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Welcome speech by A/Prof. Dr. Nguyen Van Phuc, Rector of HCMC Open University
(The
Chair and the Speakers of the Inauguration Session: from left to right,
A/Prof. Dr. Nguyen Dinh Tho [UEH], Mr. Florian Beranek and Dr. Patrick
J. Gilabert [UNIDO Vietnam]) |
The 1st International Conference on Corporate Social Responsibility
(CSR) and Sustainable Business Development (SBD) was held in Ho Chi Minh
city on November 27, 2015. This is initiated and organized by the
cooperation among HCMC Open University, the United Nations Industrial
Development Organization (UNIDO), Global Compact Network Vietnam, Saxion
University (the Netherlands), Berlin School of Economics and Law
(Germany), University of Rouen (France), Solvay Brussels School of
Economics and Management (Belgium), and University of Sannio (Italy).
Participants from Vietnam mostly came from many different universities
in Ho Chi Minh city.
The conference aimed at opening a platform for both researchers and
practitioners to discuss and debate recent insights on socially
responsible practices and sustainable business development in various
industries. Furthermore, the conference provided opportunity for
networking and sharing knowledge towards economic integration and
sustainable development.
There were 69 papers submitted for peer-reviewed, 36 papers selected for
publishing in the proceeding and more than 20 papers presented at
parallel sessions in the conference. The session topics included CSR,
CSR practices, SBD and firm values, SBD and HR, SBD and marketing,
sustainable international business, corporate governance and sustainable
change.
What is CSR?
There is no exact definition of CSR
and thus, every company can have their own interpretation and approach
to this broad concept. In general, CSR is the ethical behavior of a
company, showing its concern and commitment towards society's
sustainability and development. Respecting for human rights, diversity
and non-discrimination is the guiding principle for CSR.
- Responsibility towards Society and Government: carrying on business
with moral and ethical standards, prevention of environmental pollution,
contribution towards social health, education and overall development
of community, making use of appropriate technology, obey rules and
regulations, regular payment of taxes.
- Responsibility towards Consumers and Shareholders: supplying
harmless products, quality and standards as promised, adopting fair
pricing and fair competition; building reputation and goodwill of the
company, being transparent.
- Responsibility towards Employee: providing a healthy working environment, welfare services, fair wages and training.
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| Pyramid Model of CSR by Carroll (1991) |
The inclusion of CSR in business has proved
to be good for both business and community, promoting and facilitating
better connection between them. CSR encourages deeper thought and
longer-term strategies for addressing our persistent social, economic and environmental problems.
CSR 2.0 - a new model for CSR and sustainability, has moved, from "doing" social responsibility to "being" social responsible.
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Dr. Patrick Gilabert, Representative of UNIDO Vietnam, introduced about
UNIDO, the United Nations Industrial Development Organization, which was
established in 1966 to promote inclusive globalization, poverty
reduction, environmental protection, energy efficiency and sustainable
development. UNIDO also provides training CSR advisor, lean production.
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"CSR in the world and Vietnam" by Mr. Florian Beranek,
UNIDO Lead Expert Societal Responsibility. |
CSR has become part of core business strategy. Sustainable development
goals embrace the 5 Ps: People, Planet, Prosperity, Peace and
Partnership. Just being green is not enough, all has to be considered.
The most important quality for business is Trust. Values of company is
more important than short-term benefits. Transparency and Integrity are
required not only in Business but also in Family, in Government...
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"Human capital resources and quality of work life or marketers"
by A/Prof. Dr. Nguyen Dinh Tho |
The study investigated the role of human capital resources in the
Quality of Work Life of marketers in Vietnam as a transition market.
What you have is economic capital, who you are is psychological capital.
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"Building and managing CSR brands - Theory and applications"
by Prof. Carsten Baumgarth (Berlin School of Economics and Law, HWR Germany) and
Prof. Lars Binckebanck (Furtwangen University, HFU, Germany) |
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CSR Brands should be developed inside-out,
and often related to enthusiastic and charismatic leadership
High quality products or services are the basis of strong CSR brands.
