Impact Of Corporate Social Responsibility

SUMMARY

In the world, the giant corporations paid a lot of money to become an ideal business model and to be more responsible to society. For example: Best Buy electric company applied recycling product program, Starbucks – the coffee company is present in every corner of the planet, has embarked on a series of community activities. Google – the world’s largest “search engine” treats employees like pearls on Googleplex headquarters, General Electric spent 2 billion dollars researching new technologies to protect the environment.

In Vietnam, not until now, the corporate social responsibility of business has just been respected, but on the contrary, in the subsidy period, people respected the corporate social responsibility of enterprises for the state and the workers, as well as for the general public. But in recent years, corporate social responsibility is more widely understood, not only from an ethical, but also from a legal point of view. Thus, the implementation of corporate social responsibility is a task that cannot be skipped on the way of integration of Vietnam’s enterprises, because it creates benefits not only for businesses, but also for the society, especially improving the competitiveness of enterprises in the country and supporting the implementation of labor laws better. For the enterprises in Vietnam, it has just beginning to develop, but it will be a long-term problem.

Vinamilk Corp. led to apply corporate social responsibility by the program “Milk Fund”. The program which was founded by Vietnam Fund for Children and Vinamilk, aims to support poor, disadvantaged and malnourished children. This assignment will discuss about corporate social responsibility with the example of “Milk Fund” of Vinamilk and Vietnam Fund for Children, through that it shows the impact of this program to society.

TABLE OF CONTENTS

I. INTRODUCTION

Along with the globalization of the world today, the success in accelerating economic growth caused many problems of environment and society for the countries. These problems require the economic entity, including businesses and organizations to have the responsibility to contribute to that. Because business starts from the human needs. For example, you cannot sell the computers on Mars, because there is no demand on it. The wealth of the enterprise is ultimately generated by consumers; these customers are gathered together in society. Thus, issues of corporate social responsibility of business set out on the basis of such relationships. If the economic growth is unsustainable, they will compensate for environmental and social issues.

Vinamilk Corp. is the company which led to apply corporate social responsibility programs in Vietnam. “Milk Fund” – program was founded Vinamilk and the Vietnam Fund for Children really helped Vinamilk to build good image to consumers and the partners. Through this “Milk Fund” program, I will give my view points on role and impact of corporate social responsibility in the present life.

II. ABOUT COMPANY

The Vietnam MilkJoint Stock Company(Vinamilk) is the company which has the largestproducers of dairy products and milk in Vietnam today. Vinamilk was founded under the name of Southern Coffee – Dairy Company, which is a subsidiary of the General Food Directorate.  In December 2003, the official equalization decision was issued and it was renamed to the Vietnam Dairy Products Joint Stock Company. From 2006, Vinamilk listed on Ho Chi Minh City stock market.

In order to provide increasing demands of consumers, Vinamilk constantly renew technology, improve management and product quality. In 1999, Vinamilk has successfully applied the quality management system according to international standards ISO 9002 and is now applying the international quality management system ISO 9001:2000. The majority of products are manufactured in nine factories with total capacity of about 570.406 tons of milk per year. This increased the confidence and prestige of the company in competitive market. Vinamilk has are over 200 various kinds of products and dairy products, such as fresh milk, yoghurt, drinking yoghurt, fermented yoghurt, ice-cream, cheese, soy-bean milk, fruit juice, smoothie, atiso tea… With the variety of products, Vinamilk really responded to millions of consumers, not inferior to foreign enterprises. In addition to strong domestic distribution with the network of 193 distributors and nearly 94,000 sales points in 64 provinces in Vietnam, Vinamilk also exports to markets in other countries: U.S., Canada, France, Poland, Germany, Australia, Southeast Asia and the Middle East countries…

With the hope to become the number one brand on health and nutrition products in Vietnam, Vinamilk Corp. develop the optimal product to meet the specific needs of each kind of consumer through the strategic application of scientific research on specific nutritional needs of Vietnamese. In addition to develop a comprehensive list of milk and dairy products towards a large numbers of consumers and expand into value-added products in order to improve overall profits margins of the company, they strengthenedthedistributionposition and the quality products to gain more market share in Vietnam, especially in rural areas and small towns. Besides, they also organized corporate social responsibility programs to help the poor and children. Through that, Vinamilk has been creating beautiful images for consumers.

