Under the theme “Architects of a Better World", the UN Global CompactLeaders Summit 2013, held recently in New York, discussed the role ofenterprises in cooperation with the Government and other partners toaddress global social challenges and sustainable development challenges.
Freshly returning from the summit, Nguyen QuangVinh, Director of the Business Office for Sustainable Development underVietnam Chamber of Commerce and Industry (VCCI), talked with the VietnamBusiness Forum about this content.
Vinhsaid the summit, organised by the United Nations every three years andchaired by the UN Secretary General, was attended by many heads of thestates. In particular, the summit attracts the participation of morethan 1,200 CEOs of global leading corporations and businesses.
The approval of the Global Corporate Sustainability report 2013 is thehighlight of this summit. The report focuses on assessing thesustainable development of enterprises and reviewing the policies andpractices that apply to enterprises across various sectors, to putforward the concept of a comprehensive approach to corporate socialresponsibility (CSR) in four areas: human rights, labour, environmentand anti-corruption drive.
* Could you tell usspecifically about the highlights and the current trends of enterprisesin the implementation of CSR that the Global Corporate Sustainabilityreport 2013 mentioned?
Of the three times the summitwas held by the UN, this is my second time to attend. The highlight ofthis meeting is the UN releasing a report on the implementation of CSRglobally in 2013. The study is conducted comprehensively with theconsultation of 2,000 companies from 113 countries with the focus on thefollowing key issues:
First, companies aremoving from good intentions to significant action, which means a movefrom a "good idea" to practical actions in the implementation of CSR.
Companies are making commitments, defining goals and setting policiesat high rates, but still have much work to do to on the action steps:implementing, measuring and communicating. For example, while 65 percentof signatories are committing to sustainability at the CEO level, only35 percent are training managers to integrate sustainability intostrategy and operations.
Second, large companiesstill lead the way. Smaller companies face fundamental barriers tosustainability progress. They lack financial resources, knowledge andexperience.
Third, supply chains are a roadblockto improved performance. While a majority of companies have establishedsustainability expectations for their suppliers, they are not trackingcompliance or helping suppliers reach goals. While 83 percent ofcompanies consider adherence to the Global Compact principles bysuppliers, only 18 percent assist them with setting and reviewing goals,and just 9 percent take steps to verify remediation. And
Fourth, the companies, who have good visions, see more benefits fromthe implementation of CSR. This helps them to go beyond the boundariesof their businesses, as the implementation of CSR will help build up abetter society and the businesses themselves could gain a lot ofbenefits from society.
According to the surveyedcompanies, the global sustainability challenges are sorted by priorityfrom the top down, as follows: 1) education, 2) poverty reduction, 3)climate change, 4) growth/employment, 5) peace/security, 6) water andsanitation, 7) health, 8) anti-corruption, 9) energy, 10) food security,11) inequality, 12) disaster prevention, and 13) urbanisation.
In addition, the report this year also indicates some urgent issues inthe world today. The issues relate to education, climate, and growth.The report also highlights the role of government in directing thebusinesses and issuing the policy, legal framework and support forbusinesses to implement CSR.
* From yourperspective, are Vietnamese businesses following the trend of worldbusinesses in implementing CSR? Or rather, what, on the world map of CSRimplementation, are Vietnamese businesses presenting?
In my opinion, basically the Vietnamese businesses are having properawareness about the important roles of the implementation of the CSR. Inparticular, large companies are pioneers in regard to this issue. Icould list some of typical companies such as FPT, Unilever, and SaigonTourism. However, large companies have not deeply and comprehensivelyintegrated CSR into their core business activities. While the world'ssmall and medium enterprises are now facing difficulties in achievingthe goals of the CSR, Vietnamese SMEs are facing even more difficultiesbecause of unprofessional characteristics. Therefore, this requires agreat effort of businesses, along with the support of government andministries.
* For the past time, the Government ofVietnam, ministries and VCCI have kicked off many supporting activitiesthrough education and advocacy on the roles of CSR. However, does itseem that “the transition from the intention to specific action” of thecompanies on this issue is not making good progress?
It is true that awareness of CSR and CSR implementation of businesseshave been enhanced drastically; most companies now understand theimportant role of this issue. However, for good performance in CSRimplementation, businesses need to rely on their abilities and corebusinesses so that they are able to recognise what and how to perform inassociation with the business operation, as well as the outcomes of CSRactivities and the improvement of business performance and competition.This is entirely consistent with the theory of Michael Porter and MarkKramer, two professors from Harvard University, which mentions thecreation of community and social values, as well as competitivenessenhancement among enterprises.
* Currently,companies are in the trend of restructuring. From your perspective,which CSR issues should businesses integrate into the restructuringprocess?
In my opinion, the implementation of CSR toany specific businesses, large or small, at any period, should notdepend on whether restructuring happens or not. However, a company'srestructuring will be an opportunity to integrate CSR issues into theoverall strategy for a more effective implementation. If businesses seethemselves as a "link" in the global value chain, the implementation ofCSR should be imperatively integrated into the restructuring process,and this should be done as soon as possible. As I have said, theimplementation of CSR is not only a way of building society, but also astrategy to enhance the competitiveness and sustainable development ofthe business.
* In this context, in order to keeppace with the trend of the world's businesses, what should Vietnamesebusinesses do to support companies in implementing CSR?
I think, first of all, the Government of Vietnam and the ministriesshould create more specific policies to encourage enterprises toimplement CSR requirements. VCCI itself will also have to step up itssupport through collaboration with other partners around the world, likethe UN and World Bank, to have more concrete actions to encouragebusinesses, not only in raising awareness, but also in offering capacitydevelopment programs to bring the best and typical practices to SMEs inVietnam. In addition, the government should collaborate withministries, especially the National Council for Sustainable Developmentand Competitiveness Improvement, to give guidance to businesses on eachstep to make sustainability reports.
Here I wantto emphasise that sustainability reporting is now a trend thatenterprises in the world have done, but only a few of Vietnamesebusinesses have made this report. Sustainability reporting not onlyhelps businesses be more competitive and transparent, but also attractsmore investment. In the coming time, the National Business Council forSustainable Development is planning to make a proposal to the Governmentto support businesses in making this report.-VNA
