Corporate Social Responsibility in ASEAN LCF CSR CONFERENCE 2008 Manila, Philippines 16-18 July 2008...

Corporate Social Corporate Social Responsibility Responsibility in ASEANin ASEAN

LCF CSR CONFERENCE 2008 LCF CSR CONFERENCE 2008 Manila, PhilippinesManila, Philippines16-18 July 200816-18 July 2008

Presented by:Presented by:

Dr. Filemon A. Uriarte, Jr.Dr. Filemon A. Uriarte, Jr.Executive DirectorExecutive DirectorASEAN FoundationASEAN Foundation

Corporate Social Responsibility in ASEAN

ASEAN FOUNDATION

ASEAN Member Countries

Brunei Darussalam

Cambodia

Indonesia

Laos

Malaysia

Myanmar

Philippines

Singapore

Thailand

Viet Nam


ASEAN FOUNDATION

CountryCountry LandLand(1,000 km(1,000 km22))

Population Population (million) 2006 (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 87.1

Singapore 0.7 4.48

Thailand 513 62.8

Vietnam 329 84.2

Area and PopulationArea and Population


ASEAN FOUNDATION

Economic PerformanceEconomic Performance

CountryCountry GDP per capita GDP per capita (in USD) 2006(in USD) 2006

GDP total GDP total (in billion USD) (in billion USD)

20062006

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


ASEAN FOUNDATION

The ASEAN FoundationThe ASEAN Foundation

Established by the ASEAN Leaders on 15 Dec Established by the ASEAN Leaders on 15 Dec 1997 during the ASEAN 301997 during the ASEAN 30thth Commemorative Commemorative Summit in Malaysia. Summit in Malaysia.

The MOU was signed by the ASEAN Foreign The MOU was signed by the ASEAN Foreign MinistersMinisters

The MOU was revised in July 2000 and The MOU was revised in July 2000 and ratified by all ten ratified by all ten member countries member countries in July 2007in July 2007


ASEAN FOUNDATION

Our MissionOur Mission To promote greater awareness of To promote greater awareness of

ASEAN, and greater interaction among ASEAN, and greater interaction among the peoples of ASEAN, as well as their the peoples of ASEAN, as well as their wider participation in ASEAN activities wider participation in ASEAN activities through human resources development through human resources development

To contribute to the evolution of a To contribute to the evolution of a development cooperation strategy that development cooperation strategy that promotes mutual assistance, equitable promotes mutual assistance, equitable economic development and the alleviation economic development and the alleviation of poverty. of poverty.


ASEAN FOUNDATION

Corporate Social Responsibility in the APEC Region: Corporate Social Responsibility in the APEC Region: Current Status and ImplicationsCurrent Status and ImplicationsAsia Pacific Economic Cooperation, December 2005Asia Pacific Economic Cooperation, December 2005

Corporate Social Responsibility in IndonesiaCorporate Social Responsibility in IndonesiaUnited Nations Research Institute for Social Development, United Nations Research Institute for Social Development, December 2001December 2001

Corporate Social Responsibility: The Indonesian ContextCorporate Social Responsibility: The Indonesian ContextEdward Manik, Frontier, June 2008Edward Manik, Frontier, June 2008

Corporate Social Responsibility in AsiaCorporate Social Responsibility in AsiaJ. L. Gonzales III, Golden Gate University, August 2005J. L. Gonzales III, Golden Gate University, August 2005


ASEAN FOUNDATION

Similarities across Asia-Pacific Similarities across Asia-Pacific countriescountries

Origins and conceptualization of CSR are rooted in Origins and conceptualization of CSR are rooted in historical and cultural traditions of each country and historical and cultural traditions of each country and deeply influenced by ethical concepts and religious deeply influenced by ethical concepts and religious practice.practice.

CSR is gradually moving from its historical focus on CSR is gradually moving from its historical focus on business philanthropy to a broader set of activities that business philanthropy to a broader set of activities that integrate the practice of CSR into the core strategy of integrate the practice of CSR into the core strategy of the organization.the organization.


