CORPORATE SOCIAL
RESPONSIBILITY
Assoc. Prof. Dr. NGUYEN VAN THICH
FACULTY OF BUSINESS ADMINISTRATION
HO CHI MINH UNIVERSITY OF BANKING
HO CHI MINH CITY 2026
Assoc. Prof. Dr. NGUYEN VAN THICH
2
3.1. Motivation to pursue profits of enterprises
3.1. Động lực để theo đuổi lợi nhuận của doanh nghiệp
CONTENTS 3.2. Encourage and comply with CSR principles.
3.2. Khuyến khích và tuân thủ các nguyên tắc CSR.
3.3. Explanation responsibility
3.3. Trách nhiệm giải thích
Milton Friedman (1970)
Theoretical
basis Shareholder Theory
The Invisible Hand
MOTIVATION TO PURSUE ENTERPRISE PROFITS
Milton Friedman (1970): "The sole social responsibility of a business
is to use its resources and engage in activities aimed at increasing
profits, as long as it complies with the law and basic codes of conduct"
Profit is the ultimate goal of the business
→ legal and complies with the basic moral rules of society
For example: Vingroup → maximize profits → reinvest:
Create jobs; contributing to the state budget → a better life for
farmers→ SCR of Vingroup
MOTIVATION TO PURSUE ENTERPRISE PROFITS
Shareholder Theory:
Shareholders are the owners of capital → the main goal is to maximize value
for shareholders.
CSR should only be implemented if it serves the profit goal.
Meaning: Businesses focus on short-term economic
benefits, considering shareholders as the center.
For example: Some multinational corporations prioritize high
dividends for shareholders, cutting CSR costs to increase
profits.
In Vietnam: Listed companies are often under pressure to
maximize profits to increase stock value.
Advantages:
- Emphasize that profit is the vital
driving force of the business.
Milton Friedman (1970) - Ensure legality and transparency
(according to Friedman).
- Helping to concentrate resources,
maximizing value for shareholders
(Shareholder theory).
- Contributing to overall economic
growth through the market mechanism
Theore
Shareholder Theory (Invisible Hand).
tical
basis
Cons:
-It is easy to ignore the interests of
other stakeholders (workers,
The Invisible Hand communities, environment).
-Can lead to social conflicts, loss of
trust if profits come first.
- CSR is taken lightly, only
implemented when it is beneficial to
the business.
- The challenge of sustainable
development in the context of
globalization has not been solved.
- Being a basis for maintaining
and expanding business
activities.
PROFIT
- Profitability and
sustainability
MOTIVATION TO PURSUE ENTERPRISE PROFITS
Theory The Invisible Hand Theory: Adam Smith argues that when
businesses pursue their own interests (maximizing profits) in a free
market, they will inadvertently contribute to the general good of society.
Meaning: Profits → become the driving force for
common development (job creation, tax payments,
economic growth).
For example: Real estate enterprises develop new
projects → not only profits, but also create infrastructure
and jobs for the locality.
-Automobile manufacturing industry: competition
maximizes profits → creates better products, cheaper
prices, and society benefits.
HOW IT WORKS
To maximize profits,
Enterprise must
Improving technology Compete with
Produce the products to reduce costs, competitors to
that society needs. thereby reducing improve product
selling prices. quality.
MOTIVATION TO
MOTIVATION TOPURSUE
PURSUEENTERPRISE
BUSINESSPROFITS
PROFITS
The resources
of the economy
are allocated in
the most Society
efficient way. automatically
Consumers achieves
benefit from prosperity
lower prices and
better quality. without
government
intervention.
RESULTS
[Link] AS A STRATEGY TO INCREASE PROFITS
CSR helps create a Increase customer
competitive trust
advantage
Attract ESG-
oriented investors.
PROFIT
Reduce legal risks.
CSR can be a lucrative investment: CSR costs →
improve image → increase revenue.
DISCUSSION
QUESTIONS
Do you think businesses
can both pursue
maximum profits and
implement CSR in a
substantive way? Why?
Unilever with the Sustainable
Living Plan program helps save
costs, expand markets, and
increase profits by 20% in brands
with sustainable factors.
3.2. ENCOURAGING AND ADHERING TO CSR PRINCIPLES
3.2.1. INTERNATIONAL
PRINCIPLES AND
STANDARDS
UN Global Compact
– 10 Principles of: OECD Guidelines for Global Reporting
Multinational Initiative
1. Human rights. Enterprises:
2. Labor standards. Transparent Non-
Guiding multinational Financial Reporting
3. Environment. enterprises to practice Framework
4. Anti-corruption. responsible business.
Tax incentives for green
businesses and
businesses with
sustainable certification
From the
Government
Support for
concessional loans for
INCENTIVE environmental
MECHANISM protection projects
CSR Awards (e.g.,
Vietnam CSR Awards).
From the social
side
Green brand
recognition, eco-label
3
2
Decree on ESG
disclosure:
1 Labor Code 2019: sustainability
- Law on ensuring the rights of reporting
Environmental employees requirements for
listed companies.
Protection 2020:
requires
enterprises to treat
waste and report
on environmental
impact assessment.
3.2.4. BENEFITS OF CSR COMPLIANCE
Reduce legal risks, avoid fines or suspension of
operations.
Improve relationships with stakeholders
Increase brand value and competitiveness.
- Vinamilk publishes sustainability
reports according to GRI standards and
ESG integration, thereby attracting many
EXAMPLE international investment funds.
- Vingroup applies the EDGE green standard
in construction, benefiting from preferential
policies.
DISCUSSION
In Vietnam, which factors
(legal pressure, market
pressure, or voluntariness) play
the biggest role in promoting
CSR compliance?
3.3. EXPLANATION RESPONSIBILITY
Accountability: Enterprises must explain and be transparent about
their activities and decisions to stakeholders.
Meaning: It is the core principle of good
corporate governance.
For example: Vinamilk: Publishing a sustainable
development report according to GRI standards, transparency
of environmental and social data, helping to strengthen the
confidence of international investors.
- Formosa Ha Tinh (2016): Lack of transparency when
marine environmental incidents occur in the Central region →
strong reactions from the community, loss of reputation and
great economic losses.
3.3.2. STAKEHOLDERS NEED TO EXPLAIN
1 2 3 4
Shareholders State
Customers &
& Investors: management
Employees: Community:
on the agencies: on
on working on product
efficiency of compliance
rights and safety and
capital use, with laws and
conditions. environmenta
business tax
l impact.
strategy. obligations.
Audited financial
statements.
TOOLS
TOOLS AND Sustainability Report.
FORMS OF
ACCOUNTABILI
TY
Public general meeting
of shareholders.
FORM
Disclosure of
information on websites
and social networks
Administrative
Loss of market
confidence → stocks sanctions or Media crisis
fall. suspension of
operations
Formosa Ha Tinh (2016): lack of transparency when environmental incidents
occur, leading to negative reactions from the community, losses of trillions of
VND.
Tesla regularly publish environmental and supply chain impact reports to
maintain investor confidence.
DISCUSSION
In your opinion, in Vietnam today,
is the accountability of businesses
transparent enough? If not, what is
the main cause?
CHAPTER 3: SOCIAL RESPONSIBILITY FROM AN
ECONOMIC PERSPECTIVE
3.1. 3.2.
Motivation Encourage 3.3.
Corporate
to pursue and comply Accountabili
profits of with CSR ty
enterprises principles.