csr in asean presentation

8/13/2019 CSR in ASEAN Presentation

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Corporate Social Responsibility

in ASEAN

LCF CSR CONFERENCE 2008Manila, Philippines

16-18 July 2008

Presented by:

Dr. Filemon A. Uriarte, Jr.Executive Director

ASEAN Foundation


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Corporate Social Responsibility in ASEAN

ASEAN FOUNDATION

ASEAN Member

Countries

Brunei Darussalam

Cambodia

Indonesia

Laos

Malaysia

Myanmar

PhilippinesSingapore

Thailand

Viet Nam


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ASEAN FOUNDATION

CountryLand

(1,000 km2)Population (million)

2006

Brunei Darussalam 5.8 0.383

Cambodia 181 14.2

Indonesia 1,891 222

Lao PDR 237 5.75

Malaysia 330 26.6

Myanmar 677 57.2

Philippines 300 87.1Singapore 0.7 4.48

Thailand 513 62.8

Vietnam 329 84.2

Area and Population


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ASEAN FOUNDATION

Economic Performance

CountryGDP per capita

(in USD) 2006GDP total

(in billion USD) 2006

Brunei Darussalam 30,159 11.55

Cambodia 512 7.26

Indonesia 1,640 364

Lao PDR 613 3.52

Malaysia 5,890 156.9

Myanmar 208 11.95

Philippines 1,356 118.1

Singapore 29,500 132.3

Thailand 3,289 207

Vietnam 724 61


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ASEAN FOUNDATION

The ASEAN Foundation

Established by the ASEAN Leaders on 15 Dec

1997 during the ASEAN 30thCommemorative

Summit in Malaysia.

The MOU was signed by the ASEAN Foreign

Ministers

The MOU was revised in July 2000 and

ratified by all tenmember countries

in July 2007


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ASEAN FOUNDATION

Our Mission

To promote greater awareness of

ASEAN, and greater interaction among

the peoples of ASEAN, as well as their

wider participation in ASEAN activitiesthrough human resources development

To contribute to the evolution of a

development cooperation strategy that

promotes mutual assistance, equitableeconomic development and the alleviation

of poverty.


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ASEAN FOUNDATION

Corpo rate Social Respons ibi l i ty in the APEC Region:Current Status and Impl icat ions

Asia Pacific Economic Cooperation, December 2005

Corpo rate Social Respon sibi l i ty in Indonesia

United Nations Research Institute for Social Development,December 2001

Corpo rate Social Respons ibi l i ty: The Indonesian Context

Edward Manik, Frontier, June 2008

Corpo rate Social Respon sibi l i ty in Asia

J. L. Gonzales III, Golden Gate University, August 2005


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ASEAN FOUNDATION

Similarities across Asia-Pacific countries

Origins and conceptualization of CSR are rooted in

historical and cultural traditions of each country and

deeply influenced by ethical concepts and religious

practice.

CSR is gradually moving from its historical focus on

business philanthropy to a broader set of activities that

integrate the practice of CSR into the core strategy ofthe organization.


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ASEAN FOUNDATION

Efforts at measurement and reporting are growingrapidly in the belief that formal monitoring and evaluationof outcomes will enhance credibility of CSR and make iteasier to substantiate.

CSR has evolved in response to profound externalforces such as meeting regulatory obligations andresponding to public opinions that demand higherstandards of accountability.

Larger companies are increasingly turning topartnerships with other stakeholders in implementingCSR activities.

Similarities across Asia-Pacific countries


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ASEAN FOUNDATION

Patterns of CSR activities in developed

economies:

Great emphasis on the importance of

environmental stewardship and strengthening

of environmental management practices.

Strong and active civil society involvement.

An important driver is the management ofsupply chain often in response to well-

articulated consumer concerns.


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ASEAN FOUNDATION

Patterns of CSR activities in developedeconomies:

Strong traditions of community outreach

including corporate community investmentthat extends beyond charity.

Companies are increasingly engaged in

strategic partnerships with stakeholders withincommunities in which they operate.


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ASEAN FOUNDATION

Major Challenges:Appropriate responses to globalization.

Identification and addressing gaps in CSR

practices.

Development of common standards of good

practice throughout the supply chain.

Assurance of exemplary corporate behaviorworldwide.


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ASEAN FOUNDATION

Patterns of CSR practices in developing

economies:

Emphasis on the role of multinational

enterprises in importing good CSR practices,

which are emulated by local corporatecommunity.

Key drivers are the requirements of the global

marketplace and their supply chains. Tendency for global protocols to influence

CSR practices.


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ASEAN FOUNDATION

Major challenges

Raising further awareness of CSR.

Building capacities within existing institutions

to drive adoption of CSR.

Making the case to the local business

community to adopt CSR.

Transferring competencies to individualcompanies.


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ASEAN FOUNDATION

Indonesia

State of CSR is still in early stages but

development indicates encouraging signs.

Concept of social responsibility imbeddedin Indonesian culture (gotong royong).

Promotion of CSR has been marked with

initiatives in both government and privatesectors.


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ASEAN FOUNDATION

Indonesia

Most companies in compliance stage

where they adopt policy-based compliance

as a cost of doing business.

Some have reached the managerial stage

where they embed societal issues in their

core management process.

A few in strategic stagewhere companiesintegrate societal issues in their core

business strategies.


