The CSI is an effective tool to help businesses in the leather and footwear industry achieve stable production. — Photo baodauthau.vn
Enterprises applying corporate sustainability index (CSI) have more competitive ability, higher production and better business results.
This is one of the conclusions in a survey on implementation of CSI indicators conducted by the Viet Nam Business Council for Sustainable Development (VBCSD).
According to the survey, up to 70-90 per cent of enterprises applying CSI have drastic changes in governance to move towards a transparent and sustainable business model with responsibility for the community and environment.
In addition, Pham Quang Vinh, general secretary of the Viet Nam Chamber of Commerce and Industry (VCCI) and VBCSD general secretary, said this survey has shown the implementation of CSI has had a positive impact on business results.
Those enterprises applying CSI have achieved better production and business results, higher labour productivity and higher competitiveness. They have increased market shares more quickly than businesses without CSI.
Besides that, they have had more investment in product research and development activities as well as advertising activities.
Especially, the survey also found that the use of CSI has had an important contribution to building businesses’ effective and sustainable development strategies, reported Dau tu chung khoan (Securities investment) newspaper.
CSI includes sustainable governance indicators, information transparency, economic indicators (revenue, profit), social resposibility indicators (employee policy, community impact) and environmental indicators.
Phan Thi Thanh Xuan, vice chairwoman and general secretary of the Viet Nam Leather and Footwear Association, said that leather and footwear enterprises faced many difficulties and had to cut labour due to the impact of the COVID-19 pandemic. The disease had negative impacts on supply chains from China and consumption chains to major export markets such as the US and EU.
Therefore, Xuan said, to overcome these challenges, CSI is an effective tool to help businesses in stable production and sustainable development in the future.
She said it should be more widely applied and the Governmental agencies should use it as a business evaluation tool, leading to reducing many administrative procedures. This tool would also make business auditing activities more convenient.
According to the representative of Deloitte Vietnam, it is necessary to promote local businesses to use CSI and sustainability reports and also to disseminate this set of indicators and this report to the Government and management agencies. — VNS