i

CORPORATE SOCIAL RESPONSIBILITY IN VIETNAM; A

STUDY OF ITS IMPORTANCE

BY

PHAM THUY LY

E0700048

ii

BACHELOR OF BUSINESS (ACCOUNTING) HONS HELP UNIVERSITY COLLEGE

MARCH 2011

DECLARATION OF ORIGINALITY AND WORD COUNT

I hereby declare that the graduation project is based on my original work except for

quotations and citations which have been duly acknowledged. I also declare that it has not

been previously or concurrently submitted for any other course/degree at Help University

College or other institutions. The word count is 10,758 words.

iii

_____________________

Pham Thuy Ly

28 March, 2011

ACKNOWLEDGEMENT

This project would not have been made possible without the assistance, support and

encouragement of many people. I wish to take this opportunity to thank all the people who

have helped me during the time of completing this study.

I would like to express my deep gratitude to my supervisor Dr. Le Van Lien, International

School, Vietnam National University Hanoi. He has kindly helped me and supported me all

the way through. I also would like to express my thank to Ms. Sumathi and Ms. Shenba, Help

University College, who initiated the project and give so much instruction and support.

Additionally, I also would like to extend my special thanks to managers, accountants, my

friends, and other people who have help me to carry out the survey. I want to thank them for

all their support, interest and valuable hints.

PHAM THUY LY

iv

CORPORATE SOCIAL RESPONSIBILITY IN VIETNAM; A

STUDY OF ITS IMPORTANCE

By

PHAM THUY LY

March 2011

Supervisor: Dr. Le Van Lien

ABSTRACT

CSR is currently an important and necessary issue for everyone and business organizations in

the world, as well as in Viet Nam. CSR concept has been developed for several decades in

the world, but in Viet Nam, it is not popular for all people and companies. Especially,

Vietnamese economy has been integrated with global economy, and then CSR has become

more important issues for business to develop sustainably and competition with internal and

external partners. In order to develop CSR concept and disclosure further, perception on CSR

of stakeholder groups is a unique factor. This study aims to discover how organization view

CSR and CSR issues, whether behavior or attitude of manager‟s business organization and

consumers, as well as accounting students toward CSR. The results of the study suggest that

there is strong support for CSR from managers and a growing awareness among consumers

and accounting students. Nevertheless, there is expectation gap between how people perceive

and how people act because there are lack of adequate CSR disclosure from firm, and not-so-

v

enthusiastic support actions from consumers due to the barriers in living expenses, and low

effective CSR communication tools that companies use. However, with highly positive

attitude toward CSR and the willingness to learn about CSR of people, CSR concept and

practice will be popular and developed further in the future.

TABLE OF CONTENTS

DECLARATION OF ORIGINALITY AND WORD COUNT i

ACKNOWLEDGEMENT ii

ABSTRACT iii

TABLE OF CONTENTS iv

LIST OF FIGURES v

1. INTRODUCTION 1

1.1 Idea for Corporation Social Responsibility 1

1.2 CSR in the world 2

1.3 CSR in Vietnam 3

1.4 The reason for conduct this research 4

2. LITERATURE REVIEW 5

2.1 The definition and conceptualization of CSR 5

2.1.1 Zenisek‟s conceptualization (1979) 6

2.1.2 Carroll‟s conceptualization (1979) 6

2.1.3 Wood 1991 conceptualization 9

2.2 Stakeholder theory 11

2.3 Social accounting 13

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2.4 CSR reporting 15

2.5 Hypothesis 17

2.5.1 Manager‟s perception on CSR conceptualization 17

2.5.2 Consumer‟s perception on CSR conceptualization 18

2.5.3 Accounting student‟s perception on CSR conceptualization 20

3. RESEARCH METHODOLOGY 22

3.1 Research objective 22

3.2 Applied research methodology 22

3.3 Data source 22

3.3.1 Primary data source 23

3.3.2 Secondary data 23

3.4 Research method 24

3.5 Research tool 24

3.6 Data collection 25

3.7 Sampling 25

3.7.1 Sample population 25

3.7.2 Sample entity 25

3.7.3 Sample size 26

3.8 Language in questionnaire 26

4. FINDINGS AND ANALYSIS 27

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4.1 Findings 27

4.2 Result analysis 28

4.2.1 Management 28

4.2.1.1 Result of manager‟s questionnaire survey 28

4.2.1.2 Discussion 30

4.2.1.3 Conclusion 31

4.2.2 Consumers 32

4.2.2.1 Result of questionnaire survey 32

4.2.2.2 Discussion 34

4.2.2.3 Conclusion 36

4.2.3 Accounting students 36

4.2.3.1 Result of questionnaire survey 36

4.2.3.2 Discussion 38

4.2.3.3 Conclusion 39

4.3 Implementation 39

CONCLUSION 40

5.1 Conclusion 40

5.2 Recommendation 42

5.3 Limitation of study 43

5.

REFERENCES 45

viii

APPENDIX: QUESTIONNAIRE 56

LIST OF FIGURES

Figure 2.1. A hierarchy of CSR (adapted from Carroll, 1991) ....................................................... 8

Figure 2.2. The CSP Model (adapted from Wood, 1991)............................................................. 11

Figure 4.1. Respondents................................................................................................................ 27

Figure 4.2. Distribution of responses from management survey .................................................. 28

Figure 4.3. Distribution of responses from consumer survey ....................................................... 32

Figure 4.4. Distribution of responses from accounting student survey ........................................ 36

1

CHAPTER I: INTRODUCTION

1.1. Idea for Corporate Social Responsibility

In recent time, CSR concept is not new to people in over the world. CSR is concerned by not

only enterprises, but also relevant parties, and stakeholders (“stakeholder” is the people are

directly affected by the business operation). In the past, most of firms only concern for profit

maximize wherever their factories caused some negative effects on environment and local

citizen around their location. However, this attitude has been changeable, as most of firms

need to care about their responsibilities toward society. This is also the foundation for

appearance the concept of “CSR” that is the way business balance between their operations

and their effect on environment and society. In other words, managers also take strategies to

meet the expectations of shareholders and stakeholders relating to their attitude toward

society. The key word of this concept is “Social Responsibility” including organization‟s

interaction with environment and organization‟s treatments for employees also. Based on

concentration on CSR, managers expect that they will involve their firms into sustainable

developments. For more clear understanding about the concept of CSR, the following parts

will provide more detailed information about CSR in the world, the fact of CSR in Vietnam,

and the reason for conduct this research.

2

1.2. CSR in the world

As mentioned above, most firms focus on CSR strategies in their operations. Besides

financial reports, they also concern about CSR report. CSR report or we call Sustainability

report is the strategic tool help managers evaluate what they done to meet stakeholder‟s

expectations, and what they need to improve better stakeholder‟s expectations. Sustainability

reports are not new and this type of report is published by over two-thirds of the Fortune

Global 500 companies. Sustainability reports also help manager evaluate the economic and

social performance (ht t p: / /ww w . e nvironment a l l e a d e r. c o m). We know some reputation

corporation that issued its CSR reports every year such as: Philips Electronics, Facility

Service Company ABM, Coca-Cola, Dell, and Hitachi… Most of firms tried to conduct some

strategic methods to improve the quality of its CSR report every year. We just look at some

examples including: Philips Electronics, Toshiba Groups. Philips Electronics always focus on

in its carbon footprint. Between 2009 and 2010, this corporation also reduced this element by

seven percent, and increased operational energy efficiency by six percent. In addition, green

innovation has been invested of 450 million for the purpose of improve CSR toward society

(w w w. e nviron m e ntalle a d e r ) .Another example comes from Toshiba Group. This group has

issued CSR Report 2010 in which Toshiba Group strives to act with the highest level to

protect environment and solves the social issues facing by this corporation

(http : / / w w w.toshib a . c o .jp). Besides that, Toshiba focus on the third party commends on the

CSR 2010, as well as getting CSR Report back issues. Doing that, Toshiba Group‟s managers

can learn from the existing issues and improve their responsibility toward the society. There

are two of many examples relating to corporations that focus on CSR and pursue sustainable

development.