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ASEAN FOUNDATION

Philippines

Birth of CSR concept and its initial practice

can be traced back to 1950s.

Market forces have been the major drivers of

CSR behavior.

Persistent social problems are the main

challenges to sustaining commitment to andmaking resources available for CSR.


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ASEAN FOUNDATION

Philippines

Most CSR efforts are philanthropic in naturewith education and health being the mainrecipients.

Growing internal expressions of CSR linked tooperations of the organization with companiespromoting employee involvement.

Leaders who play significant role in CSR arethe principal agents for the CSR promotionstrategy.

l b l


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ASEAN FOUNDATION

Singapore

Development of CSR is influenced by countrysunique characteristics as a city state that has

achieved economic success where governmentremains a key architect of the economy and hasconsiderable influence over corporate behavior.

Government-centric approach influences CSR

strategies with much emphasis on compliance withlegislative requirements as a means of achievingand regulating socially responsible behavior.

C S l R b l ASEAN


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ASEAN FOUNDATION

Thailand Practice of CSR is at its early stages of

development substantially influenced by religious

beliefs and traditional norms of ethical practice.

Full integration of CSR into business

management at the strategic level is not yet

widely evident reflecting insufficient commitmentby top management and the general perception

that CSR is primarily business philanthropy.

C S i l R ibili i ASEAN


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ASEAN FOUNDATION

Thailand Engagement with NGOs deals with sound

environmental practices and social development

while engagement with government emphasizescompliance with environmental, health, labor and

safety standards.

The CSR challenges include narrow perception of

CSR by many leaders, threat of economic

downturn, and negative perceptions that of CSR

standards as a form of trade barrier.

C t S i l R ibilit i ASEAN


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ASEAN FOUNDATION

Vietnam

CSR activities are regulated and supervised by

the government and corporate social policies

observe state regulations as outlined in the

companies annual plans.

CSR thrust includes meeting requirements of

import partners, avoiding conflicts with locallabor and to some extent philanthropy.

C t S i l R ibilit i ASEAN


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ASEAN FOUNDATION

Enterprises and government are the mainplayers for promoting CSR where enterprises

determine the success of CSR andgovernment promulgates policies andsupervises implementation.

The main challenge is to raise the level of

awareness of CSR since consumers havelimited appreciation of CSR and do not relateit with social concerns.

Vietnam



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ASEAN FOUNDATION

1. Do CSR and voluntary initiatives havethe capacity to change how TNCs

really behave in their day-to-day

operations?2. At this stage of its development, and

in the context of the latest crisis, is

CSR relevant to Indonesia?

Repo rt on Corpo rate Social Responsibi l i ty in Indonesia,

UN Research Ins ti tut e for Soc ial Development (Dec 2001)



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ASEAN FOUNDATION

Repo rt on Corporate Social Respons ibi l i ty in Indonesia,

UN Research Ins ti tut e for Soc ial Development (Dec 2001)

Do CSR and voluntary initiatives have the

capacity to change how TNCs really behave

in their day-to-day operations?

While it is fair to say that CSR makes a positive

contribution to the human rights of those

working in TNCs, it is also fair to say that it only

makes a difference to those few corporations

targeted by consumers or who are already

thinking ethically and responsibly. Otherindustries are not under such pressure.



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ASEAN FOUNDATION

Report o n Corp orate Social Respons ibi l i ty in Indonesia,

UN Research Ins ti tu te for Social Development (Dec 2001)

At this stage of its development, and in the

context of the latest crisis, is CSR relevant

to Indonesia?

Indonesia may be able to benefit from CSR, but

it cannot rely on CSR to solve issues of

exploitation, environmental devastation and

poor labor standards, particularly when

Western finance corporations are impervious to

environmental or labor rights lobbying andcommunity outrage.



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ASEAN FOUNDATION

Edward Manik, Corporate Social Responsibility:

The Indonesian Context, Frontier, June 2008

In Indonesia, there is a continuing controversy over

the inclusion of CSR under Law No. 40 of 2007 onLimited Liability Companies, Article 74, paragraph 1

that states:

Companies doing business in and/or in

relat ion to natura l resou rces must pu t into

pract ice soc ial and env ironmental

responsibility

This provision is opposed by many corporations.



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ASEAN FOUNDATION

Corporate Social Responsibility in AsiaDr. J.L. Gonzales III, Professor in Golden Gate University (Aug 2005)

Three major conclusions:

A profitable or competitive business climate and

wealth accumulation are necessarypreconditions to initiate CSR.

CSR culture in Asian business derives from

spiritual and philosophical underpinnings.

CSR requires a legal framework that promotes

openness, partnerships and democratization.



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ASEAN FOUNDATION

If ones actions are motivated only by

profit, one will have many enemies.- Confucius



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p p y

ASEAN FOUNDATION

Look back at your business and life, attheir end, and honestly say that theyears of doing business have had some

meaning. We should be able to look back

and see that we have conductedourselves and our business in a way thathad some lasting meaning and which left

some good mark on the world.

-Buddha



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p p y

ASEAN FOUNDATION

A good name is to be chosen rather thangreat riches, and favor is better thansilver or gold. The rich and the poorhave this in common, the Lord is the

maker of them all.

- Bible Book of Proverbs

csr in asean presentation

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