ASEAN FOUNDATION

Efforts at measurement and reporting are growing Efforts at measurement and reporting are growing rapidly in the belief that formal monitoring and evaluation rapidly in the belief that formal monitoring and evaluation of outcomes will enhance credibility of CSR and make it of outcomes will enhance credibility of CSR and make it easier to substantiate.easier to substantiate.

CSR has evolved in response to profound external CSR has evolved in response to profound external forces such as meeting regulatory obligations and forces such as meeting regulatory obligations and responding to public opinions that demand higher responding to public opinions that demand higher standards of accountability.standards of accountability.

Larger companies are increasingly turning to Larger companies are increasingly turning to partnerships with other stakeholders in implementing partnerships with other stakeholders in implementing CSR activities.CSR activities.

Similarities across Asia-Pacific Similarities across Asia-Pacific countriescountries


ASEAN FOUNDATION

Patterns of CSR activities in developed Patterns of CSR activities in developed economies:economies:

Great emphasis on the importance of Great emphasis on the importance of environmental stewardship and strengthening environmental stewardship and strengthening of environmental management practices.of environmental management practices.

Strong and active civil society involvement. Strong and active civil society involvement.

An important driver is the management of An important driver is the management of supply chain often in response to well-supply chain often in response to well-articulated consumer concerns.articulated consumer concerns.


ASEAN FOUNDATION

Patterns of CSR activities in developed Patterns of CSR activities in developed economies:economies:

Strong traditions of community outreach Strong traditions of community outreach including corporate community investment including corporate community investment that extends beyond charity. that extends beyond charity.

Companies are increasingly engaged in Companies are increasingly engaged in strategic partnerships with stakeholders within strategic partnerships with stakeholders within communities in which they operate. communities in which they operate.


ASEAN FOUNDATION

Major Challenges:Major Challenges:

Appropriate responses to globalization.Appropriate responses to globalization.

Identification and addressing gaps in CSR Identification and addressing gaps in CSR practices.practices.

Development of common standards of good Development of common standards of good practice throughout the supply chain.practice throughout the supply chain.

Assurance of exemplary corporate behavior Assurance of exemplary corporate behavior worldwide.worldwide.


ASEAN FOUNDATION

Patterns of CSR practices in developing Patterns of CSR practices in developing economies:economies:

Emphasis on the role of multinational Emphasis on the role of multinational enterprises in importing good CSR practices, enterprises in importing good CSR practices, which are emulated by local corporate which are emulated by local corporate community.community.

Key drivers are the requirements of the global Key drivers are the requirements of the global marketplace and their supply chains.marketplace and their supply chains.

Tendency for global protocols to influence Tendency for global protocols to influence CSR practices.CSR practices.


ASEAN FOUNDATION

Major challengesMajor challenges

Raising further awareness of CSR.Raising further awareness of CSR. Building capacities within existing institutions Building capacities within existing institutions

to drive adoption of CSR.to drive adoption of CSR. Making the case to the local business Making the case to the local business

community to adopt CSR.community to adopt CSR. Transferring competencies to individual Transferring competencies to individual

companies.companies.


ASEAN FOUNDATION

IndonesiaIndonesia

State of CSR is still in early stages but State of CSR is still in early stages but development indicates encouraging signs.development indicates encouraging signs.

Concept of social responsibility imbedded Concept of social responsibility imbedded in Indonesian culture (gotong royong).in Indonesian culture (gotong royong).

Promotion of CSR has been marked with Promotion of CSR has been marked with initiatives in both government and private initiatives in both government and private sectors.sectors.


ASEAN FOUNDATION

IndonesiaIndonesia Most companies in Most companies in “compliance stage” “compliance stage”

where they adopt policy-based compliance where they adopt policy-based compliance as a cost of doing business. as a cost of doing business.

Some have reached the Some have reached the “managerial stage”“managerial stage” where they embed societal issues in their where they embed societal issues in their core management process.core management process.

A few in A few in “strategic stage”“strategic stage” where companies where companies integrate societal issues in their core integrate societal issues in their core business strategies.business strategies.


ASEAN FOUNDATION

PhilippinesPhilippines

Birth of CSR concept and its initial practice Birth of CSR concept and its initial practice can be traced back to 1950s.can be traced back to 1950s.

