Corporate social responsibility in Vietnam: opportunities and innovation experienced by multinational corporation subsidiaries

2019 ◽  
Vol 16 (6) ◽  
pp. 771-792 ◽  
Author(s):  
Hieu Thanh Nguyen ◽  
Thinh Gia Hoang ◽  
Hiep Luu

Purpose This study aims to examine corporate social responsibility (CSR) with the opportunity- and innovation-based view of multinational subsidiaries (MNSs) in Vietnam. While CSR has traditionally been investigated in the developed market, this paper demonstrates how MNSs can take advantage of their CSR practises and create business opportunities and innovation activities for themselves and local society in Vietnam. Design/methodology/approach This is an exploratory qualitative research-based on four MNSs that have practised CSR in Vietnam. Data were collected from 18 individual interviews with managers and business leaders in four case firms. Findings This study finds that CSR activities in the studied firms potentially drive new business opportunities and innovation in the form of product, process, idea and management practises. In addition, both opportunities and innovation also benefit MNSs and the local community in Vietnam. Research limitations/implications The paper makes clear that CSR literature varies depending on the different countries or areas where the studies take place and these studies tend to focus on a specific area that was appropriate within a particular socio-economic and political context. Given that the business context in Vietnam is characterised by opportunities and incentives for innovation from the socio-economic of the context of a South East Asian developing market, the research provides an important first step in the integration and consolidation of CSR practises, opportunities and innovation. In light of the findings presented above, the study provides an important contribution to the CSR literature, particularly the CSR practises of multinational corporations (MNCs) in developing countries. Practical implications The study suggests that CSR practitioners in Asian emerging countries should ground themselves in an understanding of the local society and try to gain an understanding of the priorities of local stakeholders. MNCs should develop an appreciation of the context in which CSR is initiated, as addressing such issues often inspires firms to bring in social innovations in the form of products, services and processes and discover or create opportunities based on the emergent social problems through business solutions that overall benefit their business and local stakeholders. Originality/value This is one of the first studies to explore the interaction between MNSs undertaking CSR and business opportunities and innovation in the context of a developing country – Vietnam.

2019 ◽  
Vol 27 (1) ◽  
pp. 77-98 ◽  
Author(s):  
Hanh Thi Song Pham ◽  
Hien Thi Tran

Purpose This paper aims to investigate the effects of board model and board independence on corporate social responsibility (CSR) disclosure of multinational corporations (MNCs). Design/methodology/approach The authors developed an empirical model in which CSR disclosure is the dependent variable and board model (two-tier vs one-tier), board independence (a proportion of independent directors on a board) and the interaction variable of board model and board independence together with several variables conventionally used as control variables are independent variables. The authors collated the panel dataset of 244 Fortune World’s Most Admired (FWMA) corporations from 2005 to 2011 of which 117 MNCs use the one-tier board model, and 127 MNCs use the two-tier board model from 20 countries. They used the random-effect regression method to estimate the empirical models with the data they collated and also ran regressions on the alternative models for robustness check. Findings The authors found a significantly positive effect of a board model on CSR disclosure by MNCs. Two-tier MNCs tend to reveal more CSR information than one-tier MNCs. The results also confirm the significant moderating impact of board model on the effect of board independence on CSR disclosure. The effect of board independence on CSR disclosure in the two-tier board MNCs tends to be higher than that in the one-tier board MNCs. The results do not support the effect of board independence on CSR disclosure in general for all types of firms (one-tier and two-tier board). The impact of board independence on CSR disclosure is only significant in two-tier board MNCs and insignificant in one-tier board MNCs. Practical implications The authors advise the MNCs who wish to improve CSR reporting and transparency to consider the usage of two-tier board model and use a higher number of outside directors on board. They note that once a firm uses one-tier model, number of IDs on a board does not matter to the level of CSR disclosure. They advise regulators to enforce an application of two-tier board model to improve CSR reporting and transparency in MNCs. The authors also recommend regulators to continue mandating publicly traded companies to include more external members on their boards, especially for the two-tier board MNCs. Originality/value This paper is the first that investigates the role of board model on CSR disclosure of MNCs.


