Truong Thi Thu Thanh

RESEARCH ON AWARENESS AND IMPLEMENTATION
OF CORPORATE SOCIAL RESPONSIBILITY IN

A MULTINATIONAL COMPANY IN VIETNAM
CASE STUDY: NESTLE VIETNAM
BY
TRUONG THI THU THANH
Graduation Project Submitted to the Department of Business Studies, HELP

University College, in Partial Fulfillment of the Requirements for the Degree of
Bachelor of Business (Accounting) Hons
OCTOBER 2011
October 2011
Declaration of Originality and Word Count
DECLARATION
I hereby declare that this 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 courses/degrees at
HELP University College or other institutions.
Word Count: 11,725 words
Date: 28/10/2011
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Acknowledgements
As a student, our main responsibility is to absorb and learn as much as we can from
the assistance, support and encouragement of many people such as our mentors and
teachers around us. They help us to learn, to apply our knowledge and to grow. And
this project would not have been made without them. I wish to take this opportunity
to thank all the people who have guided me in the right direction and kept me
motivated during the time of completing the dissertation.
First and foremost I would like to express my deep gratitude to my supervisor, Dr Le
Van Lien from International School at Vietnam National University, Hanoi who
guide me in my choice of assignment. His guidance throughout and inspiration for
me to create new ideas has helped me to learn and grow personally.
I also would like to express my thank to Ms. Sumathi and Ms. Shenba at Help
University College, who initiated the project and give so much instruction and
support.
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Abstract
RESEARCH ON AWARENESS AND IMPLEMENTATION

OF CORPORATE SOCIAL RESPONSIBILITY IN
A MULTINATIONAL COMPANY IN VIETNAM
CASE STUDY: NESTLE VIETNAM
By
October 2011
Supervisor: Dr. Le Van Lien
Corporate Social Responsibility (CSR) has become even more important for the
developing countries. It has developed through the long history and nowadays many
business entities over the world want to carry out the CSR in their business
operation. Vietnam is one of the world‟s fastest-growing economies. Therefore, there
are many multinational companies want to invest in Vietnam market. This paper
aims to discover the awareness of multinational organizations in Vietnam on CSR,
and the consumer attitude to social responsibility is positive or not. Besides, another
objective understands the implementation, CSR reporting of CSR in a multinational
company operating in Vietnam by asking respondents‟ understanding and opinion.
From conducting research, it can show the understanding and awareness of CSR
concept of multinational companies operating in Vietnam is unlimited, but the
performance is limited. The multinational companies have found difficult to use CSR
as a tool to value companies, the implementation of CSR in Vietnam as much as they
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can, and especially have to according with law and environmental protection and
better community in Vietnam. Willingness to learning and gaining more knowledge
about CSR found from the survey has drawn a bright future for the implementation
of CSR and awareness of CSR in Vietnam.
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TABLE OF CONTENTS
Declaration of Originality and Word Count ........................................................... 1

Acknowledgements ..................................................................................................... 2
Abstract ....................................................................................................................... 3
TABLE OF CONTENTS ........................................................................................... 5
LIST OF FIRGURES AND TABLES ...................................................................... 7
CHAPTER 1: INTRODUCTION ............................................................................. 9

1.1 Research Background........................................................................................... 10
1.1.1 CSR in the world ............................................................................................... 10
1.1.2 CSR in Vietnam ................................................................................................ 11
1.1.3 CSR in multinational companies operating in Vietnam .................................... 12
1.2 Problem Statement ............................................................................................... 13
1.3 Objectives and Sphere Research .......................................................................... 15
1.3.1 Objective of research......................................................................................... 15
1.3.2 Sphere of research ............................................................................................. 16
1.4 Research Methods ................................................................................................ 16
1.5 Structure of Research ........................................................................................... 16
CHAPTER 2: LITERATURE REVIEW ............................................................... 17

2.1 The Concepts Related to CSR .............................................................................. 18
2.1.1 Conceptual Framework ..................................................................................... 18
2.1.2 Carroll‟s 1979-1991 conceptualizations ........................................................... 19
2.1.3 Wood 1991 conceptualization ........................................................................... 21
2.1.4 Elkington‟s 1997 Triple Bottom Line ............................................................... 22
2.1.5 Stakeholder theory ............................................................................................ 24
2.2 Social accounting ................................................................................................. 26
2.3 Hypothesis ............................................................................................................ 27
2.3.1 Managers‟ perception of CSR ........................................................................... 27
2.3.2 Consumer‟s perception of CSR......................................................................... 29
2.3.3 Employee‟s perception of CSR ......................................................................... 31
CHAPTER 3: RESEARCH METHODOLOGY .................................................. 33

3.1 Research Objectives ............................................................................................. 34
3.2 Research Methodology......................................................................................... 34
3.3 Data source ........................................................................................................... 34
3.3.1 Secondary data .................................................................................................. 34
3.3.2 Primary data ...................................................................................................... 35
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3.4 Research method .................................................................................................. 35
3.5 Research tool ........................................................................................................ 36
3.5.1 Questionnaire .................................................................................................... 36
3.5.2 Annual report .................................................................................................... 36
3.6 Data collection ..................................................................................................... 36
3.7 Sampling .............................................................................................................. 37
3.7.1 Sampling population ......................................................................................... 37
3.7.2 Sampling frame ................................................................................................. 37
3.7.3 Sampling size .................................................................................................... 37
3.7.4 Sample techniques ............................................................................................. 37
3.8 Limitations ........................................................................................................... 38
CHAPTER 4: ANALYSIS....................................................................................... 39
4.1 Responds summary .............................................................................................. 40
4.2 Management ......................................................................................................... 42
4.2.1 Finding from questionnaire survey and interview ............................................ 42
4.2.2 Overall evaluation of management's responses ................................................ 49
4.3 Consumers ............................................................................................................ 50
4.3.1 Finding from questionnaire survey ................................................................... 50
4.3.2 Overall evaluation of consumer's responses ..................................................... 52
4.4 Employees ............................................................................................................ 55
4.4.1 Finding from questionnaire survey ................................................................... 55
4.4.2 Employees' stated support for social responsible businesses ............................ 56
4.4.3 Overall evaluation of employees‟ responses ..................................................... 57
4.5 Discussion ............................................................................................................ 59
CHAPTER 5: CONCLUSION ................................................................................ 60

5.1 Conclusion ........................................................................................................... 61
5.2 Recommendation.................................................................................................. 62
5.3 Limitation of Study .............................................................................................. 63
5.4 Suggestion for Future Research ........................................................................... 63
References (Harvard referencing system) ............................................................. 65

