This is the remark given by Tran Ngoc Thuan, General Director of the Vietnam Rubber Group, at an interview granted to Vietnam Business Forum on the sidelines of the Corporate Social Responsibility Awards 2012 (CSR Award 2012) Ceremony hosted by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Ministry of Labour, Invalids and Social Affairs, the Ministry of Industry and Trade, the Ministry of Planning and Investment, the Department of Environmental Police, and international partners. He said social responsibility is not only tied to the conscience and responsibility of business leaders but is also translated into daily professional activity of employees to generate quality products for the society. Huong Giang reports.
As a leader in Vietnamese rubber industry, what is the standpoint of the Vietnam Rubber Group on corporate social responsibility?
Vietnam Rubber Group thinks social responsibility is one of basic and important elements for the business to develop sustainably, build competitive advantage, and contribute to the sustainable development of society. Particularly, labour and environment are two fundamental factors.
Rubber companies are attached to land, labour and community. So, not until being operated as an economic group, we have taken the social responsibility. Workers were always cared and inspired to take part in charitable and poverty reduction activities. In 2006 - 2012, the group’s major member units contributed nearly VND400 billion to charity and poverty reduction activities and other community activities. Rubber companies actively coordinate with local authorities to build roads or schools. Bright electric light and clean water are gradually invested, helping far-lying localities to push back social evils and ensure social welfare.
In 2012, Vietnam Rubber Group was honoured with the Gold Star Order by the Party and the State. This honourable award esteemed the glorious tradition and great effort of generations of workers and affirmed effective operations and contributions of the Vietnam Rubber Group to the national development. At the cabinet meeting with State-owned economic groups on January 16, 2013, the Vietnam Rubber Group was recognised as a good-performing unit which helped ensure social security and welfare, strengthen national defence and security, and support social and economic development in far-lying and remote areas.”
The group has a lot of employees in Vietnam, Laos and Cambodia. This is a huge pressure on the group’s personnel management and employment policy. How has the group dealt with this?
Labour is always a top-rate concern of the group, its affiliates and trade unions. Rubber workers are now present in Ho Chi Minh City, Southeast provinces, Central Highlands provinces, central provinces, northern mountainous provinces, Laos and Cambodia. The group has 130,000 employees, including more than 49,000 women workers (over 41 per cent of the total workforce) and 24,000 workers of ethnic minorities (20 per cent). With performance-based payroll policy, incomes of workers have increased sharply in recent years on high rubber prices. In 2012, rubber prices fell but the average salary of an employee was VND7 million a month. The monthly pay for a worker in new companies also reached VND3-5 million on average.
In Laos, the group has cultivated roughly 30,000 hectares and had more than 2,000 employees. The average monthly pay is VND3-4 million. The group’s member companies have also built accommodations for workers and granted many other benefits. In Cambodia, the group has grown up to 63,000 hectares and had 9,000 Cambodian workers, accounting for over 90 per cent of total employees there. The average salary was US$120 per month plus 20 kg of rice and other bonus modes. From 2007 to 2012, the group and its affiliated companies contributed rubber US$2,045,880 to local social welfare funds in Cambodia. Rubber projects in Laos and Cambodia help foster friendship relations between Vietnam and Laos and Cambodia.
As a State-owned economic group, Vietnam Rubber Group has conditions to apply all best employment policies. All employment policies accord labour laws and collective bargaining agreements. Employees have health insurance, social security, unemployment insurance, health check-up, and sightseeing. Each year, the group spends more than VND350 billion on labour protection. Some companies even offer free meals for their employees.
How has the group applied technologies and solutions to mitigate adverse impacts on surrounding environment?
Always following the business motto "sustainable economic development", the group’s leaders are very much concerned about environment. Its subsidiaries invest, renovate and upgrade wastewater treatment systems at latex processing plants, using new technologies and progresses, install air filter systems at driers to minimise air pollution and use deodorants to meet local environmental requirements. Together with investing into upgrading and construction of new wastewater treatment systems, they also operate technically and manage fuel use properly. All treatments facilities are located with a safe distance from residential zones to eradicate direct impacts on local people.
The group is gradually building the ISO14000 system for its factories. Mang Yang Rubber Company and Tay Ninh Rubber Joint Stock Company were certified this certification. In addition, the group is also building the ISO 14 067 system - carbon trace in products. At present, Phuoc Hoa Rubber Joint Stock Company and VRG Khai Hoan Joint Stock Company are building the process for obtaining green labels for their products to enhance competitiveness on the market.
VCCI has coordinated with relevant domestic and international agencies to launch the "CSR Award." How do you think about this award? What should be added to help businesses understand correctly and implement effectively social responsibility? Do we need a law on CSR?
The launch of this award by VCCI in coordination with relevant domestic and international agencies is very meaningful. It encourages businesses with good social responsibility to strive more and raise awareness of businesses and citizens of business ethics, respect and care to the community and living environment.
We need to quicken the propagation and dissemination of law on corporate social responsibility, local environment protection, realities and measures to prevent and limit adverse impacts on environment and pollution remedies. We need to organise seminars and provide information on mass media, helping businesses to understand the implement the task under the public supervision and condemn any act of harming environment. Laws on corporate social responsibility are necessary to make the people understand about social responsibility, both legally and ethically.
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