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1.3. CSR in Vietnam

The word “CSR” was appeared in Vietnam for long time; nevertheless Vietnamese citizen

and Vietnamese‟s enterprises do not understand it completely. More detail, through twenty

six (26) Vietnamese Accounting Standards, we have no any Vietnamese Accounting Standard

mentions the necessity of conducting CSR Report or Social accounting; whereas most of the

international firms involve the social accounting system in its report system. However, in

recent year, Vietnamese government has taken some significant steps to raise the awareness

of business men. Vietnamese government also set up some forum about CSR to educate most

business should act in stakeholder‟s perspective. This is shown that Vietnam is trying to

make CSR as an important factor in sustainable development. Not only Vietnamese

corporations, but also international corporations in Vietnam have to care about their

stakeholders when they conduct their business operations. Besides that, Vietnam set up the

CSR awards in order to improve organizations operating in Vietnam territory to improve their

responsibilities toward society. Vietnamese government made some detail plan and strategy

and projects concerned in CSR based on its resources such as working conditions, safety,

hygiene, environment, quality and productivity, labor relations and manpower resources

management (ht t p: / /w w w.bps c . c om.v n ). Nevertheless, we face some interferences and

challenges in developing CSR in Vietnam, such as: the concept of CSR is not still updated to

most of the Vietnamese businessmen circles. The concerned sides do not identify long term

plan and strategy to conduct the programs of CSR in practice. On the other hands, this is lack

of companies‟ management ability and professional knowledge in concept of CSR.The topic

of CSR becomes the burn topic when we found that pollution for Thi Vai River from Vedan

Vietnam Corp. This river is polluted seriously by untreated wastewater, and this caused the

bad effects on the local people (ht t p: / /en g l i sh.th e s a i g ont i mes.v n ) .Another aspect of CSR

violation in Vietnam is issue relating to labor standards. Most of Vietnam‟s labor are paid

4

with the low cost and treated unfair by both of private domestic and foreign-invested

enterprises. According to Ho Chi Minh City LA our officials, Vietnamese labors are dealing

with the serious violations of the Vietnamese Labor Law that increasing continuously.

Besides that, one report on May 26 showed that thirty four domestic and foreign-invested

limited companies revealed numerous violations related to labor contracts, payment policies,

overtime hours, annual leave, and pregnancy and sick leave (ht t p: / /ww w . c s r -a sia. c o m ) .These

examples again dedicate that it is the time for Vietnam government and Vietnamese relevant

parties need to improve completely knowledge about CSR, as well as define some solution

for CSR violations happening in Vietnam, contribute to strategy for sustainable development.

1.4. The reason for conduct this research

As we know, after “Doi moi” policy in Vietnam in 1986, Vietnam developed rapidly.

Moreover, Vietnam has joined World Trade Organization (WTO) shows evidence for

Vietnam need to pursue strategies for sustainable developments in long term. The research is

conducted with purpose of improvement CSR knowledge for managers, consumers, and

accounting students. Managers need to know clearly the overall picture of CSR to act in the

effective way, whereas stakeholders need to know how the CSR support for their life from

the bad effect of business operations. More importance, accounting students, they need to

aware about the concept in CSR as they will be the future general develop country better.

5

CHAPTER 2: LITERATURE REVIEW

2.1The definition and conceptualization of CSR

For past few decades, an examination of literature on CSR continues to be an interesting issue

for researchers and academics. Over the last three decades, many academics and economic

consultants have debated finding the definition of social responsibility of doing business.

Two decades ago, Neli Chamberlain( 1953) defined social responsibility in terms of action

that the leadership in business and unions are expected to take with the respect to their

following in a given situation as mater of right, whether legal or non-legal. Against the

feature of Chamberlain‟s definition, William Frederick (1960) expressed that social

responsibility is not simply to narrow benefit and interest of individual persons or companies

that is to combine of human and economic resources for social benefits. Philip Klein (1978)

explains the meaning of social responsibility as relating to internal and external

organizational problems. In which, internal problems are stockholders and labors rights while

external problems are responsibilities dealing with the affect of the products or services on

the community, the relationship among firm and society.

The above discussion of different authors leads to one conclusion that any definition of

phenomenon of corporate social responsibility must involve the relationship between social

ideology and business ethic in both ideological and operational aspects. (Zenisek J,1986).

Nevertheless, the developing definition of CSR is complex process because it could

understand different meaning to different stakeholder groups. For example, shareholders

could define CSR is maximization of profits or high earnings. To customer CSR may mean

high quality product or services at a good price and perhaps ethical behavior.

6

In this paper, there are three studies which are introduced including Zenisek (1979); Carroll

(1979) and Wood (1991).

2.1.1 Zenisek’s conceptualization (1979)

In 1979, Zenisek (University of Calgary) proposed that corporate social responsibility is

conceptualized as the degree of “fit” between society‟s expectations of the business

community and the ethics of business. There are two components in this “fit” which are

behavioral and attitudinal. The first component is the fit between social expectations and

firm‟s actions. Thus, the first component of social responsibility is what a business does in

relation to what society expect to do.

The second component is attitudinal which is fit between social expectations and what a

business manager‟s regard to be legitimate societal demands. This component represents

ideological aspect of the firm‟s ethics.

2.1.2 Carroll's CSR model (1979)

Carroll‟s model in 1979 perhaps the most oft-cited definition of corporate social

responsibility. Carroll‟s CSR model contains four categories of corporate responsibility

arranged from most to least important including economic, legal, ethical and philanthropic.

Firstly, according to Carroll‟s model, all business responsibilities are based on the

corporation‟s economic responsibility. It indicates that business organization‟s principal role

provides product or services what customer‟s need and want and making acceptable profits in

the process. In other words, before business organization was anything else, it was the basic

7

economic in the community. The motivation of profit was considered as the primary

motivator for companies.

Secondly, legal responsibility is principal expectation of society to business that include

implying with laws and regulations issued by federal, state and local governments as ground

rules which business must operate. Besides that, business and society firms are expected to

pursue their economic missions within the legal framework of the law as a partial fulfillment

of the social contract. In other concept, legal responsibility reflects a view of “codified

ethics” that embody basic notion of fair operation.

Third part, ethical responsibilities combine those standards, norms, or expectations that

reflect a concern, for what consumers, employees, shareholders, and the community regard as

fair, just, or in keeping with the respect or protection of stakeholders' moral rights. In another

sense, ethical responsibilities may be seen as newly emerging values and norms society

expects business to meet, even though higher standard of performance of such values and

norms. Besides that, ethic responsibility is important to perform in a manner consistent with

expectations of societal mores and ethical norms or to recognize and respect new or evolving

ethical moral norms adopted by society.

Finally, philanthropic responsibilities encompass those corporate actions in respond to

society‟s expectation to make companies to be good corporate citizens. For example, those

activities are business contribution of finance resources or executive time to art, education or

the community. The different feature between philanthropic and ethical responsibilities is that

society‟s expectation is based on ethical or moral sense. In other word, communities expect

companies to provide their money, facilities, and employee time to humanitarian programs.

However, firms are regarded as ethical if it does not satisfy the desired level. Therefore, on

8

the part of business, philanthropy responsibility is more discretionary or voluntary even

through businesses always provide societal expectation.

Figure2.1: Carroll (1991) CSR Pyramid

There is no research or study to be exact and conceptualization CSR model of Carroll is the

same situation. Carroll‟s conceptualization is either a durable or useful model for defining

and exploring CSR. However, this model has some lacking of conceptual clarity and

questions about its descriptive accuracy, especially in different cultural contexts. Secondly, it

is very simplistic and static, failing to capture the complexity of CSR in practice. Besides

that, definition of CSR/CSP in this model domains but not the nature of responsibility or

performance (Wood, 1991).

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2.1.3 Wood 1991 conceptualization

Wood (1991) took similar approach concepts of corporate by proposing a conceptual model

social responsibility. Corporate social performance or CSR is defined more completely than

Carroll‟s once as: “a business organization’s configuration of principles of social

responsibility processes of social responsiveness, and policies, programs and observable

outcomes as they related to the firm’s societal relationships” (Wood, 1991).

