ICB 2015 - Corporate Social Responsibility & Sustainable Business Development

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.

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.

"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...

"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.

"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)

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)

Real CSR Brands
Slide credit: Prof. Carseten Baumgarth and Prof. Lars Binckebanck (2015)

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).

"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

The overturn of CSR - from a business challenge to a great business opportunities.
Slide credit: Prof. Beniamino Milioto, 2015

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. 

"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).

"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.

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.

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.

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).

"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.

"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. 

"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.

"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.

"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).

Concluding remarks by Mr. Florian Beranek (UNIDO)
Turning the letters in CSR, we will get RCS, which is
"Return to Common Senses"