In the face of global economic shifts and escalating challenges like climate change and social inequality, sustainable development has become a guiding principle for businesses worldwide. Two key concepts frequently discussed in this context are Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG).
You might wonder: What do these terms mean? Are they interchangeable? This article aims to clarify:
- What is CSR, and why should businesses care?
- The origins and evolution of CSR
- How CSR differs from ESG
- CSR trends in Vietnam
- The role of CSR in modern sustainable development strategies
- Effective CSR implementation methods
I. What Is CSR, and Why Should Businesses Care?
Corporate Social Responsibility (CSR) refers to a company's voluntary commitment to contribute positively to society, the community, and the environment, extending beyond mere financial objectives to foster a sustainable future.
CSR encompasses more than philanthropic activities; it reflects a company's long-term responsibility in operations to enhance the quality of life for:
- Employees and their families
- Local communities
- Society and the environment at large
Implementing CSR can yield significant benefits, such as strengthening brand image, attracting customers, and enhancing sustainable business performance.
However, companies should avoid "greenwashing" superficial CSR efforts aimed solely at public relations without genuine commitment or substantial changes in core operations.
II. Origins and Evolution of CSR
The concept of Corporate Social Responsibility emerged in the 1950s and gained prominence in the late 20th century as global attention to environmental issues, human rights, and business ethics intensified.
Initially, CSR was associated with charitable donations and financial support for social organizations. Over time, it has evolved into a comprehensive strategy wherein modern businesses proactively integrate social, environmental, and governance factors into their business models.
Today, CSR is considered an essential component of sustainable development and serves as a stepping stone toward ESG frameworks.
III. How Does CSR Differ from ESG?
| Criteria | CSR (Corporate Social Responsibility) | ESG (Environmental, Social, Governance) |
|---|---|---|
| Objective | Demonstrate ethical commitment and goodwill; build community relations | Measure performance and risks related to sustainability; inform investors |
| Scope | Individual philanthropic actions | Integrated into all business operations |
| Audience | Community, employees, environment (from a contribution perspective) | Investors, stakeholders (from a risk and opportunity perspective) |
| Measurement | Often based on activity reports and media coverage | Based on specific, comparable metrics and standards like GRI, TCFD, SASB |
| Nature | Voluntary, reflecting company values or individual initiatives | Structured framework designed for investor assessment |
For more on ESG, see: What Is ESG? A Strategic Compass for Sustainable Business Growth
IV. CSR Trends in Vietnam
In Vietnam, CSR activities are increasingly integrated into corporate sustainable development strategies. The four most common CSR initiatives include:
1. Education and Youth Development
Activities often involve:
- Providing scholarships, building schools and libraries, and offering skill training for youth
- Supporting projects aimed at improving literacy and workforce development
Notable programs include HSBC Vietnam's "Future First", Lalamove's "Sức mạnh 2000" project to build schools in remote areas, and Agribank's involvement in "Cả nước chung tay xây dựng nông thôn mới".
2. Healthcare and Community Well-being
Common activities:
- Sponsoring free medical check-ups and surgeries
- Organizing health awareness campaigns, providing vaccines and medical equipment
Examples include Vinamilk's support for children with congenital heart disease, Prudential's "Tăng cường sức khỏe chủ động" program, and Manulife's "Sống Sạch – Sành – Xanh" campaign.
3. Social Welfare and Support for the Vulnerable
Activities encompass:
- Providing livelihoods, building housing for the underprivileged, and donating social insurance books
- Participating in major charitable campaigns and establishing community funds
Efforts include BIDV's support programs for the poor, Hoa Sen Group's “Mái ấm gia đình Việt” campaign, and Vietcombank's donation of social and health insurance cards.
4. Environmental Protection and Sustainable Development
Activities typically involve:
- Tree planting, waste recycling, reducing single-use plastics
- Promoting green living programs, sustainable consumption, and energy-saving technologies
- Engaging in environmental policy development and achieving international standards like ISO 14001, LEED
Specific initiatives include OMO's “Trồng Mái Ấm Cho Muôn Loài” program and SeABank's "Let's Go Green" campaign.
