The Corporate Social Responsibility (CSR) Award 2007 was launched in HanoiCity on July 19, attracting the participation of more than 100 enterprises. This is the third year in a row the Vietnam Chamber of Commerce and Industry (VCCI), in coordination with the Ministry of Labour, War Invalids and Social Affairs and Action Aid organised this award. ViB Forum interviewed Mr Nguyen Quang Vinh, Deputy Director of the Office for Business Sustainable Development under VCCI, on this award.
Can you talk about the benefits for businesses attending this award, and describe enterprise awareness of CSR.
Good implementation of CSR will make employees more loyal and devoted to their companies. This will help raise productivity. A survey conducted by VCCI, the World Bank (WB) and the Ministry of Labour, War Invalids and Social Affairs showed that when enterprises implement CSR, working conditions are better, factories and workshops are more scientifically arranged and employment policies are better. These also increase productivity.
The CSR Award helps enterprises improve their image, take the market and receive more orders from their partners. At present, the Vietnamese business community is increasingly aware of the benefits from implementation of corporate social responsibility, which used to be on the shoulders of the State.
Is there any difference between CSR 2007 and that of previous years?
More ministries, branches, organisations in Vietnam and international organisations are taking part in the award and the selection criteria are improved. This year, in addition to the Ministry of Labour, War Invalids and Social Affairs, the Ministry of Industry and VCCI, the Ministry of Planning and Investment will join the award. Besides, more international organisations registered to join this year, including International Labour Organisation (ILO), Action Aid and DED (a Germany development organisation).
The number of participating enterprises also increased from 100 to 150 businesses in the second round. The thirty best enterprises will be rewarded certificates of merit from the Ministry of Labour, War Invalids and Social Affairs, the Vietnam Chamber of Commerce and Industry (VCCI), the Vietnam Confederation of Labour, the Ministry of Industry and others.
Among the 30 best enterprises, the jury will select one first prize winner, two runners-up, three third prize winners and five winners of consolation prizes. Especially, apart from the above awards, the organiser this year grants awards to enterprises with excellent environment protection activities.
Additionally, award criteria this year are more concrete and scientific. The four selection criteria are good compliance with the Labour Code, business achievements, good employment relations and good environment protection.
Why is the CSR Award limited to the garment-textile and footwear fields?
Garment-textile and footwear are the two most labour intensive sectors. They contribute 20-25 per cent of country’s total export earnings. More than 80 per cent of labourers in these fields are women aged from 18 to 35. Thus, we only open the award for these sectors now. However, VCCI will work with others to expand this award to other sectors.
In fact, CSR is only implemented within big exporting companies while the majority of Vietnamese enterprises disregard this issue. Could you talk about the reasons for this?
Up to 99 per cent of enterprises applying CSR are exporting companies. This is because importers require exporters to have clear CSR policies and fully carry out corporate social responsibility. Meanwhile, a large majority of Vietnamese companies disregard CSR implementation because they only sell products in the country, not in foreign markets. Domestic consumers are really unaware of how the products are made.
In addition, propaganda activities by State organs for the implementation of CSR are limited. Many enterprises even think CSR implementation will raise costs while the immediate efficiency is lower than direct investment in production. These are attributable to bad implementation of CRS by Vietnamese enterprises.
Lan Anh
Vietnamese
