VIET NAM NATIONAL UNIVERSITY

UNIVERSITY OF ECONOMICS AND BUSINESS

SCHOOL OF BUSINESS AND ADMINISTRATION

INDIVIDUAL FINAL REPORT

MODULE: CORPORATE SOCIAL RESPONSIBILITY

Lecture: Ph.D Tran Thi Hien

Ph.D Vu Thi Van Anh
Student: Dang Thi Ha
Student ID: 21050183
Class: QH2021E QTKD CLC3
Course code BSA3040- E*

Ha Noi – 2024
 VIET NAM NATIONAL UNIVERSITY
UNIVERSITY OF ECONOMICS AND BUSINESS
SCHOOL OF BUSINESS AND ADMINISTRATION

INDIVIDUAL FINAL REPORT

MODULE: CORPORATE SOCIAL RESPONSIBILITY
Topic 3
Please look for information about a Vietnamese enterprise that you know well, and:
1. Analyze its CSR strategy and practice.
2. What are the main challenges faced by that company when building and applying its
CSR strategy? Please give examples.
3. If you were a member of the Board of Directors of that company and took
responsibility for CSR activities, what would you do to deal with those difficulties?
4. In Vietnam, are there any official guidelines or regulations on CSR for enterprises?
What would you do as the organization's leader to promote CSR activities in relation
to policy compliance?

Ha Noi – 2024
 THANKS

Firstly, I am deeply grateful to the faculty members at the Institute of Business

Administration - University of Economics - VNU for allowing me to explore the field
of Corporate Social Responsibility. In particular, I would like to extend my heartfelt
appreciation to Dr. Tran Thi Hien and Mr. Vu Thi Van Anh for their passionate and
dedicated teaching. Their innovative approaches, clear communication, and committed
contributions have greatly enriched the classroom experience, making the subject
matter more engaging and practical.
I am thankful to all the instructors who have supported us throughout the past
15 weeks, providing insightful analyses and answering questions, which have laid a
strong foundation for my understanding and proficiency in Corporate Social
Responsibility concepts and skills. I consider myself fortunate to have had the
opportunity to learn from and receive enthusiastic support from such knowledgeable
teachers. Acknowledging my limitations, I welcome any feedback from them to
further enhance my work.
Once again, I extend my sincere thanks and wish them good health, happiness,
and continued success.

Student perform
Dang Thi Ha
 CONTENTS
LIST OF FIGURES......................................................................................................1
1. Executive summary...................................................................................................2
2. Introductions.............................................................................................................2
3. Findings......................................................................................................................3
3.1. CSR practice of FPT corporation..........................................................................3
3.1.1. CSR strategy...................................................................................................3
3.1.2. Practice of CSR implementation....................................................................4
3.2. Challenges faced by FPT in implementing CSR strategy.....................................8
3.3. Recommended solutions.......................................................................................9
3.4. Activities to promote the organization's CSR activities related to policy
compliance.................................................................................................................10
4. Discussion.................................................................................................................10
4.1. Summarize the major problems..........................................................................10
4.2. Identify and evaluate alternative solutions to these major problems..................11
5. Conclusion................................................................................................................12
6. Recommendations...................................................................................................13
7. References................................................................................................................13
8. Appendix..................................................................................................................14
 LIST OF FIGURES

Figure 1: Logo of FPT....................................................................................................3

Figure 2: FPT Happy Run tournament for company employees....................................4
Figure 3: Website interface www.go4zero.net...............................................................6
Figure 4: Some of FPT's CSR activities for the community...........................................7

1
1. Executive summary

This case study examines the Corporate Social Responsibility (CSR) strategy of
FPT Corporation, a leading technology company in Vietnam. It explores FPT's CSR
initiatives in education, community support, environmental protection, and sustainable
development, highlighting the challenges faced in implementing these strategies, such
as financial constraints, public engagement, and regulatory compliance.
Recommendations are provided to address these challenges, emphasizing strategic
resource allocation, enhancing stakeholder engagement, and improving regulatory
compliance. The conclusion underscores the importance of CSR for sustainable
growth and the need for continuous improvement in FPT's CSR practices.

2. Introductions

Corporate Social Responsibility (CSR) is vital for business operations,

promoting sustainable development and bolstering corporate reputation. This case
study examines FPT Corporation, a leading technology firm in Vietnam renowned for
its contributions to the IT sector. It analyzes FPT's CSR strategy, challenges
encountered, proposes solutions, and explores Vietnam's CSR regulatory framework
to ensure compliance while advancing CSR initiatives.
Overview of FPT Corporation
● Company Name: FPT Corporation
● Established: September 13, 1988
● Address: FPT Tower, 10 Pham Van Bach Street, Cau Giay District, Hanoi,
Vietnam
● Scope of Business: Information Technology, Telecommunications, Education,
and Investment.