Wood (1991) argued that business and society are interwoven rather than distinct separate

entities. Hence, society has certain expectations of business behavior and outcomes with

regard to business. These expectations can be divided into three groups with corresponding

principles (figure 2.2). The first group includes expectations of all businesses because their

roles play as economic institutions. The principle that applies to institutional level of analysis

is that of legitimacy. The principle of legitimacy is to concerns business as a social institution

and frames the analytical view of the inter-relationship of business and society. This principle

is based on the premise that “society gave business its charter to exist, and that charter could

be amended or revoked at any time that business fails to live up to society's expectations.”

(Davis & Blomstrom,1971).

The second group expectations are placed in individual firms. This principle is for

organizational level of analysis that the principle of public responsibility applies.

According to this principle, Wood (1991) states that businesses do not have responsibility

to solve all social issues but they are responsible for their stakeholders and to solve

problems related to their activities that they have caused and they are responsible for

helping to solve problems and social issues related to their business operations and interest.

The third group of expectations relates to the manager as a moral agent. It is for individual

level of analysis that is of managerial discretion. This principle is based on that “managers

10

exist in an organizational and societal environment that is full of choices, their actions are

not totally prescribed by corporate procedures, formal job definitions, resource

availabilities, or technologies. They are moral actors on the job as well as in other domains

of their lives” (Wood, 1991). This principle states that business‟s managers face ethical

concern when they make decisions. Basing on this principle, society expects managers to

focus both on the companies‟ interests and on the implications that their decisions have for

society.

In general, business organizations adopt their social responsibilities on above three levels that

will contribute to environmental improvement and sustainable development and will enjoy

consumer loyalty, as well as improving human resources management. These principles state

that responsibility of organizations is for “their primary and secondary areas of involvement

with society” and that managers are “moral actors obliged to exercise such discretion as is

available to them, toward socially responsible outcomes.” (Wood, 1991)

Furthermore, Wood (1991) also suggests that companies use three main of processes to apply

these principles into practice: environmental assessment, issues management, and stakeholder

management. In the process of CSP model, Wood presents the outcomes of bringing

principles into practice within the economic, legal, ethical, and discretionary domains,

categorizing them in terms of social impacts, social programs, and social policies.

In the contrast, there are some limitations of Wood principle of CSR. The first limitation

Wood (1991) acknowledged is that terms such as legitimate functions, obligations, and social

well-being are neither universal nor absolute in their meaning; they are time and culture

bound. It implies that a firm may have different responsibilities in different countries and at

different points in time. A second limitation is that these principles are defined variously by

relevant stakeholder groups even within a specific time and culture, concepts. As result, a

11

firm may face conflicting expectations. A third limitation is that organizational and

individual-level concepts including options, opportunities, constraints, and choices are bound

by different conditions and perceptions among organizations and people. Due to these

limitations, Wood (1991) concludes that “the principles of CSR should not be thought of

absolute standards, but as analytical forms to be filled with the content of explicit value

preferences that exist within a given cultural or organizational context and that are

operational zed through the political and symbolic processes of that context”.

Figure 1.2 Corporate Social Performance Model (Wood, 1991)

Principals of corporate social responsibility

Institutional principal: legitimacy

Organizational principal: public responsibility

Individual principal: managerial discretion

Processes of corporate social responsiveness

Environmental assessment

Stakeholder management

Issues management

Outcomes of corporate social behavior

Social policies

Social programs

Social impacts

2.2 Stakeholder theory

The term” stakeholder” is now popular word for most executives. The term implies various

stakeholder groups who can affect or be affect by the organization‟s activities. Freeeman

(1998) defines stakeholders as “groups and individuals who benefit from or are harmed by,

and whose rights are violated or respected by, corporate actions”. Stakeholders include

12

creditors, employees, customers, suppliers, and the communities at large. Hence,

stakeholder‟s legitimacy and power are influenced on the firm. For CSR perspective, their

legitimacy may be the most important. Hence, the concept of stakeholder personalizes social

and society responsibility should consider in CSR orientation (Carroll, 1991).

Deegan and Unerman (2006) states that “ more correctly, the tem stakeholder Theory as an

umbrella term that actually represents a number of alternative theories that address various

issues associated with relationship with stakeholders, including considerations of the rights

stakeholders the power of stakeholders or the effective management of stakeholders”

In other research, Jones and Wicks (1999) attempts to discuss the current state of stakeholder

theory which are summarized as following. First, the corporation has the relationships with

many stakeholder groups who can affect and can be affected by its decisions. Second, the

nature of these relationships in term of both processes and outcomes for the firm and its

stakeholders are main purpose of theory. Third, the interests of all stakeholders have intrinsic

value and no set of interests is assumed to dominate the others. Last, stakeholder theory

focuses on managerial decision making.

There are two branches of Stakeholder Theory namely ethical branch (moral) and the positive

(managerial) branch (Deegan 2009). Under the ethical perspective, business organization

must treat fairly all stakeholder groups by their right and business‟s managers should operate

organization for the benefit of all shareholders. Due to companies‟ moral obligations, hence,

they will expose information to their shareholders. In the contrast, the managerial perspective

of stakeholder theory attempt to distinguee that corporate disclosure is driven by the level of

power or control which are obligated by the specific stakeholder groups over the firm‟s

resources. And so, corporate management will attend to focus on expectations of particular

stakeholder groups (Freeman, 1984).

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Donaldson and Preston (1995) defined three themes in their formulation of a stakeholder

theory of the firm. First, this theory is descriptive in which it describes a corporation as

interacting with a wide range of groups with different interests and demand. Second, this

theory is instrument that provides a basic for exploring a relationship between a firm‟s CSR

activities and other corporate performance parameters such as profitability, revenue, return on

investment. Third, stakeholder theory is normative which recognizes that groups other than

shareholders, employees, suppliers and customers who may not have contractual relationships

with the firm but they are also legitimate stakeholders.

In contrast, there are some problems with this theory. First limitation is its static character.

The considering multilateral construction of relationships among an organization and its

stakeholders are essential. However, stakeholder theory is not well filled out to account for

the dynamics of multilateral stakeholder interaction. The second limitation concerns the role

specified to stakeholders in the theory. The aim of an organization is both management of the

relationships with its stakeholders and reaching specific goals, taking into consideration their

presence and the influence they can exert on the decision-making process. Hence, stakeholder

theory should expand specific stakeholder groups, not only concentrated on managers. Third

limitation is the bias of this theory towards the implicit assumption that stakeholders

constitute homogeneous groups.

2.3 Social accounting

Social accounting began developing in the UK in the early 1970s. At that time, the concept of

social accounting accepted by a most cited paper by Mobley (1970): “social accounting

refers to the ordering, measuring and analysis of the social and economic consequences of

governmental and entrepreneurial behavior. So defined, social accounting is seen as

14

encompassing and extending present accounting.” Gradually, social accounting has shifted to

a broader range of society‟s concern. Quarter, Mook and Richmond( 2003,p.3) defined social

accounting as “ a systematic analysis of the effect of an organization on its communities of

interest or stakeholder, with stakeholder input as part of the data that are analyze for the

accounting statement”. This definition is consistent with others in the field (Estes, 1976,

Gray, Owen and Adam, 1996, Institue of Social and Ethical Accountability, 2001; Mathews

and Perera, 1995).

The purpose of social accounting are identifying and measurement the net social contribution

of an organization; second, determining whether the individual firm‟s strategies; third,

making available in an optimal manner, relevant information about company‟s goals,

programs (Quarter, Mook and Richmond 2003). This study claims that there are two

constituents in social accounting including social cost and social benefit. In which, social

costs are sacrifice of the society whether internal or external economic, in which the business

firm is responsible like environment pollution, destruction of animal resource, deforestation,

monopoly and social losses, ect. Whilst social benefit is compensation made to the society in

the form of increase in per capital income, development of educational facilities, construction

of public roads, and protection of natural resources, employment opportunities. Hence, social

cost-benefit analysis is considered to measure corporate social performance.

