Beruflich Dokumente
Kultur Dokumente
NAKARIN PANTHONG
………….……………………………………………………..
(Associate Professor Rosechongporn Komolsevin, Ph.D.)
Advisor
………….……………………………………………………..
(Srisuda Chongsithiphol, D.B.A.)
Director, Bangkok Academic center
Naresuan University
May 2010
ACKNOWLEDGEMENT
Completion of this research would not have been possible without the support
and understanding of various people. I would like to express my sincere gratitude and
appreciation to my advisor Dr. Rosechongporn Komolsevin for her valuable advice,
kind supervision, attention, constant guidance and support throughout the course of
this study. Her experience in research, encouragement provides me necessary ways
and confidence to carry out and complete this study.
I would also like to state my special appreciation to my colleagues in The
Dow Chemical Company and SCGcc-ccDOW Group for their valuable comments and
useful suggestions during the implementation process of this study.
Lastly, my family has been very encouraging and tolerant of me while this
research was being undertaken.
.
Nakarin Panthong
Title THE COMMUNITY PERCEPTION ON CSR ACTIVITIES
OF CHEMICAL INDUSTRY IN MAPTAPHUT
INDUSTRIAL ESTSTE
Authors Nakarin Panthong
Advisor Associate Professor Rosechongporn Komolsevin, Ph.D.
Academic Paper Independent Study M.B.A. in Business Administration
ABSTRACT
Chapter Page
I INTRODUCTION…………………...……............….…………….. 1
Background of the Study....…….……………...........…...…….… 1
Rationale for the Study………...……….....…...........……...……. 2
Statement of the Problem………....................….……..………... 3
Research Questions……........................…………………..…….… 4
Purposes of the Study…………..…….........…….......…...…….… 4
Significance of the Study…………..…….........…….......…….… 5
Scope of the Study …………..……............................……......... 5
Definition of Terms…………..……............................…….......... 5
Conceptual Framework…........................……...........…...…….… 6
II LITERATURE REVIEW…………………..…………………… 7
Corporate Social Responsibility……………..................…….… 7
Corporate Conduct.……......................………...........…...…….… 14
Perception………………..……….................................…...…….… 17
Conclusion……………..………....................................…...…….… 20
Chapter Page
IV RESULTS.............….…............................................................…… 26
Summary of demographic data by using descriptive
cccstatistics ……………..............………………...........…...…….… 26
Analysis of the type of CSR activities….........………............. 29
Analysis of the community perception on CSR activities ….. 31
Analysis of the community perception on the best approach
cccof CSR activities …................................................................ 32
Hypothesis Testing…................................................................... 35
V CONCLUSION.............….….................................................…… 38
Conclusion…………….......….............................................…….… 38
Discussion…………….......….............................................…….… 40
Limitation of the Study..............………………...........…...…….… 41
Recommendation…………….......….............................................. 41
REFERENCES.................................................................................................. 45
APPENDIX.......................................................................................................... 51
BIOGRAPHY…………………………………......…………….............................. 58
LIST OF TABLES
Table Page
1 Gender of respondents…………………………......….........….....… 26
2 Age of respondents …...........................................…...…....……... 27
3 Education of respondents …………..….….......….......….….......… 27
4 Occupation of respondents....……..................…………….…........ 28
5 Monthly income of respondents ……...........................….……… 28
6 Relationship between CSR activities and community
cccperception about community support dimension..................... 35
7 Relationship between CSR activities and community
cccperception about environmental support dimension........…. 36
8 Relationship between CSR activities and the best approach
cccperception about community support dimension...……….... 37
9 Relationship between CSR activities and the best approach
cccperception about environmental support dimension ........... 37
LIST OF FIGURES
Figures Page
1 Conceptual Framework.….....….................................................….. 6
2 The Pyramid of Corporate Social Responsibility......................... 10
3 Respondent’s perception of type of CSR activities received
cccfrom Chemical Industry.............................................................. 30
4 Respondents type of CSR activities received from Chemical
cccIndustry in Community….............................................……….. 32
5 Respondents of community perception on the best approach
cccof CSR activities.....................................................................… 34
1
CHAPTER I
INTRODUCTION
2007, p. 383). More importantly, it can promote people in related communities to have
better life. However, doing business and providing ethical management are
significantly influenced by the community where the enterprises or firms are located
(Smith & Oakley, as cited in Besser and Miller, 2001, p. 224).
example, companies such as PTT Public Company and Siam Cement Groups claimed
that they have invested a lot of money on CSR activities such as helping communities
affected by chemical manufacturing, as well as funding to the impacted communities.
However, the real CSR must be employed to form positive relationship between the
company and the communities. Moreover, CSR also enables the companies to initiate
the effective program and strategy to prevent the environment pollution and can help
community in various ways. Since Map Ta Phut industrial estate consists of many
chemical firms producing pollutions that affect the surrounding communities, and that
leading to public dissatisfaction, it is interesting, therefore, to study about the types of
CSR policy and strategies that might increase the firm’s image in Map Ta Phut
industrial estate.
At present, the companies in Map Ta Phut industrial estate zone have so far
performed a variety of CSR activities; some donate funds to support communities,
while others aim to preserve the environment (environmental support dimension). As
a result, the type of activities may vary according to the perception of the
communities. In this case, their perception may vary according to the types of CSR
performed in their communities. This study, therefore, aims specificallyccto
investigate the type of CSR activities currently performed by the chemical
business in Map Ta Phut, the community’s perception about activities, as well as the
best approach of CSR activities to be employed by the chemical business in
Map Ta Phut Industrial Estate.
Research Questions
RQ1: What are the CSR activities currently employed by the chemical
business in Map Ta Phut?
RQ2: What are the perceived of CSR activities caused by chemical business?
RQ3: What should be the best approach of CSR activities of chemical
business in Map Ta Phut Industrial Estate?
Definition of Terms
Corporate social responsibility (CSR)
The activity of the company in Map Ta Phut Industrial Estate benefits the
society or the people who live in Rayong province. It is the policy of organization to
help the society by support in part the environment, education, social aspects.
The CSR activities consist of 2 dimension which are environmental and
community support.
1.ccEnvironmental support means the activities that the chemical companies
have been doing to support and help the environment surrounding Map Ta Phut areas
such as using technology to alleviate pollution problems.
6
Conceptual Framework
Figurecc1ccConceptual Framework
CHAPTER II
LITERATURE REVIEW
This chapter presents the concept, theory and research related to the research
topic "Community Opinion on CSR Image of Chemical Industry in Map Ta Phut
Industrial Estate" as follows:
Corporate Social Responsibility
-ccAspects of Corporate Social Responsibility
-ccLevel of Corporate Social Responsibility engagement
-ccLegal of Corporate Social Responsibility
-ccBenefits of Corporate Social Responsibility
Corporate Conduct
-ccCorporate Social Conduct
-ccCorporate Contribution Conduct
-ccCorporate Business Conduct
Perception
-ccCommunity Perception
-ccEnvironment Perception
citizenship, corporate accountability and sustainability. To BSR, all these terms mean
“achieving commercial success in ways that honors ethical values and respect people,
communities, and the natural environment.” According to BSR, socially responsible
firms look at CSR comprehensively and will address various CSR ‘issues’ such as (i)
business ethics, (ii) community Investment, (iii) the environment, (iv) governance, and
accountability, (v) human rights, (vi) marketplace perception and reaction to business
behaviors, and (vii) workplace policies and practices. BSR also emphasizes that firms
will gain from their socially responsible actions.
The International Business Leaders Forum (IBLF) defines CSR as “open and
transparent business practices that are based on ethical values and respect for
employees, communities and the environment. It is designed to deliver sustainable
value to society at large, as well as to shareholders.” IBLF acknowledges that CSR is a
very broad, complex as well as challenging topic. According to IBLF, CSR includes
‘themes’ such as (i) human rights, labors and security, (ii) enterprise and economic
development, (iii) business standards and governance, (iv) health promotion, (v)
education and leadership development (vi) human disaster relief, and (vii) the
environment. All these ‘themes’ need to be addressed with specific management tools
kit in order to ensure that firms will reap the benefits of being socially responsible.
Kotler and Lee (2005) define corporate social responsibilities as “a
commitment to improve community wellcc-ccbeing through discretionary, business
practices and contribution of corporate resources. Corporate social initiatives and
major activities undertaken by a corporation to support social causes and to fulfill
commitments to corporate social responsibility”
Most of the definitions relate to community development, improved business
practices, stakeholders, Stakeholders in Europe are strongly interconnected to CSR. In
USA, shareholders play significant role as well. David Norton, company group
chairman of Johnson & Johnson, claimed that his firm had been following CSR
practices for the last 25 years and that shareholders had earned a great return over that
time. In the last ten years this company has received more than 50 of different awards
and recognitions for its business practices. On their web-site the section dedicated to
shareholder service is well-developed and very informative in terms of CSR.
9
Aspects of CSR
Even through Graafland et al. (2004) have determined that there are more
than 60 concrete aspects of CSR activities, as well as numerous more definitions than
the ones discussed above, Balabanis, Phillips and Lyall (1998) have been able to
categorize these into a few main categories. In the 1970s these aspects were
considered to be:
-ccDisclosure of information to shareholders
-ccDisclosure of the board of directors
-ccMonopolistic behavior
-ccEquality of treatment for minorities
-ccProfit sharing
-ccEnvironmental protection
-ccEthics in advertising
-ccSocial impact of technology
However, Balabanis, et al. (1998) state that many of these now are regulated
by law. Due to this, the focus of CSR activities has changed. They have found that
the main focus of companies today lies within the areas of:
-ccEnvironmental protection (e.g. reduction of emissions and waste and the
recycling of materials)
-ccPhilanthropy (donating to charities, etc.)
-ccInvolvement in social causes (involving anything from human rights to
AIDS education)
-ccUrban investment (working with local government to regenerate small
businesses and the inner city environment generally)
-ccEmployee schemes (higher standards of occupational health and safety,
good standard of staff treatment, jobcc-ccsharing, flextime, etc)
Level of CSR engagement
There are many different ways of engaging in CSR. Based on this and the fact
that CSR activities should go above and beyond the law, Branco and Rodrigues (2007)
states that CSR encompasses of four categories: economic, legal, ethical, and
philanthropic. These are presented in “The Pyramid of Corporate Social
Responsibility.”
10
whether CSR benefits the business or not. While some business people and economists
who have personally experienced CSR’s advantage support CSR positively, some
people who have not experienced CSR’s benefit through CSR’s activities do not have
concern of CSR or even act against CSR.
First, CSR can provide a lot of benefits to business because companies can
enhance their brand image and reputation through positive CSR activities. Basically,
most people can easily think that the company is an organization that only pursues
themselves profits, thus having some trouble maintaining a good company reputation
in the capitalist society. It is not easy to keep a good company image without a
specific measure such as CSR in the capitalist societies. Accordingly, every company
tries to seek how to make a great company image. It is a best choice to commit CSR to
enhance company reputation. According to a 2002 survey of Americans conducted by
Cone, Inc., “84 percent of respondents consider a company’s commitment to social
issue when deciding which businesses they wanted in their community, 77 percent
considered social commitment when choosing an employer, and 66 percent factored
social responsibility into their investment decisions” (BSR Staff, 2003a, p 2). Such
survey result exhibits that CSR is a very important factor to improve company image
and that CSR has a great effect on customers, employees, and investors’ choices. In
other words, CSR is directly connected with company profits. Eventually, positive
CSR activities will give a lot of benefits to business through enhancing company
brand image and reputation.
Second, business’s volunteerism which is performed by company members
especially employees gives advantage to corporation through improving employee
skills and training, and encouraging employee teamwork and employees pride about
the company. This is because employees can gain different knowledge, information
and skills through volunteerism programs at various fields. For example, BT Group
PLC (Public Limited Company) found that volunteering and other forms of employee
community involvement helped develop a variety of competencies, including
teamwork, planning and implementation, communication, project management,
listening skills and customer focus (BSR Staff, 2003g, p. 1). Also, volunteerism can
encourage employee teamwork and employee loyalty. Volunteerism commonly forms
team to accomplish tasks. So, employees who take part in volunteerism can experience
13
a lot of teamwork activities. For example, Samsung Group which is one of the best
businesses in South Korea has managed Samsung community Service Team
comprising employers, managers, and employees. Approximately 70,500 Samsung
employees have performed volunteerism at various fields such as social welfare,
protection of environment, education, and cultural art. Usually, volunteers decided
their professional activity field, formed each professional volunteerism team and then,
practiced volunteerism. Samsung employees can experience a lot of teamwork and feel
pride and loyalty about company through participating volunteerism (BSR Staff,
2003g, p.7).ccSuch volunteerism eventually influences work processes and
productivities in company. Consequently, business’s volunteerism will provide many
advantages to business through improving employee skill and teamwork.
