Csr In Vietnam Case Study

904 Words4 Pages
CSR in Vietnam
1. Introduction
The concept of corporate social responsibility (CSR) has become an increasingly common term in the business as well as politics over the last century. This report is to demonstrate some snapshots from the developing journey of CSR. First, the definition and four recent common models of CSR will be described briefly. These models are stakeholder theory (Freeman, 1984), the pyramid of CSR (Carroll, 1991), the model of sustainable development (Aras and Crowther, 2009), and CSR 2.0 (Visser, 2010). Then, this report will analyze some factors of Vietnamese context to point out difficulties and advantages when an international organization operating in Vietnam implements an effective CSR program.
2. Brief description
…show more content…
According to him (Claydon, 2011), managers actually has a fiduciary relationship to stakeholders, who are any internal or external parties can affect or is affected by the organization’s operations. The reason given is that stakeholders hold a stake to the firm so they must be able to participate in the development of the company the board who manages the company has to bring them benefits. According to Freeman, there are two convincing reasons to support the notion of stakeholders. First, from legal perspective, beside shareholders, other groups can also have a stake in the corporation since there are legally contracts existing between corporation and those parties, such as suppliers, employers, customers. Even surrounding community and environment condition are also considered affecting or being affected to that organization’s activities. Second, from an economic perspective, Freeman assume a problem called externalities, that the company has no contractual connection but consequently affected by company’s activities or decisions. However, a problem also identified by Freeman is that the extent an individual or groups can affect or being affected toward organization’s operations, so that the manager can allocate the wealth and responsibilities to them. In short, although steakholder theory could recognize the role…show more content…
According to Aras and Crowther (Claydon, 2011), sustainability aspect can not be consdered adequately when firms only concentrate on only environmental factors or financial performance. Instead, they offered a comprehensive model comprising four aspects of CSR, which are environment, society, financial performance, and organization structure. From that, sustainable problem is not only allocating interest between stakeholders and shareholders. Sustainable responsibility is to utilize current resource in the way not affect or even create a better future. Increasing financial performance must be accompanied by inventing renewable energy resources, eliminating poluted substances, or improving technology. Consequently, the benefit can be brought to both corporation and environment by ensuring the ability to operate in the future.
In addition, Carroll’s model placed the economic profit at the bottom of pyramid, which means corporation is always satisfied with financial factors before going to upper layers. On the contrary, Aras and Crowthers argued that the profitability is obtained upon other factors and so the goals of financial performance and CSR can be obtained
Open Document