Tài liệu 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 1 ............................................................. 32 Chart 4.4 Description of Result – Question 2 – Questionnaire for consumers of Vinamilk..................................................................................................................... 33 Chart 4.5Description of Result – Question 3 – Questionnaire for consumers of Vinamilk..................................................................................................................... 34 Chart 4..6Description of Result – Question 2 – Questionnaire for consumers of Tam Viet ............................................................................................................................. 35 Chart 4.7Description of Result – Question 3 – Questionnaire for consumers of Tam Viet ............................................................................................................................. 36 Chart 4.8Description of Result – Question 4 – Questionnaire for consumers of Vinamlik..................................................................................................................... 38 Chart 4.9Description of Result – Question 5 – Questionnaire for consumers of Vinamilk..................................................................................................................... 39 Chart 4.10Description of Result – Question 6 – Questionnaire for consumers of Vinamilk..................................................................................................................... 39 Chart 4.11Description of Result – Question 4 – Questionnaire for consumers of Tam Viet ............................................................................................................................. 40 Chart 4.12Description of Result – Question 5 – Questionnaire for consumers of Tam Viet ............................................................................................................................. 41 Chart 4.13Description of Result – Question 6 – Questionnaire for customers of Tam Viet ............................................................................................................................. 42 Chart 4.14Description of Result – Question 4 – Questionnaire for managers of Tam Viet and Vinamilk ...................................................................................................... 43 Chart 4.15 Description of Result – Question 5 - 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 1 1.1 Research background In the early 1970s, the concept of “Corporate Social Responsibility” (CSR) has appeared, and become popular concept in business environment. With the time CSR is considered as an important factor like others, such as cost, products and/or services quality, shares prices, to evaluate the development of a company. In general, CSR focuses in three issues which are labor, environment, and finance. And by combining fluently these three issues, a company not only performs CSR but also increase advantages in the market. By carry out CSR and aligning CSR concepts into business strategy, a company can have more advantages than competitors who do not. A company which cares about employees, their lives, and their working environment can raise employees’ loyalty, increase productivity. By protecting environment and contributing back to society, the company makes itself more wellknown and more reliable. Therefore, the company guarantees shareholders’ profit from their investment. From these benefits, it can be said that there is a relationship between CSR and sustainability development of company. Many companies in the world have recognized this relationship, and in order to join international business environment, Vietnamese companies should pay attention to CSR implementation. 2 1.2 CSR in Vietnam Since Vietnam joined World Trade Organization (WTO) in 11th January 2007, the competition between foreign companies and local companies becomes stronger than ever. According to Dr. Le Dang Doanh, Member of the Board and Senior Research Fellow of the Vietnam Institute of Development Studies, joining WTO, Viet Nam has to accept higher level in competition, but this competition will enhance economic development. So, in order to survive in the strong competition, Vietnamese companies should have more understanding about CSR, and apply CSR in making business decision. However, the concept of CSR is quite new to Vietnamese companies and their managers, so the application of CSR in Vietnam still limit, and people who understand the concept is not so much. Only after cases of business fraud appeared, attention about CSR is raised. These cases are related to environmental pollution (case of Vedan Vietnam, the sewage disposal goes directly to Thi Vai river, polluted this river, and affected to people who lives along Thi 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 company to perform CSR, and Government also amended and supplemented some Acts and Regulations to adapt the requirements of public. The replacement of Environmental Protection Law 1994 in 2005, and the investigation of polluting cases made by the Environmental Police Department (C36) can be considered as one of the changes. Together with regulations issued by Government, the propaganda about CSR via mass media 3 channels also improves the awareness of Vietnamese companies about CSR. In near future, there are positive changes expected to appear in business performance of Vietnamese companies. 1.3 Problem statement Since the concept of CSR is newly in Vietnamese business environment, the Government encourages domestic companies to self-search about CSR, and award companies, which well applied CSR in business operation, in “CSR award towards sustainable development” since 2005. Vietnam CSR Forum are also created in websites such as the address http://trachnhiemxahoi.net or http://www.vietnamforumcsr.net, these forums bring CSR understandings not only for company’s managers but also for employees and customers, thus it helps domestic companies building and implementing CSR easier. Besides research of international organizations, CSR research in Vietnam is quite few. Then this project is formed with the willingness to contribute in Vietnamese CSR research. However, in Vietnam there are many companies, with limited time and capacity, the scope of this research only focuses on five selected companies in Ha Noi. 4 1.4 Research question With the purpose of analyze the relationship between CSR implementation and the development of company, sub-problem of the research is considered as follows: Sub-problem 1: Why and how does CSR related to company’s growth? Sub-problem 2: What actions considered as CSR actions did these selected companies do? In order to accomplish this research, primary data source and secondary data source will be used as data to analysis. 1.5 Research Method In order to reach above objectives, the research will answer the following questions: 1, In general, how does CSR implementation affect business development? 2, In detail, how does CSR implementation affect business development of selected companies in Ha Noi or have branch in Ha Noi? Together with figuring out the answer, the research will help selected companies to: 3, Realize the strong relationship between CSR implementation and business development. 