2018 ◽  
Vol 15 (2) ◽  
pp. 55-76
Author(s):  
Clément Séhier

Purpose This paper aims to investigate to what extent and for which reasons the codes of conduct and social audits of multinational corporations (MNCs) have failed to change practices within Chinese factories. A special attention is given to the social compliance initiatives (SCIs) and multi-stakeholder initiatives (MSIs) which did not overcome the main obstacles of the compliance approach. Design/methodology/approach This research is based on a fieldwork in China, including 36 semi-constructed interviews with practitioners involved in corporate social responsibility (CSR), participant observation in the CSR programme of the International Labour Organisation office in Beijing and several visits of factories involved in CSR programmes. Secondary sources are used to estimate the distribution of value added along global value chains (GVCs). Findings The codes of conduct and social audits tend to reproduce the domination of MNCs within GVCs. This paper highlights some obstacles – and opportunities – for CSR appropriate to the Chinese context. Research limitations/implications Only a few MNCs agreed to meet the author and speak openly. No one allowed the author to visit their suppliers’ factories. Practical implications The findings of this study suggest that the most widespread approach to CSR by MNCs is flawed. More attention should be given to specific institutional contexts and to workers’ participation. Originality/value CSR discourse and practices in China are put in the context of GVCs and in the transformation of Chinese industry and labour relations. This method allows going beyond a case study approach. Instrumentations of several SCIs and MSIs are also analysed in detail.


2019 ◽  
Vol 15 (3) ◽  
pp. 277-295 ◽  
Author(s):  
Charbel Greige Frangieh ◽  
Hala Khayr Yaacoub

Purpose This paper aims to explore the socially responsible human resource practices disclosed by the “World’s Best Multinational Workplaces,” with the aim of facilitating the benchmarking of these disclosed practices. Design/methodology/approach Using the “World’s Best Multinational Workplaces” list was a strategic decision in this study due to the rigorous methodology used in the preparation of the list as it concentrated largely on the employees’ feedback, thus ensuring that these listed companies are actually top workplaces. Both manifest and latent content analysis, are applied on 23 of the 25 listed Multinational Corporations’ websites and reports, and company reviews done on these companies by the Great Place to Work for to pinpoint the social responsible human resource practices. Findings Most of the practices disclosed are oriented toward enhancing the employees’ work experiences whether that happened through improving their employment conditions or through having a diverse and inclusive workplace. Thus, the employee-oriented human resource management practices got the lion’s share of the disclosures, rather than the legal or the Corporate social responsibility–human resources facilitation components. Research limitations/implications The practices that are already used at small and medium enterprises within national contexts were not covered in this study. Practical implications It is assumed that businesses can benefit from the practices of these MNCs which are considered as great places to work for, and as pioneers in their socially responsible human resource approaches. Originality/value This study is likely to fill an important gap in the corporate social responsibility literature, which gave pint-sized attention to the internal stakeholders, rendering the academic coverage of employee-related practices scarce if not absent


IIUC Studies ◽  
2012 ◽  
Vol 7 ◽  
pp. 249-282
Author(s):  
Md Shariful Haque ◽  
Md Mokhter Ahmad

Corporate Social Responsibility (CSR) is a commitment of the organizations to act ethically and contribute to economic development of the society while humanizing the quality of life of the workforce and the local community at large. This is a talented issue for the corporation the world over. CSR is required for the organizations to ensure its sustainability. Now-a-days the practice of CSR is subject to much debate and criticism. Critics argue that CSR deviates from the fundamental economic role of business; others argue that it is nothing more than superficial windowdressing; others yet argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. Notwithstanding, CSR is a global concern and all organizations practice it to some extent. In this article the authors made an effort to justify CSR and the concomitant issues in the light of Shar?ah, and examine the welfare practices of some Islamic Organizations in Bangladesh to see whether those fall under the traditional concept of CSR. An investigation has been made into some Islamic organizations in Bangladesh using an unstructured questionnaire. It transpires from the study that almost all these investigated Islamic organizations practice social responsibilities in different forms like Qard-E–Hasanah, scholarships/stipends, plantation, health services, establishing schools etc. DOI: http://dx.doi.org/10.3329/iiucs.v7i0.12271 IIUC Studies Vol.7 2011: 249-282