APPENDIX: QUESTIONAIRE............................................................................. 70
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LIST OF FIRGURES AND TABLES
Figure 2.1: Pyramid of CSR (Carroll, 1979) ………………………………………..19
Figure 2.2: The Wood's CPS Model (adapted from Wood, 1991)………………….22
Figure 2.3: Elkington‟s 1997 Triple Bottom Line…………………………………..23
Figure 2.4: The relationship between firm and its stakeholders…………………….25
Figure 2.5: The important factors for employees (Ewin.com survey)………………32
Figure 4.1: Respondent ……………….……………………………………...…….40
Figure 4.2: Consumer category…………………………………………………..…41
Figure 4.3: Employee of category…………………………………………..………41
Figure 4.4: Distribution responses of manager's perception of CSR……………….42
Figure 4.5: Distribution of response of management's perception toward of CSR...45
Figure 4.6: Distribution of responses from consumer survey……………………...50
Figure 4.7: Distribution of responses from consumer survey (percentage)…..……52
Figure 4.8: Distribution of responses from employee‟s survey……………………55
Figure 4.9: Distribution of responses from employee‟s survey (chart)……………56
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LIST OF ABBREVIATIONS
CSR Corporate Social Responsibility
VBLI Vietnam Business Links Initiative
VCCI Vietnam Chamber of Commerce and Industry
WTO World Trade Organization
WBCSD World Business Council for Sustainable Development
CSP Corporate Social Performance
VND Viet Nam Dong
CSP Corporate Social Performance
TBL Triple Bottom Line
GRI Global Reporting Initiative
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CHAPTER 1: INTRODUCTION
1.1 Research Background
1.1.1 CSR in the world
1.1.2 CSR in Vietnam
1.1.3 CSR in multinational companies operating in Vietnam
1.2 Problem Statement
1.3 Objectives and Sphere Research
1.3.1 Objective of research
1.3.2 Sphere of research
1.4 Research Methods
1.5 Structure of Research
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1.1 Research Background
1.1.1 CSR in the world
Nowadays, Corporate Social Responsibility is one of the hot topics; it becomes a
contemporary issue not only for companies but also for customers in the world.
Companies use CSR as a tool to spread their reputation in the worldwide market.
Investors use CSR as a main factor to consider in the decision of enterprises to invest
responsibility. Customers consider CSR as a part of important to determine the cost,
progress and the quality of an enterprise. Because of CSR can create the competitive
advantage, there are many giant corporations can pay a lot of money in order to
developing, become perfect business and social responsibility. Typically, Nestle, the
world‟s leading nutrition, healthy, wellness Company, also has many activities for
community, distributing their products in environment-friendly packing materials.
Besides, Nokia Corporation has CSR report annually, moreover, 100% of the
materials in their phone can be recovered and used to make new products or generate
energy. Also, Best Buy Co., Inc, a retailer of consumer electronics in USA and
Canada, has applied recycled goods program. Deputy Manager of public relations of
Best Buy Company says, “We only feel that we still succeed in the market if we take
responsibilities for society” (Saga Vietnam, 2008). On the hand, there are many
companies has quality assurance of staffs‟ living standard, protect the environment,
and making useful products for customers and environment. On the other hand, some
companies are still not aware of the importance of CSR; they have caused damage to
the environment, clients and themselves (effect on their reputation). Typically, Bp is
one of the biggest oil corporations in the world. However, Bp has encountered a
problem that is serious oil spill in the Gulf of Mexico. It leads to the lives of birds,
fish, turtles and other sea animals became ever more fragile by the oil spill disaster in
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the Gulf of Mexico. The cause of this incident is due to the lack of supervision, poor
safety… Living environment is threatened seriously have caused more sickness,
poverty for the people. In addition, marine organizations can not survive, caused
ecological imbalance.
1.1.2 CSR in Vietnam
Although CSR do not strange in the world, but also it is still a relative new concept
in Vietnam. The reason of it is the lack of awareness of the issue from the public and
business community has been considered as the key factors affecting on the
implementation of CSR. Typically, the pollution in Thi Vai River, Thanh Cong
River, or contaminated China milk, conflict between employees and their bosses
have proved that implementing CSR is very important for sustainable economy.
Nowadays, many companies in Vietnam have found that social responsibility of
companies has become one of the indispensable requirements for companies, because
of the context in globalization and international integration, if the business does not
comply with social responsibilities, they will not be able to gain access to world
markets. For instance, Vietnamese shoe manufactures and textile industries began
respecting CSR norms of conduct. The Vietnamese government later began
promoting corporate efforts to improve labor conditions and protect the environment,
as part of its Vietnam Agenda 21 program. Private sector CSR efforts have recently
begun, supported by the Vietnamese government. The Vietnam Business Links
Initiative (VBLI), launched under the auspices of the Vietnam Chamber of
Commerce and Industry (VCCI), promotes closes ties with international
organizations, and enterprises financed with foreign capital. VBLI offers consulting
services and training programs that will improve the labor environment at small and
medium-size shoe manufactures and textile industries, and raises CSR awareness
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among such enterprises. In 2004 VBLI began giving out CSR awards to the most
conscientious enterprises. According to Nguyen Hong Ha, deputy director of the
VCCI in Ho Chi Minh City, “CSR must be placed on the business strategies of each
business. It was, is and will be an essential part to the success of the enterprise”.
Beside, there are still many challenges in implementing CSR in Vietnam. First, there
is lack of law enforcement as well as the cooperation. Companies are facing the
challenges of adapting effectively to the changing environment in the context of
globalization. Second, Vietnamese‟s knowledge about CSR is still limited. We need
to increase the awareness that CSR can be of direct economic value. Companies can
contribute to social and environmental objectives, through integrating CSR as a
strategic investment into their core business strategy, management instruments and
operations. This is an investment, not a cost, much like quality management.
Therefore, business organizations can thereby have an inclusive financial,
commercial and social approach, leading to a long term and strategy minimizing
risks linked to uncertainly.
1.1.3 CSR in multinational companies operating in Vietnam
Vietnam is a member of the World Trade Organization (WTO). The Doi Moi
reforms and open-door policies have achieved high economic growth in Vietnam - in
2006, GDP grew by 8.2%. It is cause why nowadays there are many multinational
companies invest in Vietnam market, such as Honda, Ford, Toyota, Nestle, Vedan,
etc. Though they are multinational corporations but their acceptance and
performance about CSR does not pay attention and concern; and it is the caused of
many damages and disasters for environment and social. In recent time (august 4,
2011), Department Police of Crime Prevention and Environment had inspected and
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caught the wastewater treatment plant of JSC Sonadezi services (Long Thanh
Industrial Zone, Dong Nai) theft of waste discharge into Dong Nai river. According
to initial estimates, the plant was discharged into the environment with the amount of
14 millions m3. In there, at high tide, the company will mix with the wastewater to
dilute the tide, and when the tide go down, water and waste was mixed colors, and
flows into the Dong Nai river. People living around said that the sewage canals have
a black color and a very unpleasant odor. Sadly, this is a company specializing in
environmental services. The incident was discovered as the warning to the awareness
of enterprises on CSR. Another Vietnamese company which is well known for soy
sources has been claimed for 3-MCPD chemical contained in its products. This
chemical is one of the factors which can cause people cancer. As was the case
broken, the agency aggressively seek new management plan for resolving the
consequences of the consumer and society has suffered. Therefore, the multinational
companies operating in Vietnam businesses should adopt CSR. After applying CSR,
some businesses have established environments more stable and higher labor
productivity. Moreover, they received many supports from consumers and society in
the common interests that bring businesses to the community.
1.2 Problem Statement
With the rapidly growing of Vietnam economic, it has attracted many multinational
corporate operating in Vietnam. So, CSR draws attention from not only the business
but also the government, media, investors, and the social as the whole. Nowadays,
the business is expected not only to make profit but also care for the whole society‟s
welfare. Therefore, companies want to succeeds, they must do well on implementing
CSR.
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Nevertheless, there are many wrong-doing things that have been discovered recently
related to CSR which made by multinational companies. First, the hottest problem is
the polluting of the environment. A typical example is polluting Thi Vai River of
Vedan International Company. This company has been discharge untreated waste
water into the Thi Vai River in Dong Nai province. It used two pumping systems;
one is direct while other goes through refining progress. It affects nearly 2.700ha
farming area along the Thi Vai River basin. Level of pollution was 90% with the
range of about 10km affected along the river (Dantri, 2009). However, the later is
rarely used and it is made just for inspection and supervision from the local
governmental office (invest in Vietnam, 2008). Another case is that a Taiwan-owned
firm, namely Tung Kuang, was caught by the environmental police for discharging
directly water into the environment, concentrations of hazardous substances
exceeding specified thresholds. These are two typical examples of serious violations
to the environment, as well as a lack of understanding, poor of awareness about the
harm caused by environmental pollution.
Second, there are many unsafe products in market nowadays. A wrong-doing is a
different company in Vietnam which is well-known for soy sources has been claimed
for 3-MCPD chemical contained in its products. The chemical is one factor that can
cause cancer of people. The interesting thing is that this product of company is
compliant with Vietnam requiring standard. However, it is not the case in the
Europe. The question is of ethical rather than legal issue and it draws lots attention
from media and the public (Vietnamnet, 2007). Another example is the melamine-
contaminated milk which is known all over the world. Although there is not much
contaminated milk in Vietnam, it still makes people scared to use these products.
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Third, another problem is the working conditions, health, and safety of employees.
There are many researches about the working condition which show that health and
safety at work has become a serious and hot problem that need to be solved. An
