csr in asean presentation
TRANSCRIPT
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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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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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Corporate Social Responsibility in ASEAN
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
Corporate Social Responsibility in ASEAN
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Corporate Social Responsibility in ASEAN
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)
Corporate Social Responsibility in ASEAN
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Corporate Social Responsibility in ASEAN
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.
Corporate Social Responsibility in ASEAN
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Corporate Social Responsibility in ASEAN
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.
Corporate Social Responsibility in ASEAN
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Corporate Social Responsibility in ASEAN
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.
Corporate Social Responsibility in ASEAN
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Corporate Social Responsibility in ASEAN
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.
Corporate Social Responsibility in ASEAN
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Corporate Social Responsibility in ASEAN
ASEAN FOUNDATION
If ones actions are motivated only by
profit, one will have many enemies.- Confucius
Corporate Social Responsibility in ASEAN
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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
Corporate Social Responsibility in ASEAN
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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