globalization is developing rapidly, the gap in technology, technical cooperation between the economy on a shortened, quality is more uniform than to survive and 12 Nguyen Thuong Lang - Magazine manager, « Theory o f demand A. Kiasktw to develop skills to encourage employees", V !’! I i t ) , i Ml t s corporate governance/management/ Theory o f demand Maslow to develop skills to encourage employees/ 14