4, Reconsider and make more reasonable plans to perform their CSR. 5 1.6 Research structure In this research, there are five (5) chapters as follows:  Chapter 1: Introduction  Chapter 2: Literature review  Chapter 3: Research methodology  Chapter 4: Description and analysis result  Chapter 5: Conclusion and recommendation The first chapter is the introduction. Chapter two mentions literature of CSR concept, which brings CSR definition, components of CSR and theories related. After that, the third chapter presents the research methodology used to conduct this study. In chapter three, the research objectives, research method, research instruments, research data will be stated. Chapter four describes and analyzes collected data through primary and secondary data source. Lastly, in chapter five, conclusion for this study and suggestion for future research is gave out. Besides that, each chapter is divided into sub-headings in order to make it easier to follow. These sub-headings are listed in the beginning of each chapter. 6 CHAPTER 2: LITERATURE REVIEW Chapter 2 provides information about CSR, concepts and theories related to CSR as a background of the research. Structure of chapter 2 is as follows: 2.1 Definition and components of CSR 2.2 The concepts related to CSR 2.2.1 Business Ethics 2.2.2 Environment Protection 2.2.3 Sustainability Development 2.2.4 Public Relation 2.3 Theories related to CSR 2.3.1 Carroll’s “Pyramid of CSR” 2.3.2 Stakeholder theory 2.3.3 Triple bottom line theory 2.3.4 Three P's theory 7 2.1 Definition of CRS The concept of CSR has appeared for a long time, but it is hard to find one common definition about CSR. In different continents, people define CSR in different ways; even in different countries, there are ways to define CSR. Even there is a research about thirty-seven (37) ways to define CSR in “How Corporate Social Responsibility is Defined: an Analysis of 37 Definitions” of Alexander Dahlsrud, a PhD fellow in Department of Industrial Economics and Technology Management, Faculty of Social Science and Technology Management, Norwegian University of Science and Technology, Trondheim, Norway. According to Alexander Dahlsrud, there are “37 definitions of CSR were found and analyzed, among them definitions were primarily of European and American origin, but definitions from India and Canada were also included”, they “originated from 27 authors and covered a time span from 1980 to 2003, although most definitions were published from 1998 onwards”. So in this research, definition of CSR, which are stated, can be considered as the popular definition. CSR can be defined simply by Mallen Baker, a writer, speaker and strategic advisor on corporate social responsibility and Founding Director of Business Respect as “how companies manage the business processes to produce an overall positive impact on society”. CSR also can be understood as "social responsibility of enterprises, including the expectations of society on economic, legal, ethics and philanthropy for organizations in a given time" (Archie.B Carroll, 1979). Or the World Business Council for Sustainable Development (WBCSD) defined "Corporate social responibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the 8 workforce and their families as well as of the community and society at large" (CSR: Meeting changing expectations, 1983, pg.3). In short, CSR can be considered as the interaction of three dimensions, social, environment, and economic. A modern company has to understand CSR concept, balance these three dimensions, and adapt this concept into business strategy. Then the company can satisfy higher and higher demands of customers, and be able to sustainability development in business competition environment. 2.2 The concepts related to CSR In order to understand more clearly about CSR, some concepts related to CSR will be mentioned. These concepts are (1) Business Ethics, (2) Environment Protection, (3) Sustainability Development, and (4) Public Relation. 2.2.1 Business Ethics As mentioning above, a company should perform actions according to the expectations of society in societal mores and ethical norms. This means business ethics is considered as vital factor to gain success in operating business. Through business ethics performance of a company, the attitude of company to basic values can be figured out, thus, the company may be considered as honest, fairness, or deceitful, unfair. Each values of company will be reflected in its decision-making, 9 policies, and business strategies. So, when a company has good values, it will have business ethics, will obey the law better, and more successful in performing CSR. 2.2.2 Environment Protection Even environment issue does not stay separately in CSR concepts, but it becomes the most interest of society and the whole world recently. Therefore society, governments, and environment organizations require companies to include suitable plans in production process in order to protect environment. Environment responsibility of company can be performed by actions which is to save natural resources by saving materials, increasing productivity; reduce negative effects on environment by eliminate exhaust to the air and disposal to river, local community. Besides that, company can produce environment-friendly products, which certainly get positive respond from customers and society. 2.2.3 Sustainability Development “Sustainability development” (SD) has related to CSR concept, SD means taking actions to guarantee better life quality for every people at the moment and next generations. SD contains three components which are social equity, economic growth, and environment, when these three components are intersected, SD is reached. Social equity means the needs of people in society is recognized, and basic human rights is protected. A company can contribute to SD by issuing supporting policies and protecting employees’ rights. Economic growth is a sustainable way to 10 increase living standard of people in society, and companies has responsibility to create wealth contributing to society, increase life quality of company’s staffs. People cannot survive in low quality environment, where there is tsunami, earthquake, flood, or drought. Therefore, environment needs improving, companies and society should use recycled productions and input materials instead of natural resources. 2.2.4 Public Relation Public relation (PR) is familiar concept in marketing environment, and with the time business man has realized the relationship between PR and CSR. CSR is about performing social responsibility of company, company should fulfill responsibilities to employees, shareholders, customers, society, the environment. Naturally, company wants to announce these good actions to the world, then PR is used as one of useful tools. PR will be used to report these actions, make company be more well-known in community, and in society. But as in the interview done by Matthew Rochte in 4th May 2009, PR can be “both a blessing and a curse to CSR”. PR can bring company either famous or harmful when company misunderstands about CSR and has mistake in PR campaign. 11
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