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Instructor : Mr. Hung Quoc Nguyen, MEd.
Group : Fantastic 5
Member :BinhThai Nguyen
Ngan Kim Le Nguyen
Nghi NhatVuong Le
Que Nguyet Hoang
QuynhThuyThi Nguyen
Y Nhu Le Huynh
Presented by: Fantastic 5
Presented by: Fantastic 5
 In the world: Many firms have
been “breaking the rules” of CSR
because of:
 The significantly increased level of
globalization’s competition.
 The need to gain more profits.
 InVietnam: Not an exception.
Presented by: Fantastic 5
 A research has been conducted to find out:
howVietnamese consumers are affected by
CSR in the case ofVedanVietnam.
 It helps to:
 Find out solutions for companies in reputation’s
regaining, maintaining and developing.
 Provide helpful reference information for
students and researchers.
Presented by: Fantastic 5
Monosodium Glutamate (MSG)
Presented by: Fantastic 5
Located in Dong Nai province,
near ThiVai River
Presented by: Fantastic 5
 Sphere of research:
Place:
- Co.opmart Ly
Thuong Kiet
at District 10
- Co.opmart
Phu Lam at
District 6
Subject:
- Vietnamese
individual
shoppers
Time:from March 3rd, 2014 to April 29th, 2014
Presented by: Fantastic 5
Consisting of 5 main chapters:
 Chapter 1: Introduction
 Chapter 2: Literature review
 Chapter 3: Research methodology
 Chapter 4: Data analysis
 Chapter 5: Suggestions and conclusions
Presented by: Fantastic 5
Presented by: Fantastic 5
Carroll’s
CSR Pyramid
(1991)
The most
comprehensive
content and
scope of CSR
Presented by: Fantastic 5
 An overview of CSR inVietnam context:
 “CSR has become necessary requirement
for each company, if the company does not
embrace CSR, they cannot approach the
global market.” (SagaVietnam, 2008)
 Any challenges?
▪ The global competitive pressures
▪ The awareness of consumers
▪ The lack of capital, techniques
Presented by: Fantastic 5
 Glimpse on Consumer Behavior:
 “The mental, emotional, and physical activities
that people engage in when selecting, purchasing,
using, and disposing of products and services so as
to satisfy needs and desires” (Hoyer & Macinnis, 2009)
 Influenced by:
▪ Cultural
▪ Social
▪ Personal
▪ Psychological
Presented by: Fantastic 5
 InVietnam:
 “The Vietnamese consumer perception on corporate social
responsibility”, BuiThi Lan Huong (2010)
 “Corporate social responsibility: A study on awareness of
managers and consumers in Vietnam”, Pham Duc Hieu
(2011)
 Around the world:
 “The importance of corporate social responsibility on
consumer behavior in Malaysia”, Rahim, Jalaludin and
Tajuddin (2011)
 “The role of Corporate Social Responsibility in consumer
behavior: The Case of Peruvian Consumers”, Marquina
(2007)
Presented by: Fantastic 5
Presented by: Fantastic 5
 Quantitative research
 120 respondents
chosen to fill out a
questionnaire
 A pilot test is taken in
advanced
Presented by: Fantastic 5
With 20 limited
answer options
Handed out to 120
people shopping at
2 Coopmarts
Recorded &
figured by
Microsoft Excel
Presented by: Fantastic 5
VedanVietnam
 The scandal
 Dumped untreated sewage to ThiVai River
 The consequences
 Made the river heavily polluted (the color, the smell, the
living animals…)
 Affected people living in the neighborhood
 The punishment
 Pay 100% compensatory damages to local people
 Administrative fine and accrued environmental fee for the
Government
Presented by: Fantastic 5
Presented by: Fantastic 5
 110/120 questionnaires
were returned. (92%)
 10 more sheets were
excluded for not having
answered 16 questions
completely.
100 questionnaires
were examined.