Slide credit: Prof. Carseten Baumgarth and Prof. Lars Binckebanck (2015) |
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Real CSR Brands
Slide credit: Prof. Carseten Baumgarth and Prof. Lars Binckebanck (2015) |
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| Questions to the speakers from Ms. Nguyen Thi My (VGU) |
CSR brand management is a systematic process to create differentiating
and preference-inducing, social, ecological, ethical and human rights
associations in the minds of the relevant stakeholder groups. CSR has a
particularly positive effect on the customer when the company’s
motivation is perceived as altruistic and strategic - rather than
egoistic and reactive. Therefore, CSR brand should be built on
altruistic and long-term motives (Baumgarth and Binckebanck, 2015).
Research so far has identified the following potential success factors
of CSR brand management (Baumgarth and Binckebanck, 2015):
- altruistic and long-term motivation of the management for the implementation of CSR
- a close fit and strong synergies between CSR and business activities
- basing the CSR brand on a high level of product quality
- support and exemplary behaviour by top management
- anchoring the CSR approach throughout the company by all employees
and in all functional areas, in all processes and value chain levels
- internal development of a CSR identity before communicating CSR externally
- transparent, dialogic and integrated communication with the aim of a high level of credibility
The model: a brand is made up of 3 elements: strategic vision, business
culture and image. Strategic vision covers the goals and strategic
decisions of the top management. Business culture describes the common
values of all employees. And image denotes the expectations of the
external stakeholders. According to the model, a strong brand identity
results when these 3 building blocks show high conformity (Baumgarth and
Binckebanck, 2015).
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"The Evolution of Corporate Social Responsibility in Democratized Fashion Industry
- Proposal for a New CSR Reorder"
by Prof. Beniamino Milioto, University of International Studies of Rome, Italy |
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The overturn of CSR - from a business challenge to a great business opportunities.
Slide credit: Prof. Beniamino Milioto, 2015 |
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| Business benefits from CSRSlide credit: Prof. Beniamino Milioto, 2015 |
The beginning of the 3rd millennium definitely sets a new well-shared
concept of CSR among fashion’s top managers, scholars, academicians, as
well as public opinion and secondary stakeholders. The worldwide
business community and not just the fashion business, has well
understood how CSR could guarantee high rewards in the long-term
business market. Consumer’s behavior, especially among young consumers,
with the instant information available through Internet, is more aware
of the new modern concepts of “fair trade”, sustainability, child labor
free, free work exploitation, etc. Investments in CSR, with proper study
analysis on management of natural resources and environmental impact,
especially in textile and clothing business, leads to conflict avoidance
within local communities. Cost and risk reductions may also be achieved
through CSR activities aimed at the natural environment and improving
community relations (Beniamino Milioto, 2015).
Proposal to the international community: to set an international
legal framework, developed through a multilateral agreement, which would
include CSR Guidelines to apply and implement worldwide.
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"Corporate Social Responsibility and export diversification"
by Prof. Tran Thi Anh Dao, CREAM, University of Rouen, France |
Links between CSR and export diversification: In the current context of
global production, transnationals can avoid CSR norms by relocating pr
clustering in poor and remote areas. Similarly, local exporters within
developing countries can export to other developing countries without
having to adopt codes of conducts. SMEs can be an important part of the
CSR commitments of large companies in the context of responsible supply
chain management. As the focus on SMEs and CSR in developing countries
has been relatively limited and recent in nature, many aspects are still
in need of clarification (Tran Thi Anh Dao, 2015).
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"Marketing as an evolving discipline: emerging paradigms and managerial implications"
by
Prof. Jean-Pierre Baeyens and Joelle Barthel, Solvay Brussels School of
Economics and Management, Université Libre de Bruxelles, Belgium. |
Analyzing the evolution of consumer behavior and consumption patterns to define how the upcoming years will shape the marketing
discipline.
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The New Consumer
Slide credit: Prof. Jean-Pierre Baeyens, 2015 |
As consumption becomes more conscious, marketing should become more
conscious as well. Marketers can reach consumers differently and thus
cut tremendous amounts of waste through efficiency as they can provide
consumers with “the right thing, at the right moment at the right time”.
Promoting conscious consumption: it is time for “conscious marketing”
to eliminate waste.