Objective of traditional accounting is only record all affects of actions upon organization

itself. As a consequence, organizations take activities significantly and to be recorded while

other activities are seemed as irrelevant and ignored. Traditional accounting remains

concentrated on the activities of the organization and dismisses the affects of the organization

over its external environment (Crowther and Hosking, 2009)... Since 1970‟s a larger number

of researchers had argued that one of the roles of accounting should be to report on the

15

impact of external environment. In the side of economic view, accountability considers the

social performance of a business as a member of society at large.

Historically, social accounting was concerned with local communities, employees, consumers

and environmental issues. Nowadays, awareness is raised regarding issues such as fair trade,

transfers of wealth, trade with repressive regimes among developing and developed countries.

Social accounting extends to other issues including unsafe products and work places, cost

padding and fraud in defense contracting.

2.4 CSR reporting

Silberhorn and Warren (2007) examines that CSR means different thing for whether

managers from different countries. Data on CSR reporting is obtained using content analysis

on the company‟s websites. Annual reports are used for measuring disclosure but they do not

provided correct all respect of CSR activities within organizations ( Unerman, 2000; Holland

and Foo, 2003). It is because literature documented significant use of company websites in

CSR reporting. For example, various factors such as the development level of country,

globalized process, and national business system lead to homogeneous of CSR (Chapple and

Moon (2005). Hence, CSR website reporting varies between different countries. Similarly,

Frost et al. (2005) also find that the annual report is the least valuable source of information

on CSR. The CSR stand-alone report and websites provide greater levels of information on

CSR.

In a feminine society, CSR reporting is expected to be better in terms of quality and extent, as

opposed to a masculine society because this society puts more attention on social goals such

as relationships, helping others and the physical environment (Hofstede,2001).Hence, Van

16

Der Laan Smith et al. (2005) finds that culture is inferred as important in explaining the

variations of quality and extent of CSR reporting.

CSR reporting brings some benefit firms. First, this report help enhance stakeholder relations

and credibility by meeting rising expectation for disclosure and transparency. Secondly, it

also protects and improves the brand image of company, dismissing possible negative

campaign and upgrading the company image. Third, companies may use reporting as internal

communications, educating and motivating employees. In responding to a growing demand

for socially responsible investment, reporting provides for better accessibility to capital

market.

Based on the arguments by Van der Laan (2004) and Wooward et al. (1996), reports can be

made into three different types CSR including mandatory, solicited or voluntary. Mandatory

reporting is issued by state for protecting citizens and ensuring the provided appropriate

information (Doane, 2002). Solicited reporting gains slowly social acceptance, then it is still

underdeveloped form. The core of solicited reporting is to provide information which is

issued by a particular stakeholder group (Van der Laan, 2004). Voluntary reporting is the

most recognized form of reporting.

Dierkes et al. (2002) identify several problems facing the company when preparing the CR

report: the problems of quantifying, limiting, measuring, and evaluating. It is difficult to find

operational definitions and practical indicators, suitable methods and information techniques.

Comparing data may turn out to be impossible.

Several international standards and guidelines that have been adopted by companies in

reporting their CR activities are GRI, AA1000, and UNGC. First, the Global Reporting

Initiative (Hopkins, 2003; Owen, 2003) developed in 1997 by the Coalition for

Environmentally Responsible Economies (CERES) in cooperation with the United Nations

17

Environment Program (UNEP). The mission of GRI is the Global Reporting Initiative. The

aim of this standard is to provide reporting guidelines for the content of sustainability reports

covering economic, social and environmental factors of an organization. Second, the United

Nations Global Compact (UNGC) is an international initiative to encourage businesses

worldwide to adopt sustainable and socially responsible policies, and to report on them.

UNGC is aimed at bring together companies, UN agencies, labor organizations and civil

society in support of 10 principles covering human rights, labor, the environment, and

corruption. Third, Accountability AA1000 assurance standard has also been introduced by

the Institute for Social and Ethical Accountability (ISEA) (Owen, 2003). AA1000 is seemed

as a foundation standard which comprises principles and a set of process standards.

Moreover, there are several other international standards and such as code of product (e.g.,

OECD Guidelines, ILO Declaration), Management standards (e.g., SA8000; ISO 14000),

Screenings and rankings (e.g., Dow Jones Sustainability Index, FTSE4Good).

2.5 Hypothesis

2.5.1 Manager’s perception on CSR conceptualization

Comparing relationship among stakeholders, corporate managers played a unique role in

business organization. Based on stakeholder- agency theory, managers provide the firm with

time, skills and human capital conditions. Managers are unique role of management because

of their position at the nexus of contracts. This theory states that “Managers are the only

group of stakeholders who enter into a contractual relationship with all other stakeholders.

Managers are also the only group of stakeholders with direct control over the decision

making process of the firm‟ (Hill and Jones (1992)

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Executive and managers of organizations make decision and plans for CSR programs. Wood

(1991) states that: “A company’s social responsibilities are not met by some abstract

organizational actor; they are met by human actors who constantly make decisions and

choices, some big and some small, some minor and others of great consequence”. Hence,

Wood concludes the basis for a situational relationship between managers and their

organizations that managers exercise discretion within the context of an organization‟s

definition of public responsibility.

Furthermore, CSR reporting can be obstructed if managers lack knowledge and experience on

management, practicing CSR, understanding how the CSR goals and reporting practices can

be integrated into strategic planning process, choosing a reporting framework.

Besides, behavior of manager on CRS is impacted by their general feelings in the society.

Normally, society‟s expectations reply on firm‟s social responsibilities which are decided by

manager‟s actions toward CSR. Therefore, we can confident to assume that manager‟s

behavior toward CSR is positive influence on CSR practice of organizations. The following

hypothesis is developed:

Assumption 1: Manager’s behavior toward CSR is to influence positively on CSR practices.

2.5.2 Consumer’s perception on CSR conceptualization

Maignan (2001) defines consumer„s perception of CSR as “differentiate between corporate

economic responsibilities on one hand and corporate legal, ethical, and philanthropic

responsibilities on the other hand”. She also seeks that consumers distinguish these same four

components but that they regard the economic component as fundamentally different from

other components including legal, ethical, and philanthropic components.

19

Consumers concerns not only simply quality of product at low price, but also expecting

organizations to demonstrate congruence with some social values as contribution to the

community (Handelman and Arnold, 1999). It is because consumers are not only economic

beings but also members of a community. They can choose to evaluate a company based on

whether the organization acts in consistence with the welfare of the community and society.

Consequently, they can be willing to offer their support for socially responsible companies

(Bhattacharya, Rao and Glynn, 1995).Hence, Consumer knowledge of a firm's CSR

initiatives may lead to a higher evaluation of the company and a more positive evaluation of

the company's product (Brown & Dacin, 1997).

Moreover, consumers increase expectation business to go beyond delivering economic

outcomes and also contribute to society‟s welfare and sustainability by being socially

responsible. Consumer will support to business if they also do so (Dawkins 2003).Therefore,

pro-social marketing initiatives as CSR claims that become a market specialize strategy,

building brand equity and leading to customer loyalty and other positive post-purchase

outcomes (McWilliams and Siegel, 2001, Hoeffler and Keller, 2002, Bhattacharya and Sen,

2003). And consumer knowledge and commitment of a firm's CSR initiatives may lead to a

higher evaluation of the company and a more positive evaluation of the company's product

(Brown and Dacin, 1997).

Before consumer consider a firm‟s CSR initiatives in order to make their purchasing

decisions. They must be not only aware of those initiatives, but also aware of social issues

that firms are engaging in ( Maignan 2001). As the result, consumers' personal support, and

awareness for a CSR domain to be a key determinant of their sensitivity to a company's CSR

efforts ( Sen and Bhattacharya,2001). According to above discussion, there is reasonable to

assume that behavior of consumer toward company„s CSR practices is confident

20

Assumption 2: Behavior of consumer toward company’ CSR practices and disclosures is

positive.

