May 19, 2013
4 May 2010
President of the Thai Appraisal Foundation ,Director Thai Real Estate Business School
The Transparency International – Malaysia suggested all companies adhere to the 10 points of the UN Global Compact, which focuses on four key areas - human rights protection, appropriate measures on labour, environment, and anti-corruption.
CSR and business value
Consumers worldwide are pressuring enterprises to unveil their CSR programmes, something that demonstrates concrete results. They must portray transparent operations and straightforward communications. CSR is the way they are showing responsibility, not something like a "tip" to consumers.
Marketing Journal's May 2007 edition showed that half of workers today declined jobs at unwanted companies and two thirds of surveyed workers preferred to work with companies famous for their ethics. Thus CSR presents some business value in this regard.
A bank in Scotland, though promoting itself as an environment supporter, recently fell under rehabilitation.
In Malaysia, YTL Group, a coal-fired power plant operator, also advertised its CSR and the Green rating. In the Philippines Quezon Power, another coal-fired power plant operator, also promotes its CSR activities.
Notably, most companies of which operations are quite harmful to the environment love to publicise their donations. They are also inclined to befriend NGO and the press, hoping that these should help soften bad publicity if anything goes wrong.
Remarkable social benefits
Volunteering is not a core of CSR, but it is part of social benefits. In the Philippines, the League of Corporate Foundation was set up with 70 private and social units. In 2007, it mobilised funds of Bt4.27 billion and this was used to finance education for the youngsters. Notably, in the country, illiterate population accounted for 9.2 million (10 per cent).
Volunteering could improve the image and help ensure marketing success.
Airlines are trying hard to cut carbon emission, though air travelling increase carbon dioxide by only 2 per cent - the lowest compared to other modes of transportation. However, the action to mitigate global warming could boost their image.
CSR should be incorporated into the corporate culture. This requires support from chief executive officers. "A good CSR needs a good leader," an expert said. With the leader, there are followers. CSR must be natural in nature, when all employees are encouraged to make good deeds with available resources. All employees can contribute to the CSR. For example, those in the consumer product business should first focus on value for money. Those in the service sector should ensure clients of best quality.
Employees should be updated on CSR and continually encouraged to join the company's projects. The companies should also come with clear plans, and this will lead to sustainability.
How? Follow these steps:
1. Define ethical standards for all employees
2. Extensive training
3. Regular flow of internal communications
4. Reveal results promptly through the online channel or the intranet
5. Put in place measures to ensure uninterrupted implementation
6. Reward employees who support the CSR culture.
An organisation in Singapore admitted that CSR practices lead to employee's higher responsibility for customers. Employees would also be more loyal to the enterprise and this would later draw talented resources to the enterprise and reduce business risks.
Suppliers could also help and many enterprises have extended the knowledge to their suppliers. Meanwhile, communities and society should also be updated on corporate CSR. They should be educated that all enterprises are responsible for all stakeholders.
For success, communications are important. We need extensive and efficient communications to ensure the successful implementation of CSR practices. Communications with the outside world is also important, or all of your achievements will go unnoticed. Yet, beware that all need a good CSR report. In the report, there should be concrete plans and ways to evaluate the success. CERES-ACCA North American gives 40 per cent points to details, 35 per cent to the reliability of the plan, and 25 per cent to the clarity.
The Japanese government, under its grant assistance for grassroots human security projects scheme (GGP), is providing Bt1.88 million for waste-management centres and promoting waste recycling in Samokhae sub-district in the Muang district of Phitsanulok province.
Richard Abela, country president of Novartis (Thailand) has donated Bt473,000 to the Pattaya Redemptorist School for the Blind, under the patronage of HRH Princess Maha Chakri Sirindhorn.
General Motors vice president of global manufacturing and president of international operations Tim Lee recently joined GM Southeast Asia president Martin Apfel to hand out 130 virtually indestructible footballs to schoolchildren in Chon Buri.