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Social responsibility sharpens corporate competiveness
In the context of increasing international integration, local businesses are working to develop corporate social responsibility (CSR) as a new competitive edge alongside improving product pricing and quality.
Recalling a story 20 years ago when Binh Tien Consumer Goods Company (Biti’s) first received requests from major European and American partners to inspect its CSR implementation, the former export director Nguyen Van Toan said the move has brought the company a lot of benefits.
After first feeling confusesd about customer demands to see payrolls, talk directly with workers and examine the canteen, Biti’s leaders eventually understood the importance of these requirements.
Toan said Biti’s successfully sought more large clients because the “good performance of CSR is the best way of advertisement to partners.”
A survey conducted by the Institute of Labour Science and Social Affairs at 24 labour-intensive garment and leather shoe enterprises showed that due to the strict execution of CSR, their revenues grow by 25 percent per year and the productivity also increases remarkably.
In addition to economic gains, surveyed businesses have benefited in the long term from building a strong reputation with partners and public alike, alongside attracting workers, particularly skilled ones.
In 2005, the annual “Corporate Responsibility Award” was initiated and has received a positive response from business circles.
More than 60 garment and shoe companies have to date been honoured with the award for social responsibility initiatives that bring better benefits to workers, the society and the environment.
However, CSR has mainly been applied to businesses that produce goods for export to such major markets as the European Union (EU), the United States and Japan.
According to the director of the Institute of Labour Science and Social Affairs, Nguyen Huu Dung, Vietnam needs to work out a clear roadmap for the CSR performance for local businesses in line with its economic development and international integration.
Carey Zesiger, project development director of the consulting group Global Standards, said Vietnam’s competitive strength in a number of key industries will be improved strongly if it strictly implements CSR issues.
VNA
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