example of a multinational company - Marumitsu, the workers protest strike
simultaneously at the door of the company in Quang Minh Industry Zone, Hanoi city.
The reason of strike are the unfavorable working conditions, bad air quality affect to
the health, time of work is too much but the wage is too lower, the employees can not
live with this wage, “The boss was hires the police with hooligans, using batons and
put a gun to scare the workers, to force them into the company and brutally beaten,
losing all spirit of the workers” (baokhongle.wordpress, April, 2011). It is a part of
the working conditions of employees. Vietnam is one of the countries which the
health and safety in the working environment are not good and need to be improved
better.
As the results, CSR issue is the matter in growing economic in Vietnam. It can affect
the enterprise, the shareholders and the stakeholders in the society as the whole. The
investors are those being strongly affected as their capital invested may be lost.
Therefore, awareness and implementation of CSR are very necessary for the
individual investors who care for their own, realtives‟ and society‟s benefits.
1.3 Objectives and Sphere Research
1.3.1 Objective of research
- Provide a framework about the CSR, including the definitions, and concepts related
to CSR.
- Inspect the awareness and implementation of multinational companies operating in
Vietnam about the concept and it‟s important.
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- Establish the solutions for multinational companies entering in Vietnam to raise the
awareness and implementation about the CSR.
1.3.2 Sphere of research
- Research conducting place: Nestlé Vietnam, Ha Noi city, Vietnam
- Objective of the research: Multinational Company in Vietnam
- Time duration of conducting the research: from August 15, 2011 to October 27,
2011
1.4 Research Methods
Investigation and survey will use for this project:
The qualitative research is the questionnaire and conduct through the managers,
employees, and consumers in Nestlé Vietnam, Hanoi city. The researcher comes to
each individual to ask them to answer and fill in the survey. The previous researches
and studies are used for making the questionnaire. The measurement is made in
accordance with the past researches. By surveying the managers and employees in
Nestlé Vietnam; consumers in Hanoi, the researcher can analyze the collected data
by Microsoft Excel software to see the awareness and implementation of managers,
employees, and consumer.
1.5 Structure of Research
This project will be divided into five following chapters:
Chapter1: Introduction
Chapter 2: Literature Review
Chapter 3: Research Methodology
Chapter 4: Result Analysis
Chapter 5: Conclusion and Recommendation
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CHAPTER 2: LITERATURE REVIEW
2.1 The Concepts Related to CSR
2.1.1 Conceptual Framework
2.1.2 Carroll’s 1979-1991 conceptualizations
2.1.3 Wood 1991 conceptualization
2.1.4 Elkington’s 1997 triple bottom line
2.1.5 Stakeholder theory
2.2 Social accounting
2.3 Hypothesis
2.3.1 Managers’ perception of CSR
2.3.2 Consumer’s perception of CSR
2.3.3 Employee’s perception of CSR
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2.1 The Concepts Related to CSR
2.1.1 Conceptual Framework
The concept of CSR is found on two key questions: The first one is for whom are
they responsible? And the second one is for what are corporations responsible?
(Friedman, 1970). These questions have engendered much philosophical and legal
debate. A precise, universally accepted definition of CSR is therefore difficult to
achieve, with views on where a firm‟s responsibility to society starts and finishes as
various as the names given used to describe such a notion, including corporate
citizenship (e.g., Maignan, Ferrell, and Hult, 1999), stakeholder management (e.g.,
Freeman, 1984), corporate social responsiveness (e.g., Miles, 1987), corporate social
performance (e.g., Wood, 1991), and corporate social responsibility (e.g., Carroll,
1979).
There are many definitions of CSR in many researchers and organizations all over
the world; however, according to World Business Council for Sustainable
Development (WBCSD), CSR is defined as “the commitment of business to contribute
to sustainable economic development, working with employees, their families, the local
community and society at large to improve their quality of life, in ways that are both
good for business and good for development” (WBCSD, 2004).
In literature, various theories of CSR have been growth; four concepts of CSR will
be introduced for this study, namely: Carroll (1979) four-part definition of CSR, the
Corporate Social Performance (CPS) model by Wood (1991), the Triple Bottom Line
(Elkington, 1997), and the Stakeholder theory (Freeman, 1984)
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2.1.2 Carroll’s 1979-1991 conceptualizations
According to Archie Carroll (1947), there are four categories of social responsibility:
Economic, Legal, Ethical, and Discretionary. And 1999, he introduced the Pyramid
that is the most comprehensive hierarchy of CSR.
Figure 2.1: Pyramid of CSR (Carroll, 1979)
The first category Carroll is economic responsibility. The business institution is the
basic economic unit before it was anything else. As such it has a responsibility to
produce goods and services that society needs and sell them to make profit.
Moreover, the enterprise roles are predicated on the assumption of fundamental.
The second part is legal responsibility. It indicates the business is expected to the
societies that comply to fulfill their economic mission with the framework of the
legal system. Just a society has sanctioned the economic system by permitting
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business to assume the productive role, as a partial fulfillment of the “social
contract”, they have laid down the ground rules - the laws and regulations - under
that the enterprise is expected to operating (Carroll, 1979). For example, in the case
of Vedan Vietnam, company has been discharge untreated waste water into the Thi
Vai River. As the result, they must paid compensation of 120 billion VND for people
of the local. The opportunity for the business to be proactive is limits by the reactive
nature of the laws. Therefore, although the laws attempt to circumscribe the limits of
tolerable business behavior, but they neither define neither ethics nor they “legislate
morality” (Solomon, 1994).
The third category Carroll is the ethical responsibility. It expresses a concern that
firm meet the Business‟s expectations of society conduct that are not codified into
law, but rather are reflected in unwritten standards, norms, and values implicitly
derived from society (Carroll, 1999). Ethical responsibility is often represented
through principles and moral values in the mission and strategies of the
organizations.
The last category of Carroll is the discretionary responsibility. It relates about the
society which has no clear-cut message for business-even less so than in the case of
ethical responsibility. They are left to individual judgment and choice. Besides,
discretionary responsibility refers that the firms contribute resources to the
community and improve quality of life to be good corporate citizens. It is more
voluntary for the firms even there is always expectation that the business provide it.
For example, the voluntary activities can be making the philanthropic contribution,
making effort to decrease the greenhouse effect. This responsibility causes a lot
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controversy of its wide scope and its implications may conflict with the firms‟
economic missions.
Many firms have already discovered the competitive advantage of claiming to be
socially responsible. The four responsibilities of Carroll‟s conceptualization are
useful and necessary for any company
2.1.3 Wood 1991 conceptualization
In 1991, Wood revised the Corporate Social Performance (CSP) model and
introduced the important and refinements of it. Wood had defined as -a firm
organization‟s configuration of principles of social responsibility, progress of social
responsiveness, programs, policies, and observable outcomes as they relate to the
business‟s relationship of society. The key factor of this particular theory is the
observable outcomes which related to the business‟s relationship of society. In fact
that Wood (1991) embraces corporate responsiveness as a component of her CSP‟s
conceptualization. Moreover, in 1991, Wood had believed that there were three
behavioral characteristics of a responsive firm: (1) it monitors and assesses
environmental conditions, (2) it attends to the many stakeholder demands placed on
it, and (3) it designs policies and plans to respond to changing conditions all of which
were originally proposed by Ackerman (1975). In conceptualization of Wood (1991),
she viewed corporate responsiveness as contributing an action dimension to CSP and
in turn, CSR. The following is the model of Wood:
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Principals of CSR 1
Institutional principal: legitimacy
Organizational principal: Public responsibility
Individual principal: managerial discretion
Processes of CSR 2
Environmental assessment
Stakeholder management
Issues management
Outcomes of corporate behavior
Social impacts
Social programs
Social policies
Figure 2.2: The Wood's CPS Model (adapted from Wood, 1991)
Even though the model of Wood had completed great strides in CSR research, the
important of stakeholder impacts, Waddock (2004) stated that, there had not been
considered fully. According Meehan et al. (2006) said that: “While the model of
Wood (1991) represents a significant piece of scholarship, it nevertheless failed to
address the needs of practicing managers charged with the implementation CSR/CSP
programs and crucially measuring their impacts”.
2.1.4 Elkington’s 1997 Triple Bottom Line
The Triple Bottom Line (TBL) was founded by John Elkington in 1987, which mean
to be a way of thinking about CSR. The TBL not only focuses on the economic
value, but also on the social value and environmental that they add. The term of TBL
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is used as a framework for measuring and reporting corporate performance against
economic, social, and environmental parameters. Moreover, it is also used to capture
the whole set of values, progresses, and issues that firms must address in order to
minimize any harm refusing from their activities, and to create the value of
economic, social and environmental value. This includes being clear about the firm‟s
purpose and taking into consideration the demands for the firm‟s shareholders,
stakeholders, employers, customers, governments, business partners, local
communities and the public, (Sustainability 2003: website).
Figure 2.3: Elkington’s 1997 Triple Bottom Line
(Source: Elkington, J. apud Almeida, M (2006))
TBL has achieved considerable imprimatur because corporations such as Shell and
BP Company have adopted it (see BP Australia’s Triple Bottom Line Report). The
world Business Council for sustainable Development, a coalition of 160 international
companies, has also given strong endorsement to the concept (see Holliday et al.
2002). Various government agencies at all levels have been required to
implementation of TBL, and have struggled because the social and some cases of
environmental indicators have not been determined. But they have lost sight of the
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intention. TBL should be a philosophy, not a set of accounts. As the results, the TBL
conceptualization sets principles and directly to evaluate and report the CSR