Additionally, Gloton actively engages in CSR by using FSC-certified carton materials for products and services, and collaborating with the Joy Foundation on the "Forest Garden" project, aiming to plant 1,000 new trees to rejuvenate barren lands and provide safe habitats for wildlife.
Learn more about the "Forest Garden" project: Contribute to Forest Planting with Gloton – Season 1.
Gloton's tree-planting initiative at Thác Bà - Núi Ông Bình Thuận
V. The Role of CSR in Modern Sustainable Development Strategies
Today, CSR is viewed as an integral part of sustainable development strategies, deeply embedded in a company's core values and operations, playing crucial roles such as:
- Serving as a cultural foundation: Fostering a sense of community responsibility within the organization
- Supporting ESG transition: Acting as a springboard for companies to adopt ESG models, standardize sustainability reporting, and meet transparency requirements from markets and investors
- Attracting responsible investors: Many investment funds prioritize companies with clear, transparent CSR/ESG strategies
- Enhancing competitiveness: Companies like Vinamilk, FPT, Vietcombank, and PAN commit 1–2% of post-tax profits to community activities, actively participate in rankings like CSI 100, VNSI, and disclose CSR data in sustainability reports, thereby strengthening their brand image and sustainable competitive advantage.
VI. Implementing Effective CSR Strategies
To ensure that CSR activities deliver sustainable value to both the community and the business, strategic and systematic implementation is essential. Effective CSR models include:
1. Integrating CSR into Products and Services
Panasonic Vietnam exemplifies strong CSR integration through theirs "Sống khỏe góp xanh" program. For every product sold from its health care solutions line, Panasonic plants a tree, transforming customer choices into sustainable contributions.
Integrating CSR directly into products/services allows companies to spread positive messages, efficiently raise funds, and enable customer participation.
2. Establishing Scholarship Funds for Underprivileged Students
Programs like Deloitte Vietnam's "Thắp Sáng Tương Lai (LUYF)" and TVP Bank's "Future VPBanker" have demonstrated long-term effectiveness, transforming the lives of numerous disadvantaged students.
This approach offers dual benefits: directly supporting education and skill development for the youth while fostering strong community ties. It's a profound CSR strategy that creates lasting value and reinforces trust between the company and society.
3. Building Boarding Schools and Support Centers
Inspired by pioneering models like FPT's Hope School, many large enterprises are actively constructing or sponsoring boarding schools, children's villages, and vocational training centers for underprivileged children.
This form of CSR is highly humanitarian, aiding these institutions in sustainable operations, significantly reducing the burden on the state, and creating a stable future for less fortunate children.
4. Vocational Training Linked to Local Employment
For instance, GreenFeed collaborates with vocational education institutions to train students according to the company's actual needs. This approach ensures stable employment for young people post-training and addresses the shortage of local skilled labor.
This CSR model combines vocational training with local recruitment, helping businesses build a suitable workforce and contribute to local economic development.
5. CSR Collaboration – Building Corporate Community Alliances
A prime example is the "Kiến tạo trường học hạnh phúc" program launched by Viettel Money in partnership with the VIGEF fund since 2024, demonstrating a collective corporate responsibility towards sustainable development goals.
Collaborations among businesses are key to effectively implementing large-scale CSR activities, reducing costs, and amplifying social impact.
VII. Conclusion
In the era of sustainable development, CSR is no longer a voluntary goodwill gesture but a strategic foundation enabling businesses to build trust, enhance reputation, and meet the growing expectations of society.
However, to avoid superficiality and create genuine value, CSR must transition from isolated activities to an inseparable part of a comprehensive ESG ecosystem. This is the path for businesses to achieve robust, responsible, and enduring growth.
"Seeing how much waste events create, Gloton started exploring the use of cardboard for decorations in 2022. Our goal is to cut carbon emissions by using recycled, eco-friendly materials.
Every project tells a story of our creativity, our dedication to protecting the planet, and our drive to keep innovating."