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The Trend Pyramid - Marketing 3.0, from Products to Customers to the Human Spirit
Slide credit: Prof. Jean-Pierre Baeyens, 2015 |
Emotional and spiritual values will be analyzed as “today’s marketers
try to touch consumer’s mind and heart” (Marketing 2.0), and they will
even have bigger impacts as the era of marketing will have to encounter
“human aspirations, values and the spirit” (Marketing 3.0). According to
Kotler et al. marketing is moving “from products, to consumers, to the
human spirit”, making it vital for marketers in the future to know about
their customers’ spiritual values.
As consumerism seems to disappear over time, considered consumption
could lead people to purchase more as the products and service give them
higher value by satisfying higher needs. As Kotler et al stated:
Marketing 3.0 will rely on “human aspirations, values and the spirit”,
climbing even higher in Maslow’s hierarchy to finally fulfill needs of
esteem and self-actualization.
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Sustainable Marketing Culture: Trust, integrity and transparency
Sustainable Business Models: New values, innovative processes
Marketing as forward thinking discipline |
All together, future challenges should be welcomed. They have to be
regarded as opportunities rather than threats. Whether it is for
strategy, operational activities. products or services, marketers should
continue to inspire creativity, empathy, data analysis and a long-term
orientation in order to embrace challenges and take actions when needed
(Jean-Pierre Baeyens, 2015).
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"Drivers of CSR practices - a comparative analysis between
the Spanish and the Vietnamese construction companies
by Dr. Le Thi Thanh Xuan (HCMC University of Technology)
and Dr. Tran Tien Khoa (International University) |
Firms now are expected not only to be profitable but also responsible by
practicing CSR or being corporate citizen (Lantos, 2001). In general,
motivation for CSR practice can be classified into 2 categories,
extrinsic and intrinsic motivations.
- Extrinsic motivation is about the relation between CSR and financial
performance of a company in the long run (improving reputation of
company in consumer market, attracting talented employees).
- Intrinsic motivation such as self-interest, personal values, and
beliefs of managers can be considered as important motivating factors.
Top managers can be establishing factors by setting ethical norms in
organization and middle managers can also be a motivating factor by
acting and exhibiting their personal values through managerial
decisions.
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"Investigate and critically assess the dimensions and importance of the relationship
between Corporate Governance and CSR"
by Ms. Pham Thi Huyen Sang, Department of Law, Vinh University |
Corporate governance and CSR are complementary (strong complements).
They can reinforce each other in the modern vision of the firm. Socially
responsible firms are often also the most respected and profitable
firms. They do try to maximize profits but at the same time they try to
improve the welfare of other stakeholders.
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| "Environmental Impact Assessment for Sustainable Development through Public Participation"by Ms. Nguyen Thi Anh, Yokohama National University, Japan |
Public participation plays a key role not only in the policy-making
process but also in the EIA process in each country. The case of Dong
Nai Riverside residential project was presented.
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"A study on current circumstances of workers in Thu Duc district of HCMC"
by Dr. Le Van Lang and Ms. Bui Thi Tuy Phuong, Nong Lam University |
The study attempts to assess some aspects of labor issue based the
worker's perspectives in different companies. Based on the survey of
120-sample size, some salient issues were founded such as living
standards of the workers are low, below average income in HCMC region,
overtime working and lack of entertainment facilities are reasons of
poor leisure activities of the workers, inconvenient housing conditions
and bad health care. Therefore, increase of salary rate, overtime
working reduction, and lunch quality improvement are priorities of the
workers that need to be considered.
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"Business Engagement to Enhance Young People's Skills"
by Mr. Siep Littooij, Saxion University of Applied Sciences, the Netherlands;
project co-director Profession Oriented Higher Education, 2nd phase in Vietnam (POHE2) |
The presentation highlighted experience of business contributing to
skills training of young people in the Netherlands and in Vietnam. A
business providing training for young people offers them a chance to
learn “the business way of doing the job”, immediately mixing practical
experience with the school based theories. Exposure to a business
working culture can open minds and stimulate a learning attitude in
youngsters. Learning in business environment, or workplace learning, is
known to deliver practical skills much faster than in a school
environment. Vietnam can learn from Dutch experience that business is
both respected as important stakeholder in priority and policy setting
for universities as well as an important provider of workplace learning
(Siep Littooij, 2015).
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Concluding remarks by Mr. Florian Beranek (UNIDO)
Turning the letters in CSR, we will get RCS, which is
"Return to Common Senses" |
