Figure 1: Honda Philosophy / CSR objectives / Direction for the 21st Century
*source:
IMPLEMENTATION
Highlight of Initiatives / Programs
One of the ultimate goals of Honda Vietnam is to become a leader in environment friendly and a safety oriented company in the local industry. This goal has driven the company’s activities and through them, values are created and delivered to the society. This section shall provide brief description and highlight a very successful feature which is “Tôi Yêu Việt Nam” campaign in respect of the two mentioned initiatives.
Environmental Initiatives:
As it works to address social concerns about the environment, HVN propose mid-term policies and targets identified by specific plans, while monitoring the progress of individual departments. These plans are then approved by Regional Environmental Committee as part of Honda Global Strategy. The implementation of these plans will be evaluated by Regional Environmental Committee, and on the basis of their guidance, plans and targets are developed again for each region in order to complete the PDCA (Plan-Do-Check-Act) cycle at the national level.
Besides, the company is always aware of its responsibility and commits to minimize the impact of its corporate activities and using products to the Vietnam environment. Specific goals have been identified through the Life Cycle Assessment System which is used to measure and analyze environmental impact.
The gap in terms of convenient transportation between developing and developed country is significant. On the other hand, the demand for automobile and other forms of transportation will continue to grow. Understanding greenhouse gases are considered to be the main factor that causes global climate change, Honda Vietnam goal is to manufacture products with the lowest in-use CO2 emission with the lowest CO2 emissions per unit of production. Currently, this goal is acquiring with the production line of strategic product PCX PGM-FI scooter which enables the ability of reducing average of per-unit CO2 emitted during production and product (itself) CO2 production by 20% and 14.4% respectively. With its excellent safety, functionality, fuel economy and modern styling, the PCX has brought new value to the Vietnam’s scooter market. The current demand for this unit is much higher than HVN production capacity.
Figure 2: Life Cycle Assessment System
*source:
The company understands that efforts by manufacturer in terms of environmental protection only are never enough. Since Honda started automobile business operation in Vietnam in 2006, HVN has penetrated to Dealer network by facilitating DLRs with Green Dealer concept showing in friendly facilities to the environment, as well as educating all Dealer employees with Environmental protection awareness in daily activities.
In 2010, Honda Vietnam and Dealers enhanced their contribution in environmental protection by cooperating with DLR for ISO 14001 standards with continuous improvements in daily management and contingency plans. At present, the new target is to get ISO 14001 certificate for all Honda Vietnam auto dealerships gradually, as part of the company’s contribution to make Vietnam environment cleaner and greener.
Safety Initiatives:
HVN is approaching safety issues from both technological and educational perspectives. The company is working to ensure that its vehicles deliver the best possible safety performance, and also promotes safe driving skills and awareness among customers and society at large.
HVN’s approach to safety
HVN began offering traffic safety instruction in Vietnam in 1999. Since then, the company has worked to promote safe driving, including a Safety Driving Center in 2009. The Company has talked to local officials the current status of its efforts to actively promote safe driving and asked students who have actually driving safety about their experience. Honda Vietnam feels that promoting safe driving in Vietnam is the company obligation to the society and Safety Driving Center, indeed, helps to fulfill that responsibility.
“Tôi Yêu Việt Nam” Campaign
Honda Vietnam’s “Tôi Yêu Việt Nam” campaign is initiated in August 2003 with 3 messages: Safety, Quality and Social Activities. After more than 3 years, the campaign has been highly appreciated by the Government and community: recognized by awarding “Third Labor Certificate of Merit” in 2005 for contributions to the company’s development and Certificate of Merit by National Traffic safety Committee for efforts in traffic safety propaganda.
To continue acquiring the objective to “Become a Company that the society wants to exist” and enforcing achieved results from “Tôi Yêu Việt Nam” Campaign during the past years, and also with the wish of making contributions to protect and build up a healthy living environment, Honda Vietnam officially announced “Tôi Yêu Việt Nam” new campaign with 3 messages: Safety, Environment, and Social Activities, in which Environment is a new message.
In new “Tôi Yêu Việt Nam” Campaign, HVN continue propagandizing Safety Traffic activities and instructing safety driving such as organizing Farmers Safety Driving Contest, National Traffic Safety Contest for Students, the safety driving programs in Honda Funfair and high-quality Vietnamese goods, sponsoring some programs, for example, “Traffic Safety News” in VTV, “Tôi Yêu Việt Nam” program in VOV.