III. ABOUT PROGRAM

In order to assert Vinamilk’s role as the number one brand on health and nutrition products in Vietnam, Vinamilk Corp. gave many corporate social responsibility programs such as “Milk Fund” program to support free milk for poor, disadvantaged and malnourished children.

The “Milk Fund” which was founded by Vietnam Fund for Children and Vinamilk in 2008, until now, “Milk Fund” organized many meaningful programs such as the fund “a million glasses of milk”, “3 million glasses of milk” and kicked off the fund “6 million glasses of milk” program in March 2009 that brought free milk to nearly 50,000 Vietnamese children in the country. Vinamilk spent 3 billion VND buying a million glasses of milk for school children. The fund then was expanded to 9.6 billion VND for three million glasses of milk with donations from many organizations and enterprises not only in Vietnam, but also in the world. This corporate social responsibility program of Vinamilk contributed to reduced rates of child malnutrition in Vietnam.

Minister Nguyen Thi Kim Ngan – leaders of the Vietnam Children Sponsor  Fund, the Department of Child Protection and Care, the General Department for Job, said at the closing ceremony for the Fund “6 million free glasses of milk” for Vietnamese children in Ho Chi Minh City, “The Government should join hands to bring nutrition to children”. Other countries in the world applied similar programs to improve children’s height, weight and other nutrition indexes. This project in Vietnam will combine responsibilities of families, schools, governments and enterprises.

Following the success of the program “a million glasses of milk”, “3 million glasses of milk” and kicked off the fund “6 million glasses of milk” for poor children in Vietnam, the “Milk Fund” of Vinamilk will organized more programs to take care of Vietnamese children, especially disadvantaged children in rural areas. Along with the support of social organizations, institutions and individuals, the nationwide charity, this program will support free milk to all children every day, to contribute to reduce malnutrition of Vietnamese children and to develop of new generations of Vietnamese people.

IV. THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY, RESULT

Awareness of community, government and companies to corporate social responsibility in recent times improved positively and quickly, the reason is from the environmental pollution, food contamination and fraud trading. Thus, CSR has become a powerful tool to help the businesses to improve their image with the community, and contribute to promoting development.

The first impact of CSR to businesses in society is that it helps them to improve their brand value in the market. When the companies do corporate social responsibility, they are building brand value for themselves through the institutionalization of brand, trademarks, standardized construction, create a legal framework for market economy… Through these, the State organization can determine the value of the enterprise, rate independent companies, rank brand value and trademarks of firms according to international standards that help the enterprises to be fully and deeply aware of the importance of CSR.

CSR helps the companies to improve their reputation in community. No need PR programs, epic advertising, impressive or flashy social programs, the reputation of the business is still built and strengthened every day, and become the core values ​​of corporate culture through doing CSR. Profit is the purpose of business, but the implementation of CSR is the foundation for the sustainable development not only of individual businesses but also the whole country. The companies with CSR often create breakthroughs in business and achieve profitability targets without destroying the environment, consuming excessive resources.

V. CONCLUSION

In the era of globalization, businesses represent not only themselves but also their countries. Therefore, corporate social responsibility is not the upside, not as a “plus” aspect, that is the basic of the business. And corporate social responsibility is the basic of the business so that business must demonstrate its corporate social responsibility in a comprehensive way, not only in some extent. The businesses which desire sustainable development must always abide by the standards of environmental protection, labor safety, labor rights protection, gender equality, training and employee development and community development. Because good ethics is good business, the more corporate social responsibility businesses have, the more profitable they get. Corporate social responsibility is an important condition for business to affirm its reputation, its brand, to build up the goodwill, good image to consumers and the partners, is the motivation for business development in the integration and global competitiveness.

With the success in corporate social responsibility of Vinamilk, in the future, there will have more corporate social responsibility programs of the enterprises to contribute to sustainable development