Corporate social responsibility from a legal and ethical perspective
The irrevocable fact is that all businesses must fulfill their legal obligations which includes: 1) Paying of taxes, 2) Ensure the rights of employees, 3) Protecting the environment and conforming to state/country regulations. However, many businesses have been making significant contributions to the community beyond the legal requirements thus demonstrating their ethics through Corporate Social Responsibility.
The concept of "Corporate Social Responsibility" (CSR) has been discussed since the 1950s, this concept is increasingly popular, so far there are more than 37 definitions of CSR (cafebiz.vn). Through the process of study and implementing CSR programs, can summarize as follows: "Corporate social responsibility are the contributions and sharing from the heart of businesses to the community". As we can see, those contributions are in addition to the legal obligations that businesses have to make. Therefore, corporate social responsibility (CSR) can be considered as an ethical responsibility of an enterprise, contributing to the creation of the cultural and humane brand value of the enterprise.
From 2019 - 2023, NS2PC installed clean water pipelines for 3,296 houeholds in Hai Ha commune and Hai Thuong ward
Each company has a different approach to implementing CSR. Vietnamese companies often implement CSR in the form of "Activities" alone, seasonally such as: Giving gifts to poor households, disadvantaged households, providing relief to victims affected by storms, floods, natural disasters; offering scholarships, building great solidarity houses, classrooms ... by the Fatherland Front Committee, the Red Cross, or an organization that stands out and calls for.
Foreign Direct Investment Companies (FDI) often implement CSR under the "Program" right from the beginning of project implementation (when there is no revenue source). FDI companies often borrow money from international banks (Lenders) to implement projects, in order to share risks. Lenders often require companies to allocate a portion of loan capital to implement CSR in accordance with 8 international performance standards on Environmental and Social Performance: (For details as can be seen from the bottom – on a case-by-case basis, companies select some relevant standards to apply). These 8 international standards include both technical and environmental standards that meet national and international standards. The implementation of social responsibility under the “Program” is an important criterion for lenders to disburse as committed.
Different companies have different approaches. The CSR program of Nghi Son Power Liability Limited Company (NS2PC) consists of three pillars: 1) Stakeholder Engagement, 2) Grievances (Guide and resolve grievances of local people and the employees timely), 3) Strategic Social Investment (Supporting socio-economic development, culture Reservation and environmental protection – More detail as can be seen from video as
Supporting the community with millions of USD through the CSR program from the beginning of project implementation, FDI Companies above are often supported and appreciated by the local community, making an important contribution to the success of the project, and the lenders can get capital; contributing to the goal of building relationships, creating trust "Relationship is gold, trust is diamond".
FDI companies in addition to supporting the community under the long-term CSR program, they still participate in the same social activities as domestic companies as do mentioned above.
Companies themselves are not only members of the community, but also clients and partners of other units. Therefore, the fact that companies contribute to the community in addition to legal obligations is fulfilling the responsibilities of a member of the community, the responsibility of a closed neighbor to the community, and helping to support the community development. Those supports are charitable, humanity and ethical of entrepreneurs and businesses, building up a beautiful image of "Reliable partner, responsible neighbor" to the community. Those beautiful images add the values, the brand of the companies. Brand is the belief, the money, the vital value of any business. VN
