2012

[Dissertation

Project Proposal]
TOPIC: Influences of corporate social responsibility on improving the corporate performance in Vietnam

............... 4.... 9 Limitation of research ........................................................................... Reference list: ...................................................................................................................... 4 2...........................................10 2 | Dissertation Project Proposal ......................................................1................................ Introduction .......................Table of content: I.............................................................................................................. 8 Questionaire...... IV....................................... 4 Benefit of CSR: ................................... 4.......1............................. 6 Research Objectives: .................................................................................................................................... Research method ....................................2...... II..........................1.............................................................................................................. 2............................................................................................................................................. 9 4...... V..........................2............1............................................ 8 Personal interview .............................. 4.. 7 Data categories:........................................... 8 4........ 4............. 4... CSR definition: ...........................................................................1................. 7 Primary data: ........2............................................................3............4.............................................................. 9 Sampling...............3...... 7 Methodology .........................................................2....... 5 Framework: ...............................5...................... 4 Awareness of CSR in Vietnam: .................................................................................................4...... 8 Secondary data: ...................................1.................................................................................................................................. 4.................... 9 Data collection ................................................................. 4..... 3 Literature review: ....................................................................... 2............................................... 2............................2...................................................2...................................................................................... III....................................

In the countries with rapid development of CSR activities.I. Because of lack in essential CSR information from enterprises and low specific actions. especially about the way they behave with their employees. if Vietnamese enterprises and individuals had positive attitudes towards CSR. However. this has changed nowadays. with the rapid development of the world economy and joining WTO. efficiency and development of activities for community benefit should come from the consciousness of business. as citizens with rights and obligations. With the focus on CSR. recommendations for enterprises managers in dealing with CSR issues will be suggested through evaluating the collected research data. On the other hand. other corporate that looking for world economic integration needs to follow it. Vietnam enterprises realized the importance of CSR to their existence for the long term in the business community. there is a big gap between what we know and what we actually implement in Vietnam. Consequently. In fact. Enterprise is also a factor in the society. it also points out the advantages and limitations when Vietnamese enterprises work with CSR. Moreover. investigate the awareness level of both enterprises and citizens about CSR and analyze its influence on the business performance. They just only cared about how to maximize profit rapidly and ignored how their factories would affect the surround environment. Without CSR. the stability of corporate performance will be solidly maintained Many experts believe that persistence. Nevertheless. Accordingly. in recent years. almost Vietnamese enterprises do not have a proper view about CSR concept. These regulations have been adopted as the mandatory conditions of trade. Therefore. CSR was still a quite new concept for almost enterprises. Introduction In the past. Indeed. In contrast. the aim of this research is to build an overall picture of CSR in Vietnam. it leads to failure in the business performance. the CSR concept also contains the interaction between enterprises and employees. fully understand CSR concepts and its implementation. the barriers in CSR implementation are formed. the majority of businesses do not consider it as charity work but as the duty of the business to the community. it would contribute a lot to developing the economy in the future. Nevertheless. Additionally. it is also the responsibility of managers to give out the right management strategies in order to satisfy the demands of related parties. CSR abroad has grown to the extent of specifying the responsibilities of business by the rules of conduct and international quality standards. Most of enterprises realized that only through balancing between their business performance and their influences on the society can create the sustainable existence. enterprises will not receive the support from the society and other related parties as well and sooner or later losing reputation. Besides the responsibility with environment or society. 3 | Dissertation Project Proposal .