achievements.
2.1.5 Stakeholder theory
Stakeholder theory has grown in 1963 by R. Edward Freeman. The theory of
stakeholder was defined as embracing “those groups without whose support the
organization would cease to exist.” Some research about the stakeholder theory take
that managers who wish to maximize their firm‟s potential will take broader
stakeholder interest into account. This gives increased to a number of research on
how managers, stakeholders, and business do in the fact interact.
Stakeholder Theory has been raising mentioned as the common frame of reference in
the CSR debate. According to Freeman and Reed (1983), Stakeholder theory defined
as “any identifiable group or individual who can affect the achievement of an
organization’s objectives, or is affected by the achievement of an organization’s
objectives”. Stakeholder Theory has two branches: ethical and managerial. Below the
stakeholder theory‟s ethical perspective, all of these have the true to be treated fairly
through the organization (Deegan, 2009), which can not managed the interest of
shareholders alone, but a wide range of stakeholders who have a legitimate interest in
the corporation as well. If the stakeholder conflict of interest, the firm has a duty to
achieve optimal balance among them. For instances, the Body Shop‟s CSR activities
famously focus on promoting human rights and environmental sustainability of its
wholesalers, while those of Starbucks more narrowly target employee target
employee welfare. A business can be responsive towards one stakeholder group and
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simultaneously exploitative of another, making somewhat of a mockery of the ethical
lineage of the CSR concept. The managerial brands of stakeholder theory argues that
the alternative of responding to all equally of stakeholders, the organization will only
respond to stakeholders that are deemed to be “powerful” (Buhr, 2002). Basing on
Friedman and Miles (2002) said hat the greater the probability that the operation of
organization will include that particular expectations of stakeholders. Figure 2.3 in
the following will present about the relationship between firm and its stakeholders.
Figure 2.4: The relationship between firm and its stakeholders
Stakeholder theory express that the purpose of a firm is to create the value more and
more for stakeholders. Therefore, to give the CSR to the stakeholders, there are
important to have the knowledge and commitment of, not just for managers, but also
accountants.
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2.2 Social accounting
Social accounting is developed as the dynamic concept, and is the best viewed as a
tool for continuous improvement in order to understanding CSR communication.
Moreover, social accounting and reporting are the management tools which able to
bring the changing of culture needed to expand the financial bottom line to embrace
the social. Social accounting in the world is not new; it has been the subject of
extensive debate. The last major interest in the area was occurred in the 1970s. For
instance, according to Lindsey from 1979, retrieved in a debase research contained
the bellowing abstract, “Hospitals, as a part of the complex health care delivery
system, are the same as any other firm when it comes to being socially responsible,
and they soon will be singled out for social accounting. This change will mean a
commitment to a systematic assessment of and reporting on areas on the hospital’s
activities that have a social impact”. The basing of environmental and social
accounting had increased the complexity of the traditional view by embracing both
external and internal stakeholders, along with performance viewing of
multidimensional.
Social accounting was defined as “the process of communicating the social and
environmental effects of organizations’ economic action to particular interest groups
within society and to society at large, beyond the traditional role of providing a
financial account to the owners of capital, in particular shareholders. Such an
extension is predicated upon the assumption that companies do have wider
responsibility than simple to make money for their shareholder” (Gray et al 1987); or
“social accounting is about understanding the impact of organizations on out
society…the overarching context is…sustainability: both sustainability of the
26
organization itself (the interrelation of the social, the environmental, the cultural and
the financial) and sustainability of behavior which contributes to a future for the
people and the planet” (Pearce 2011); and as “voluntary disclosures of information,
both qualitative and quantitative made by organizations to inform or influence a
range of audiences. The quantitative disclosures may be financial or non-financial
terms” (Mathews, 1993). The necessary of social accounting for what we do and
listening to what others have to say so that future performance can be more
effectively targeted at achieving the selected objectives.
2.3 Hypothesis
2.3.1 Managers’ perception of CSR
According to Hill and Jones from 1992 express the relationship between stakeholders
and managers as “Managers are the only group of stakeholders who enter into a
contractual relationship with all other stakeholders. Managers are also the only
group of stakeholders with direct control over the decision making process of the
firm”. In the view point of stakeholders to some extent is affected by the behavior of
managers. In the substance of CSR issues, it is important to have managers‟
awareness and commitment to carry out and improve the initiative of CSR. If the
managers are at least partly the proponent of the corporate culture, and integrating
CSR requires culture change, so, it is not easy to imagine the CSR becoming
institutionalized in the organization without the managements‟ active support (Harris
and Crane, 2002).
There are many pressure of responsibility that relate to the affect of the managers‟
perception. The first one is the pressures come from the goal of profitability
incentive. The second one is the pressure come from a high level of expectations of
27
investors or significant creditors. Moreover, the managers are also affected by
community pressures that require them to meet the expectations set up by the
community. A recently example for the responsibility of managers in a multinational
company, the exploit oil giant between British and Royal Dutch Shell on August 15
2011, they communicate that the amount of oil from Gannett Alpha oil rig, had
spilled in the North Sea. Shell said that about 216 tonnes (1,300 barrels) of oil from
Gannett Alpha rig started leaking from August 8 in the region has an area 31km long
and 4.3 km wide, and continue to spread. The oil spills equivalent to 1 ton / day. The
oil spill was closed on August 10, and Shell is continuing to prevent oil spills. The
environmental protection notice criticized that Shell oil spill is too late. They are
investigating the managers who are responsible for the incident.
Today, there are two questions of the awareness of management are very important
with respect to initiatives‟‟ CSR: Does the managers really consider the
responsibilities of corporate towards society? and Why managers address CSR as
their strategic competitiveness and integration? The meaning of CSR is being
understood different in different firms. Managers can use CSR as a tool to raise the
reputation of business; or to improve the relationship with the stakeholder,
consumers, and employees; or to raise the efficiency and effectiveness on their
performance. The managers of multinational companies have more advantages than
the managers of Vietnam, they have more conditions to awareness of CSR. Some
managers of business in Vietnam are not enough knowledge to understand the
necessary of CSR, but it is a little amount of business operating in Vietnam integrates
CSR. However, some multinational companies operating in Vietnam have fully of
knowledge about CSR, they still violated and did not carry out CSR well. Therefore,
28
managers is very important, who make the right decision to build the reputation for
the business. Basing on the survey of corporate managers, there are only ten percent
of all firms integrate CSR in their core operation (Lacy and Salazar, 2006). It is clear
that there are many businesses continue to be longer on CSR worlds than action
(Moskowitz, 2002; Waddock, 2002). Although excellent progress in a substantial
number of businesses, there is still a long way from seeing CSR becoming fully
adopted by firms (Franklin, 2008). Therefore, integrating CSR in day-to-day
operation is a key CSR issue for management.
From the above argument, the first hypothesis is formulated:
H1: Managers’ perception of CSR is positive.
2.3.2 Consumer’s perception of CSR
Nowadays, consumers can be aware of the CSR by better education and influence of
the media. The consumers‟ ability to “differentiate between corporate economic
responsibilities on one hand and corporate legal, ethical, and philanthropic
responsibilities in the other hand” (Maignan, 2011) is known as consumer‟s
awareness of CSR. CSR has recently shifted to the field of marketing, and in
particular the CSR-consumer relationship, to know how business social, ethical, and
environmental initiatives can affect marketplace outcomes.
The exploring whether the consumers consider a company‟s CSR initiatives before
making decisions for any purchase of the product and services. Several researches
have agreed that that there is a positive relationship between consumers‟ perception
and a business‟s CSR activities towards that business and its products (Brown &
Dacin, 1997; Creyer Ross, 1997; Ellen, Webb, and Morhr, 2000). Basing on Creyer
and Rosss (1997) indicated that consumers regard ethical behavior as a necessary
29
consideration during their purchase decisions. The finding of Tay (2005) indicated
that as society becomes more affluent and faces a raise in the level of perception
among consumers. These customers become more sensitive to the ways in which
business behave, which in turn can affect their buying decision behavior.
Surprisingly previous researches explain mixed results of CSR awareness on
consumer purchase intentions. For instance Nelling and Webb (2006) found that the
actions of CSR do not have any influence on business performance. Mohr et al.
suggested use of Bandura‟s theory of self-efficacy and self-response to analyze
consumer behavior towards purchase intention and retention. This theory has been
used by a lot of researchers to give details human behavior in different scenarios
(Biran and Wilson, 1981; McAuley et al., 1994; Weinberg et al., 1979; Chin and
Kameoka, 2002; Schyns, 2004). Self-efficacy can be used to give details behavior
change that occurs in different situations. According to Bandura (1982) found self-
efficacy as believe of consumers that they can make knowledgeable purchase
decision based on the actions of a firm‟s CSR and response-efficacy as outcome of
their purchase decision. Mohr et al. (2001) discussed the contradiction between self-
efficacy and response-efficacy due to the construct that consumer have in their mind
regarding company‟s honesty about CSR. To measure this, instrument of self-
efficacy and response-efficacy have been used developed by Bandura‟s (1977; 1982).
The following hypothesis is used to gauge effects of purchase intention on consumer
retention/loyalty. Different researches show that consumer satisfaction is having
positive influence on consumer purchase intentions. Oliver (1994); Alexandris et al.
(2002) and Harrison (2004) found positive relationship between consumer
satisfaction and purchase intention. This study also assumes positive relationship
30