2.5.3 Accounting student’s perception on CSR conceptualization

Radebauh and Gray (2002) emphasise that CSR refers to“accountability to society as a whole

with respect to matters of public interest such as community welfare, public safety, and the

environment”. Besides that, Gray et al (1996) considers CSR as a mean by which an

organization can discharge what they view as its social accountability. Hence, He/she defined

the term accountability as “the duty to provide an account (by no means necessarily a

financial account) or reckoning of those actions for which one is held responsible”. In other

term, Crane and Matten (2004) defines corporate accountability has also been recently

referred “to whether a corporation is answerable in some way for the consequences of its

actions”. Therefore, in finance function, accountant may face social responsibility in

everything from investment appraisal to environmental accounting.

Concept of accounting is social and not limited to economic issues (Williams, 1987). Hence,

responsibility of accountant provides information for the needs and interest of society at

large. In order to follow this concept, practicing accountants, especially accounting students

should understand “needs and interest of society”.

Furthermore, Ijiri (19830 state that accountability is predicated in the right-to-know which

mean all stakeholders have right to get business information such as legal, financial, social

activities. Accountability is based on the principle “show me”, rather than just “trust me”

(Zairi and Peters, 2002). Hence, accountability is very important in society. It can be seen

as a key factor for engaging the wider community as an important stakeholder in business

21

activities. Hence, behavior of accountants on CSR and CSR‟s issues can be expected

positively

Accountability information play important role in business‟s manager making decisions as

well as other stakeholder groups. Hence, potential accountants (current accounting students)

and practicing accountants have social responsibilities to prepare and to report reliable

accountability information, CSR information as well to all stakeholders. The third hypothesis

is assumed:

Assumption3: Accounting student’s behavior is also positive toward company’s CSR

activities.

22

CHATER 3: RESEARCH METHODOLOGY

3.1 Research objective

The objective of this research is to focus on three main factors such as: management‟s

perception on CSR conceptualization; consumers‟ perception on CSR conceptualization;

accounting student‟s perception on CSR conceptualization. Accordingly, this research‟s

objective is the information collected to clarify three assumptions as follows:

Assumption 1: Manager’s behavior toward CSR is to influence positively on CSR practices.

Assumption 2: Behavior of consumer toward company’s CSR practices and disclosures is

confident.

Assumption 3: Accounting student’s behavior is positive toward company’s CSR activities.

3.2 Applied research methodology

For each research, selection the most appropriate research methodology is very important; as

this is the effective tool help the writer express the ideas, as well as collect the necessary

information. The main research methodology applied in this research is based on the

questionnaire, as this method takes low cost, and is easy to conduct.

3.3 Data source

This research will gather information through two main data sources such as: primary data

and secondary data.

23

3.3.1 Primary data sources

Primary data is concerned with the sources of data gathered in the direct way. Or in other

words, this source of data will serve the researcher‟s expectation by gathering at hand for

specific purpose. One of the ways to collect primary data is collecting information from

questionnaire. The writer can base the objective of the research to create the specific

questionnaire paper and distributes for number of selected people. Using primary data, the

researcher can be more active in collecting information, directly communicate with people

received questionnaire. Nevertheless, it is too difficult to collect information from primary

data, as this requires the expertise and knowledge about the topic, and take a lot of time to

complete and gather information.

3.3.2 Secondary data sources

If primary data sources need to conduct for collecting information, secondary data sources is

often available on newspaper, journal, internet, and other sources. The most advantages of

secondary data source are low cost and take a short time to collect information. Nevertheless,

as the secondary data is too much, required information might not be found, or the entire

needed information might be not available on internet. To meet the researcher‟s need, the

researcher need to collect the information from secondary data sources carefully such as:

reading all information, limiting the needed information, classification the finding

information, analyst information, and the final stage is to evaluate the finding information in

order to meet the requirements of each research.

24

3.4 Research method

For collecting primary data, the research method is used as the questionnaire. This is also the

most widely used and best effective approach preferred by most of researcher.

For collecting secondary data, the research is based on the information available on the

internet and other sources.

3.5 Research tool

As mentioned in research objective, survey involves three patterns to clarify three

assumptions relating to managers‟ perception, consumers‟ perception, and accounting

students‟ perception toward the concept of CSR. Management survey consists of seven (7)

questions to measure the managers‟ knowledge about the concept of CSR and how company

act to response this concept. Consumer survey includes six (6) questions to expose the

consumers‟ attitude toward the concept of CSR such as: knowledge about CSR, buying

behavior products that come from the companies follow the CSR. Accounting student survey

consist of seven (7) questions is to measure their awareness about CSR, and their ideas about

CSR education and practice in universities.

The measurement for all of three survey models is five-points Likert scales (I= “strongly

disagree”; V= “strongly agree”) to indicate that how the respondents approach and

understand about the concept of CSR. Besides that, the additional opinion part is added for

respondents want to write more clearly their ideas.

25

3.6 Data collection

Major information of this paper is primary data from result of survey. The management

surveys are sent to mangers of ten companies including financial services (Vietinbank, An

Binh Bank, Ha Noi Stock Exchange), consumer goods and services (Vissan Company,

Thuong Dinh Footwear Company, Vincom Megastar Cinema), and industrial ( Hanel

Company, Honda Vietnam Limited company).The consumer‟s questionnaire survey are

delivered to people who was customers/buyers in branches of Vietin Bank, Ho Noi stock

exchange, Parkson Plaza, Vincom Megastar Cinema. Surveys for accounting students are

done by students of International School, Vietnam National University Hanoi (IS-VNU) and

Foreign Trade University (FTU).

The secondary data are collected from annual reports of business organizations or non-

government organizations.

3.7 Sampling

3.7.1 Sample population

In order to save time and cost, the selected population is citizen in Hanoi City only.

3.7.2 Sample entity

As mentioned above, The sample entity of this research is focused on managers, consumers,

and accounting students in Hanoi City and Ho Chi Minh City.

26

3.7.3 Sample size

Total 380 questionnaire surveys are introduced including 100 management questionnaire

patterns, 150 consumer questionnaire patterns and 130 accounting student questionnaire

patterns have been sent out.

3.8 Language in questionnaire

The questionnaire used the plain English for the most effective understanding. In addition,

the phrase used in questionnaire is short and easy to give the answers in some minutes.The

researchers distribute the questionnaires for group leaders good at English, and then they will

help other members in their group complete the questionnaire in the most effective way to

avoid misunderstanding.

27

CHATER 4: FINDINGS AND ANALYSIS

4.1 Findings

As mention above, survey questions are done in 3 patterns: management, customer and

accounting. Participants are managers, customers and accounting students in financial

services ( Vietinbank, An Binh Bank, Ha Noi Stock Exchange), consumer goods and services

(Vissan Company, Thuong Dinh Footwear Company, Vincom Megastar Cinema), and

industrial ( Hanel Company, Honda Vietnam Limited company). Most of survey questions

were collected and the results summarize in the figure below:

Figure 4.1. Response rate

User Groups Distributed

Questionnaires

Received

Questionnaires

Respond

Rate (%)

Management pattern

- Financial services

- Consumer goods and services

- Industrial

Total

40

30

30

19

11

9

47.5

36.7

30

100 39 39

Customer pattern

- Branches of Vietin Bank

- Ha Noi stock exchange

- Parkson Plaza

- Vincom Magastar Cinema

Total

30

30

40

50

20

15

27

25

66.7

50

67.5

50

150 87 58

28

Accountant’s student pattern

- IS-VNU students

- FTU‟s students

Total

80

50

39

27

48.8

54

130 66 50.8

4.2 Result analysis

4.2.1 Manager

4.2.1.1 Result of manager’s questionnaire survey

Figure 4.2. Distribution of manager’s response from questionnaire survey

QuestionsV IV III II I

Management’s perception on CSR activities

1. Company should practice CSR voluntary.@ 9 17 11 2 0

% 23 44 28 5 0

2. Activities for protecting environment, employees

and solving social issues are social responsibility of

the company.