In additions, in new “Tôi Yêu Việt Nam” campaign 2007, HVN also stimulate some new activities about traffic safety, for instance, Online Traffic Safety Training, new “Tôi Yêu Việt Nam” Campaign with sitcom film titled “Dream” on VTV.
HVN’s desire is to protect environment clean for next generations, which is long-term policy of global Honda. In order to do that, the company adopts many modern methods to carry out many programs such as “Building Green Factory”, “Restrict to use and eliminate into natural environment”. Honda Vietnam became the first company applied cement manufacturing technology which turned waste material into constructed material. New “Tôi Yêu Việt Nam” 2007 Campaign with new message contribute into Honda Vietnam’s propagandas to improve people’s awareness in environmental protection.
Honda Vietnam continue to strengthen social activities in the field of community development and charity support such as: YES Award for excellent students of Technology, Honda-Vinh Phuc scholarship, scholarship for excellent students in Honda Vietnam Funfair, community development Fund in Vinh Phuc with 3 billion VND in 5 years, donation for flood and other catastrophe’s victims.
With an effort in announcing New I love Vietnam 2007 Campaign, Honda Vietnam would like to become a good corporate citizen that society wants to exist.
Stakeholder Relations
Customers:
Honda Vietnam has always worked closely with its dealerships to maximize customer satisfaction in accordance with the Honda’s philosophy.
The mission is to increase customer satisfaction through excellence in service at the point of customer contacts (dealers). The company aims to lead the local industry market in fan-winning customer satisfaction. To achieve this level of satisfaction, the company is working with dealers to delight customers by providing service that exceeds expectations, thereby leading to repeat business, referrals to new customers, and an ongoing increase in the number of Honda fans.
To achieve this goal, Customer Relations Center (CRC) has structured its activity policies of improving customer satisfaction and reducing customer complaints, developing an advanced service environment, and maximizing business efficiency. It also holds meetings and other events designed to enhance cooperation while focusing on creating an environment in which dealers can address customer satisfaction enhancement more effectively and efficiently.
In order to enhance customer satisfaction, HVN conducts customer satisfaction surveys in some product segments in Vietnam such as: motorcycles and automobiles. Results from the surveys are fed back to the departments involved in the form of practical suggestions for improvement and put to use in daily activities.
The slogan of CRC is very straightforward: “For the customer”. Its mission is to handle inquiries from HVN’s customers politely, clearly and quickly, delivering the same high quality in HVN communications as is found in HVN products. A system is also in place to allow directors and other associates appropriate access to this information. By offering responses to frequent customer inquiries, HVN is striving to meet customer needs in a timely manner.
In 2005, Global Honda launched Part contact center as an internal department to streamline processing of part and supply orders from customers. As a member of Global Honda, HVN also benefits from this Part contact center. By mediating the center’s transactions between dealers (Honda Cars, Honda Auto Terrace, and dealerships of motorcycles), and other part sales companies and suppliers (part manufacturers), HVN can actually minimize the waiting time for repair or replacement parts upon inquiries.
Figure 5: the Part contact center links dealers and part sales companies with Honda
*source:
Suppliers:
A single product of automobile or motorcycle is made of thousands small parts. Thus, manufacturing depends on close cooperation with business partners who supply the necessary parts and materials.
A trust-based relationship established between HVN and suppliers has become crucial to maintaining stable production and fulfilling our commitment to the continuing enhancement of quality and advanced product performance. Understanding the importance of such relationship, HVN is building long-term relationship and growing hand-in-hand with its business partners.
A supplier CSR guideline is being developed that to clarify HVN expectations in terms of human rights and labor from the CSR perspective which will be issued to suppliers, along with encouraging their understanding. The ultimate goal of HVN through CSR efforts is to promote safety, legal compliance, environmental conservation and quality control.
From environmental standpoint, cooperation with suppliers is an essential part of efforts to reduce environment impact throughout the product lifecycle. Together with Global Honda, HVN started up the Honda Green Purchasing Guidelines in 2002 aiming of procuring environmentally friendly materials and parts. Still, HVN is seeking for new systems and techniques to further reduce environmental impact throughout the part lifecycle. Recently, the company is working to bring its own internal environmental assessment to suppliers as one of its effort in reducing environmental affection, as well as holding information exchange meetings at HVN production facilities as a means of sharing information about policies with suppliers.
2.2.3 Associates:
Some of the shared values of HVN are independence, fairness, and trust that emerges from its basic principle of respect for individual. The goal is to maintain organizational structures and personnel policies in areas such as recruitment, training, evaluation, and assignments that foster a free and open atmosphere, encouraging each associate to face new challenges and achieve new successes. The company seeks to create an environment in which each person’s ambitions, abilities, and potential can be fully developed.