2015 ◽  
Vol 6 (1) ◽  
pp. 65-79 ◽  
Author(s):  
Kwesi Amponsah-Tawiah ◽  
Justice Mensah

Purpose – The aim of this paper is to set a baseline understanding of the corporate social responsibility (CSR) concept amongst the different stakeholders in the mining industry in Ghana and further examine their appreciation of issues of occupational health and safety. It explored the integration of issues of health and safety of employees into the broader CSR agenda through a stakeholder analysis. Design/methodology/approach – The study population comprised various stakeholders operating in the mining industry of Ghana. The purposive sampling technique was used in the selection of the organisations/institutions that participated in the study. In all, 35 people were interviewed, and the interview data were analysed using thematic-content analysis. Findings – The findings provide an insight into how the various stakeholders in the mining industry in Ghana understood the CSR concept and how they went about practising it. Appreciation of issues health and safety by the various stakeholders also received considerable attention. All the stakeholders equated CSR to community relations. In all the cases, respondents referred to the local community as their focal point when discussing the concept. Originality/value – On the basis of this paper, it appears that mining companies in Ghana have looked upon the concept as a strategic challenge and not as a series of high-profile initiatives aimed at ensuring a responsible business practice. This paper adds to the literature by providing a perspective on how CSR associates with health and safety.


2021 ◽  
Vol 10 (2) ◽  
pp. 324-344
Author(s):  
Percy Arrosquipa

The shared practices of corporate social responsibility with local stakeholders is one of the few relevant experiences that are undertaken to contribute to sustainable development in a mining context of high social complexity. This study characterises the relationships with local stakeholders that allow them to carry out shared practices of Corporate Social Responsibility in the district of Pataz, La Libertad Region, in the north of Peru, through two case studies and data collection that included 23 local stakeholders working with the Mining Company. This applied research included interviews and participatory observation. The findings indicated that 80% of local entrepreneurs have shown their interest in carrying out shared practices of corporate social responsibility in education, environment, health, water and sanitation, respectively. The study describes the contribution of artisanal mining enterprises and local supplier enterprises in shared practices of social responsibility, within the locations where they carry out their business activities. This research enriches knowledge of experiences that promote a shared culture of corporate social responsibility and how attending to the social demands from the perspective of the local community and business risks from the perspective of the mining company. These two sometimes conflicting perspectives coexist and complement one another for corporate sustainability after overcoming certain local and corporate paradigms which facilitates contributing to the sustainable development of the surrounding communities.


2015 ◽  
Vol 11 (1) ◽  
pp. 109-130 ◽  
Author(s):  
Maimunah Ismail ◽  
Siti Noormi Alias ◽  
Roziah Mohd Rasdi

Purpose – This study aims to explore the outcome of a corporate social responsibility (CSR) programme in community development from the perspective of its participants in Malaysia. It is argued that information regarding community development CSR, the providers of CSR and the outcomes of CSR on community development in Malaysia has been scant. Hence, this study examines specifically the profiles of participants of CSR programmes in community development, the profiles of selected CSR-participating corporations, the orientation of CSR responsibilities undertaken by corporations as perceived by the participants and the types of community development contribution from CSR-participating corporations. Outcomes were determined through the results of the last two objectives. Design/methodology/approach – Building on the stakeholder theory and the work of Visser’s CSR pyramid, this article explores the outcomes of CSR resulting from the participation of individuals in the community. Data were gathered from 336 respondents who were participants of CSR programmes sampled from 58 local and multinational corporations in Malaysia. Findings – The results showed that about half of the respondents were in the younger age group with a mean age of 24.40 years. The majority of the CSR-participating corporations had implemented CSR programmes from the first decade of the millennium and had their core businesses in diverse sectors. Legal responsibility was ranked the most important orientation and ethical responsibility the least important orientation. Education-related activities formed the dominant type of CSR contribution. Research limitations/implications – The study addresses a gap in the literature on Malaysian community CSR, particularly from the perspective of the community, which is one of the important stakeholders. Originality/value – This research contributes to the scarce literature on CSR in Malaysia by analysing the way business organisations in the country contribute to community development through CSR. The findings of this study should be useful to community development practitioners, CSR providers and researchers.


