Many decades recently, guaranteeing environmental security, a nontraditional issue, has been attracting concerns of many countries in the world.
Therefore, it is very important for businesses to fulfill their social responsibility in
guaranteeing environmental security. However, due to different reasons, there have
been many limitations and shortcomings in the implementation of social
responsibility of businesses. These shortcomings and limitations have been negatively
impacting the economy, politics, national security and defense of a country in
particular and the whole world in general. The paper aims at explaining the meanings
of the implementation of social responsibility of businesses to guarantee
environmental security and indicates some typical examples of environmental
violations caused by businesses in the world. Then, some recommendations to
improve the businesses’ performance of corporate social responsibility to guarantee
environmental security will be presented.
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CORPORATE SOCIAL RESPONSIBILITY IN GUARANTEEING
ENVIRONMENTAL SECURITY
Assoc. Prof. Dr. Nguyen Tran Hieu
tranvutuan37@yahoo.com.vn
University of People’s Security, Ho Chi Minh City, Vietnam
Dr. Luu Thanh Hung
thanhhunglaw76@gmail.com
University of People’s Security, Ho Chi Minh City, Vietnam
Nguyen Thi Thu Lai, M.S
laintt@buh.edu
Ho Chi Minh City University of Banking, Ho Chi Minh City, Vietnam
Abstract
Many decades recently, guaranteeing environmental security, a non-
traditional issue, has been attracting concerns of many countries in the world.
Therefore, it is very important for businesses to fulfill their social responsibility in
guaranteeing environmental security. However, due to different reasons, there have
been many limitations and shortcomings in the implementation of social
responsibility of businesses. These shortcomings and limitations have been negatively
impacting the economy, politics, national security and defense of a country in
particular and the whole world in general. The paper aims at explaining the meanings
of the implementation of social responsibility of businesses to guarantee
environmental security and indicates some typical examples of environmental
violations caused by businesses in the world. Then, some recommendations to
improve the businesses’ performance of corporate social responsibility to guarantee
environmental security will be presented.
Keywords: environmental security; social responsibility of business
1. Introduction
Environment is all things, natural and manmade around us, which have direct
impacts on human life. History has showed that human beings have been increasingly
exploited the nature to serve their life. They, however, have also been making the
environment polluted. Together with the “hot” and “rapid” development of the
economy, environmental pollution and corporate social responsibility have attracted
concerns of many countries and international community.
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2. Research methods and key concepts
2.1. Research methods
The first and foremost method is to analyze data to collect secondary
information on issues relating to the survey. First, the authors made a literature review
on domestic and international publications on environmental security, corporate
social responsibility, necessity for guaranteeing environmental security, legal bases
to have businesses to perform their corporate social responsibility. Second, the
authors present recommendations to encourage businesses to perform their corporate
social responsibility in guaranteeing environmental security.
Peer method is the other method to collect responses from experts at
University of People's Security, University of People’s Police, and Department of
Strategy Science and History under Ministry of Public Security.
2.2. Key concepts
In order to meet targets, the authors focus on two key concepts namely
environmental security and corporate social responsibility.
- Environmental security
There have been many different approaches to environmental security. Hecht
(2018) indicates that environmental security is a part of national and international
security and that it is a human activity to prevent negative factors from impacting the
environment. He also stressed that solving environmental security will contribute to
maintaining national security. According to International Institute for Environment
and Development (2018), environmental security is the security sustainability, and
there is a close relation between environmental security and the security situation in
a country. In other words, the reduction of natural resources will lead to instability in
security. While there exist differences, most scholars share a common viewpoint that
the downfall in environment must be considered as a source of national security
as the UN Security Council (1992) puts it the scarcity of natural resources,
degradation and environmental pollution and environmental hazards can weaken
the economy, increase poverty, increase political instability, and even become a
trigger for conflicts and wars. The above viewpoints show that environmental
security is a survival issue of all countries and peoples. Environmental security
has three typical characteristics. First, it is a concern of organizations, countries,
and peoples on the purity of environment. Second, environmental changes lead to
instability, social conflicts and wars. Third, environment changes threaten material
demands of individuals.