2
 Figure 1: Logo of FPT

3. Findings

3.1. CSR practice of FPT corporation

3.1.1. CSR strategy

At FPT, the Corporate Social Responsibility (CSR) strategy has become an

integral part of long-term development. They apply the 3P Strategy, giving appropriate
importance to three key factors:
- Profit: FPT allocates a portion of its profits to care for the physical and mental well-
being of its employees.
- People: FPT engages in activities to improve society and supports young Vietnamese
people in developing their intellect and compassion.
- Planet: FPT complies with regulations to avoid harming the surrounding
environment and initiates environmental protection efforts.

3
 In 2012, FPT developed its CSR strategy based on its core strengths in
technology, with three main orientations: Enhancing Vietnamese Intelligence,
Nurturing Compassion and Green Company

3.1.2. Practice of CSR implementation

3.1.2.1. With employees

- FPT emphasizes employee training and career growth through courses, programs,
and advancement opportunities. In 2022, they logged over 3.4 million learning hours
with a 99.6% completion rate, spending 130 billion VND on in-house training, a 32%
increase from 2021.
- Guided by core values like Respect, Innovation, and Teamwork, FPT fosters a
positive workplace recognized among Vietnam and Japan's top 100. They promote
integration, learning, innovation, and talent development.
- FPT ensures a fair and competitive remuneration policy tied to performance and
contributions, following the principle of "Do more - Get more."
- FPT organizes diverse engagement activities, including clubs, sports events, and
community-focused days like FPT Day for the Community and Parents’ Day.

4
 Figure 2: FPT Happy Run tournament for company employees

3.1.2.2. With the environment

- FPT has invested in energy-saving technology to reduce carbon emissions in its

operations, aiming for Net Zero by 2040. They use optimized cooling and lighting
systems to save electricity and employ automated controls to cut energy consumption.
For example, FPT University adopted Panasonic's energy-saving solution in 2012,
saving 341,200 kWh valued at 500 million VND annually and reducing CO₂
emissions by 192.2 tons per year.
- With a focus on becoming a Green Company, FPT has directed its attention towards
environmental protection and resource conservation. In Vietnam, FPT was the first
enterprise to pledge "Say no to wildlife consumption" (Go For Zero) with the Wildlife
Conservation Society (WCS) Vietnam program.
- FPT promotes the use of green and environmentally friendly technologies. The
company develops and deploys technology products and services with features that
save energy and have low environmental impact, such as energy management systems
and IoT solutions for resource-efficient management. In 2012, the Green IT Project
cut 255,000kWh worth 300 million VND annually for the Data center. The data center
was certified with ISO 50,000 annual quality management in August 2013.
- FPT conducts tree planting and forest protection programs to offset and absorb
carbon. They sponsor reforestation projects and involve employees and local
communities to support the conservation and sustainable development of natural
forests.

5
 Figure 3: Website interface www.go4zero.net.

3.1.2.3. For the community

- Actively participate in activities aimed at greenhouses and poor districts nationwide

- Support humanitarian charity work, blood donation, support funds for the poor,
disabled people…
In 2022, FPT allocated over 171 billion VND to CSR initiatives, benefiting
47,777 people nationwide. These efforts focused on education, charity, and support for
the underprivileged.
Since 2010, FPT has held FPT Community Day on March 13 to encourage
employee volunteerism. In 2015, about 2,500 FPT employees in Hanoi, Da Nang, Ho
Chi Minh City, and Can Tho participated in activities such as blood donation, charity
booths, hospital visits, gift-giving, tree planting, scholarship awards, photo
exhibitions, and donating old items.
- Make roads, build concrete, schools, houses of gratitude

6
- Fully fulfill tax obligations to the State, propagate and disseminate information to
business enterprises in parallel with the Party and State's guidelines, and carry out
community responsibilities for sustainable development.

Figure 4: Some of FPT's CSR activities for the community

3.1.2.4. With stakeholders

- The company always tries to focus on sustainable development, constantly strives for
effective business to bring profits to the company and its shareholders. In 2023, FPT
achieved a profit after tax of about VND 7.788 billion, completing the plan target for
the year.

7
- FPT plays no small part in the economic development of Vietnam. In 2023, the
company achieved a total revenue of over 52.618 billion VND.

