Corporate Governance

Purpose – This paper seeks to investigate the influence of the increasingly sustainable sourcing policies of many multinational companies on suppliers located in developing countries such as Vietnam. The focus is the process through which corporate social responsibility (CSR) is reaching this Southeast Asian country.

Design/methodology/approach – The research was conducted in Vietnam through the support of the United Nations Industrial Development Organization's (UNIDO) regional office. The survey was based on a questionnaire used during direct interviews or sent out electronically when onsite visits were not possible. The research involved 25 Vietnamese enterprises.

Findings – The results reveal, on the one hand, how CSR makes business sense even in a developing country such as Vietnam and, on the other hand, the difficulties of maintaining sustainability as products move from northern consumers to Vietnamese suppliers. This process calls for more collaborative models of governance among the companies along the supply chain, local authorities, international players, and civil society at large.

Originality/value – This paper highlights the unsustainable process through which corporate responsibility is being imposed on Vietnamese suppliers and how CSR, now required for access to international markets, might eventually turn into a new form of protectionism. To avoid this, CSR must be supported, rather than imposed, through building innovative partnerships and through a demand-driven educational agenda.