between consumer satisfaction and consumer purchase intention. The following
hypothesis has been developed for this sake. Finally, there are necessary to link
consumer satisfaction, consumer perception, and consumer loyalty to meet the
objectives of this study. Number of studies has investigated effects of CSR on
consumer behavior with incongruous results (e.g. Kim, 2004). Luo and Bhattacharya
(2006) investigated Fortune 500 companies, finding a positive link between CSR and
customer satisfaction. However, literature lacks the investigation of linkage between
CSR actions and consumer satisfaction on consumer loyalty. Yu et al. (2005) also
found that overall customer satisfaction positively influences customer loyalty. The
study of Dawkins (2004) in the UK point out 74% of respondents indicated that more
information on the company‟s CSR behavior would affect their purchasing decisions.
These surveys‟ results show a strong consumer demand for CSR reporting and CSR
information which can have significant impact on consumer behavior, leading to
what Hansen and Schrader (1997) describe as “consumer responsibility”.
Basing on the discussion, the second hypothesis can be formulated:
H2: Consumers behavior is affected by companies’ CSR practices.
2.3.3 Employee’s perception of CSR
Today, many multinational corporations engage in CSR activities, whereby
organizations take responsible for the influence of their activities special on
employees. For employees, the evaluate standard for the carry out of CSR consist of
the high salary, treatment policy and good training, not discrimination, and
acceptable working condition. Though all the above condition is simple, but there are
not so many companies can realize full. This is the following table which reflects
three important factors to workers (Ewin.com survey):
31
1. Salary 68%
2. Relationships with middle supervisor 35%
3. Insurance benefits 34%
4. Communication between the management team 29%
and staff
5. Fair policy 27%
Figure 2.5: The important factors for employees (Ewin.com survey)
The employees of multinational companies are being better trained, they are labor
protection. However, because most of employees are poor people, they do not have
condition to contact with communities such: newspaper, internet, news on television,
therefore they are lack of the knowledge about their interest, and the level of
awareness about CSR is low.
Employee‟s awareness of CSR reporting is very important as they are the one of
people who prepares the report. If the employees exhibit a negative perception, there
can be difficult to complete CSR reporting without full support from them.
The third hypothesis can be formulated:
H3: Employee’s perception of CSR is positive.
32
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research Objectives
3.2 Research Methodology
3.3 Data source
3.3.1 Secondary data
3.3.2 Primary data
3.4 Research method
3.5 Research tool
3.5.1 Questionnaire
3.5.2 Personal interview
3.5.3 Annual report
3.6 Data collection
3.7 Sampling
3.7.1 Sampling population
3.7.2 Sampling frame
3.7.3 Sampling size
3.7.4 Sample techniques
3.8 Limitations
33
3.1 Research Objectives
This research is designed to explore the awareness and implementation of CSR in
multinational companies operating in Vietnam. It will show a view of society,
community, consumers, management about the CSR. In addition, the project will
present about the level of awareness and implementation of CSR in multinational
companies operating in Vietnam. And, the research is also done to collect the opinion
such as: from managers, consumers, and workers about implementation CSR of the
multinational company- Nestle Vietnam
3.2 Research Methodology
This research includes qualitative method. The qualitative research is conducted
through the interview with managers and viewing the annual reports of Nestle
Vietnam as well as is implemented by the questionnaire survey on managers,
consumer, and employees.
3.3 Data source
To meet the information needs, this project will use gather both secondary data and
primary data.
3.3.1 Secondary data
The secondary data includes of the information that already exists, having been
collected for another purpose (Amstrong & Kotler, 2007). The sources of data
consist of the overall picture about application CSR of multinational companies
operating in Vietnam. Moreover, the sources of second data have collected through
the books, websites, journals, newspaper. Comparing with primary data, there are
34
may be more quickly and lower cost to obtain the secondary data. However, there are
some disadvantages regarding to secondary data that is the needed information may
not be available. Also, even when the data can be found, its usefulness is
questionable. Therefore, in order to make the secondary information become
effective, the researchers must evaluate carefully.
3.3.2 Primary data
The primary data include if the information collected for the specific purpose at hand
(Amstrong & Kotler, 2007). The primary data has collected through the experiments,
questionnaires, interviews and taking measurements, case studies, and critical
incidents. The primary data has a lot of advantage. Firstly, it is the most reliable form
of data; it designed less biased form of data. Additionally, researchers can have direct
interaction with the customers. On the other hand, the problems of primary data are
usually expensive and time consuming. Moreover, it is difficult for researcher to
design the survey. All questions in the survey must be simply and easy to understand
for others.
3.4 Research method
In order to do this project, survey method will be used widely and best suited
approach which consist of the questionnaire and personal interview from the
managers, customers and employees about the implementation an awareness CSR of
Nestle Vietnam. The research also collected the secondary information in the annual
reports of the company.
35
3.5 Research tool
3.5.1 Questionnaire
The survey will be consisted of three patterns: for managers, for employees of Nestle
Vietnam, and for consumers in Hanoi. Survey pattern designed for managers
includes 6 questions. When analyzing the results, those questions are divided into
two parts: managers‟ perception toward CSR, and carry out of CSR. Survey pattern
designed for consumers contain 5 questions, and it will be analyze the consumers‟
perception toward CSR and consumers‟ stated support to social responsible business
Next, for employees, there are 4 questions in pattern and it will be analyze the
employees‟ perception toward CSR, and employees‟ stated support responsible
business. Three survey patterns use five-points Likert scales, that including: 1=
"strongly disagree"; 2= "disagree"; 3 = “neutral/no opinion"; 4 = “agree"; 5 =
"strongly agree". There will be add more opinion part to write for the interviewed
people.
3.5.2 Annual report
This study will use the CSR annual report of Nestle Vietnam. From the level of
actual CSR report, all the activities, evaluation, determination, and implementation
of this company will be shown.
3.6 Data collection
This research will be used the primary data. Three patterns survey (managers,
consumer, and employees) will be sent for interviewed people. Firstly, the survey
questions for managers will be sent to mangers of Nestle Vietnam by email. The
management from many departments such as: headquarter department, receiving
36
department, cashier's department, purchasing department, IT department. Secondly,
the survey questions for consumers will be sent to many people. Finally, survey
questions for employees also will be sent to employees who are working in Nestle
Vietnam.
The secondary data will also be used to obtain the information in this research. They
are collected from the CSR annual report of Nestle Vietnam. The CSR annual report
will be evaluated and compared to get the useful information.
3.7 Sampling
3.7.1 Sampling population
The population of target is citizen in Dong Nai province, and Hanoi City, Vietnam.
3.7.2 Sampling frame
Sampling frame is the managers, consumers, and employees in Dong Nai province,
and Hanoi City.
3.7.3 Sampling size
There are 30 questionnaire patterns for management, 100 consumer questionnaire
patterns, and 90 employees‟ questionnaire patterns.
3.7.4 Sample techniques
There are two techniques for the sampling: judgment sampling, and convenience
sampling. Nevertheless, the judgment sampling will be used for managers in Nestle
Vietnam to interview.
37
3.8 Limitations
In the period of doing this research, there are some problems that related to survey
research. The first one is that some people are unable to answer the question of
survey because of lacking the knowledge. Though when responder do not understand
the question, they still answer the survey question by randomly tick in order to
appear smarter or informed. In addition, the interview adopted for this study
represents the limitation of which the reliability of information may be compromised
through interviewer or respondent bias. Moreover, people may be unwilling to
respond to unknown interview or about issues they consider sensitive. And people
may refuse to spend time to answer the questions (Amstrong & Kolter, 2007).
38
CHAPTER 4: ANALYSIS
4.1 Responds summary
4.2 Management
4.2.1 Finding from questionnaire survey and interview
4.2.1.1 Managers’ perception toward CSR
4.2.1.2 Implementation of CSR
4.2.2 Overall evaluation of management's responses
4.3 Consumers
4.3.1 Finding from questionnaire survey
4.3.1.1 Consumer’s perception toward CSR
4.3.1.2 Consumers’ stated support for social responsible businesses
4.3.2 Overall evaluation of consumer's responses
4.4 Employees
4.4.1.1 Employee’s perception toward CSR
4.4.2 Employees' stated support for social responsible businesses
4.4.3 Overall evaluation of employees’ responses
4.5 Discussion
39
4.1 Responds summary
To have information show how Nestlé Vietnam has awareness and implementation
about CSR, questionnaires are sent to 30 managers, 100 consumers, and 90
employees. However, there are only 20 questionnaires were collected from
managers, 89 questionnaires from consumers, and 79 questionnaires from
employees. That is because the other 32 questionnaires are lost during the project
implementation duration. All questions in 188 collected.
The management pattern will be divided into 5 categories base on the departments of
Nestle Vietnam: headquarter department, purchasing department, IT department,
receiving department, cashier's department.
Sample Number of Respond
Manager pattern
- Headquarter Department 6 5
- Purchasing Department 6 5
- IT Department 6 5
- Receiving Department 6 3
- Cashier Department 6 2
Total 30 20
Consumer pattern 100 89
Employee pattern 90 79
Figure 4.1: respondent
40
The consumer pattern will be divided base on age of the respondents, and the
employee pattern also will be divided base on the sex of the workers in Nestle
Vietnam.
Age range Number of consumers
20-30 31
30-40 12
40-50 10
50-60 10
Above 60 26
Total 89
Figure 4.2: Consumer category
The figure 4.3 following shows the responds of employees from the questionnaire
survey which base on sex.
Sex Number of employees
Male 29
Female 50
Total 79
Figure 4.3: Employee of category
The data collected for this study is based on Likert scale survey, but this method
survey does not tell the differences between each response are equal in distance.
41
4.2 Management
4.2.1 Finding from questionnaire survey and interview
4.2.1.1 Managers’ perception toward CSR
The following information will show the percentage of response distribution and
descriptive statistics of managers‟ perception toward CSR in Nestlé Vietnam.
Statements 5 4 3 2 1
Manager’s perception of CSR
1. I am awareness about the term “CSR” # 8 10 2 0 0
% 40 50 10 0 0
2. Company has benefits from CSR # 5 6 6 3 0