@ 11 17 8 3 0

% 28 43 21 8 0

3. Companies should have responsibility to their

customers and society at large rather than their

employees.

@

%

5

13

9

23

13

33

9

23

3

8

Manager’s attitude support for CSR and CSR’s issue

4. Mostly concerning CSR are related executive and

management attitude toward CSR.

@ 6 10 14 7 2

% 15 26 36 18 5

5. Social responsibility has seemed to be a major

purpose for companies to use communicators to

improve their image brand.

@ 2 8 13 12 4

% 5 21 33 31 10

29

6. CSR disclosure will have positive affects to

stakeholder‟s decisions.

@ 0 10 14 9 6

% 0 26 36 23 15

7. CSR programs help company to increase sales, as

well as profits.

@ 0 7 11 14 7

% 0 18 28 36 18

V= strongly agree, IV=agree, III=neutral, II=disagree, I= strongly disagree; @: number of selecting

According to figure above, there are 67% of respondent think that their companies should be

willing to respond CRS programs while 13% of them have no comment or disagree about this

statement (question 1). Moreover, 71% of executive and managers confirm that social

responsibility of their organization is to protect environment, their employees and solving

social issues (question 2). Hence, percentage responses of both question shows that

manager‟s perceptions on CSR is strongly confident.

Furthermore, 46% of respondents think that companies have responsibilities to their

customers and society at large rather than their employees whereas 33% neutral and

disagreement is 31% of respondents who may believe that companies should also take-care

their employees (question 3).

Majority of respondents (59%) think that both practice of CSR program of each company

would be related executive and managers attitude toward CSR, whereas 41% agree important

role of manager in developing CSR practices and disclosure (question 4).

In question 5, most of respondents (41%) do not agree that social responsibility is main

reason for company to employ communicator to PR their organization. They are voluntary to

spend financial resource for society in order to improve living standard and quality of

environment. On the other hand, 26% of them think that social activities of some business

organization aim to improve their organization's reputation and brand name which is

30

considered as most efficient integrated marketing communication tools adopted by

businesses.

Respond to question 6, only 26% managers inform that CSR reporting have positive impact

on investor and stakeholder‟s decisions while 36% of them have no idea about this statement.

38% managers said that their stakeholder or investor might not concern about CSR reporting

before making decision. Most of managers (54%) do not believe that CSR activities can make

company to increase revenues whereas 28% of them are not sure. However, 18% of them

think that CSR programs will bring benefit to their organization (question 7).

4.2.1.2 Discussion

According to representation of percentage responses from management questionnaire survey

above, management‟s perception on CSR is positive. Most of managers understand clearly

role of CSR for their business. Those companies aim at through its CSR efforts is nothing

less than realizing the business philosophy through their business activities, as well as

through social contribution activities. Besides, managers defines CSR as making products

and services with best quality with reasonable price, giving safety working environment and

good condition for employees, contribution a part of earnings for society charitable programs,

and social activities, as well as for protecting environment. For example, Honda is an

automaker whose primary responsibilities may include manufacturing safe vehicles or

reducing pollution directly resulting from manufacturing processes or product use. Secondary

responsibilities might include supporting safe driving programs. Taking similar social

purpose, Hanel will continue to propose one-of-a kind products and new lifestyles, as well as

fulfill their social responsibility, notably in the environmental and social areas, acting and

behaving sincerely as a corporation that is trusted by all.

31

Most of managers agree that CSR practicing of their organization is impacted by their attitude

toward CSR. Through respondent information in questionnaire survey, young people have

more positive attitude toward CSR. The management‟s attitude to CSR was put for a non-

parameter correlation analysis to discover the factors affecting management‟s CSR attitude.

Besides that, position and year of employment of respondent also affect management attitude.

Furthermore, in Viet Nam, many companies have mixed CSR and Public Relation in order to

attract customer in commercial manner. These activities help company to marketing

company‟s image brand and products. However, respondents almost do not agree this opinion

(41%). CRS was introduced into Vietnam through CSR activities of multinational companies

such as Honda, Megastar. Those companies build communication and culture standard which

apply for all subsidiaries over the world. Hence, practicing CSR of those companies are

efficient and voluntary, not for marketing their product or brand name. For example,

everyone who are living in Viet Nam also know “Toi yeu Viet Nam” program of Honda Viet

Nam Limited. The aim of this program is to educate traffic law for citizens. Vietnamese

export-oriented companies as Vissan Company, Thuong Dinh Foof wear Company have been

attempted to be good citizenship basing on their respect and activities to society because of

requirement of their foreign investors and buyers.

4.2.1.3 Conclusion

As the above result of survey and analyzing, manager‟s behavior on CSR and CSR‟s

reporting is positive and influence on CSR‟s practices of companies. Besides that, managers

of these companies also believe that good CSR practices will bring better image to everyone

and more numbers of customers use their products or services. With positive attitude of

manager toward CSR, these companies will pay more attention for CSR‟s programs such as

32

solving environment issues, spending money for social activities, improving quality of

employee standard working, as well as their living in the future. Moreover, Vietnamese

economic has been being globalization into global economic, and then Viet Nam is potential

market for international investor and partners. In order to meet international requirements,

Vietnam companies, especially managers have actions to comply with the international

standards and requirements in which CSR is an essential factor. Hence, managers of

organization should learn more about CSR that also means leaning how to manage CSR

initiatives, engaging with stakeholders and reporting on activities. These actions help

managers to evaluate the advantages and disadvantages of particular strategies and

implementation. Managers enable to carry out CSR alive within the company.

4.2.2 Consumers

4.2.2.1 Result of questionnaire survey

Distributions of customer‟s response are show in figure below.

Figure 4.3. Representation of customer’s responses from questionnaire survey

StatementsV IV III II I

Consumers’ perception on CSR

1. Business organizations have responsibility to social

problems.

@ 9 31 29 15 3

% 10 37 33 17 3

2. Many Vietnamese businesses concentrated on

solving short term issue in price and quality rather

than issue of sustainable development and CSR

issue.

@ 7 19 27 26 8

% 8 22 31 30 9

3. I find information and knowledge about CSR

through mass media such as newspaper, radio and

television, internet.

@ 13 36 20 13 5

% 15 41 23 15 6

33

Consumer’s action for CSR

4. I feel important to buy products of company that do

CSR practices

@ 5 21 22 28 11

% 6 24 25 32 13

5. I notice to see SA8000 or WRAP in products

package when I buy them.

@ 7 31 27 17 5

% 8 36 30 20 6

6. I will not purchase products form unethical

companies.

@ 13 34 31 7 2

% 15 39 36 8 2

V= strongly agree, IV=agree, III=neutral, II=disagree, I= strongly disagree; @= number of selecting

A large number of consumers (47%) believe that companies have responsibility in solving

social issues whereas 33% of them are neutral and 10% disagreeing this statement (question

1). Moreover, almost respondents (70%) think that companies should not only concentrate

on solving short term issues on quality and price rather than issues of sustainable

development and CSR issues (question 2). They understand about CSR through information

from newspaper, television, radio and internet (56%).Only 21% of respondents said that they

know about CSR through other resource such client‟s companies. All first three questions are

more agreement percentage. The result of first three questions indicates that consumer‟s

perception on CSR is positive and this is important issue.

However, consumer support to social responsibility business is not strongly positive there is.

There is 30% of consumers agree that they feel important to buy products from company

practicing CSR, whereas approximate a haft of respondents (46%) do not think that even it

relates their benefit (question 4). However, 44% of customers agree that they notice products

putting SA or WRAP in their product packages or not when they buy them while only 26% of

them do not do that. This result will show consumer who concern about CSR practicing of

manufactures (question5). Besides, 54% of respondents confirm that they will not purchase

products from unethical companies in order to avoid harmful product (question 6).

34

4.2.2.2 Discussion

Descriptive result figure above indicate that consumers show a positive perception on CSR

issues. The ethical dimension in Carroll‟s CSR pyramid has recognized by large number of

consumers but it is limited in their health safety concern. They do not pay attention in other

issues such as how companies treat their employees or society. These issues do not show in

their perception on CSR.

