What is corporate social responsibility ? How important is it to the sustainable development of a business ? Take a company/ corporation in VietNam as an example ?

These days, more businesses engage in CSR- standing for corporate social responsibility which is a business model helping a company make a concerted effort to operate in ways that enhance rather than degrade society and the environment. It means that companies will be more socially accountable to themselves, their stakeholders and the public. Through these characteristics of corporate social responsibility, it is undeniable that CSR plays a crucial role in developing a business sustainably because of its some main huge benefits such as: bolstering brand image or reputation, boosting employee morale and appealing to pinnacle expertise personnel. Initially, if companies pay attention to social duties including championing women’s rights, protecting the environment, or attempting to obliterate poverty, on local, national, or global levels, they can draw the public's positive attention, especially consumers and shareholders. When they have a positive influence, they build their reputation and cultivate brand recognition, improve trust and understanding as well as customer’s loyalty. Then they can save costs for other marketing strategies, which definitely have a positive effect on profit. Secondly, working in organizations engaging in CSR enables employees to think that they do the right things and be aware of the company’s efforts to give back and celebrate these efforts. As a consequence, it encourages employees to perform better at work, increase their creativity, generate practical ideas and improve resolve skills and build a professional working environment. Moreover, instead of only focusing on shareholders, companies adopt CSR programs as one of the most effective strategies to enhance staff and employees ability since they can increase attractiveness to potential recruits. Therefore, companies can not only raise morale in the workplace but also improve productivity. As a result, community-oriented companies also bolster their profits. Taking Vinamilk as an example of the CSR’s importance to its sustainable development. Being awarded “ Global CSR Awards for its 1 Million Trees for Vietnam fund”, Vinamilk can sensitize the community to environmental protection. Along with it, the company has provided more than 37 million of milk boxes to underprivileged children are underlying factors that enable Vinamilk. Up till now, by adopting various CSR programs, Vinamilk is well-known for milk with its superior brand imaging, acquiring a large market share. Compared to other organizations ignoring CSR, these businesses have to face bad results due to bad behaviors. For instance, Formosa- one of the main causes of water pollution released the toxic chemical waste, untreated sewages or some typical incidents in 2016. After that, the company is well- known as having a bad image and has to compensate for this damage about 500 million USD. In conclusion, CSR is the key element for business to develop with sustainability. Therefore, besides the shareholders, companies should engage in CSR to pay attention to their employees and other stakeholders like the environment for better development. Also, it is essential for governments to motivate businesses to fulfill their social responsibility.