LIXCO
VIETNAM
CASE STUDY
Topic: Sustainability Issues
Group members:
Diep Phan Anh Tai - s3877322
Le Nguyen Dang Khoa - s3877632
Tran Le Nguyen Khoa - s3883162
Khuong Nguyen Cong Thanh - s3877572
Tran Thi Minh Anh - s3877514
Dang Yen Nhi - s3877574
I
TABLE
OF
CONTENT
Introduction
II
CASE ANALYSIS
III IMPACTS
IV LINKING
THEORIES
V
RECOMMENDATIONS
VI CONCLUSION
VII
REFERENCES
I. INTRODUCTION
●
●
●
●
HISTORY:
LIX, also known as LIXCO.
Originated from Huan Huan Chemical Industry Factory
in 1972.
Changed into LIX detergent factory in 1992.
In the 90s: “Most mentioned brand in Vietnam”(Brands
Vietnam 2021).
THE PROBLEM:
● Category: ENVIRONMENTAL SUSTAINABILITY.
● Brief details:
+ LIXCO was fined $47,000 for water pollution.
+ Caused by raw materials dumped into a local
canal.
(Tuan 2020)
Figure 1: VnExpress’ article covering the
incident by Phuoc Tran, 2020
II. CASE ANALYSIS
Environmental sustainability issue:
Protecting
the
environment
LixCo polluted the Suoi Cho canal, causing chemical
bubbles to the water
8-9 April 2020: Suoi
Cho drainage canal, Tan
Phuoc Khanh ward, Tan
Uyen town, Binh Duong
province, has white
foam on a large scale
(Tuan 2020).
(Figure 2: The condensed foams appeared on the surface of Suối Chợ water channel by Huong Chi, 2020)
CAUSES
The firm focused on:
- Producing 150 tons of
detergent products per
day.
- Sterilizing (COVID19).
The rainwater swept materials outside away.
➢
Management Team are responsible
for this.
(Figure 3: The raw materials of LixCo being swept to Suối Chợ canal by Dinh Trong, 2020)
(Trong 2020)
III. IMPACTS
Polluting the environment:
→ Dangerous for creatures living in rivers,
non-consumable water, etc.
→ White foams on rivers with bad smell,
foams flowing onto and damaging canals.
(Figure 4: White foams caused by the waste by Dinh Trong, 2020)
Impacts on stakeholders:
-
Residents
Investors
Legal troubles:
Fined combinedly 1.2 billion VND
(approximately $47,000).
Reputation
Organizational Stigma: when a company is
regarded discredited for their past actions:
- Losing potential employees.
- Partnering companies may sever ties.
- The company is mocked on social media
→ more damage on reputation.
(Figure 5: News about LIXCO regarding the controversy by Google, 2021)
(Harvard Business Review 2016)
IV. LINKING THEORIES
Environment Sustainability & Social Sustainability:
Environmental sustainability:
The generation, protection, and
improvement of environmental
resources and biodiversity.
Social sustainability: How the
company deals with resources,
education, skills and social
institutions.
(Nguyen 2020)
Figure 6: The three pillars of sustainability by Tony Nguyen, 2020.
Corporate social responsibility (CSR)
Corporate social responsibility (CSR):
a type of corporate action that enables
the company to achieve sustainability
and public satisfaction into its business.
Five aspects of CSR: Environmental,
Social, Economic, Stakeholder and
Voluntariness.
(Nguyen 2020)
Advantages of sustainability adaptations:
For the company:
● Reduce energy-related costs.
● Attract new customers and increase
sales.
● Get tax incentives.
● Boost Innovations. (Lagas 2015)
For the stakeholders:
● Future-proof investment for
investors.
● Boost Workforce Morale for
employees.
● Company growth for the managers.
(Harris 2017)
V. RECOMMENDATIONS
1. LIX pollute Thi Vai river, badly affect the environment and the
surroundings → Apologising is prioritised.
● Residents: Through media, local
authority.
● Stakeholders (including Investors):
through conference or even have a
meeting.
(Figure 7: Song Da Clean Water Company apologizes to the
people and compensate for the damage caused by the water
pollution by Le Van, 2019)
2. Our suggestions for problems:
● Do charity campaign: donations, funds
● Sponsorship: scholarship for the children of factory workers
(Figure 8: Le trao hoc bong “Vi tuong lai Vietnam nam 2017 by Pham Hoan,
2017)
(Figure 9: Samsung Vietnam tong ket quy II/2019: Nhung thanh
qua an tuong by Samsung, 2019)
Apply handling untreated waste systems with chemical methods.