reporting
% 25 30 30 15 0
3. Take care of environment, employees, # 7 6 5 2 0

and solving social issue are become more and
% 35 30 25 10 0
more important for companied in near future.
Manager’s implementation of CSR issue
4. Incurring costs to protect environment, # 7 8 3 2 0

guarantee for employees, and solve social
% 35 40 15 10 0
problems are the social responsibility of the
company.
5. Company need to take care of impact on # 6 6 4 4 0
environment when using new system in
% 30 30 20 20 0
producing
6. Company has tried to reduce the # 3 7 8 2 0
enterprise‟s environmental impact.
% 15 35 40 10 0
5=strongly agree, 4=agree, 3=neutral, 2=disagree, 1=strongly disagree, # number of choosing
Figure 4.4: Distribution responses of manager's perception toward CSR
42
The results in figure 4.3 indicate that the first statement: I awareness about the term
“CSR”, most of respondents were answer “Strong Agree” and “Agree” (90%); and
there are only 10% respondents which have “no option”. It is encouraging answer.
The reasons is that Nestle is one of the famous multinational companies in the world,
so the managers were be good trained, they aware of the important of CSR.
In the second statement: “Company has benefits from CSR reporting”, many
respondents (55%) think that the CSR activities and CSR reporting annual would
improve their image, and CSR has considered being one of major purpose to improve
their reputation. There are still 30% respondents do not have the answer, only 15%
respondents think that the disclosure will not bring the benefit for their company.
The third statement was asked: “Take care of environment, employees, and solving
social issue are become more and ore important for companied in near future.” A
large of respondents (65%) thinks that take care of environment, employees, and
solving social issue would improve the company‟s reputation. However, there are
also small percentage of respondents do not have opinion (25%) and disagree (10%)
with this statement.
In the questions of implementation (fourth statement) “Incurring costs to protect
environment, guarantee for employees, and solve social problems are the social
responsibility of the company.” Most of respondents (75%) think there is social
responsibility of companies to incur to protect environment, guarantee for
employees, and solve social problems.
43
In the fifth statement: “Company need to take care of impact on environment when
using new system in producing.” From this question, a lot of respondents have
chosen either “Strong Agree” or “Agree” (60%). Only few respondents have chosen
“No Option” (20%) and “Disagree” (20%).
And the last question was “Company has tried to reduce your enterprise‟s
environmental impact”. The researcher wants to access the understanding of
respondents about the responsibility and implementation spirit of managers. The
numbers of respondents have chosen either “Strong Agree” or “Agree” is high
(50%).
The management responses are also analyzed based on different department of one
organization. And this study, the questionnaires survey will be sent to managers of
all departments in Nestle Vietnam: headquarter department, purchasing department,
IT department, receiving department, cashier's department.
From the percentage of the respondents above, we can see that the respondents in the
management's perception toward CSR are almost either “Strongly Agree" or
"Agree". There are only small percentages of respondents which are "No Opinion",
"Disagree", and “Strongly Disagree". Thus, the manager's perception toward CSR in
Nestle is highly positive.
44
50
40
30
20
10
0
Statem ent 1 Statem ent 2 Statem ent 3 Statem ent 4 Statem ent 5 Statem ent 6
Strong agree Agree Neutral/no option

Díagree Strongly agree
Figure 4.5: Distribution of response of management's perception toward CSR
4.2.1.2 Implementation of CSR
Nestle Vietnam is a multinational corporate operating in Vietnam, and they
understand that CSR is one of the key to succeed. Therefore the manager of Nestle
Vietnam bringing a better life is not only producing quality products but also aware
of responsibility in social activities and community. They ensuring their products are
safety, have good quality at a reasonable price; take care the employees, create an
interest working environment, and good living condition; protect the environment;
and raising funds for charity and donation for the development of society and
community.
The first area is ensuring the products are safety, have good quality at a reasonable
price. Nestle is known as the first beverage company in Vietnam to achieve ISO
9002 certification for quality assurance in 1999. The company also achieved several
years the Golden Dragon award of the Ministry of Planning and Investment for the
production of high quality and belong the top 20 products ensuring the food safety by
Health Ministry. One of the most popular products is a natural mineral water - La
Vie, is a taken up from the deep water resources are protected in the ground. There
has been filtered through several layers of material rich in minerals, salt intake of
45
trace elements such as calcium, magnesium, potassium, sodium…The products of
Nestle are pure, not through any process of chemical, and produce with modern
technology, self-contained, and fully automatic. Nestlé‟s product quality is checked
annually at the headquarters of Nestle-France and the Pasteur Institute (baomoi.com).
The second area is managers should take care of employees; create an interest
working environment, and good living condition. Nestle corporate attention to the
human as a most valuable asset. Include all positions with the rank of open
communication, encourage the proposed change and improve the operations of
Nestle. Cultural activities organized by Nestle is outlined as the followings:
Maintaining the respect of fundamental values, attitudes and behaviors with
employees; Respect of freedom of the individual employee; Improving the integrity
of employees all the world, and apply some common provisions and adjust these
provisions to suit the customs and local traditions; To encourage continued
improvement through training activities and improve professional skills; Career
opportunities based on the excellent quality regardless of any skin color, age,
nationality, region, race, disability, veteran…; Working hours, wages and overtime
are be paid in accordance with local laws and very competitive with the remuneration
of other companies; Limit overtime hours that are reasonable; And creating a safe
working environment and ensure the health of each employee.
The third area is the managements in Nestle always have the activities to protect
environment. Nestle aims to become a successful and socially responsible company
by improving the Vietnamese lives through the environmental and social activities.
Nestle notion that in order to produce nutritional products for the health benefit of
46
consumers, they must use materials and technologies associated with environmental
protection, protection of water resources and the energy. Saving water not only
conducted at the place of production but also be implemented as soon as the
agricultural products are cultivated. Nestle Vietnam has trained the farmers in Dak
Lak who cultivating coffee know based on weather conditions, water demands and
soil moisture to the water of irrigation is at least but highly effective. In the Dong Nai
plant, within 10 years, production has increases doubled, while the consumption of
water decreased to 29%. Along with saving water, saving energy is a top priority.
With so many initiatives are applied, the energy per ton of product was reduced by
21.5% (7.43 GJ / tonne to 5.83 GJ / tonne) in just four year from 2005 to 2008.
Nestle factory in Dong Nai application the environmental management system that
has standards of the Nestle Group, the international standard ISO - 14001:2004. The
company has investment the construction and installation of wastewater treatment
plant, treatment the sewage of coffee color, the processing system exhaust gas
boilers, coffee roasting furnaces, and equipped laboratory able analysis of basic
indicators of waste water such as PH, COD, BOD, SS, TDS, color, turbidity… In all
the activities, Nestle is committed to protecting the clean environment for the local
community (Nestlé.com).
The last area is raising funds for charity and donation for the development of society
and community. Nestle enhanced special care packages to members of the
community, especially the youngest generation in Vietnam. In recent years, Nestle
has sponsored the sport activities for children, such as the national basketball league
for elementary school pupil; the National Health Phu Dong; the course of swimming
lessons for children in storms or floods areas; Milo Kid Run contest; and Vietnam
47
Olimpiad football team, ASEAN sports of elementary school. Through this funding,
Nestle encourages good nutrition and happy life styles through the physical
activities, to help children develop of full potential, both physically and mentally.
For the Nestle Vietnam, CSR reporting is fond in the websites of the Nestle Group.
The CSR reporting presents the major developments and results associated with the
activities of CSR undertaken in one year. This CSR reporting has been complied in
accordance with the guidelines outlined in the Global Reporting Initiative (GRI). It
complies with GRI‟s level B (self-declared). The CSR reporting has been posted on
www.nestle.com. The CSR reporting, together with the Annual Reporting, is
available upon request from the Corporate Communication Department. Even though
the CSR reporting can not be found in the Vietnamese subsidiaries websites, the CSR
information and activities in Vietnam subsidiaries are also shown in descriptive
nature. The CSR information of this company often related to Nestle in society,
Nutrition & Health, Care for the environment, dedicated employees, Sustainable
agriculture.
According to the deputy managing director of Nestle Vietnam, there are motivations
for this company to implement CSR. Implementing CSR brings not only long-term
benefits but also can promote both benefits for the companies. Especially, Nestle is a
multinational company in business environment of host country-Vietnam has many
multiple obstacles, fluctuations, and risks. So CSR has more important role in
creating sustainable competitive advantages: (1) To meet the increasing pressure
from social expectations, (2) It is considered as a kind of investment; (3) Motivation
to increase business efficiency, (4) Assist enterprises in attracting investors; (5)
48
Improve labor relations; (6) Improving customer loyalty; (7) Develop reputation of
business; (8) Crisis management tools; (9) Contribute to the sustainable development
of society's more. From the basic characteristics of multinational company operating
in Vietnam, the role of CSR become especially important and necessary: to improve
labor relations; effective development, management crisis, sustainable social
development, creating good relations with the government and community.
4.2.2 Overall evaluation of management's responses
From the results of the survey, we can see that the management has made a positive
perception about CSR. The managers in the Nestle Vietnam recognize the important
of CSR with their company and responsibilities to embrace the CSR activities.
Besides, Nestle also shows the benefits that the CSR bring to the company such as to
improve labor relations; effective development, management crisis, sustainable
social development, as well as creating good relations with the government and
community. The managers at Nestle also give the CSR plans in the future to win the
heart of customer. CSR disclosure will be used as a tool to communicate and provide
information between Nestle Company and public. Managers also have responsibility
to implementing the CSR disclosure. The managers of Nestle Vietnam have shown
the positive perception about the future of CSR disclosure in Vietnam. They believe
that the CSR disclosure will become general practice with Vietnam in a near future.
It can enhanced responsibilities of companies with their actions as well as increase
the public's knowledge to them.
49
4.3 Consumers
4.3.1.1 Consumer’s perception toward CSR
The following information will show the percentage of response distribution and
descriptive statistics of consumer‟ perception toward CSR in Nestle Vietnam
Consumer’s perception of CSR
1. I know what CSR is # 12 25 30 20 2
% 13 28 33 24 2
2. The company‟s product is good or not, can # 40 35 10 4 0

ensure the health of people or not
% 45 39 11 5 0
Consumer’s implementation of CSR issue
3. I am willing to pay more money for # 7 21 23 27 11

products which have CSR
% 8 24 26 30 12
4. I will not buy the products from unethical # 12 35 25 9 8

companies
% 14 39 28 10 9
5. If there are two products which have the # 24 38 8 14 5