Some consumers indicate that they consider price and quality of products to be more

important than ethics in their purchasing decisions. Vietnam is emerging country, a larger

number of populations have low and middle income, and then price is primary considered

when they shop. That‟s why, price and quality of product is impact strongly on their making

buying decision. Therefore, it can be assumed that ethic in doing business will reflect in

providing high quality product at low price which is an indicator for social responsibility of

firm through giving more value to consumers.

Moreover, Vietnam consumers had faced harmful food and health problems for many past

years such as toxic chemical food, dry hot chilies....These problems push consumer to

concern the important of environment and health factor. Hence, most of them said that they

do not buy products from unethical company.

Today, consumers prefer CSR firms, as well as clean and green products. They also think that

companies should focus on sustainable development rather than short term problems.

Therefore, companies will attract more customers if they promote strongly their CSR

programs, more efficient to incorporate CSR initiatives in their integrated marketing strategy.

35

In additional, the descriptive statistics of survey show that respondents at young age do not

pay strong positively attitude toward CSR like people at old age. Even they state that it is

important for companies to do social responsibilities into the business operation, but they do

not care about companies practicing CSR or not. The things which they most concern are the

price, and outlook of products. Comparing the range of age of respondent‟s survey, young

people are in 20-30 years old who may be student or new-graduated employees. They must

spend money carefully because they have not earned money yet or having low income. In

contrast, old people are more concerned about CSR. Because they have many experiences

throughout their time life, so they know what are important for themselves, for other people,

as well as society. Hence, they have high ethical behavior. That‟s why most of middle and

high age of respondents agrees that they see property symbol SA 8000 or WARP in package

of products when they purchase them.

Majority consumers said that mass media such as internet, television bring CSR information

to them. They know about CSR activities of companies or CSR scandals through two

communicators. However, information is in form of advertisement of companies which make

consumers feeling that companies are marketing their brand name and products. The

information from client‟s companies or CSR corporations is more reliable for consumers but

they do not communicate with these information resources. Some consumers seek that

advertisements of companies in media usually show their good image and positive influences

of companies‟ operation on environment and social. So, these information resources might

not reflect the behavior of companies to social.

36

4.2.2.3Conclusion

The different ages of customer show different supporting for responsibilities attitude toward

CSR. Consumers currently begin to more concern about food safety problems by taking

actions for societal and environmental factors of CSR .This result can assume that an ethical

segment of consumers has been also emerging gradually into Vietnamese market. They chose

to select clean and green products and ignore products that might harm for their health. In

Viet Nam, consumer‟s behavior purchasing normally push companies to take actions for

society‟s benefits. However, consumers make buying decisions but they do not know little

information about companies involving CSR programs or not. Therefore, the great business

strategy for companies is how to promote efficiently CSR initiatives. In general, each

consumer has knowledge about CSR that help customers to recognize misconduct when

transacting with a company. Knowledge of CSR can make them more assured in taking

action to address the misconduct.

4.2.3 Accounting’s student

4.2.3.1 Result of questionnaire survey

Figure 4.4. Distribution of accounting student’s responses from questionnaire survey

StatementV IV III II I

Accounting’s student perception on CSR practices

1. CSR practices are important for everyone.@ 7 19 20 17 5

% 11 28 29 25 7

2. CSR is needed to be more concerned in Viet Nam@ 12 31 15 8 2

% 18 46 22 12 3

3. The provision of financial and non-financial @ 6 19 25 13 5

37

information relating to business organization is

CSR responsibilities.% 8 28 37 19 7

4. CSR disclosure brings benefit for companies.@ 9 19 23 15 2

% 13 28 34 22 3

Accounting student activities for supporting CSR

5. It is necessary for students to attend in social

activities in the school.

@ 9 17 21 15 6

% 13 25 31 22 9

6. Accounting students should have CSR practices as

long as in the school.

@ 7 17 23 13 8

% 10 25 34 19 12

7. Before I finish my course, I will participate in

training class to understand further CSR concept.

@ 9 24 16 13 6

% 13 35 24 19 9

V= strongly agree, IV=agree, III=neutral, II=disagree, I= strongly disagree; @= number of choosing

In the first statement, there is 39% of accounting students agree that everyone should pay

attending in CSR activities whereas 32% do not support for this statement, whereas 30% stay

in neutral. More than haft numbers of respondents (64%) think that CSR should be concerned

further in Viet Nam, only 17% oppose this idea (statement 2). In the next statement, 36% of

students said that provision financial or non-financial information relating to an organization

is CSR responsibilities. The same percentages of students remain in neutral whereas 26% of

them do not think that (statement 3). Besides that, 41% of students believe that CSR

disclosure will brings benefit for companies if they have CSR responsibilities. Whereas 34%

of them give no comment, 25% disagree (statement 4). In the first part of questionnaire

survey, the answers of respondent suggest that the accounting student‟s behavior toward CSR

is positive.

In statement 5, there is 37% of accounting students, who agree that they should pay attention

in social activities of their school, it is necessary. For opposing this statement and in neutral,

there is 31% of each. Similarity, 35% of them said that accounting student should have CSR

38

practice as long as they are in the school, whereas 34% stay in neutral and 31% disagree with

this idea (statement 6). In the last statement of survey, approximate a haft of respondents

(48%) agree that they are willing to enjoy training class to gain experiences and skill about

CSR and CRS‟s issues which help them to understand further CSR. 24% of them have no

idea and 28% give disagreement. In the second part of survey, the results show that number

of respondents in three level (agree, neutral, disagree) are almost similarity.

4.2.3.2 Discussion

Accountability information is very important for all shareholders including shareholders,

employees, creditors, customers, suppliers, government and the community. Hence, issuing

or introducing accountability information is correct and reasonable which is accountant

responsibility. It is CSR responsibility as well. Guthrie and Mathews (1985) defines CSR as

“the provision of financial and nonfinancial information relating to an organization’s

interaction with its physical and social environment.” At the same idea, Radebauh and Gray

(2002) emphasize that CSR refers to “accountability to society as a whole with respect to

matters of public interest such as community welfare, public safety, and the environment”.

According to results of survey for accounting student, most of student in accounting major

understand about definition and disclosure of CSR. However, there is different level of their

concerning about CSR. Some of them pay strongly attention in CSR activities, some of others

are not. Besides that, respondents are business student who are educated about CSR concept

during their course. So they are at least to know a little definition of CSR. Hence, we can

believe that their attitude toward CSR practices will be positive because they understand how

CSR to be important for organizations and human.

39

4.2.3.3 Conclusion

Above descriptive statistic of respondents from questionnaire survey and discussion shows

that third assumption in chapter 3 is occurred. Accounting students have positive perception

on CSR‟s issue. They are educated about CSR conception in their course. They are really

enjoyable to enter social activities. As mention above, accountability information is essential

and necessary for all shareholders and as public interest. Accounting students catch this mean

and they are willingness to participate in CSR training courses.

4.3 Implementation

In Vietnam, the small businesses have not paid attention to application and enforcement of

CSR. However many enterprises have put CSR into their business strategies. Typically,

there are social programs such as „Six million cups of milks for poor Vietnamese children‟ of

Vinamilk, „Den Dom Dom scholarship fund‟ of Dutch Lady, „Library Hub Community‟ of

Hub Café.

Moreover, Vietnam has Vietnam Forum on CSR which is administered by Vietnam Center

for Development and Integration. Vietnam Chamber of Commerce and Industry implement

sustainable development activities for enterprises. It focus on promoting the performance of

business social responsibility, sharing experiences in management of labor, raising the

standard of working environment, health care workers. It helps strengthening exchange and

cooperation of CSR in Vietnam. It also proposes to the Government on building better social

policies for employees. Thus, this Forum helps Vietnamese businesses preventing the disaster

from the lack of sense of social responsibility in order to developing sustainable integration.

