"Our Benefits, Others Benefits" True Spirit

Hoa Sen Group

1. No Poverty 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities 12. Responsible Consumption and Production

Overview

  • The exclusive corporate governance and culture under “Integrity Community - Development” philosophy.
  • The friendly and community-oriented brand name.
  • Pioneering investors in modern facility line and applying advanced technology.

Authors

Thinh Nguyen

Thinh Nguyen

Khoi Le

Khoi Le

Trang Mai

Trang Mai

School

University of Economics Ho Chi Minh City, International School of Business

University of Economics Ho Chi Minh City, International School of Business

Professor

Guenola Nonet

Guenola Nonet

Innovation

The steel sheet manufacture line of HoaSen Group (HSG) applies Non - Oxidizing Furnace (NOF) technology which is one of the most advanced technologies in the world today. In 2012, HSG decided to build "a new NOF continuous galvanizing line" for flat steels that became operational in 2014. This NOF technology refers to annealing steel sheet in a furnace without oxygen. Through this kind of technology, HSG can minimize impacts on environment, decrease CO2 and NOx emissions being released during the natural gas burning process, and reduce the carbon footprint of "the current high energy intensive burning process system" which is used in the steel industry.

A pre-feasibility study was undertaken by HSG's researchers and positive results were collected. Energy consumption of natural gas can be reduced by nearly 25% from 178 kWh/ton to 118 kWh/ton of steel processed, a drop of CO2 emissions by 25%, directly saving more than 2,626 T of CO2 per year, and a decline of NOx by approximately 8%. Generally, this technology has a considerably less negative effect on the environment and, particularly on climate change, by reducing significantly the CO2 and NOx emissions of the sector.

"Our Benefits, Others Benefits" True Spirit

Inspiration

As a Buddhist, the chairman of HSG, Mr. Le Phuoc Vu thinks that success and sustainability is not only for himself but also for other people.

Mr. Vu’s hometown is Quang Nam, even though in 1963 he was born in Binh Dinh, in a poor family. With the first-born child, his family lived in a 10m2 rented house. He saw that most of people there are unemployed, live in tiny houses and watch Hong Kong movies every day. He strongly wished that one day, he could find a potential workplace and working environment for everyone. He seriously intended to take the vow. HSG's leader is one of few entrepreneurs who publicly shared his beliefs and affirmed that Buddhist principles guide his life and his career.

He has stated that, "Buddha’s teachings always advise people to do good things. Business philosophy of Vietnamese’s predecessor, Mr. Luong Van Can, also promotes integrity and morality. Thus, if businessmen seriously put the word “conscience” top of mind, there are no contradictions. When entering the business, I was an enlightened Buddhist. I always keep in mind that "The purpose of business is to enrich the society". I follow the spirit of "our benefits, others’ benefits". "Empathizing with the poor, a rising aspiration and the spirit of Buddhism have become the support and the business philosophy of HSG". Applying Buddha’s teachings to his life and work, Le Phuoc Vu realized that spiritual value is the best assistance. His crucial concerns are the people who are poor, lack accommodations, are unemployed, have low incomes and poor labor capacity. He always cares for society and is aware of missions to put other's benefits, their families and their businesses in favor of Vietnam. His goal is to lead the nation to increase development and lead Vietnamese people to earn prosperity.

He also said that, "My viewpoint is, wherever I help people, I feel warm and will never feel lonely. That is why I have held many activities for street children over the years. They are happy so I am happy. I have many friends receiving much affection from customers, and have a heartwarming feeling when reading scrawled letters sent directly to me expressing feelings of those who are poor and unfortunate, and children in orphanages".

Working from 12 - 16 hours per day, Mr. Vu shared that making money is no longer for his own gain but for the country’s wealth and community sharing. He has “Buddhist in soul” thought to share difficulties with community. He states that he has the responsibility and empathy for sharing with society, the needy, and especially children. He wants them to know and believe that the community cares about them. It makes them appreciate small but sacred emotions, like a spiritual thread which guides them to overcome inferiority difficulties and challenging circumstances. All of these Buddhist beliefs significantly inspired Mr. Vu to form and develop HSG.

Overall impact

HoaSen Group is aware that in addition to the pursuit of profit and development, the most important implication for the formation of any business is to carry out social responsibility by creating useful value. In the long run, the firm's production processes have a positive impact on society and people. The firm uses many different methods to promote awareness of energy conservation, environmental protection and the conservation of resources. It tries to comply with this concept in everyday life under the monitoring of functions and forces companies professional supervision. In addition, the company adheres to the stringent requirements set for each link in its activities, from product design R & D, supplier selection and management, materials, manufacturing, customer service goods, the quality must meet international standards and the directive on hazardous substances restriction (RoHS) of the European Union. The firm has also been certified to ISO 9001 for quality management and ISO 14001 in relation to environmental management. The company provides many quality products for the market and has received awards, including:

  • 50 Best Vietnamese Listed Companies 2016.
  • HoaSen Group was honorably awarded 3 VTOPBUILD Golden Cups at Vietbuild 2014.
  • HoaSen Building Material One Member Limited Liabilities Company honorably received “Vietnam Strong Brand Name 2013” Award.
  • HoaSen Group was honorably ranked first for “Best Managed Company in Asia 2014” Award.

Business benefit

Enterprises implementing Corporate Social Responsibility reap benefits. These practices: promote compliance with national laws; help ensure that businesses achieve their long-term business objectives; increase competitiveness in the integration process; build more harmonious labor relations, reduce the risks of international business such as trade disputes and dumping.

Enterprises that implement CSR not only enhance their own economic benefits but also promote social interests and policy. Besides, the positive side, the enterprise implementation of CSR under the Code also encountered difficulties. In addition, investment from within by implementing internal activities is the perfect solution for all business expenses. Not only has it helped enterprises to build a good platform from their CSR inner core to create the foundation for the greater and stronger community activities, it is also an opportunity to align employees with the company's mission, build trust, the beloved and long relationship. Stemming from the point, starting with the simplest yet effective in operation, HoaSen group has clear ideas about the role and impact of CSR activities in the enterprise, whether specific work should fluctuate about human research, but leaders are enthusiastic, efforts to implement CSR activities towards employees. Apart from monthly training sessions, companies are interested in organizing the internal PR activities such as birthday parties, celebrations of special events during the month, ... to connect all employees together, reduce the gap between leaders and employees, create the beloved, trusted, friendly and long-term commitment, build a comfortable working environment, mutual respect, promote teamwork and devote to the sustainable development of the company.

Social and environmental benefit

Investors always put profit above all else. But the growing social, cognitive and shopping behavior of consumers has been creating pressure on firms. At some point, domestic consumers will question whether to use the products or services of businesses that knowingly devastate and pollute the habitats and resources of their communities. If customers choose products and services of these enterprises, they invisibly help them destroy the health of the environment and of future generations. Increasingly, they consider and want to support products and technology relating to environmentally friendly production. As a result, if businesses constantly chase profits but forget about their responsibility to the community, sooner or later, their products may be rejected by consumers. For the firm, the image of the whole enterprise, their investment funds and their investors are also negatively affected, something nobody wants. Our environment is vital, it is from it that people survive and thrive; if it is not protected and takem care of it, it will no longer support itself or the people who depend upon it. CSR is very important for not only environment, but also for society. The HoaSen Group always tries to do excel in the social component of their CSR with charity programs such as:

· “Viet families’ sweet home – the 2014 Mid-Autumn Festival Night” program donated gifts to people of Lam Dong Province.

· “Viet families’ sweet home – Year of the Goat 2015” program for over 1,600 underprivileged children.

· HoaSen Group donated 100 bicycles to the poor pupils at Anh Son District, NgheAn Province.

· Viet families’ sweet home – Mid-Autumn Festival Night 2014” program – HoaSen Group donated gifts to pediatric cancer patients at Ho Chi Minh City Oncology Hospital.

Since, HoaSen group trusts that development of society and company are intertwined, future generators invest development of countries and nobody can succeed if they are alone. Then, firm always effort to do CSR as the best as they can.

Interview

Ms. Pham Thi Truc Ly, Vice Head of PR Department

Ms. Pham Thi Truc Ly, Vice Head of PR Department

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Hoa Sen Group

Binh Duong, VN

Business Website: http://www.hoasengroup.vn/en

Year Founded: 2001

Number of Employees: 5001 to 10000

On May 18th 1994, Mr. Le Phuoc Vu (now Chairman of HoaSen Group) and his family started their business by a steel sheet retail outlet with a small amount of money saved from his wages as a worker. As business grew, he established a company to expand manufacturing and trading activities. Few years later, on August 9th 2001 HoaSen Joint Stock Company (HoaSen JSC) – the precursor of HoaSen Group, was established with an initial charter capital of VND 30 billion, 22 employees, and 3 retail – distribution branches. Starting from a household business, under Mr. Le Phuoc Vu’s leadership, HoaSen Group is now known as the leading steel sheet enterprise in Vietnam and South East Asia with 1,300 billion VND of charter capital and nearly 6000 employees, 7 subsidiaries and over 200 branches across the country. HoaSen Group’s industry category includes 4 four main kinds of product as follows: Steel Sheet, Steel Pipe, Plastic Pipe and Purlin.