Overview of Corporate Social Responsibility

Corporate social responsibility or CSR, in short, is a new concept in Vietnam. This

is a concept learned by multinational companies or companies doing business in
Vietnam 10 years ago from developed countries. However, CSR is a concept
developed by scientists in developed countries very early, especially in 1953 in the
book Social Responsibilities of the Businessman written and completed by
economist Howard Bowen. However, it was not until 1990 that this concept was
widely researched and widely accepted by businesses. Currently, businesses are
facing the problem of how to both make a profit and to be able to demonstrate
social responsibility. So what is corporate social responsibility? According to the
UNIDO (UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION), Corporate
Social Responsibility is a concept of management and its corporate business
activities that have an impact on society and the environment with its
stakeholders and the public.
In Vietnam, Vinamilk is a company that represents this concept from its inception
and development. To be as success as it is now and be well known not only in
Vietnam but also in developed countries. Besides, this company provides not only
some products such as beverages, milk, and soft drinks, Vinamilk also focus on
practicing social activities such as donating, helping people who have difficult
circumstances, and ethical considerations in business.
The 4 key components of Vinamilk Corporate Social Responsibility
Physical environment:
Vinamilk has been continuously implementing action programs for the
environment. Since starting production, Vinamilk has focused on minimizing and
treating waste generated during the company's operations. Vinamilk has
advocated building factories and farms in a modern, standardized manner with an
advanced waste treatment system that ensures ISO 14000 standards. Currently, all
of Vinamilk's farm factories meet these standards. HACCP (Hazard Analysis Critical
Control Point) standard.With modern factory and farm infrastructure, along with
advanced economical equipment, and a smart waste treatment system recognized
by the Department of Natural Resources and Environment, it has significantly
reduced the amount of waste in the company's production process to the external
environment.
Workplace:
Vinamilk will always provide and maintain a secure, safe, healthy and friendly
working environment. An environment that always attracts and retains talented
people even if they have different starting points. It is an environment that:
All employees have the opportunity to explore and express their own potential at
the highest level as well as achieve their own goals to develop and contribute to
the success of Vinamilk.
All employees have the best working conditions in both physical and mental
aspects. Employees are provided with a convenient working space, equipment to
serve their work, and always feel comfortable to develop their abilities and
contribute personal opinions. An environment that ensures the spiritual aspect
also means that, in which, each employee feels respected, everyone has the
opportunity to socialize and entertain regardless of individual differences in talent
or personality. .
All employees are guaranteed safety and health. Vinamilk always strictly complies
with safety and health regulations to ensure the best health for each person to be
ready to develop their abilities.
Community:
Continuously strive to share responsibility for the social community with the state
and government through social charity programs and community development
movements. Typical programs of Vinamilk include the Milk Fund for Poor
Children_ "For a Vietnam that always stands tall", the Vinamilk Annual Scholarship
Fund_ "Vinamilk - nurturing young Vietnamese talents" and "Vu A Dinh".
Vinamilk's community charity programs always focus on children because the
young generation is the future of the nation. Over many years of implementing
the above programs, Vinamilk has contributed significantly to the sustainable
development of the community and the country. The Stand Tall Vietnam Milk
Fund originated from the "One million glasses of milk fund for poor children in
Vietnam" deployed in 2008 with the aim of sharing the difficulties of poor
children, in special circumstances, and underprivileged. nutrition, disability... This
social activity of Vinamilk is also for the noble purpose of reducing malnutrition
rates, increasing children's height, and wishing to change a generation of
Vietnamese people. Since implementing this program, the Milk Fund has given
about 19 million glasses of milk to children across the country with a total value of
more than 69 billion VND. Not only does it wish to improve the physical health of
young Vietnamese people, Vinamilk also wishes to contribute its efforts to
developing the knowledge and talents of Vietnamese children and the state's
cause of socialization of education. Therefore, the "Nurturing Vietnamese Young
Talents" Scholarship Fund has been established to accompany elementary school
students across the country with excellent academic achievements and poor
students overcoming difficulties.
Marketplace:
 Domestic market:
Vinamilk has 3 main branches in Ha Noi, Da Nang, Can Tho and one headquarter
in Ho Chi Minh City. Hundreds of Vinamilk Stores provide a convenient and fast
door-to-door delivery service to consumers with Vinamilk’s top quality products,
along with distinguished promotions.
 Export market :
Vinamilk’s products have been exported to more than 50 countries worldwide,
which include the South East Asian, the Middle East, Africa and other countries.
a. Current status of CSR implementation at Vinamilk company.
The necessity of implementing CSR at Vinamilk.
As stated in the introduction about the urgency of implementing CSR in
Vietnamese businesses, the research team also analyzed the case of Vinamilk and
found that this business is not outside the wheel of that general context. .
In terms of business environment factors, Vietnam's increasingly deep integration
into the world economy requires Vietnamese businesses like Vinamilk to have
appropriate development strategies. With Vinamilk's dairy products, quality is the
top factor to bring the business to success. That's because customers constantly
demand clean, healthy dairy products and partners (especially foreign partners)
are even more demanding with their own standards. In that situation, if Vinamilk
cannot ensure the standards and expectations of the market in general, they will
face countless difficulties in their business. Besides quality, a series of other
factors related to CSR such as labor, environment, legal compliance,
environment... are also factors that affect Vinamilk's business. In other words, this
business needs CSR to meet the needs of society and can also be an effective
advertising channel for the business's image.
Vinamilk's perspective on implementing CSR.
When businesses implement CSR, they aim to increase business performance,
increase revenue, enhance shareholder benefits, increase brand value, access new
markets, reduce costs, reduce employee turnover and many other benefits that
CSR brings.
Vinamilk is an individual business, so it is no exception to that purpose when they
proactively implement CSR as a business strategy of the company. An important
reason that motivated Vinalmilk to do that is that implementing CSR is also a way
for the company to carry out its mission: "Vinamilk is committed to providing the
community with the best and highest quality nutrition through its own
government." our appreciation, love and high responsibility for human life and
society".
Vinamilk is always aware that to fulfill the company's mission, it must develop the
company in a sustainable direction. That's why Vinamilk always takes the
message: "Vinamilk develops sustainably, is environmentally friendly and socially
responsible" as a guideline for all production and business activities of the
company.
Vinamilk implements CSR for employees:
Always respect constructive and constructive opinions from members in many
aspects, regardless of rank. Especially contributions to improving the working
environment or specific work-related issues.
Personal information: Vinamilk respects personal privacy. Collecting, processing,
storing and using personal information of employees is only done in cases where
it is absolutely necessary and permitted by law. France.
Equal: Be fair in evaluating employee capabilities despite the existence of different
views and opinions at work.
Recruitment, work arrangement and determination of salaries and other benefits
for all Vinamilk employees are based on appropriate responsibilities, abilities and
self-expression, experience as well as evaluation results. price per employee.
An example stands out to state that CSR is an integral part of a durable business
strategy Firm. In 2016, Formosa enterprises discharged waste directly into the
environment, causing the living environment of people to be seriously affected,
not only that this action also caused heavy damage to the economy of Vietnam.
This business was condemned by many people for this action. Meanwhile, the
company such as Vinamilk has received the attention of people and society due to
their social assistance programs. In addition, Vinamilk believes that those
activities are the connection between them and their stakeholders such as
shareholders, consumers, government, customers, partners, and the community.
As a result, we can see that companies and enterprises that consider the
community's interests to the first position will be supported by consumers,
society.
b.To relate with reality:
Vinamilk during Covid 19 pandemic as people know that COVID 19 is a dangerous
pandemic that originated in late 2019 in China. This pandemic is not only
dangerous to human lives and it also affects the economies of countries around
the world. Vietnam was also the country most heavily affected by the outbreak of
Covid. Covid-19 had a negative impact on many aspects of the country's socio-
economic life, production and business activities faced many difficulties and
challenges. This is also the reason for many enterprises in Vietnam. Men have
many difficulties to survive. Despite such a difficult situation, Vinamilk always aims
to society with useful activities to help people in difficult circumstances overcome
Covid 19. Firstly, during few months that epidemic broke out in Vietnam, the
company donated nutritional products to 4000 health workers, doctors, and
frontline people fighting the epidemic across the country. Especially, the cost of
these nutritional supplements was up to nearly 15 billion VND. Furthermore, on
the same day of April 8, Vinamilk donated more than 2,000 protective gears and
more than 1,000 masks to doctors and nurses (Huong, 2020). Health care is at the
forefront during the Covid-19 epidemic, especially children because their
resistance is still weak to fight the epidemic, so it is very important for community
attention. Vinamilk started a campaign to bring 1.7 million glasses of milk,
equivalent to VND 12.5 billion, to more than 19,000 children with special
circumstances to have better health during this time (Khanh, 2020). Especially,
during the second outbreak of Covid in the some cities such as Ha Noi, Da Nang,
Quang Nam, and Quang Ngai, Vinamilk continued to support 8 billion VND for
these cities with medical equipment to help detect people infected with the virus
earlier and more effectively. This is essential to prevent the virus from spreading in
the community and endangering everyone around (Vinamilk donated 8 billion
VND, 2020). These are typical activities of Vinamilk during the Covid 19 epidemic.
Vinamilk has played an important part in preventing epidemics from spreading to
the public and this also proves that Vinamilk is ready to accompany to the
Government whenever Vietnam have some troubles with natural disasters,
epidemics, etc