Social responsibility - an important strategy to help businesses develop sustainably

Corporate social responsibility is not only an ethical duty but also an important strategy for long-term sustainable development.

Dr. Nguyen Si Dung and his perspective on corporate social responsibility. (Photo: NVCC)

Help businesses increase brand value

Vingroup has contributed 250 billion VND to support people affected by natural disasters caused by Typhoon Yagi; Viettel Group has also contributed 100 billion VND. In addition, many businesses have also actively contributed money to support people. The motivation for businesses to do so is social responsibility (CSR).

Corporate social responsibility is a commitment to carrying out activities for the benefit of society, the environment and the community, in addition to the goal of making a profit. This aims at the sustainable development of the business, transparency, and responsibility towards stakeholders, including employees, customers, shareholders and the community.

According to the European Commission, CSR is the responsibility of businesses for the impact of their activities on society and the environment. Businesses should incorporate social and environmental factors into their business operations and interactions with stakeholders on a voluntary basis.

Corporate responsibility is built on four main pillars: Economic responsibility, ensuring profitable operations, contributing to sustainable economic development; Legal responsibility, complying with current laws and regulations related to corporate activities; Ethical responsibility, ensuring that businesses comply with ethical standards, treating stakeholders fairly; Charitable responsibility, actively contributing to volunteer activities, supporting the community through charity, education, or environmental protection programs.

For example, Unilever has launched the “Unilever Sustainable Living Plan” with the goal of helping more than 1 billion people improve their health and well-being, halve the company’s environmental impact, and enhance the livelihoods of millions of people by developing sustainable businesses.

In Vietnam, Vinamilk has carried out many activities related to corporate social responsibility such as the "Vietnam Rising Milk Fund" providing free milk to children in difficult circumstances, while also committing to implementing environmentally friendly milk production processes and ensuring food safety standards.

Social responsibility is very important for the sustainable development of businesses, because it not only benefits society but also creates long-term values.

Firstly, when a business implements CSR, it will create a good impression and build trust from customers, partners and the community. This reputation helps the business stand out in the eyes of consumers and can lead to increased sales as well as expanded market share.

Second, employees, especially millennials and Gen Z, often prioritize working for companies with positive social and environmental values. Implementing CSR programs can help businesses attract and retain talented employees, increasing their commitment and loyalty to the organization.

Third, many activities related to CSR, especially environmental protection activities such as energy saving, efficient use of resources or recycling, not only reduce negative impacts on the environment but also help businesses reduce production costs and improve operational efficiency.

Fourth, businesses need to maintain good relationships with stakeholders such as customers, partners, suppliers and the government. CSR related programs create opportunities for businesses to communicate, cooperate and build sustainable relationships, supporting the long-term development process.

Fifth, in some cases, the State and international organizations increasingly require businesses to fulfill responsibilities to ensure sustainable development. Implementing CSR helps businesses comply with legal regulations, minimize legal risks and conflicts with management agencies.

Sixth, CSR encourages businesses to consider the long-term environmental and social impacts of their business decisions. By protecting the environment, supporting communities and developing human resources, businesses create a solid foundation for sustainable development, avoiding risks related to environmental or social crises that could affect the survival of the business.

Seventh, customers are increasingly interested in products and services from socially responsible businesses. Companies that are committed to CSR will attract the attention of environmentally and socially conscious customers, thereby increasing customer loyalty and creating long-term brand value.

Corporate social responsibility is not only an ethical duty but also an important strategy to help businesses develop sustainably in the long term. Carrying out responsibilities responsibly and effectively will help businesses increase brand value, minimize risks, and ensure their stability and development in a competitive and volatile market.

Although corporate social responsibility has made positive progress, there are still many issues that need attention for it to truly become a driving force for sustainable development. (Illustration photo: VGP)

Sustainable development drivers

Corporate responsibility in Vietnam is gradually being focused on and developed, but there are still many challenges that need to be solved to achieve high efficiency and sustainability.

More and more businesses in Vietnam, especially large corporations and FDI enterprises, have begun to realize the importance of CSR. CSR activities mainly revolve around environmental protection, community support and charity programs. Many large corporations such as Vingroup, Vinamilk, FPT, Viettel, Unilever Vietnam, etc. are actively implementing CSR programs with long-term goals.

These businesses not only focus on profits but also commit to contributing to the sustainable development of society and environmental protection. Some businesses in Vietnam have carried out many activities such as sponsoring scholarships, helping disadvantaged children, supporting health and education development in remote areas. Businesses are increasingly interested in environmental protection initiatives such as energy saving, recycling, and developing environmentally friendly products. This is especially important when Vietnam is facing the problems of climate change and environmental pollution.

Although corporate social responsibility has made positive progress, there are still many issues that need to be addressed to make it a real driving force for sustainable development. While large enterprises are aware of the importance of corporate social responsibility, small and medium enterprises (SMEs) still face difficulties in implementing it due to lack of resources, information and support. Many enterprises consider corporate social responsibility as just a charitable activity, not fully understanding its sustainability aspect. In Vietnam, there is no official and specific legal framework regulating corporate social responsibility, so implementation is voluntary, lacking supervision and inspection.

Some businesses do it just to meet the demands of foreign customers or partners without really committing to ethics. Some businesses do it as a way to improve their image, but the activities do not bring real results. Charitable or community support programs are sometimes just a formality, not meeting the actual needs of beneficiaries.

Many businesses have not yet integrated CSR into their long-term business strategies. This makes CSR a separate activity, unable to create sustainable value for the business and the community. Although businesses have focused on CSR with the community and the environment, the issue of protecting workers' rights has not been fully implemented. Many businesses have not paid attention to safe working conditions, satisfactory wages and social welfare for workers.

In order for CSR in Vietnam to truly become an indispensable part of business development strategies, the following improvements need to be made:

First, raise awareness of CSR for small and medium-sized enterprises. The government, social organizations and large enterprises need to create conditions for small and medium-sized enterprises to better understand the meaning of CSR and how to implement it effectively.

In addition, develop a legal framework and standards for social responsibility. The State needs to establish a specific legal framework for social responsibility, including regulations on environmental, labor and sustainable development standards, along with mechanisms to encourage businesses to implement it.

At the same time, promote transparency and monitoring. Monitoring and evaluation of the effectiveness of CSR programs need to be improved. Enterprises should publicly report on CSR activities and allow monitoring from stakeholders, such as communities and civil society organizations.

Finally, training and capacity building. Businesses need to develop dedicated human resources and provide CSR management skills training to managers, helping them integrate CSR into their business strategies.

Despite significant progress, CSR in Vietnam still faces many challenges to overcome to truly contribute to sustainable development. Raising awareness, improving the legal framework and integrating CSR into business strategies will help businesses develop sustainably and bring long-term benefits to society.

Source: https://baoquocte.vn/trach-nhiem-xa-hoi-chien-luoc-quan-trong-giup-doanh-nghiep-phat-trien-ben-vung-287191.html