Corporate Social Responsibility Project

There are many instances where Corporate Social Responsibility (CSR) programs are merely a marketing tool for companies, or a way for businesses to disempower or marginalize unions.

Workshop held in Ho Chi Minh City on 19 June 2006

Background to the project

In Vietnam, where the Labour Code is strong, and where there have been an upsurge in industrial activity, the stance of the Vietnamese unions is that this Business Social Compliance Initiative BSCI/CSR project can be a tool to help them facilitate proper industrial relations and occupational health regulations, and organise/recruit membership in the private sector.

In the last decade, the membership of the Vietnamese unions has risen from 1.5 million to almost 6 million, out of a waged workforce of 12 million. The standard of living of manufacturing workers in Vietnam is rising relatively rapidly, but complaints about the lack compliance with the workers' benefits and working conditions as stipulated in the Vietnamese labour code are common in many private enterprises.

This is a pilot project aimed at promoting and encouraging the Business Social Compliance Initiative (BSCI) on labour standards and social responsibility.

Project funding & local partners

The Corporate Social Responsibility project is funded by the Finnish Government, the Finnish Trade Union Solidarity Center (SASK), the Trade Union Federation of Finland (SAK), the Finnish Chamber of Commerce (CCF) and the Responsible Importers Network of Finland. The project is managed by Union Aid Abroad-APHEDA in partnership with the Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City, the Federation of Labour (FOL) of Ho Chi Minh City and the Department of Labour, War Invalids and Social Affairs (DOLISA) of Ho Chi Minh City.

Overview of the project

The BSCI is based on the labour standards of the ILO and the Vietnam Labour Code. By helping train and monitor companies so they comply with the best practices requirement of the BSCI, those companies who take part improve their capacity to trade in Europe.

The aims of this project are both long term and short term. The short term objectives of the project include:

• Targeting companies to ensure compliance with the best practices requirement of the BSCI
• Improving the understanding of the BSCI among the implementing partners, and
• Improving the capacity of implementing partners to promote CSR and the BSCI in the future.

The longer term goals include:

• Permanent improvement in the social and ethical conduct of Vietnamese supplier companies, resulting in improved conditions for personnel
• The development of functioning labour relations and stronger unions
• Improved business performance and productivity, and
• Goods produced at a higher ethical and social standard.

This project involves an initial audit of each of the participating companies to measure their compliance with the BSCI. The selected companies are audited on 3 parameters: environmental, workers'/social parameters (OH&S, worker satisfaction) and economic parameters. After the initial reports, each of the partners receive training, information and recommendations on how they are best able to meet the practical requirements of the BSCI. This takes the form of training, consultation, presentations, information, investigations and consistent monitoring.

Companies who do not meet the BSCI requirements at the first audit will begin implementing their corrective action plans. This process is enhanced by training workshops focusing on the general findings of the audit and the practical implementation of the corrective action plans at a company level. The project provides support and advice to managers/supervisors in need of specific assistance in implementing their corrective action plans. It trains local unions at the company and the district level on topics related to active participation in the project including: negotiation/communication skills, information on the BSCI, the labour law and OH&S. Following this there is a re-auditing of the companies, as well as monitoring and reporting on their progress in areas for further improvement.

This project has been initiated to improve and standardise the industrial environment in many Vietnamese companies. It is designed to improve the working environment for workers and to promote Vietnamese exports in Europe by facilitating the branding of these products as complying with the BSCI framework.

Union Aid Abroad-APHEDA is working with local partners to increase their knowledge and skills on how to successfully train staff and managers in appropriate workplace relations. Similarly, Union Aid Abroad-APHEDA has sought to develop the knowledge, skills and accessibility of information for staff and managers so they are able to disseminate information amongst friends and families in other workplaces and increase awareness about healthy workplace environments. Providing local partners with support, advice and training on issues related to the BSCI, and how to best promote this, Union Aid Abroad-APHEDA is helping to increase local measures aimed at improving workplace standards and directly working to improve the current situation. The capacity building approach of Union Aid Abroad-APHEDA in utilising local authorities and bodies to coordinate this project is also designed to increase the expertise of local partners to conduct similar projects on their own.

© Union Aid Abroad - APHEDA 2003.

Last Modified: Wednesday, 21-Mar-2007 11:48:48 EST
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