Market forces have been the major drivers of Market forces have been the major drivers of CSR behavior.CSR behavior.

Persistent social problems are the main Persistent social problems are the main challenges to sustaining commitment to and challenges to sustaining commitment to and making resources available for CSR.making resources available for CSR.


ASEAN FOUNDATION

PhilippinesPhilippines

Most CSR efforts are philanthropic in nature Most CSR efforts are philanthropic in nature with education and health being the main with education and health being the main recipients.recipients.

Growing internal expressions of CSR linked to Growing internal expressions of CSR linked to operations of the organization with companies operations of the organization with companies promoting employee involvement. promoting employee involvement.

Leaders who play significant role in CSR are Leaders who play significant role in CSR are the principal agents for the CSR promotion the principal agents for the CSR promotion strategy.strategy.


ASEAN FOUNDATION

SingaporeSingapore

Development of CSR is influenced by country’s Development of CSR is influenced by country’s unique characteristics as a city state that has unique characteristics as a city state that has achieved economic success where government achieved economic success where government remains a key architect of the economy and has remains a key architect of the economy and has considerable influence over corporate behavior.considerable influence over corporate behavior.

Government-centric approach influences CSR Government-centric approach influences CSR strategies with much emphasis on compliance with strategies with much emphasis on compliance with legislative requirements as a means of achieving legislative requirements as a means of achieving and regulating socially responsible behavior.and regulating socially responsible behavior.


ASEAN FOUNDATION

ThailandThailand

Practice of CSR is at its early stages of Practice of CSR is at its early stages of development substantially influenced by religious development substantially influenced by religious beliefs and traditional norms of ethical practice.beliefs and traditional norms of ethical practice.

Full integration of CSR into business Full integration of CSR into business management at the strategic level is not yet management at the strategic level is not yet widely evident reflecting insufficient commitment widely evident reflecting insufficient commitment by top management and the general perception by top management and the general perception that CSR is primarily business philanthropy.that CSR is primarily business philanthropy.


ASEAN FOUNDATION

ThailandThailand

Engagement with NGOs deals with sound Engagement with NGOs deals with sound environmental practices and social development environmental practices and social development while engagement with government emphasizes while engagement with government emphasizes compliance with environmental, health, labor and compliance with environmental, health, labor and safety standards. safety standards.

The CSR challenges include narrow perception of The CSR challenges include narrow perception of CSR by many leaders, threat of economic CSR by many leaders, threat of economic downturn, and negative perceptions that of CSR downturn, and negative perceptions that of CSR standards as a form of trade barrier.standards as a form of trade barrier.


ASEAN FOUNDATION

VietnamVietnam

CSR activities are regulated and supervised by CSR activities are regulated and supervised by the government and corporate social policies the government and corporate social policies observe state regulations as outlined in the observe state regulations as outlined in the companies’ annual plans. companies’ annual plans.

CSR thrust includes meeting requirements of CSR thrust includes meeting requirements of import partners, avoiding conflicts with local import partners, avoiding conflicts with local labor and to some extent philanthropy. labor and to some extent philanthropy.


ASEAN FOUNDATION

Enterprises and government are the main Enterprises and government are the main players for promoting CSR where enterprises players for promoting CSR where enterprises determine the success of CSR and determine the success of CSR and government promulgates policies and government promulgates policies and supervises implementation.supervises implementation.

The main challenge is to raise the level of The main challenge is to raise the level of awareness of CSR since consumers have awareness of CSR since consumers have limited appreciation of CSR and do not relate limited appreciation of CSR and do not relate it with social concerns.it with social concerns.

VietnamVietnam


ASEAN FOUNDATION

1.1. Do CSR and voluntary initiatives have Do CSR and voluntary initiatives have the capacity to change how TNCs the capacity to change how TNCs really behave in their day-to-day really behave in their day-to-day operations?operations?

2.2. At this stage of its development, and At this stage of its development, and in the context of the latest crisis, is in the context of the latest crisis, is CSR relevant to Indonesia?CSR relevant to Indonesia?