same price and quality, I would choose product
% 27 42 9 16 6
from a company that has a social responsible
reputation
Figure 4.6: Distribution of responses from consumer survey
The results in figure 4.6 indicate that there is 41% number of respondents awareness
about the CSR, we can see that the numbers of respondents have choose “Neutral/No
50
Option” is highest (33%), and 26% respondents choose “Disagree” or “Strong
Disagree” (statement 1).
A vast majority of respondents (84%) think that a quality product is very important; a
good product can ensure health for people. There are small respondents have choose
“Neutral/No Option” and “Disagree” (16%) (statement 2).
4.3.1.2 Consumers’ stated support for social responsible businesses
Besides, in statement 3, there is not that strong positive when it comes to the support
consumers give to responsible businesses. The number of respondents choose
“Strong Agree” and “Agree” were only 32%, whereas, nearly half of consumers
(42%) do not want to pay more. The reason may be the awareness of the CSR issues
does not too high. Moreover, Vietnam is a developing country, the number of
peoples living on less than $2 per day accounted for 48% of the population.
Therefore, most of consumer will not pay more for these products even it come from
responsible business is easily to understand.
However, with consumers, ethical seems to be one of the most important things as
53% of them agree that they will not buy the products from unethical companies
(statement 4), 28% respondents do not have the ideas, and only 19% respondents
who did not agree.
Nowadays, there are many scandal related to CSR that consumers care about not
only price and quality of products but also the ethic of companies. Therefore,
between two products that have the same price and quality, a large portion of
51
respondents will buy from the company which has social responsibility. The results
in the figure 4.6 is show that: 69% of respondents who chosen the answer "Strong
Agree" or " Agree"; only 22% of respondents who have chosen answer " disagree" or
"strongly disagree". So the business should not only focus on making profits but also
take care to the society such as protect of environmental, take care the employees,
create an interest working environment, and good living condition; and raising funds
for charity and donation for the development of society and community (statement
5).
4.3.2 Overall evaluation of consumer's responses
From collecting the information of consumer's survey, it can see that the consumers
have strongly positive responses. Though the consumers have positive perception
toward CSR, their support for efforts of companies to be responsible is not very
strong. The figure 4.7 will show the results:
45
40
35 Strong Agree
30 Agree
25
Neutral/ No Option
20
15 Disagree
10 Strong Agree
5
0
Statement 1 Statement 2 Statement 3 Statement 4 Statement 5
Figure 4.7: Distribution of responses from consumer survey (percentage)
From the chart (figure 4.2), the results illustrate both young consumers and old
consumers about CSR. In these results, almost the information got from the young
consumers show that they are students, unmarried or having a little children. The
students or consumers who are unmarried consider about their study, friends, and
52
spending rather than earning money. So they did not care about the products of
responsible companies or show the opinion to support the businesses to be
responsible for the community. Besides that, the young people who have married or
have children also did not care about the social responsibility of business as much as
they can. These young consumers have the whole family to carry and consider when
they shopping. So the most important that they concern is the price and the quality of
the products.
However, results also showed that the older consumers did not have the same answer
with the young people. The older consumers were born and raised up in the war.
They had to devote for the protection and recovery of the country. These are people
who have valuable life experiences. They also were educated to live ethical so in
their lives, they are always to consider the ethic; even the social responsibility of
businesses nowadays with all the reasons above, it seems that the old people require
a higher demand about the social responsibility of businesses than the young people.
There are many questions that are put out to consumers about their attitudes for CSR.
For question: “which channels do you know about CSR activities of companies?”.
Almost of consumers are answers that they know about the company's CSR activities
through television, newspapers, magazines, and internet. They are the channels
which to communicate between businesses and public.
To answer the question “How do you think about the quality of information?", the
respondents show a strongly support. According to consumers, companies often
advertise their image through showing the CSR activities on televisions. They also
gave the opinion that the companies' advertisings always have the positive facts and
53
these companies implement CSR well. However, the information on newspapers,
magazines seems to be more reliable with consumers. The information updated
everyday and every month. But there is a fact that there is not so much articles and
newspapers about the CSR activities of businesses.
According to consumers, there are so many scandals related to CSR recently that
they realize the quality of information is very important. When the scandals come, all
the information about them was also revealed on the television or newspapers. Most
of consumers show strong supports about the quality of the information. They only
want the independent sources of information appear to be more reliable and trustful.
They also care about their errors and methods for handling violations of these
companies.
54
4.4 Employees
4.4.1.1 Employee’s perception toward CSR
The percentage of distributions is presented in figure 4.8 and figure 4.9 of
employee‟s perception toward CSR in Nestle Vietnam.
1. I know the term “CSR”. # 8 12 12 34 13
% 10 15 15 43 17
2. I have never worked under any pressures, such # 22 30 18 5 4

as working time, salary.
% 28 38 23 6 5
3. CSR is very necessary which solve the living # 16 27 20 11 5

condition for employees. (such as health, safety)
% 20 34 25 14 7
4. I have been enjoying the benefit from social # 26 33 13 7 0

welfare, increasing salary, and bonus.
% 33 42 16 9 0
Figure 4.8: Distribution of responses from employee’s survey
The first statement is the employee‟s awareness about CSR, there are only 25% of
employees have heard about the term CSR, whereas, 60% disagree or strong disagree
with this statement; the remaining 12% stay neutral. Next, a large portion of
respondents (66%) have never been worked under any pressure, only small
respondents choose disagree or strong disagree (11%) (statement 2). Company not
only have the responsibility with society but also responsible with employee.
55
Although employees aware about the CSR a little, they still known that it can solve
their living condition (54%). Nestle Vietnam have many program which support the
living condition for employees, such as guarantee of healthy and safety. However,
21% number of respondents does not believe that CSR can bring benefits for them
(statement 3). And the last statement (statement 4), many respondents choose
“Strong Agree” and “Agree” (75%), it means that Nestle Vietnam has made life
policy to help employees better. Employees enjoy the full benefits from the regime
of welfare, such as insurance, increase salaries, increase bonuses, and reduce
working time. There are only 9% employees disagree with this statement.
45
40
35 Strong Agree
30 Agree
25 Neutral/No Option
20 Disagree
15
Strong Agree
10
5
0
Statement 1 Statement 2 Statement 3 Statement 4
Figure 4.9: Distribution of responses on employee’s survey
If the respondents are divided into male and female, there is not different between the
attitudes between the male employees and female employees.
4.4.2 Employees' stated support for social responsible businesses
Employees have played an important role in creating riches for the development
economy in the globalization. Therefore, taking care for the employees is very
important, such as wages, health care, living standards, working conditions. The
working conditions are all requirements about matter and spirit when working a job.
It consist rights and responsibilities of not only employees but also the company.
56
Good working conditions help not only workers but also their families can set their
mind at set about their jobs. The employees can feel that they are being respected,
protected and work in an environment which they pride of more than other
environment.
According to the employees in Nestle Vietnam, working in this company helps them
learn a great deal from their managers as well as colleagues. This particular time also
gives them direction in career path. Nestle not only aims to improve products‟
quality but also improves its human resources through training and development
programs. The companies always have to improve working conditions day by day
and try to have modern, comfortable working environments for the employees. As a
result, employee‟s motivation and aspiration are continuously enhanced. This is a
professional working environment with responsible and experienced colleagues.
The employees show that what the best they like about Nestle Vietnam is its people-
focused policies, including a strict commitment to employee's social insurance and
premium health care package that benefits its employees a great deal. Besides
activities for employees, Nestle also had the programs for employees' families. The
company created many activities for the employees' children to take part in. Besides
that, the company also has presents for children who are good in studying.
4.4.3 Overall evaluation of employees’ responses
The overall results show that the employees in Nestle are not sensitive and have no
strong feelings about the CSR issues. Almost employees in this company have never
57
known about CSR. Although limiting knowledge about the CSR issue, the
employees still believe that it can bring benefit for them.
In a flat organizational structure like Nestle, the career development of “vertical”
(hierarchical) is supplemented and replaced by the growth of “width”, it is driven by
getting more new skills. With the scale of a global corporation, Nestle bring to
employees the opportunity to develop their talents maximum depending on the
active network without border. Nestle gives for the employees that a salary system
and welfare are dynamic. That is competitive with the market in all respect,
including salary, short-term bonuses and / or long-term benefit, and the benefit of
society.
Almost employees in Nestle realize that it is a stable working environment, a lot of
opportunities and very clearly defined business objectives of Nestle Vietnam. And
what they like best about Nestle Vietnam is its people -focused policies, including a
strict commitment to employee‟s social insurance and a premium health care
package that benefits its employees a great deal. Moreover, the employees indicate a
strong support that the company have programs to subsidize for employees who are
killed or injured by the hazard works and help the employees who are disabled at
work in financing problems Company support the employees the daily meals which
have enough nutrition so that they can have enough health to work. There is not
discrimination in Nestlé‟s working environment. Managers in Nestle always treat to
employees equally, not having discriminations in the working place.
58
Because of the finding are general along with the increasing awareness of CSR in
Vietnam, and therefore, Employee are positive inclined toward CSR issue.
4.5 Discussion
To sum up, there are some key collecting about CSR perception among managers,
consumers and employees. The managers show a strong positive attitude toward
CSR, they think that issues related to environment, quality of product, safety of
employees, etc, are very important and want the companies to undertaken activities
to shown their responsibility for the society. Besides, the awareness of consumers
about the CSR are depends on the personal background such as education,
relationship as well as the living environment. However, consumer can still
awareness that choosing products from a company that has a social responsibility
reputation are intelligent choosing. A large number of employees do not know about
the CSR. However, employees show a positive perception toward CSR issues, and
they are willing to learn more about the CSR information. Therefore we can see that
CSR is very important, companies will not be comprehensive development without
CSR.
59
CHAPTER 5: CONCLUSION
5.1 Conclusion
5.2 Recommendation
5.3 Limitation of Study
5.4 Suggestion for Future Research
60
5.1 Conclusion
Nowadays, CSR is always a hot topic in the world. It includes such activities as have
safety quality product; take care the employees, create an interest working
environment, and good living condition; protect the environment; and raising funds
for charity and donation for the development of society and community. CSR gives
the company a sustainable development, reputation and profitability. However, CSR
is still new concept in Vietnam. The globalization put strong pressure on Vietnam
economy to comply with many international standards and cope with the high
development speed of the world. Since Vietnam joined the WTO in 2006, production
issues, working environment as well as product quality and consumers are
increasingly more concerned.
This research has focuses on the awareness and implementation of CSR in
multinational company - Nestle Vietnam under the managers‟, consumers‟, and
employees‟ view. From the results of the research, it is easy to realize that there is a
strong support for CSR from managers and a growing awareness among consumers
and employees. It is a big question for managers in Nestle that bring a quality
product at low price as well as communicate CSR in the efficiency ways. Besides
that, managers also have many CSR activities to satisfy the expectation of society in
high level such as taxation programs, contributing for community, helping the poor,
protecting the environment. Although the awareness of consumers and employees
does not high, but their support for responsible business are very strong because
there is a lack of the knowledge. But with the education of the government and
multinational companies operating in Vietnam, it is hopeful that their awareness will
be increase more and more.
61
To sum up, CSR draws many attentions from public in Vietnam. With the highly
positive perception toward the important of CSR, it is hoped to have a bright future
for Viet Nam people.
5.2 Recommendation
After the findings of the awareness and implementation of CSR in a multinational
company - Nestle Vietnam, may find that the perception of employees and customers
about CSR are low, and the performance did not really clear. Therefore, researcher
has some ideas to solve these problems.
Firstly, Company need to have the CSR disclosure on the website of Vietnam; they
should have the specific numbers in the report about the social responsibility.
Moreover, it is important to supplement and complete the legal frame of Vietnam to
create firm legal foundation for the activities of CSR. Nestle Vietnam as well as
other multinational companies operating in Vietnam, they need to comply with the
regulations and laws in Vietnam. Moreover, they must to pay taxation fully and
creating in friendly environment way to protect the environment. Besides that,
completing the regulations will prevent the firms exploit the law lost to do the wrong
things which harm for the community. At the violations of environmental and
scandal happened need proper handling and openly with consumers.
Secondly, it is important to enhance the awareness of the consumers and employees
in multinational companies operating in Viet Nam. The education plays an important
role in enhancing the awareness on CSR. The more attention and awareness the
public have, the more the companies act responsible and ethical. From that the
62
environmental and scandals will be decrease in the future. Enhancing their
awareness, it is necessary to start with education in school and university. Employees
should aware and understand the role of CSR. More than that, Vietnam‟s government
should have the meetings, activities to promote communication. So that can make the
sustainable development.
5.3 Limitation of Study
This study has some limitations:
 Firstly, there is highly potential of bias in the responses because the
respondents may have exaggerated their commitment and understanding
about CSR.
 Secondly, the research used with the small samples. With the large number of
managers, employees, and consumers in many places coming in and out
everyday, small samples may not represent sufficient the population.
 Finally, the scope of the research is narrow. The survey is only taken with
managers and employees in Nestle Viet Nam and consumers in Hanoi. If the
research is taken in many places in Viet Nam, the result would be
significantly different. Because the education and living standards in many
places are different such as remote areas and big city, young people and old
people, married and unmarried.
5.4 Suggestion for Future Research
Due to the limitation of the research, there are some suggestions for the future
research on the similar or related topics:
63
 Firstly, the research should pay attention to the other objects of research
besides business such as investors, accountants, and other stakeholders.
 Secondly, the research should have larger size of sample which would give a
more accurate result. The sphere of research should be bigger which can
conduct in many places in Viet Nam.
 Finally, the characteristics of the objects could be used more for
understanding the other objects with different values.
64
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69
APPENDIX: QUESTIONAIRE
MANAGEMENT SURVEY
Personal Information
Company: __________________________________________________________
Years in holding current position: ________________________________________
Questionnaire
To what extent do you agree with those statements?
5=strongly agree, 4=agree, 3=neutral/no opinion, 2=disagree, 1=strongly disagree