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- Corporate social responsibility
There have been many concepts on corporate social responsibility. Corporate
social responsibility can be understood as corporate social performance, corporate
citizenship, corporate social responsiveness, corporate philanthropy, business ethics,
and so on. However, from the authors’ viewpoints, the World Bank has the most
convincing approach which indicates that corporate social responsibility is the
commitment to contributing to the sustainable economic development through
activities to improve the quality of life of labors and their families’ members,
businesses, and the whole society. In other words, corporate social responsibility is
not only limited to caring about labors’ life but also a commitment to perform
businesses’ social responsibility.
3. Results
The findings of the survey are showed in three aspects: 1. The performance of
corporate social responsibility to guarantee environmental security has been regulated
by specific legal bases; 2. Good performance in guaranteeing environmental security
has led to significant benefits for businesses; 3. Apart from businesses with good
performance in guaranteeing environmental security, many others such as Formosa
Plastics Corporation have caused environmental disasters.
3.1. Legal bases for businesses to guarantee environmental security
Guaranteeing environmental security is to abide by gaming rules of
international organizations. Following are some global important treaties in
guaranteeing environmental security that Vietnam participated and signed, Vienna
Convention for the Protection of the Ozone Layer 1985, Basel Convention on the
Control of Transboundary Movements of Hazardous Wastes and Their Disposal
1989, and United Nations Framework Convention on Climate Change 1992. When
joining World Trade Organization, states have to abide by six agreements including
Technical Barriers to Trade Agreement which clarifies social responsibilities. In the
world, goods is not only tested in quality but also in social responsibilities. Some
export products have to meet criteria set by the other partners such as ISO 14000,
Codes of Conducts of importers and independent organizations such as provisions on
juvenile labors, forced labors, race and sex discrimination, environment, health
safety, and so on. It can be said that the world legal system has specific provisions on
guaranteeing environmental security, and it is the legal bases businesses have to abide
by. Vietnam has also issued many legal documents such as Constitution 2013, Law
on Environment Protection 2014, Decree No.80/2014/NĐ-CP on handling waste
water; Decree No.03/2015/NĐ-CP on determining losses for the environment;
Decree No.18/NĐ-CP on planning environmental protection, evaluating strategic
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environment, evaluating environmental impacts and plans for environmental
protection. These above-mentioned documents are the legal basis that businesses
have to abide by to guarantee environmental security.
3.2. Significances of performing corporate social responsibility to guarantee
environmental security
The analyses and evaluation of operations of businesses in the world allow the
authors to draw significances of performing corporate social responsibility to
guarantee environmental security as follows:
First, performing corporate social responsibility to guarantee environmental
security is a prerequire for businesses to attract competent human resources who are
loyal to benefits of businesses and commit to long-term serve. This important factor
decides the stability and productivity of businesses was well as their product quality.
Together with salary and social wealth fare, businesses need to provide a friendly and
safe environment for their employees. Employees, in their turn, will carry out their
job well and bring more benefits for businesses.
Second, performing corporate social responsibility to guarantee environmental
security is an effective tool to improve reputation and position, protect trademark’s
values and social prestige, create love from the public especially people in target
markets for businesses. Besides, this will help businesses have advantages in
competition, sell more products, attract and build more supply and demand relations.
This invisible advantage will guarantee long-term operations of businesses.
In many businesses, social responsibility reports with criteria of guaranteeing
environmental security are released together with annual reports. Many transnational
businesses have built codes of conduct for their employees worldwide such as
Pentalog group, a well-known firm in processing software’s, which has
representative offices in France, Germany. The philosophy of Pentalog group in
implementing corporate social responsibility includes human activities and strategies
for stable development in economics, society, environment, and culture. Daikin, a
famous corporation in electronics, has tied its destiny to the philosophy that in all
fields. Daikin presents all initiatives to develop and improve the environment. Daikin
has also strengthened the development of new products with advanced technologies
to build a world of fresh environment. This philosophy has increasingly forwarded
Daikin’s values and contributed to stable development of the society. Many other
businesses have taken environmental security guarantee as a motive to push their
prestige and trademark. Multinational groups such as The Body Shop from the UK
and IKEA from Sweden have not only been famous for products of high quality and
at reasonable price but also for their prestige in protecting the environment.
