CSR roll of honour call for Korean firms

Seog-Ki Sun

Vietnamese and South Korean authorities are to jointly hold a Corporate Social Responsibility (CSR) Award  in October to honour Korean firms with sound contributions to Vietnam’s socio-economic development. Seog-Ki Sun, director general of the Korean Trade and Investment Promotion Agency (KOTRA) in Hanoi, talks further about the awards with VIR.

Why do Korean Ministry of Knowledge and Economy (MKE) and Vietnamese Ministry of Planning and Investment (MPI) decide to jointly hold the Award for Korean companies in Vietnam?

As one of the leading foreign investors in Vietnam with the total investment capital of nearly $23 billion and 2,810 projects so far, we are very proud that Korea has been remarkably contributing to Vietnam’s economic development. In other words, it could be understood that Korean companies have been endeavoring to improve the quality of life of Vietnamese labourers and their families as well as that of the local community and society at large. Hence, first and foremost, the organisation of the Corporate Social Responsibility Award in October 6 this year aims to record the tremendous contribution of Korean companies to Vietnam’s society.

More importantly, this event also bears a very special meaning. Concretely, this award ceremony is listed as one of our plans for the 20th anniversary of Vietnam-Korean diplomatic relations next year. Therefore, Korean Ministry of Knowledge and Economy (MKE) and Vietnamese Ministry of Planning and Investment (MPI) have decided to jointly hold the Corporate Social Responsibility Award Ceremony for Korean companies on that occasion. In which, Korean Trade and Investment Promotion Agency (KOTRA) under the MKE and the Foreign Investment Agency under the MPI are the co-organisers of this event. We firmly believe that this coming event will boost the image of Korean companies in Vietnam

Do you think firms understand the  true meaning of CSR?

Profits and productivity come to the first place when doing business. Regardless to say, all the foreign companies in Vietnam came here to realise their dreams and invested heavily especially since the Vietnamese government brought in its  doi moi policy in late 1980s.

Globalisation has put companies under the rising pressure of competition and forced them to struggle for reducing costs and improving productivity.

However, throughout the changes of business trends and standards of living, productivity and profits can no longer be the only factors of survival. This means there are increasing demands on companies to be more socially responsible. Also, since business activities are linked by consumers, labourers and the social community, it is also important to keep a beneficial relationship and harmony in living together.

With this point of view, most of the companies try to have CSR policy, dedicating to the development of the local community by such means as charity programmes and many other activities. Also environment protection is getting more attention from the public and firms are trying to abide by Vietnamese laws.

How eagerly have South Korean firms responded to the award?

Being fully aware of the critical importance as well as the valuable meaning of CSR, especially knowing that the relevant ministries of Korea and Vietnam will grant this award, Korean companies has been paying due attention to this event when KOTRA Hanoi sent them all the related information.

To be considered for this award, Korean companies are required to fill up the application forms and submit relevant documents as evidence of their CSR activities. It is inevitable for us to ask certain documents in terms of authenticating CSR activities and keeping fairness when evaluating and selecting the winners.

It is a good signal that KOTRA Hanoi has received a certain number of applications for only nearly a month. However, the numbers are not reaching our expectations. As a result, we are still doing our best to advertise the award and promote active participation of Korean companies. Also, the submission date has been extended by the end of August so that Korean companies still will have enough time to apply for this Award.

What is your outlook for CSR in Vietnam?

Strong enforcement of laws and regulations will see more companies to abide by CSR policy. However, other than the legal pressure, CSR policy will be drawn from inside scompanies, realising the fact that those consumers and local community will eventually decides the fate of the company pay more attention to the value of their activity.