3.2. Challenges faced by FPT in implementing CSR strategy

● Financial constraints
One of the main challenges FPT faces in implementing its CSR strategy is
financial constraints. Allocating sufficient resources to CSR activities can be
challenging, especially when balancing between profitability and social responsibility.
For example: FPT has invested in FPT University and scholarship programs to
support education and talent development. However, these investments require
significant and long-term financial resources. This creates pressure on the company’s
budget, particularly as FPT also needs to invest in research and development of new
technologies to remain competitive in the IT industry.
● Public perception and engagement
Building public trust and ensuring transparency in CSR efforts is another
significant challenge. Engaging stakeholders effectively in CSR activities requires
clear communication and consistent actions.
For example: In the "FPT Green Sunday" program, FPT encourages employees
and the community to join environmental activities such as tree planting and waste
collection. Yet, community participation often falls short due to low awareness and
interest in environmental issues, prompting FPT to intensify awareness efforts and
community engagement.
● Regulatory compliance and bureaucracy
Navigating complex regulatory environments poses a challenge for FPT in its
CSR initiatives. Ensuring that CSR activities align with national and local regulations
requires ongoing monitoring and adaptation.
For example: When implementing solar energy projects, FPT faces complex
legal and administrative requirements, including obtaining permits from multiple

8
authorities and complying with environmental and labor safety regulations. This
process is resource-intensive and time-consuming to meet all legal obligations.

3.3. Recommended solutions

● Strategic resource allocation

To address financial constraints, FPT should adopt a balanced budget for both CSR
activities and business growth, focusing on impactful initiatives aligned with its
strengths. Key actions include:
- Prioritizing CSR projects based on their social impact and strategic alignment,
like investing in educational programs to develop IT talent.
- Implementing a multi-year budgeting strategy to ensure consistent funding and
mitigate short-term financial issues.
- Collaborating with companies, NGOs, and government entities to co-finance
and manage CSR projects, sharing resources and expertise.
● Enhancing stakeholder engagement
FPT should build trust through a transparent communication strategy and
partnerships with NGOs and government agencies for joint CSR efforts. Key actions
include:
- Transparent communication: Regularly update stakeholders on CSR activities
through social media, newsletters, and community meetings.
- Community involvement: Engage local communities in CSR projects like the
FPT Forest initiative through workshops and participation incentives.
- Feedback mechanisms: Use surveys and focus groups to gather stakeholder
input and improve CSR initiatives.
● Improving regulatory compliance
FPT should establish a dedicated team to ensure compliance with CSR regulations
and engage with policymakers for updates and advocacy. Key actions include:
- Forming a specialized team to monitor and ensure compliance with CSR
regulations.

9
 - Engaging with policymakers to understand and advocate for favorable CSR
policies.
- Simplifying internal processes for regulatory compliance with standardized
procedures and checklists.

3.4. Activities to promote the organization's CSR activities related to policy

compliance

Social responsibility is actively promoted by the government, especially in

developing countries like Vietnam. Currently, Vietnamese law, including the Law on
Enterprises, mandates various aspects of social responsibility such as business ethics,
charitable activities, customer responsibility, tax obligations, and environmental
stewardship. However, the legal framework requires further clarity and enhancement.
The government encourages businesses to pursue sustainable goals through initiatives
like the "CSR towards Sustainable Development" award established by the Vietnam
Chamber of Commerce and Industry in 2005.
As the leader of the organization, several activities to promote CSR activities
related to policy compliance can be conducted such as:
- Raising awareness and knowledge of CSR among enterprises.
- Defining core values, developing a focused CSR strategy aligned with
government goals, and executing community and environmental initiatives.
- Recognizing CSR achievements internally to boost employee morale.
- Ensuring a supportive workplace to encourage staff participation in CSR.
- Implementing monitoring and reporting for transparency and compliance with
state policies.
- Building community relationships through local projects, education, healthcare,
economic support, and contributions to social causes.

10
4. Discussion

4.1. Summarize the major problems

FPT Corporation's CSR strategy faces significant challenges that must be

addressed for sustained effectiveness:
One primary challenge is achieving comprehensive environmental sustainability
company-wide, despite initiatives like the "FPT Green" project aimed at waste
reduction and energy efficiency.
Another critical issue is transparent stakeholder engagement and
communication about CSR impacts, despite efforts such as the "FPT Volunteer"
program to involve communities.
Navigating regulatory landscapes, particularly aligning with international
standards in the absence of specific CSR regulations in Vietnam, also poses ongoing
challenges.