Securing diversity in the workforce: HVN’s employees are not only graduates from elite educational institution, but with an open-door employment policy, the company also provides opportunities to most capable and motivated individuals available. Additionally, recruitment of mid-careers of individuals with a diverse range of personal characteristics and experiences are also considered along with new graduates. Re-employment opportunity is also an applicable program at HVN which offering those associates the possibility of returning to work for HVN once their life circumstances permit. The re-employment program also extends to offering position to individuals that are over the retired age of 60 in order to take advantage of their specialized knowledge and skills.
Building healthy working environment: in local automobile industry, in terms of reducing actual working hours, HVN is always at the top level. Actively, the company decides to ban overtime working on Wednesday and some Fridays and the introduction of a policy encouraging all associates – both labor and management – to use their allotted vacation time in full. In order to encourage its associates to take regular annual paid vacations and use their vacation time effectively to refresh and increase motivation, the company has introduced a system whereby associates are accorded blocks of three to five consecutive paid holidays, depending on their years of continuous service. At work, the company always strives to put in place an environment in which a diverse staff can make the most of their abilities by cognizing and respecting the differences in one another’s personalities, regardless of their various personal attributes. HVN also recognized individual achievement and contribution to promote or support associates with their future career plans.
Developing abilities and human resource: HVN’s approach to personnel education is based on on-the-job training. This training helps to build specialized skills and professional capabilities through direct experience. In order to support on-the-job training, the company also offers off-the-job training to provide associates an opportunity to enhance their careers by developing new specialized skills or management capabilities. For individuals that wish to cultivate themselves in order to fully realize their potential, the company offers opportunities for language training, distance education and inter-industry exchanges.
Figure 6: Basic approach to personnel training
*source:
HVN also promotes two-way communication (through interviewing) between associates and supervisors in term of career development and evaluation. During interviews, supervisors will discuss and share the assessment with associates about their performance during preceding six months as a pavement for associates’ skill improvement. Associates are also encouraged to make proposals as to how the company’s operations could be improved, whether in large ways or small.
Initiatives for occupational health and safety: at HVN, “No Safety” means “No Production”. Respect for the individual is one of the company’s basic philosophies. Along with workplace safety and traffic safety, the company considers ensuring the mental and physical health of associates to be of its most important responsibilities. HVN engages in initiative designed to ensure that its workplaces are among the safest and most comfortable in the industry. In order to achieve this goal, the implementation of Occupational Health and Safety Management System has been applied. This system strengthen measures to ensure workplace safety, focusing on preventing accidents in the workplace, minimizing traffic accidents, and preventing occupational illness. At the company, associates will have frequent medical checkups and appropriate treatment (guidance and counseling) early on heath problem discoveries. The company, its associates, and its managers all play a role in helping to create an environment where all associates can take pride in their work, approach their jobs with enthusiasm and passion, and maintain an energetic outlook by valuing individual diversity and communication.
2.2.4 Society:
Since its establishment, the company has sought to contribute to society by creating quality products and technologies while coexisting harmoniously with the communities. The directions in striving to be a company that society wants to exist include: support educating youth for the future, work to preserve the environment and promote traffic safety through education and training. In fulfillment of the three main points, HVN mobilizes people, advanced products and technologies, and a philosophy of respect for the individual in investing resources in initiatives that help individuals enjoy life to the fullest and realize their true potential.
Education Aid Activities (highlighted):
Children Ideas 2010: initiated in 4/2010 and ended in 8/2010 with more than 100,000 contributed ideas that “surprised” not only judgment boards but also every parents and adults audience.
Honda YES Award for young engineers and scientists: HVN in collaboration with Honda Foundation, National Institute of Strategy and Policy of Science and Technology and other collaborated universities kicked off the 5th Honda Yes Award in April 2010. This is a highly appreciated award at many universities worldwide, in which Vietnam was one of the first initiated countries in 2006. The award is followed by numerous scholarships for the winners to pursuit higher education oversea.
Philanthropy Activities (highlighted):
Reacting to numerous requests from the communities to help sharing the burden of natural catastrophic victims, through years, HVN has always been hand-in-hand with other humanity organizations in relief efforts. Recently, the company has just donated over 200 million VND for typhoon number 9’s victims in central of Viet Nam. A contribution of 20,000 USD to Red Cross Viet Nam is just another effort to help create a safer and healthier living environment.
