On the other hand they have to tighten the

  • No School
  • AA 1
  • 200

This preview shows page 111 - 113 out of 200 pages.

industry from economy, resulting in negative social and economic impacts. On the other hand, they have to tighten the requirements relating to the environment because of a commitment to sustainable development, international pressures, and public discontent. While not intractable, these issues pose a considerable problem for government. 5.2 Corporate Governance Corporate governance in terms of environmental protection and environmental management in textile and garment SMEs in Vietnam is quite weak. None of the companies interviewed have any of fi cial rules and procedures requiring environ- mental compliance. They react to the environmental requirements from the gov- ernment and the customers on a case-by-case basis. They do not allocate annual budget for environmental protection but use the contingency fund for environ- mental issues if needed. In many cases, environmental issues are not integrated in the company s policy or business strategy. If plans for environmental protection exist, they only exist on paper and are not implemented unless requested by the customers. 7 Ho Chi Minh City People s Committee released decision No.80/2002/Q Đ -UB dated July 8th, 2002 on the approval of the Relocation of Polluted Enterprises to Industrial Zones Programme . Following this decision, many textile companies were required to move out of residential areas and relocate to industrial zones. 104 N.H. Nguyen et al.
Image of page 111
The law requires the companies to develop annual plan about environmental protection, but implementation is still different from what they planned. None of the companies interviewed had any staff members who were directly in charge of environmental management. Environmental issues are dealt by pur- chasing of fi cers, administrative of fi cers, or even fi nancial of fi cers. These staff members are not provided with any training on environmental management. Although both the managers and staff are quite well aware of the importance of complying with environmental requirements, they do not consider these issues to be important or a priority for their business. 6 Conclusions and Recommendations A general comment from the interviews and observations at textile and garment SMEs in Vietnam is that these companies do not actively comply with environ- mental requirements. Arguably, while governance is an issue in fl uencing SMEs proactiveness and capacity in adapting to environmental requirements, the evidence is weak. The in fl uence that does exist comes from government legislation on environmental protection and the current local governance system. SMEs consider the current environmental requirements to be hard, infeasible, and unfair. However, if the requirements are from the customers, the companies will put more effort into implementing them. Therefore, one of the most effective potential legislative tools is likely to be trade agreement. In other words, envi- ronmental requirements should be formulated on the basis of commercial reality.
Image of page 112
Image of page 113

You've reached the end of your free preview.

Want to read all 200 pages?

  • Fall '19
  • Corporate social responsibility, CSR Practices

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors