Associating businesses with social responsibility

The Government has just issued the Decree 47/2021/ND-CP detailing a number of articles of the Law on Enterprises. Particularly, the decree has a whole chapter on social enterprises, clearly stating the responsibilities of social enterprises and private business owners, members and shareholders of social enterprises.

Specifically, the decree clearly states the responsibility of social enterprises to maintaining social and environmental objectives, realizing retained profit levels for reinvestment and other contents in the commitment to the implementation of social and environmental objectives during the operational process. In case of terminating social and environmental objectives ahead of the committed time, social enterprises must refund all incentives, grants received by them to achieve their social and environmental objectives registered. The owners of private enterprises, members of partnerships, limited liability companies and related entities, including shareholders of joint-stock companies, members of directorates…are responsible for damages arising in case of social enterprises violating the above contents.

Social enterprises’conditions for receiving aid are to get foreign non-governmental aid to carry out the goal of solving social and environmental problems in accordance with the law on receiving foreign non-governmental aid. Especially, they are allowed to receive financial and technical assistance to achieve their goals of solving social and environmental problems from demestic individuals, agencies, organizations and foreign organizations operating in Vietnam. They must make documents to receive sponsorship with the following contents: Information about sponsoring individuals, organizations, types of assets, value of assets or money for sponsorship, time of sponsorship; requirements for recipients and full name and signature of the sponsor's representative (if any). Within 10 working days from the date of accessing to aid, enterprises must notify the aid to  aid management agency of the People's Committees of centrally run provinces or cities where their headquarters are located. The notice must be enclosed with the copy of the sponsorship receipt document.

The Decree also specifies that social support establishments, social charity funds can use all assets, rights and obligations to convert into social enterprises after obtaining the written approval from concerned agencies. After conversion, social enterprises will inherit all legal rights and interests, be  responsible for debts, including tax debts, labor contracts and other obligations of social support establishments, social charity funds.

Reported by Khai Anh-Translated by K.T

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