Other contributions by fund establishment or donation, especially regarding to education and disable children, have become a regular activity of HVN as one of its commitment to the society.
Results
- From dealership’s standpoint
Not long ago, many customers chose to turn their bikes to nearby service shops for maintenance, even though they might purchase new motorcycles from Honda Vietnam licensed dealer. However, since the introduction of Heads with quality after-sale services, dealers have earn customers’ trust and satisfaction; and been able to explain the value behind every motorcycles’ price. With Safety Initiative programs, Heads of Honda Vietnam not only provide quality products and services but also education by readily available training equipments at store.
HVN meets a range of customer needs with vehicles including environmentally friendly automobiles and motorcycles. It’s wonderful that HVN, which offers originality in the form of a brand that is familiar to Vietnam people, has received ISO 14001 certification to better pursue environmental conservation in Vietnam through its management and that the company actively pursues CSR activities such as safe driving initiatives.
- From service staff’s standpoint
Honda Vietnam has achieved a dream structure where the corporation being just likes a big family. Their staff ranges from mechanics to actual service deliverers are well aware of their responsibility and promote work attitude to the top. Providing quality services is their pride as well as duty. During staff’s stay at HVN, numbers of incentive have been given to them in terms of promotion, training opportunities and other benefits including retirement plan.
- From customer’s standpoint
Even before its establishment in Vietnam, Honda brand has been quite familiar to Vietnam people, especially its motorcycle products; however, what people really know is just imported products from neighborhood countries. The introduction of Honda Vietnam has brought fresh-air into local motorcycle market and won customers’ trust gradually with their quality products and services.
Majority of Vietnamese is actually benefited from the company FI motorcycle series more than they think. It is an innovative fuel consumption system which can help motorcycle unit runs efficiently and conserves the environment at the same time. The saving upon fuel expenditure then can be re-invested to boost up the national economy as a whole (or even to purchase other HVN’s products). The customer, however, will always expect for further development in terms of product range from Honda Vietnam as well as maintaining its sound reputation. It is not only a challenge but also a motivation for HVN to continue mastering its performance.
- Honda Vietnam’s performance:
Figure 7: Sales of Motorcycles by Manufacturers
*source: Mai Fujita, 2008.
- Others
Among various awards and recognitions, as its philosophy of contributing to the society while operating business, Honda Vietnam had made other excellent achievements:
- Leading in Vietnam’s motorcycle industry
- Leading in exporting motorcycles and spare parts
- A friendly-environment company in terms of advanced technology factory and products
- A pioneer in safety driving activities
- Leading in social activities
- Supporting the development of young talents
- Supporting for the development of the community
Again, finding the actual benchmark of CSR’s effect on financial aspect is a lengthy process and requires much more in-depth research. However, there is a consensus to agree that when a corporation has sound reputation, along came the financial profits.
III. CONCLUSIONS
Since 1996, Honda Vietnam has been growing fast and strong not only in business but also in corporate social activities. Right at the early stage, the company soon realized that social contribution is one of the most effective ways to approach people to making business in Vietnam. The "Tôi Yêu Việt Nam" campaign is not just only a normal campaign for expanding the reputation. It is the long-term commitment message from Honda to Vietnam that the company love this country and ready to share their values to their stakeholders.
The results indicate agreement that environmental, social, and governance programs do create stakeholders value, though the current economic turmoil has increased the importance of governance programs and decreased that of environmental and social programs. Nonetheless, a significant proportion of respondents don’t fully consider these programs’ financial value when assessing the attractiveness of business projects or companies. Some think the value is too long-term or indirect to measure, and others just aren’t satisfied with the metrics available.
Corporate social responsibility has received a large amount of research attention over the last decade. Results indicate that consumers are influenced by corporate social responsibility (CSR) initiatives of businesses if they are aware of them.
IV. REFERENCES:
Thời Báo Kinh Tế Việt Nam: Honda Việt Nam Mở Rộng Hệ Thống Phân Phối – 14/09/2010
Thời Báo Kinh Tế Việt Nam: Honda Việt Nam Tăng Công Suất Xe Máy Lê 2 Triệu Chiếc – 30/06/2010
Mai Fujita, 2008. Value Chain Dynamics and Growth of Local Firms: The case of Motorcycles Industry in Viet Nam.
![Corporate Social Responsibility [CSR].](https://mbt-essays-prod-public.s3.eu-west-1.amazonaws.com/87818/listing/87818_1.jpg)