Based on this definition. the domestic organizations of Vietnam have experienced more motivation to adopt CSR as the main course of its responsibilities. which implement well the CSR. Thu (2011) adds that most of people misunderstand and think about CSR as charity only. Meanwhile. Furthermore. Accordingly. the understanding of people toward CSR is still very limited in Vietnam. the source of this fact is lack of effective enforcement claimed by law.II. the business owners tend to be frustrated from doing CSR and they soon find it as a burden rather 4 | Dissertation Project Proposal . According to Vu (2012). Awareness of CSR in Vietnam: CSR is not a new concept in Vietnam since its essence and related activities appeared as soon as the born of Vietnamese commerce. Corporate social responsibility can be defined as “the management of an organization„s total impact upon both its immediate stakeholders and upon the society in which it operates”. According to Vu (2012). Vietnam chamber of commerce and industry started the so-called Vietnam CSR Award to honor the businesses. Since then. This is quite opposite to the definition of Hawkins (2006)) when this author claims the CSR as the course of ethical activities that the corporate is encouraged to carry on in expectation of sharing mutual benefits with the society. there are only a small amount of people can realize that the CSR also come from inside of company. According to Hopkins (2000). Literature review: CSR definition: 2. which results in mutual benefits for both side as long as the CSR is fulfilled properly. 95% enterprises in Vietnam are in small and medium sizes that more likely underestimate the influences of CSR. 2.1. Thus.2. CSR has indeed become a serious issue that there are more and more business manager considers and attempts to perform. Furthermore. Since then. it should be concluded that the CSR itself always maintains a cohesive relationship between the organization and the society. Finally. Indeed. Vu (2012) adds that the structure of Vietnam economics also partly contributes to the ignorance of CSR. it has only been officially systemized and used widely since the international corporate entered Vietnam and carried their code of conduct toward society. the standard for evaluating CSR is still so ambiguous that makes the businesses find it hard to keep track and determine whether they have fulfilled the CSR well or not. the definition of Hawkins (2006) takes a closer look onto so-called interactive impacts that existed between the corporate and the external environment. it should be seen that the most important factor that Hopkins concerns about CSR is merely 1-way impacts from corporate toward its own external environment. the big companies often accept and carry the CSR as a requirement from the foreign partners. By 2005. That is. Accordingly. the adoption of CSR in Vietnam is still the big problem since there is still a large share of enterprises ignoring their own responsibilities. The definition of Hawkins (2006) is supported by Maines and Sprinkle (2010) when these authors state that fulfilling CSR is the necessary mission of any corporate in any society to achieve the common sustainable development so the corporate should consider it as the right rather than enforcement. However.

better local employee quality and stable politics Better risk and crisis management: As long as the CSR is successfully performed by organization. the domestic companies always hold more advantage in winning social support. those challenges lead the Vietnam businesses to be unwilling to take CSR in their course of business. it will cause tougher challenge for any international corporate to get entry into the market Long-term sustainability for company and society: As a result of CSR. Such good impression can not only help developing more effective PR campaign but also gain strong support of communities in every activity it takes. those organizations which heavily invest in improving the working environment can be much more attractive to the talents since these people always look for good conditions of work as the most important criteria Good relations with government: Supporting the welfare of society means corporate has partly reduced the burden and shared responsibility with the government. the corporate also benefits from the growth of market demand. good brand image and amount of loyal customers. its brand image can generate the factors that can enable the organization to deal well with the threats (Nurn & Tan. Produce competitive capabilities against international invasion: The international businesses often require and perform CSR well so they can produce very steady competitive advantages from CSR activities. corporate can maintain good brand images in communities.than long-term benefits. can cause certainly better impressions in people mind. 2. it 5 | Dissertation Project Proposal . Enhanced the ability to attract talent workforce: points out that the organizations. As a result. the society may experience such a huge support from the corporate in reducing negative effects of unemployment or poverty reduction. For instance. Consequently. improving the quality of working environment is among the essential course of CSR. Increased worker commitment: According to Nurn and Tan (2010). this helps the employees gain higher working morale so they are motivated to not only perform better but also able to feel more comfortable at workplace. which results from CSR. Benefit of CSR: Enhanced brand value and reputation: Via performing CSR. once local company get the upper hand by strengthen position by social support. Reversely. 2010). In fact. This fact forces the Vietnamese company to commit more into CSR to gain the same or higher competitive capabilities to compete against those international forces. Especially. which perform better CSR. Therefore.3. may produce sufficient motivation for the corporate to overcome crisis in market demand or effects of negative rumors on company brand. Therefore. since the society can maintain consistent and sustainable development.