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Third, guaranteeing environment helps businesses make a barrier to protect
themselves even when they are stuck in manufacturing and business difficulties and
mark a difference in their trademark. This means a lot in a very competitive market.
Fourth, consumers are likely to prefer products friendly to environment, so
businesses have to guarantee that their products are made in accordance with criteria
of environment protection. In other words, customers not only care about quality of
products but also the ways these products are made. Therefore, the implementation
of environmental security helps businesses improve their confidence in customers.
Fifth, guaranteeing environmental security is a prerequisite for human
security. The Chernobyl disaster killed 30 people and made the other hundreds of
thousand of people injured with the total loss of USD 15 billion, and 135,000 people
had to escape from the site (Wikipedia, 2019). The Bhopal disaster in India in 1984
killed more than 2,500 people, made other 1,000 people blind and influenced 20,000
others (Wikipedia, 2019). The Minamata disaster in Japan in 1968 was a terrible
example for environmental pollution, strongly impacting health and life of many
people (Wikipedia, 2019). These are precious lessons for all countries in the world.
Finally, guaranteeing environmental security is a very important condition to
guarantee national security and social security and order. Recent incidents have
showed that many businesses have not guaranteed environmental security, leading to
lawsuits and conflicts between businesses and people. For instance, being aware that
Thanh Thai Nicotex Joint-Stock Company in Thanh Hoa province buried pesticide,
people sent a petition with more than 1,000 signatures to sue the company. The
Formosa incident in Ha Tinh province which caused serious pollution to sea
environment in provinces of Ha Tinh, Quang Binh, Nghe An, Thua Thien Hue ended
up with many demonstrations and riots in Vietnam.
3.3. Practice of environmental security violations of businesses
It can be confirmed that guaranteeing environmental security is an obligation
of businesses associated with legal provisions. With the above advantages, most
businesses in the world have implemented many measures and policies to guarantee
environmental security. Reality shows that many businesses with CRS have
significantly increased their profits. Aserradero San Martin, a wooden producing
company in Bolivia, after holding the Forest Stewardship Council Certificate,
integrated into the Northern America market and increased 10 to 15% price of their
products. General Electrics used USD 2 billion annually to conduct research in
technologies to protect the environment, and this led to positive business results.
Many businesses, however, due to different reasons, have destroyed the
environment. For instance, in 2010, the incident of oil overflowing caused by British
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Petroleum in Louisiana coast the U.S took 11 lives and made the other 17 people
injured. Approximately five million oil barrels overflew to Mexico bay, destroying
the eco-system and seriously impacting the fishing and tourism industries of this
country. The incident also influenced 400 species, and five years later the amount of
oil in the sea was higher than the accepting degree. This is one of the worst
environmental disasters in the U.S history. In the Southeast Asia, in 2011, the
International Rivers considered the responsibility of People’s Democratic Republic
of Laos in approving the project of Xayaburi Hydroelectricity Dam in the lower
section of the Mekong river. Assessments of independent scientists and experts
showed that Laotian Government did not meet basic requirements for building a
Hydroelectricity dam. They argued that the building of such a dam will seriously lead
to the extinction of some species and pose dangers to others. Neighboring countries
which share the river such as Thailand, Vietnam, and Cambodia showed their worries
and stressed that the dam, if it were built, will have impacts on the environment. It is,
therefore, very necessary to meet international environmental security for the project
as Xayaburi Hydroelectricity Dam was the first project of 11 projected plans in the
lower section of the Mekong river, a river of importance for countries in the Southeast
Asia. Laos violated the second international principles of the Rio Declaration on
Environment and Development in which States have the responsibility to ensure that
activities within their jurisdiction or control do not cause damage to the environment
of other States or of areas beyond the limits of national jurisdiction.