Report on Corporate Social Responsibility in Indonesia, Report on Corporate Social Responsibility in Indonesia, UN Research Institute for Social Development (Dec 2001)UN Research Institute for Social Development (Dec 2001)


ASEAN FOUNDATION


Do CSR and voluntary initiatives have the Do CSR and voluntary initiatives have the capacity to change how TNCs really behave capacity to change how TNCs really behave in their day-to-day operations?in their day-to-day operations?

While it is fair to say that CSR makes a positive While it is fair to say that CSR makes a positive contribution to the human rights of those contribution to the human rights of those working in TNCs, it is also fair to say that it only working in TNCs, it is also fair to say that it only makes a difference to those few corporations makes a difference to those few corporations targeted by consumers or who are already targeted by consumers or who are already thinking ethically and responsibly. Other thinking ethically and responsibly. Other industries are not under such pressure.industries are not under such pressure.


ASEAN FOUNDATION


At this stage of its development, and in the At this stage of its development, and in the context of the latest crisis, is CSR relevant context of the latest crisis, is CSR relevant to Indonesia?to Indonesia?

Indonesia may be able to benefit from CSR, but Indonesia may be able to benefit from CSR, but it cannot rely on CSR to solve issues of it cannot rely on CSR to solve issues of exploitation, environmental devastation and exploitation, environmental devastation and poor labor standards, particularly when poor labor standards, particularly when Western finance corporations are impervious to Western finance corporations are impervious to environmental or labor rights lobbying and environmental or labor rights lobbying and community outrage. community outrage.


ASEAN FOUNDATION

Edward Manik, “Corporate Social Responsibility: Edward Manik, “Corporate Social Responsibility: The Indonesian Context”, Frontier, June 2008The Indonesian Context”, Frontier, June 2008

In Indonesia, there is a continuing controversy over In Indonesia, there is a continuing controversy over the inclusion of CSR under Law No. 40 of 2007 on the inclusion of CSR under Law No. 40 of 2007 on Limited Liability Companies, Article 74, paragraph 1 Limited Liability Companies, Article 74, paragraph 1 that states:that states:

““Companies doing business in and/or in Companies doing business in and/or in relation to natural resources must put into relation to natural resources must put into practice social and environmental practice social and environmental responsibility”responsibility”

This provision is opposed by many corporations.This provision is opposed by many corporations.


ASEAN FOUNDATION

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

Three major conclusions:Three major conclusions: A profitable or competitive business climate and A profitable or competitive business climate and

wealth accumulation are necessary wealth accumulation are necessary preconditions to initiate CSR.preconditions to initiate CSR.

CSR culture in Asian business derives from CSR culture in Asian business derives from spiritual and philosophical underpinnings.spiritual and philosophical underpinnings.

CSR requires a legal framework that promotes CSR requires a legal framework that promotes openness, partnerships and democratization.openness, partnerships and democratization.


ASEAN FOUNDATION

If one’s actions are motivated If one’s actions are motivated only by profit, one will have only by profit, one will have

many enemies. many enemies.

- Confucius- Confucius


ASEAN FOUNDATION

Look back at your business and Look back at your business and life, at their end, and honestly say life, at their end, and honestly say that the years of doing business that the years of doing business

have had some meaning. We have had some meaning. We should be able to look back and should be able to look back and

see that we have conducted see that we have conducted ourselves and our business in a ourselves and our business in a

way that had some lasting way that had some lasting meaning and which left some good meaning and which left some good

mark on the world.mark on the world.

-Buddha-Buddha


ASEAN FOUNDATION

A good name is to be chosen A good name is to be chosen rather than great riches, and rather than great riches, and

favor is better than silver or gold. favor is better than silver or gold. The rich and the poor have this in The rich and the poor have this in common, the Lord is the maker of common, the Lord is the maker of

them all.them all.

- Bible Book of Proverbs- Bible Book of Proverbs

Corporate Social Responsibility in ASEAN LCF CSR CONFERENCE 2008 Manila, Philippines 16-18 July 2008...

Documents

Transcript of Corporate Social Responsibility in ASEAN LCF CSR CONFERENCE 2008 Manila, Philippines 16-18 July 2008...