40

CHAPTER 5: CONCLUSION

5.1 Conclusion

Vietnam economic has integrated with global economic since last decade. The process brings

to Vietnamese economic opportunities to expand their business operation and introduce their

products over the world, especially small and medium enterprises (SMEs). Currently, many

SMEs expand their operation and export their products over the world. Although, Vietnam

economic is growing rapidly and good performance, but Vietnam faces difficult issue for

sustainable development, especially social and environment problems waste management,

energy saving, protecting air environment, implement of working safety standards, taking

care of workers as well. Many scandals of factories occurred in recent time relating serious

pollution such as Thi Vai river case and numerous case of health problem including tainted

milk, harmed child-toys, and toxic ingredients in consumer goods. These scandals push

people to more concern on CSR in Viet Nam. In additional, the globalization process require

Vietnam economic taking more pressure in order to meet with many international standards

and cope with the high development speed of the world .Especially, Vietnamese export-

oriented companies such as Vietnam shoe manufactures and textiles industry began

implement CSR norms of conduct under pressure from Multinational Corporation in

developed countries. Hence, CSR programs and its reporting become to be important target

for Viet Nam economy in the current integrated processing.

Despite the CSR concept come in Vietnam for long time, practices of CSR in companies is

still poor. However, this topic has not yet interested for Vietnamese academics or researchers

to choose in their researches. This paper provides a clear justification and indication from the

empirical evidences of various stakeholders‟ perspectives (manager, customer and accounting

student) about the significance of CSR to business organizations in Viet Nam. Financial

41

performance is very important sector for organizations to survive and complete with others in

global economy competition. However, organizations must have responsibilities to various

stakeholders and community where they exit. Positive perceptions of various respondents on

the practice of CSR prove that managers need to be convinced that CSR and profit

maximization can be belonging together. Hence, CSR can be used as a strategic tool to

enhance the reputation and public image of a business institution. Besides that, CSR will

bring profits for an organization in the long-run.

Manager is a stakeholder who has the control power over resources to make decision

organizations. So, managers need to have awareness and commitment in order to apply CSR

into business organization. Besides, consumer‟s perception on conceptualization of CSR may

influence directly their purchasing behavior. In the contrast, accounting is seemed as

language of business. Accountant is as communicator between company‟s activities and

stakeholder groups. The role of accountant in company is very important. So, the quality of

CSR reporting depends on accountant‟s knowledge and commitment. Therefore, accounting

student should understand and aware exactly conceptualization CSR before do accountability

practicing in the fact. Manager, customer and accountant play important role in social

performance of the business organization. They are reasons to explain that this study is

selected these respondent groups.

The results from survey show that people support strongly for business organization to made

decision and strategy for CSR program. The perception of consumer toward CSR helps firms

to issue efficient CRS programs on the side of consumer. The results recommend managers a

unique point which produces high quality products at low price to consumer as well as

communicating CSR to be effective way to expand sales and profits.

42

Nevertheless, there is a different perceive and actions among people due to lacking of

adequate CSR disclosure. For example, Vietnamese consumers do not understand CSR

property. Hence, they are victims of CSR scandals but they response passively and weakly

because they do not have knowledge how to react actively to these issues and also how to use

consumer power to protect them. Generally, people often express good intention rather than

taking actions or making decisions when they face real issue of CSR. However, with highly

positive behavior and perception on CSR and concern about CSR will bring CSR issues to be

closed and popular for all people.

5.2 Recommendation

To achieve and improve effective CSR practicing, business organization should implement

CSR concept into operation in accordance with sustainable development. For example, firms

should be engaged in CSR efforts aiming at addressing social and environment issues

including pursuing education-related activities such as supporting the construction of element

school in urban areas and offering scholarships, providing vocation training for workers,

building social house for poor people.

Vietnam government should issue mandatory disclosure requirement for firm to guide about

what, how to disclose CSR information. Besides that, companies should corporate with

international organizations, non-organization organizations to promote CSR practices

effectively. These organizations help companies as well as Viet Nam dealing with its most

pressing issues such as poverty, environmental degradation and human resources

development.

43

Furthermore, companies should enhance lines of communication with local communities

(located province or city). It is very important for company to corporate closely with located

communities. For example, CSR programs or issues should be planned and discuss with local

staffs and regional government, NGOs to gain their knowledge, opinions that help companies

solve these problem faster. Besides that, companies should offer strengthened communication

channels in order to help providing information on the results of their efforts.

5.3 Limitation of study

In general, there are some limitations of this study. A first limitation is lack of general

analyzing because the questionnaire survey took in two big cities Ha Noi and Ho Chi Minh

where people have high education and standard living. So they understand about CSR

concept rather than people lives in urban areas. It is more efficient to analyze people

perception on CSR if survey delivers to different areas in Viet Nam.

Another limitation is size of sample. Ten companies are selected in the study which is

considered big corporations. These companies have stable financial resource, and then they

have advantage in financial rather than small companies. As result, they may pay positive

attitude for CSR issues. For future researches, sample should open range type of respondents.

Furthermore, stakeholders of business organizations are many groups. So, exception

managers, consumers, accounting students, there are other groups such as government,

investors, and suppliers. Hence, future studies can choose these groups to make exactly and

completed viewing on CSR issue in Viet Nam.

Last limitation is limitation of quality of survey questions that are designed by

researcher, and then lacking of professional touch. The lack of indentify in the questions

has caused

44

respondents misunderstanding the questions. As consequence, they provide inappropriate

selected choosing. Furthermore, researcher lacks of experience in preparing survey questions

that lead to miss some other respect of CSR‟s issues

45

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APPENDIX : QUESTIONNAIREMANAGEMENT SURVEY

Personal Information

Company:

Years in holding current position:

Questionnaire

To what extent do you agree with those questions?

5= strongly agree, 4= agree, 3= neutral/no opinion, 2= disagree, 1= strongly disagree

Questions 5 4 3 2 1

1. Company should practice CSR voluntary.

2. Activities to protect environment, employees and solve social

issues are social responsibility of the company.

3. Companies should have responsibility to their customers and

society at large rather than their employees.

4. Mostly concerning CSR are related executive and

management attitude toward CSR.

5. Social responsibility has seemed to b a major purpose for

companies to use communicators to improve their image

brand.

6. CSR reporting will have positive impact on stakeholder and

investor‟s decision.

7. CSR programs help company to increase sales, as well as

profits.

Additional personal comments (option):

57

CONSUMER SURVEY

Personal Information

Age: 20-30 Marital status: Married Single

30-40 Number of children: None

40-50 1

50-60 2

Above 60 Above 2

Education:

Current employment:

Questionnaire

Towhat extent do you agree with those questions?

5= strongly agree, 4= agree, 3= neutral/no opinion, 2= disagree, 1= strongly disagree

Questions 5 4 3 2 1

1. Business organizations have responsibility to social problems.

2. Many Vietnamese businessesconcentrated on solving short

term issue in price and quality rather than issue of sustainable

development and CSR issue.

3. I find information and knowledge about CSR through mass

media such as newspaper, radio and television, internet.

4. I feel important to buy product from company who do CSR

practices

5. Inotice to see SA8000 or WRAP in products package when I

buy them.

6. I will not purchase products form unethical companies

Through which channels do you know about CSR activities of companies? How do you think

about quality of the information?

58

Additional opinion (option):

59

ACCOUNTING STUDENT SURVEY

Personal information

School:

Years of degree: Gender: Male Female

Questionnaire

Towhat extent do you agree with those questions?

5= strongly agree, 4= agree, 3= neutral/no opinion, 2= disagree, 1= strongly disagree

Questions 5 4 3 2 1

1. CSR practices are important for everyone.

2. CSR is needed to be more concerned in Viet Nam

3. Accounting student have responsibility to know and

understand CRS role.

4. CSR disclosure brings benefit for companies.

5. It is necessary for students to attend in social activities in the

universities.

6. Accounting students should haveCSR practices as long as in

the universities.

7. Before I finish my course, I will participate in training class to

gain knowledge and skill to understand further CSR issues.

Additional personal comments (option):

60