Another example is Formosa Plastics Corporation (Taiwan, China). This firm
has been listed into “black” businesses for causing many environmental disasters. It
disposed wastes and destroyed the environment in many countries and territories
such as the U.S, Cambodia, Taiwan, and Vietnam. In 2009, Ethecon Fund, a German
environment organization, awarded the prize “Black planet 2009” for Formosa
Plastics Corporation and its executive board members for disposing wastes into the
environment and stressed that this group has to be liable for making the planet black.
In a 28-page report released on November 21, 2009 the Ethecon Fund criticizes that
Formosa Plastics Corporation not only threatens peace and human rights but also
destroys human ecology. For instance, in Texas and Louisiana in the U.S Formosa
Plastics Corporation was detected to bury toxic wastes, polluting the underground
water source and Mississippi river. In 2000, Formosa paid fine of USD 150.000 in
Texas. In the 1980s, Formosa Plastics Corporation was discovered to dispose sixty-
three tons of ethylendichloride into residence areas in. In 2004, Formosa factory in
Illinois exploded, killing six workers and injured many others. The explosion caused
water, air, and soil pollution in the nearby residence areas. In January 2009, farmers in
Texas informed scientists who were measuring the air and soil toxic levels in nearby
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former Formosa factory that their cows reduced weight and died at very young ages.
The U.S Environment Protection Agency also measured the air and soil toxic levels
in nearby former Formosa factory and discovered that there were forty-three toxics,
many of them could cause cancer. The U.S Environment Protection Agency and
Department of Justice fined Formosa Plastics Corporation USD 13 million on
September 30, 2009 (Ngo, 2016).
In 1998, Formosa Plastics Corporation buried 3,000 tons of extremely toxic
wastes in Sihanoukville city, making sea water and soil polluted and many people
sick. The incident led to many riots and demonstrations in Phnom Penh capital with
the participation of 1,000 Sihanoukville people. Cambodian Government accused
Formosa Plastics Corporation of bribing USD 4 million to the local authority to get
the license to take wastes to bury in Sihanoukville. Consequently, forty local officials
were forced to resign, and three of them were prosecuted (Ngo, 2016).
In Taiwan, despite its remarkable contributions to economic development and
industrialization, Formosa Plastics Corporation was reputed for its environmental
destruction. According to The Diplomat on April 30, 2016, Formosa Plastics
Corporation was in the top ten list of corporations which cause pollution in Taiwan.
In 2010, Taiwan Environment Protection Agency fined Formosa Plastics Corporation
USD 4.7 million for causing serious soil and underwater pollution in Kao-Hsiung
district. In 2012, Professor Chan Chang-chuan in Taiwan University showed that
inhabitants nearby Formosa factories had a higher percentage of cancer than
inhabitants in other areas (Ngo, 2016).
4. Conclusion and recommendations
The authors used the theatrical framework to analyze and evaluate the practice
of guaranteeing environmental security and found that guaranteeing environmental
security plays a very important role. The authors also present recommendations to
improve the effectiveness of guaranteeing environmental security as follows:
First, it is necessary to mobilize the capital and resources of the whole society
and improve the role and responsibility of individuals in detecting, denouncing, and
suing violations in environmental security of businesses. At the same time, it is
needed to release violations of businesses in media.
Second, strengthening the propaganda in media or symposia to consult people
with legal provisions of environmental security and make them understand
responsibilities of businesses in guaranteeing environmental security. Thus, people
will actively participate in helping authorities detect and handle businesses which
have violations relating to the environment. Authorities should have timely
encouragement and merits for those who actively participate in denouncing and suing
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businesses which have environmental violations. The government should perfect the
legal framework to protect those people.
Third, mobilizing the strengths of media to encourage businesses to participate in
guaranteeing environmental security. Reality have showed that the media played an
important role in forcing Formosa Plastics Corporation to compensate for people’s losses.
Finally, studying experience from developed countries to build an appropriate
policy and guideline