Basically. this theory supposes that the organization must evaluate their success of CSR based on interaction and impacts on the economy. which was defined by John Elkington in 1995.enables the organization to create and develop good relation with government for further political benefits. Blinder (2010) states that the stakeholders are more likely concerned in Triple Bottom Line theory than shareholders so the business must closely look at the interest and benefits of every single stakeholder satisfy and even maintain them. when the competitors do better in CSR. The theory of stakeholder was first developed by Freeman (1984) addressing that the stakeholders consists of any individual or organization that have interest or being directly or indirectly influenced by the organization‟s activities. The roles of main stakeholders involved with CSR should be described as following: Organization: This is the main force in stakeholders that directly bring CSR into actions and obtain any result of those activities. Based on that. Society: The more difficult the society is.4. Maines and Sprinkle (2010) 6 | Dissertation Project Proposal . In the other words. Accordingly. Furthermore. environment and society. it is necessary to identify and examine properly the stakeholders involved with CSR decisions of the company. the society is also the benchmark evaluating every CSR activities performed by the organization and return feedback as a result. 2. These 2 authors also state that the review of all stakeholders enables the organization prepare more effective plan for CSR implementation. CSR can also drive the organization to ruin if performed actions could not meet the expectation of society or any target of CSR Competitor: The implementation of CSR directly causes impacts on the competitive advantages of the organization against its competitors. Branco and Rodrigues (2007) argue that the organization must examine to see if the influences of CSR activities could satisfy every stakeholder. the triple bottom line report accounts the business performance through the ecological and social performance along with financial performance. In fact. the social status directly reflects the need of CSR from the corporate. the more necessary the CSR is. Reversely. it causes more likely threats on the organization itself. the society plays the role of both target and evaluator of the CSR Employees: This is the stakeholder of CSR that most of Vietnamese companies ignore or unable to recognize when considering the CSR portfolio. In order to successfully apply the Triple Bottom Line. The positive expected results toward organization are competitive positioning. However. Thus the Triple bottom line can be used as the guide for the company to keep track. risk prevention. Framework: The main theory that will play the role as backbone of the research is Triple bottom line. Therefore. Thus. brand differentiation or even talent attraction. evaluate as well as report the achievements of CSR implementation.

Thus. According to Pulitzer (2003). selecting the right research methodology is really important. information would be gathered from two sources: primary data and secondary data. comfortable and professional environment along with the sufficient supports and working policies. the mass media helps organization to identify and measure the level of necessity of support from society. 7 | Dissertation Project Proposal .1. Research Objectives: Define the concept of Corporate Social Responsibility (CSR). It not only assists the writer in expressing ideas but also collecting essential types of information. Investigate the awareness of Vietnamese people (both individuals and corporate) about CSR and its applications in the business trend nowadays via some research methods. that is such a twin blade because it can either promote the positive brand images if CSR activities can satisfy its target or directly return negative images in the bad consequence of unsuccessful CSR. the CSR of organization should develop a friendly. the corporate can then prepare the CSR with most punctual and accurate intervention into the case. Identify the advantages and disadvantages when Vietnamese companies work with CSR Recommend some appropriate solutions for Vietnamese companies to improve the performance and effectiveness via carrying on CSR. Furthermore. As a result. summarize related issues and application of theory. the mass media also helps the corporate to widely spread the CSR results to community. Mass media: The mass media plays the role as bridge connecting between the corporate and the external force such as society. In order to increase the accuracy of any research. Describe the influences of CSR on the performance of Vietnamese companies.argue that internal force such as employee should be the very first target of CSR rather than external one such as society because it directly influences the performance of company. Methodology Data categories: 4. In order to satisfy the employees. For the purpose of this writing. which ensure the mandatory benefits of employees. III. IV.

2. 4. For instance. Internet or TV.1. implementation of CSR in Vietnamese corporates and the connection between CSR and the corporate performance. Therefore. Normally. the questionnaire and interview method would be used to collect the primary data in this research. personal interview is also a good choice to gather essential information because researcher has an opportunity to communicate directly with the interviewee and capture valuable information. etc. Besides. Like two sides of a coin. there are two kinds of survey: offline survey and online survey.4. due to the limits of traditional offline methods such as difficult to approach respondents. hard to deliver and collect the questionnaire and less accuracy of information. Accordingly. 4. journals. the questionnaire will be designed in electronic version and delivered directly to respondents via electronic channel such as email or forum post. it is easy to search and collect secondary data on newspapers. Secondary data: If the primary data cannot fulfill the information need of the researcher. online survey should be used in order to save time and efforts as well as increase the accuracy. magazines. In specific. in order to use secondary data effectively. too much information coming from different sources is also a barrier to researcher. observation. Research method As analyzing above. Basically. the researcher should compare and contrast between various sources to filter out the most accurate information for the writing.1.1. The five-point Likert scale would be applied as the measurement for each question (I = Strongly disagree. questionnaire is selected the most because of its convenience to understand the perception or trend of different types of people in the society. secondary data should be used. the direct communication with the expert to collect information can help discover the critical issues in the highest detailed level. esssential data is not the same as the origins or not availabe on Internet.1. it takes a short span of time to gather secondary data and low cost. 4. II = Disagree. For the secondary data. However. III = 8 | Dissertation Project Proposal . etc. The questionnaire is divided into two main parts: one for stakeholders or customers and one for managers or BOD of each company. Primary data: Primary data is collected from different sources such as questionnaire. interview.2. However. books or journals on Internet. etc. In fact. the secondary data is the one sourcing from the research or works of external parties rather than paying personal effort as primary date. In fact.2. Questionaire The questionnaire is designed with questions concerned with CSR. it would be gathered via company profile.