4.2. Identify and evaluate alternative solutions to these major problems

To address these challenges effectively, several strategic solutions can be

considered:
- Integrate CSR into core business strategy: Align CSR objectives with business goals
to enhance sustainability and efficiency. Incorporate CSR metrics into performance
evaluations and strategic planning.
Advantages: improved stakeholder trust, enhanced brand reputation, and
operational efficiencies.
Disadvantages: initial resource allocation and organizational resistance to
change.
- Improve stakeholder engagement and transparency: Implement robust engagement
frameworks and enhance transparency through regular reporting. Use digital platforms
for real-time feedback to meet stakeholder expectations.
Advantages: increased transparency, stronger community relationships, and
enhanced responsiveness.

11
 Disadvantages may include increased resource demands for engagement
activities and potential challenges in managing diverse stakeholder expectations.

- Navigate regulatory landscapes: Engage with regulators and industry groups to

advocate for clearer CSR guidelines. Develop tailored voluntary frameworks to lead in
compliance and industry standards.
Advantages include proactive compliance and regulatory alignment, enhancing
corporate credibility.
Disadvantages include regulatory uncertainties and potential conflicts between
local and international standards
- Invest in innovation and technology: Use advancements like data analytics and AI
for better CSR monitoring. Invest in sustainable technologies such as renewable
energy and circular economy initiatives for enhanced environmental stewardship.
Advantages include technological leadership, improved environmental
performance, and potential cost savings in the long term.
Disadvantages may include high initial investment costs and technological risks
associated with innovation adoption.

5. Conclusion

This essay has aimed to analyze FPT Corporation's CSR strategy, outlining
significant challenges and proposing strategic improvement solutions. FPT faces key
hurdles in achieving comprehensive environmental sustainability across its operations,
enhancing stakeholder engagement, and navigating regulatory landscapes in the
absence of specific CSR guidelines in Vietnam. Proposed solutions include integrating
CSR deeper into core business strategies, improving stakeholder communication,
advocating for clearer regulatory frameworks, and investing in sustainable
technologies. These initiatives aim to enhance operational efficiency, bolster
stakeholder trust, and ensure regulatory compliance, albeit with challenges such as
resource allocation and technological risks. Despite its context-specific nature, this

12
analysis provides valuable insights for FPT and other stakeholders grappling with
similar CSR complexities, highlighting the need for adaptive strategies in a dynamic
business environment.

6. Recommendations

Based on the evaluation of alternative solutions, I recommend that FPT

Corporation adopt all of them to effectively address its CSR challenges. Each solution
offers unique advantages and limitations, but together they can form a comprehensive
CSR strategy that integrates environmental, social, and economic considerations into
FPT's business operations. Implementing these strategies will showcase FPT's
leadership in sustainability, enhance its competitiveness, resilience, and contribute to a
more promising future for both society and the environment.
I advocate for adopting all alternative solutions because they collectively
address FPT's CSR challenges in diverse yet complementary ways. Strengthening
legal compliance and governance will mitigate risks and enhance credibility, aligning
with legal frameworks and CSR management theories. Improved stakeholder
engagement will foster community relations and build trust, aligning with stakeholder
management theories and effective interaction strategies to meet community
expectations.

7. References

1. FPT. (2015). “Chiến lược CSR của FPT được Forbes đánh giá cao”. Accessed
from https://fpt.com/vi/tin-tuc/tin-fpt/chien-luoc-csr-cua-fpt-duoc-forbes-danh-
gia-cao
2. Thanh Nga. (2012). “FPT đi đầu trong chiến lược CSR”. Accessed from
https://chungta.vn/nguoi-fpt/fpt-di-dau-trong-chien-luoc-csr-1076026.html
3. Hà Anh. (2024). “Năm 2023, FPT đạt 9.203 tỷ đồng lợi nhuận trước thuế và
chính thức cán mốc 1 tỷ đô doanh thu”. Accessed from
https://vneconomy.vn/nam-2023-fpt-dat-9-203-ty-dong-loi-nhuan-truoc-thue-
va-chinh-thuc-can-moc-1-ty-do-doanh-thu.htm

13
 4. FPT. “Trách nhiệm xã hội”. Accessed from https://fpt.com/vi/ve-fpt/trach-
nhiem-xa-hoi
5. Annual report 2022 of FPT
6. Annual report 2023 of FPT

8. Appendix

Appendix 1: Report on business results of FPT Corporation in 2023

14