Questionnaire returned
92%
Questionnaires examined
83.3%
Presented by: Fantastic 5
Category Options Frequency Rate (%)
Sex
Female 87 87 %
Male 13 13%
Age
16-25 26 26 %
26-40 30 30 %
Over 40 44 44 %
Education
High school 7 7 %
University/College 88 88 %
Post graduate 5 5 %
Total
100 100 %
Table 1.1 Respondents’ profile
Presented by: Fantastic 5
 The real state of affairs ofVedan scandal
76%
24%
People usingVedan's MSG
Use Unuse
83%
17%
Scandal ofVedan 's Popularity
Know Unknown
Presented by: Fantastic 5
Attitute Percen-
tage (%)
1. “Normal. It’s the company’s business,
and because it doesn’t affect the
quality of its products, I keep using
Vedan.”
7
1. “I don’t really care.” 5
1. “After acknowledging this issue, my
family and I have stopped using
Vedan’s products and switched to
another MSG manufacturer no matter
how good they are.”
88
100
62%
38%
Decision of customers
when choosing a product
Refuse using Consider buying
Presented by: Fantastic 5
Presented by: Fantastic 5
 CSR activities influence the
prestige and benefits of the
company.
The company should:
 Have high awareness on CSR
 Consider the long-standing
benefits, not short-term ones
Presented by: Fantastic 5
Solutions Percentage
Officially admit their mistakes through the media. 82.5
Come up with specific solutions to solve the pollution of the river, such as:
enforcing the wterwaste treatment systems.
100
Offer an acceptable and long-term compensation plan. 96.8
Commit not to dump untreated water into the water again. If this happens
again, they will have to pay 10 times more than the original fine.
55.6
Commit in doing business morally. 92.1
Do charity; cooperate with non-government organizations to provide funds
for social projects and activities.
93.7
Increase the number of articles written about the company as well as
advertisements on the media to gain back the company’s image.
55.6
Offer various promotions to draw customers’ attention. 47.6
Vedan should:
 Hold the press to courageously apologize
to the public
 Propose detail plans for deservedly
compensation
 Install water-waste treating system
 Participate in social activities and charities
 Support the local development
 Widely implement and report CSR through
campaigns and advertisements on various
channels
 Attract talents with high sense of CSR
awareness
Presented by: Fantastic 5
Results?
- Relieve the
groundswell of
the public
- Regain the
customers’ good
impression and
trust
- Maintain long-
standing rapport
 Realizing the importance of:
 A sustainable society: offers a high quality of life
 Environment: one of the indispensable parts
 Realizing the link between good CSR policy &
increasing profit
 Not just about profits. Involves a relationship of
customers, suppliers and the local community
 Having high CSR can:
 Polish reputation
 Build customers’ loyalty
 Increase stable profit in long-run
 Balance financial and environment performance.
Presented by: Fantastic 5
- Play an undeniably
important role in the
reputation and image of
any company.
- Affect long-term growth
 Let’s do CSR!
Corporate Social
Responsibility
Presented by: Fantastic 5
Presented by: Fantastic 5
Presented by: Fantastic 5
 Books:
Barnes, A. (2011). Corporate Social Responsibility and its effects on
BrandTrust, AUT Business School.
Bui,Thi Lan Huong. (2010). TheVietnamese consumer perception on
corporate social responsibility,The DreamCatchers Group, LLC.
Carroll, Archie. B. (1991).The pyramid of corporate social
responsibility: toward the moral management of
organizational stakeholders. Business Horizons, 34, 39-48.
Hansen U, Schrader U. (1997). A modern model of consumption for a
sustainable society. Department of Marketing and Consumer
Research, University of Hanover.