(Figure 10: 5 phuong phap xu ly nuoc thai cong nghiep an toan, tiet kiem by Nguyen Thai Binh, 2020)
3. Chemical Precipitation
● Other ways:
❏ Constantly check and update
facilities.
❏ Follow the annual report and
standard.
➢ Gain reputation
(Figure 11: International Journal of Environmental Analytical Chemistry Adsorption of
heavy metal ions by various low-cost adsorbents: a review by Bhawana Jain, 2020)
4. Following other factories:
● Use hydrated lime (short term).
(Figure 12: Du an xu ly nuoc thai Yen So: Phat hien quyet toan chenh lech hang
ngan ti dong by Thai Son, 2017)
● Higher the capacity of the factory.
● Regulate the outputs.
5. Main cause: Substandard Management
●
1.
2.
3.
Improving leadership by:
Leadership Training
Remove managerial personnel
Recruit new managers
Competent managers:
- Good vision
- Effective communication
- Inspiration
VI. CONCLUSION
Case: Environmental issue in Vietnam: Vietnamese
company Lix detergent in Binh Duong province
Issues
● Chemical leak.
● Poor management.
Impacts
● Contaminating environment.
● Legal troubles.
● Damage the stakeholders.
● Bad reputation.
Recommendations
● Short-term: Apology and Water filtering.
● Long-term: Improve the production and management.
THANK YOU
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Q&A
Are there any question? Please feel free to ask us!
VII. REFERENCES
Binh, T 2020, ‘Fined LIX Detergent Company more than VND 1.6 billion for polluting the
environment’, Nhandan, 4 June, viewed 18 January 2021, <https://nhandan.com.vn/vi-moitruong-xanh/phat-cong-ty-bot-giat-lix-hon-1-16-ty-dong-vi-gay-o-nhiem-moi-truong-460261/>.
Harris, S 2017, 3 Benefits Of Environmental Sustainability, Eco-act.com, viewed 9 January 2021,
<https://eco-act.com/sustainability-strategy/3-benefits-of-environmental-sustainability/>.
Harvard Business Review 2016, The Scandal Effect, Harvard Business Review, viewed 18
January 2021, <https://hbr.org/2016/09/the-scandaleffect#:~:text=Our%20research%20shows%20that%20executives,4%25%20less%20than%20the
ir%20peers.>.
Lagas, B 2015, Five Benefits of Embracing Sustainability and Green Manufacturing,
Manufacturing Innovation Blog, viewed 7 January 2020,
<https://www.nist.gov/blogs/manufacturing-innovation-blog/five-benefits-embracing-sustainabilityand-green-manufacturing>.
Moi Truong Hop Nhat 2020, Solution for treating waste gas with clear lime water, homepage,
viewed 9 January 2020, <https://moitruonghopnhat.com/giai-phap-xu-ly-khi-thai-bang-nuoc-voitrong-639.html>.
Nguyen, T 2020, 'Managing Sustainably', lecture notes, BUSM4185B, RMIT University, viewed 9
January 2020, <https://rmit.instructure.com/courses/80699/pages/m8-managing-sustainabilitylecture-slides?module_item_id=2785012>.
Nguyen, T 2020, 'Managing Sustainability Material Preparation', lecture notes, BUSM4185B, RMIT
University, viewed 9 January 2021, <https://rmit.instructure.com/courses/80699/pages/m8managing-sustainability-material-preparation?module_item_id=2785010>.
Oussii, A & Klibi, M 2017, ‘Accounting students’ perceptions of important business communication
skills for career success’, Journal of Financial Reporting & Accounting, vol. 15, no. 2, pp. 208–225,
ProQuest Ebook Central Database.
Trong, D 2020, ‘Fined LIX Laundry Detergent Company branch VND 1.1 billion forming the floating
stream full of foam’, Laodong, 4 June, viewed 18 January 2021, <https://laodong.vn/xa-hoi/phat-chinhanh-cty-bot-giat-lix-11-ty-dong-vi-lam-con-suoi-noi-day-bot-810232.ldo>.