2010 ◽  
Vol 1 (1) ◽  
pp. 51-65 ◽  
Author(s):  
Michael Stohl ◽  
Cynthia Stohl

PurposeThe paper seeks to explore how globalization processes have shaped the nature, scope, and time frame of considerations of social responsibility and the development of a corporate social responsibility (CSR) regime. The paper identifies three generations of human rights' values embedded within the Universal Declaration of Human Rights and aims to argue that they inspire and influence contemporary discussions about, and practices of CSR.Design/methodology/approachEmploying the emergence of the human rights regime as a paradigmatic case comparison, the interrelationships of states, non‐governmental organizations (NGOs), and corporations in the development of new conceptions and expectations of, and organizations for CSR were explored.FindingsThe paper finds strong parallels between the growth of the global human rights regime and the burgeoning international attention paid to issues of CSR and sustainability. Four critical stages are identified: the formal articulation of norms, the increasing role of NGOs, changing power dynamics between state, NGOs, and multinational corporations, and the reconfiguration of network density and diversity.Practical implicationsThe paper suggests that attention to the communicative processes associated with the development of the international human rights regime provides important insights for the future development of a global CSR regime.Originality/valueThrough the introduction of the three generations of human rights discourse, communicative actions and pathways from which a global corporate social responsibility regime may emerge were articulated.


Significance The decision of President Ollanta Humala's government to send in troops to deal with protesting farmers in the Islay province of Arequipa reflects frustration at a conflict that has lasted years and threatens to disrupt one of Peru's larger mining projects. It also shows up the deficiencies of the police in dealing with social conflict. Impacts Many mining projects are being held up because of conflicts with local stakeholders. Social movements tend to be fragmented and lack leadership in national politics. Once trust breaks down between miners and local communities, it is difficult to restore it through corporate social responsibility spending.


2019 ◽  
Vol 57 (9) ◽  
pp. 2383-2400
Author(s):  
Eun Woo Kim ◽  
Soonkyoo Choe ◽  
Jooyoung Kwak

Purpose The purpose of this paper is to integrate stakeholder and international business (IB) theories to explore the relationship between the international diversification of emerging-market multinational corporations (EMNCs) and corporate social performance (CSP) in their home markets. While the IB literature generally assumes a positive effect from international diversification on CSP as a result of global learning, the study aims at investigating the complicated effects in the link to the stakeholder theory. Design/methodology/approach This paper used combined sources of public survey data (corporate social responsibility (CSR) of the Korean firms) and archival data (foreign direct investment and corporate data). A truncated regression is used for statistical model. Findings International diversification helps MNCs to enhance CSP in their home countries. Thus, EMNCs can develop CSR capabilities at the global level, thereby benefiting domestic stakeholders. Also, significant investment in domestic research and development (R&D) and advertising negatively moderates the relationship between international diversification and domestic CSP. In this regard, expanding R&D and advertising facilitates global competitiveness. Moreover, as international diversification increases, EMNCs may redirect resources and re-orient CSR policies toward foreign stakeholders. Consequently, the relationship between international diversification and domestic CSP weaken. Practical implications Acceleration in international diversification may weaken domestic CSP, which arises from transformation into the global enterprises. Originality/value The study highlights the difficulties of EMNCs in serving domestic stakeholders effectively when their businesses are increasingly internationalized.


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