 Online material:
European Commission. (2006). Communication on CSR. Retrieved
July, 2011. From:
http://ec.europa.eu/enterprise/policies/sustainablebusiness/cor
porate-social-responsibility/index_en.htm
CSRVietnam Forum. (2009). Social responsibility of enterprises in
Vietnam: from theory to practice. Retrieved March, 2010. From:
http://www.vietnamforumcsr.net/default.aspx?portalid=1&tabi
d=17&itemid=4703
Presented by: Fantastic 5
Presented by: Fantastic 5
Presented by: Fantastic 5

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The case of Vedan

  • 1. Instructor : Mr. Hung Quoc Nguyen, MEd. Group : Fantastic 5 Member :BinhThai Nguyen Ngan Kim Le Nguyen Nghi NhatVuong Le Que Nguyet Hoang QuynhThuyThi Nguyen Y Nhu Le Huynh Presented by: Fantastic 5
  • 3.  In the world: Many firms have been “breaking the rules” of CSR because of:  The significantly increased level of globalization’s competition.  The need to gain more profits.  InVietnam: Not an exception. Presented by: Fantastic 5
  • 4.  A research has been conducted to find out: howVietnamese consumers are affected by CSR in the case ofVedanVietnam.  It helps to:  Find out solutions for companies in reputation’s regaining, maintaining and developing.  Provide helpful reference information for students and researchers. Presented by: Fantastic 5
  • 6. Located in Dong Nai province, near ThiVai River Presented by: Fantastic 5
  • 7.  Sphere of research: Place: - Co.opmart Ly Thuong Kiet at District 10 - Co.opmart Phu Lam at District 6 Subject: - Vietnamese individual shoppers Time:from March 3rd, 2014 to April 29th, 2014 Presented by: Fantastic 5
  • 8. Consisting of 5 main chapters:  Chapter 1: Introduction  Chapter 2: Literature review  Chapter 3: Research methodology  Chapter 4: Data analysis  Chapter 5: Suggestions and conclusions Presented by: Fantastic 5
  • 10. Carroll’s CSR Pyramid (1991) The most comprehensive content and scope of CSR Presented by: Fantastic 5
  • 11.  An overview of CSR inVietnam context:  “CSR has become necessary requirement for each company, if the company does not embrace CSR, they cannot approach the global market.” (SagaVietnam, 2008)  Any challenges? ▪ The global competitive pressures ▪ The awareness of consumers ▪ The lack of capital, techniques Presented by: Fantastic 5
  • 12.  Glimpse on Consumer Behavior:  “The mental, emotional, and physical activities that people engage in when selecting, purchasing, using, and disposing of products and services so as to satisfy needs and desires” (Hoyer & Macinnis, 2009)  Influenced by: ▪ Cultural ▪ Social ▪ Personal ▪ Psychological Presented by: Fantastic 5
  • 13.  InVietnam:  “The Vietnamese consumer perception on corporate social responsibility”, BuiThi Lan Huong (2010)  “Corporate social responsibility: A study on awareness of managers and consumers in Vietnam”, Pham Duc Hieu (2011)  Around the world:  “The importance of corporate social responsibility on consumer behavior in Malaysia”, Rahim, Jalaludin and Tajuddin (2011)  “The role of Corporate Social Responsibility in consumer behavior: The Case of Peruvian Consumers”, Marquina (2007) Presented by: Fantastic 5
  • 15.  Quantitative research  120 respondents chosen to fill out a questionnaire  A pilot test is taken in advanced Presented by: Fantastic 5
  • 16. With 20 limited answer options Handed out to 120 people shopping at 2 Coopmarts Recorded & figured by Microsoft Excel Presented by: Fantastic 5
  • 17. VedanVietnam  The scandal  Dumped untreated sewage to ThiVai River  The consequences  Made the river heavily polluted (the color, the smell, the living animals…)  Affected people living in the neighborhood  The punishment  Pay 100% compensatory damages to local people  Administrative fine and accrued environmental fee for the Government Presented by: Fantastic 5
  • 19.  110/120 questionnaires were returned. (92%)  10 more sheets were excluded for not having answered 16 questions completely. 100 questionnaires were examined. Questionnaire returned 92% Questionnaires examined 83.3% Presented by: Fantastic 5