1. I am awareness about the term “CSR”
2. Company has benefits from CSR reporting
3. Take care of environment, employees, and

solving social issue are become more and more
important for companied in near future.
4. Incurring costs to protect environment, guarantee

for employees, and solve social problems are the social
responsibility of the company.
5. Company need to take care of impact on

environment when using new system in producing
6. Company has tried to reduce the enterprise‟s

environmental impact.
Additional personal comments (option):
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
__________________________________________________________________
__________________________________________________________________
70
CONSUMER SURVEY
Personal Information
Age:  20-30 Marital status: Married  Single 

 30-40
Number of children:  None
 40-50 1
 50-60 2
 Above 60  Above 2
Education: __________________________________________________________
Current employment: _________________________________________________
Questionnaire

1. I know what CSR is
2. The company‟s product is good or not, can ensure

the health of people or not
3. I am willing to pay more money for products

which have CSR
4. I will not buy the products from unethical

companies
5. If there are two products which have the same

price and quality, I would choose product from a
company that has a social responsible reputation
Additional option:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
71
EMPLOYEES SURVEY
Personal information
Company: __________________________________________________________
Years of working experience: ___________________________________________
Gender: Male  Female 
Questionnaire

1. I know the term “CSR”.
2. I have never worked under any pressures, such as

working time, salary.
3. CSR is very necessary which solve the living

condition for employees. (such as health, safety)
4. I have been enjoying the benefit from social

welfare, increasing salary, and bonus.
Additional personal comments (option):
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
72

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RESEARCH ON AWARENESS AND IMPLEMENTATION

OF CORPORATE SOCIAL RESPONSIBILITY IN

TRUONG THI THU THANH

Graduation Project Submitted to the Department of Business Studies, HELP

Declaration of Originality and Word Count

HELP University College or other institutions.

Word Count: 11,725 words

TRUONG THI THU THANH

motivated during the time of completing the dissertation.

First and foremost I would like to express my deep gratitude to my supervisor, Dr Le

guide me in my choice of assignment. His guidance throughout and inspiration for

me to create new ideas has helped me to learn and grow personally.

RESEARCH ON AWARENESS AND IMPLEMENTATION

TRUONG THI THU THANH

Supervisor: Dr. Le Van Lien

operation. Vietnam is one of the world‟s fastest-growing economies. Therefore, there

aims to discover the awareness of multinational organizations in Vietnam on CSR,

objective understands the implementation, CSR reporting of CSR in a multinational

company operating in Vietnam by asking respondents‟ understanding and opinion.

concept of multinational companies operating in Vietnam is unlimited, but the

as a tool to value companies, the implementation of CSR in Vietnam as much as they

better community in Vietnam. Willingness to learning and gaining more knowledge

of CSR and awareness of CSR in Vietnam.

Declaration of Originality and Word Count ........................................................... 1

CHAPTER 1: INTRODUCTION ............................................................................. 9

CHAPTER 2: LITERATURE REVIEW ............................................................... 17

CHAPTER 3: RESEARCH METHODOLOGY .................................................. 33

CHAPTER 5: CONCLUSION ................................................................................ 60

References (Harvard referencing system) ............................................................. 65

Figure 2.1: Pyramid of CSR (Carroll, 1979) ………………………………………..19

Figure 2.3: Elkington‟s 1997 Triple Bottom Line…………………………………..23

Figure 2.4: The relationship between firm and its stakeholders…………………….25

Figure 2.5: The important factors for employees (Ewin.com survey)………………32

Figure 4.1: Respondent ……………….……………………………………...…….40

Figure 4.2: Consumer category…………………………………………………..…41

Figure 4.3: Employee of category…………………………………………..………41

Figure 4.4: Distribution responses of manager's perception of CSR……………….42

Figure 4.5: Distribution of response of management's perception toward of CSR...45

Figure 4.6: Distribution of responses from consumer survey……………………...50

Figure 4.7: Distribution of responses from consumer survey (percentage)…..……52

Figure 4.8: Distribution of responses from employee‟s survey……………………55

Figure 4.9: Distribution of responses from employee‟s survey (chart)……………56

CSR Corporate Social Responsibility

VBLI Vietnam Business Links Initiative

VCCI Vietnam Chamber of Commerce and Industry

WTO World Trade Organization

WBCSD World Business Council for Sustainable Development

CSP Corporate Social Performance

VND Viet Nam Dong

CSP Corporate Social Performance

TBL Triple Bottom Line

GRI Global Reporting Initiative

1.1 Research Background

1.1.1 CSR in the world

1.1.2 CSR in Vietnam

1.1.3 CSR in multinational companies operating in Vietnam

1.2 Problem Statement

1.3 Objectives and Sphere Research

1.3.1 Objective of research

1.3.2 Sphere of research

1.4 Research Methods

1.5 Structure of Research

1.1.1 CSR in the world

Nowadays, Corporate Social Responsibility is one of the hot topics; it becomes a