respondents cannot avoid confusion during the process of answering the questionaire. IV = Agree. the researcher need to have a review and make timely adjustment on the questionnaire according to the respondents' opinion. journals or corporate annual reports. Firstly. Sampling The questionnaire is designed in two languages (English & Vietnamese) in order to bring the convenience to respondents. employees and corporates managers. interview is implemented simultaneously. not many people have knowledge about CSR. There will have above 10 selected people to answer the questionaire as a test before releasing it to public. Limitation of research Basically.2. there will have an additional part for respondents who want to express more own ideas about CSR. it leads to the fact that they will answer the questionnaire indiscriminately or without thinking. Those limitations 9 | Dissertation Project Proposal . Moreover. Data collection For the primary data. The interviewee could be any corporate manager in Vietnam.5. Moreover. it will also occur some problems. information related to CSR in Vietnam would be gathered from books. V = Strongly Agree) in order to investigate the awareness of Vietnamese people (both individuals and corporates) about CSR and its applications in the business trend nowadays. the accuracy of result will be decreased significantly. some people are too busy to answers the questionaire. the misunderstandings in answering the questionaire of respondents because lack of knowledge is also a problem. Besides. 4. However. Nevertheless. Personal interview The aim of an interview with the manager of one selected corporate is to have a broad overview about the perception of Vietnam corporates about CSR and its implementation in general. They just skim and give out ideas quickly.Neither agree nor disagree. 4. questionnaire would be delivered to respondents and re-sent to researcher via Internet. as a consequence. it also increases the effectiveness of this research through giving out questions related to the solutions for applying CSR in improving the corporate performance in Vietnam. Thus.3. it cannot be denied the advantage of using the questionnaire as a data collection method. 4. On the other hand. Respondents include students. Secondly. This could be considered as a basic foundation for researcher to analyze and make accurate judgement on CSR.4.2. For the secondary data. 4.

pdf[ Accessed Sep 7th 2012] 7. available at:http://ejbo.bizresearchpapers. G.org. & Rodrigues. 6. Positioning Stakeholder Theory within the Debate on Corporate Social Responsibility. Corporate social responsibility and the international development: it business the solution. Corporate Social Responsibility Management as a Strategic Instrument for creating competitive advantages. 2011.html [Accessed Sep 7th 2012] 8. 2007.L. Vu. Nurn. Role of Media in Corporate Social Responsibility and Sustainable Development. available at:http://www. L. Electronic Journal of Business Ethics and Organization Studies.. & Tan. L. Earthscan publisher 4. 2003. “Doanh nghiệp thờ ơ với trách nhiệm xã hội” (Enterprises maintains low interest with CSR).fi/pdf/ejbo_vol12_no1_pages_5-15. available at:http://hanoimoi.. Blinder.. L. Branco. C. 4. 5. 2010. M.thesaigontimes... 12. available at:http://www. Pulitzer.com/29. Obtaining Intangible And Tangible Benefits From Corporate Social Responsibility.. Hopkins. J.undp. V. IBM pubisher 2.pdf[Accessed Sep 8th 2012] 6. available at:http://www. 2010. G. 1. KinhtesaigonOnline. 2007. 2010. Vol. T.cannot be avoided. The benefits and costs of corporate social responsibility.B.A. M. Sep 2010. UNDP. therefore.W.vn/Home/doanhnghiep/quantri/60867/Trach-nhiem-xahoi-khong-chi-la-lam-tu-thien.. Maines.vn/newsdetail/Xa-hoi/544706/doanh-nghiep-tho-o-voi-trachnhiem-xa-hoi. & Sprinkle. Vol.com.htm [Accessed Sep 7th 2012] 10 | Dissertation Project Proposal . the researcher should find an effective way to minimize them to the lowest level as possible. No.pdf[Accessed Sep 8th 2012] 3. Thu. 2007. Havard Business Review.%20Gilbert%20Tan-FINAL. M..jyu.C. No..lb/partners/privatesector/ebcr/casestudybook/docs/Media. Hanoimoi Online. Reference list: 1.International Review of Business Research Papers. “Trách nhiệm xã hội không chỉ là làm từ thiện” (CSR is not only about charity).

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