  • 20. Category Options Frequency Rate (%) Sex Female 87 87 % Male 13 13% Age 16-25 26 26 % 26-40 30 30 % Over 40 44 44 % Education High school 7 7 % University/College 88 88 % Post graduate 5 5 % Total 100 100 % Table 1.1 Respondents’ profile Presented by: Fantastic 5
  • 21.  The real state of affairs ofVedan scandal 76% 24% People usingVedan's MSG Use Unuse 83% 17% Scandal ofVedan 's Popularity Know Unknown Presented by: Fantastic 5
  • 22. Attitute Percen- tage (%) 1. “Normal. It’s the company’s business, and because it doesn’t affect the quality of its products, I keep using Vedan.” 7 1. “I don’t really care.” 5 1. “After acknowledging this issue, my family and I have stopped using Vedan’s products and switched to another MSG manufacturer no matter how good they are.” 88 100 62% 38% Decision of customers when choosing a product Refuse using Consider buying Presented by: Fantastic 5
  • 24.  CSR activities influence the prestige and benefits of the company. The company should:  Have high awareness on CSR  Consider the long-standing benefits, not short-term ones Presented by: Fantastic 5
  • 25. Solutions Percentage Officially admit their mistakes through the media. 82.5 Come up with specific solutions to solve the pollution of the river, such as: enforcing the wterwaste treatment systems. 100 Offer an acceptable and long-term compensation plan. 96.8 Commit not to dump untreated water into the water again. If this happens again, they will have to pay 10 times more than the original fine. 55.6 Commit in doing business morally. 92.1 Do charity; cooperate with non-government organizations to provide funds for social projects and activities. 93.7 Increase the number of articles written about the company as well as advertisements on the media to gain back the company’s image. 55.6 Offer various promotions to draw customers’ attention. 47.6
  • 26. Vedan should:  Hold the press to courageously apologize to the public  Propose detail plans for deservedly compensation  Install water-waste treating system  Participate in social activities and charities  Support the local development  Widely implement and report CSR through campaigns and advertisements on various channels  Attract talents with high sense of CSR awareness Presented by: Fantastic 5 Results? - Relieve the groundswell of the public - Regain the customers’ good impression and trust - Maintain long- standing rapport
  • 27.  Realizing the importance of:  A sustainable society: offers a high quality of life  Environment: one of the indispensable parts  Realizing the link between good CSR policy & increasing profit  Not just about profits. Involves a relationship of customers, suppliers and the local community  Having high CSR can:  Polish reputation  Build customers’ loyalty  Increase stable profit in long-run  Balance financial and environment performance. Presented by: Fantastic 5
  • 28. - Play an undeniably important role in the reputation and image of any company. - Affect long-term growth  Let’s do CSR! Corporate Social Responsibility Presented by: Fantastic 5
  • 30. Presented by: Fantastic 5  Books: Barnes, A. (2011). Corporate Social Responsibility and its effects on BrandTrust, AUT Business School. Bui,Thi Lan Huong. (2010). TheVietnamese consumer perception on corporate social responsibility,The DreamCatchers Group, LLC. Carroll, Archie. B. (1991).The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizons, 34, 39-48. Hansen U, Schrader U. (1997). A modern model of consumption for a sustainable society. Department of Marketing and Consumer Research, University of Hanover.
  • 31.  Online material: European Commission. (2006). Communication on CSR. Retrieved July, 2011. From: http://ec.europa.eu/enterprise/policies/sustainablebusiness/cor porate-social-responsibility/index_en.htm CSRVietnam Forum. (2009). Social responsibility of enterprises in Vietnam: from theory to practice. Retrieved March, 2010. From: http://www.vietnamforumcsr.net/default.aspx?portalid=1&tabi d=17&itemid=4703 Presented by: Fantastic 5