Third, CSR offers profit to company through achieving high productivity and
good quality. Corporate environmental responsibility and consideration can improve
productivity and reduce cost.
For example, BSR staff introduced that “waste disposal managers at LA’s
International Airport began looking for creative ways to handle the 19,000 tons of
food scraps produced on their premises each year. They soon formed a pilot program
with a nearby sewage and utility plant to process the scraps through huge digesters and
send the resulting methane on to the utility. The airport now saves $12 a ton in
disposal costs and receives $18 a ton for the energy generated by its scraps. In
addition, the sewage digesters churn out reusable water and a nutrient-rich sludge that
can be sold as fertilizer” (2003c, p. 2).
Also, corporate consideration of workplace can contribute to improve
productivity and quality of goods and services. If a company has consideration for
laborers’ welfare and working environment, employees will work harder to
accomplish high productivity and quality. Accordingly, CSR will offer profit to
business through achieving high productivity and good quality.
Opponents insist that a company’s main obligation is to remain in business
and maximize profits and companies do not need to perform CSR. However,
businesses can never prolong their life alone. Modern businesses are surrounded by
complicated environment. The business has to consider about the community and
society including customers, employees, and investors because they have a great effect
14
on business management and survival. In addition, CSR is one of the very important
business activities for all companies. It is not too much to say that CSR is an essential
factor in business activities. In the 21st century, if a company wants constant
development, the company will strive to perform and develop various CSR activities.
A variety of CSR activities can give numerous advantages to business. Although CSR
has a lot of benefits for company, this concept is not universally valued for companies.
However, if many companies know CSR’s real value, they will invest for CSR and
consider about community and society. Therefore, if businesses want to survive and
develop their organization, they have to consider and invest in CSR actively.
Corporate Conduct
Corporate Social Conduct
The corporate social conduct consists of the codes of conduct, citizenship,
environment, community, and quality of life.
1.ccCodes of conduct
Corporate codes of conduct are explicit statements of a company’s ‘values’
and standards of corporate behavior. Codes vary in content and quality from company
to company, and cover some or all of the following issues: the treatment of workers,
consumer reliability, supply chain management, community impact, environmental
impact, human rights commitments, health and safely, transparency and dealings with
suppliers, and other issues. Some codes are monitored by external verifiers. In many
cases these are large accounting firms such as Ernst and Young or
PricewaterhouseCoopers. This has led to the criticism that monitors will place the
aims of the company, and not the environment or society, at the forefront when
carrying out their assessment. Junya Yimprasert of the Thai Labour Campaign
accuses these monitoring consultancies of ‘turn[ing] workers’ lives into business
opportunities (Junya Yimprasert,2004).
2.ccCitizenship
Corporate citizenship (or corporate social responsibility) program do involve
companies contributing substantial resources to environmental, developmental,
educational and other programmers. Such companies want to be seen as good citizens
but not necessarily held fully accountable for all of the consequences of either the
15
1.ccSchool
The school code of conduct attempts to address several aspects of the lives of
young people within the school environment and provides consequences for
inappropriate actions. It is the view of the Community Safety and Crime Prevention
council that need to more clearly focus on preventative programs. Policies need to
specifically indicate how the consequences for inappropriate behaviors will benefit the
young people in community.
2.ccCharity
A foundation is usually created to promote the public good (not for assistance
to any particular individuals). Charity includes a kindly and lenient attitude toward
people, an activity or gift that benefits the public at large, an organization that collects
money, materials and other voluntary of help for people in need.
Company business conduct
The company business conduct concerns reputation and financial strength.
1.ccReputation
Increasingly, corporations are trading not on products or services but on their
reputations, brand value, ‘goodwill’, and ‘intellectual capital.’ These are termed
‘intangibles’ and have an actual numerical value on the company balance sheet. For
example, 96 % of Coca Cola’s total value is intangibles (MallenBaker.net, 2006), and
an estimated 53 % of the total value of the Fortune 500 companies, worth $24.27
trillion, is made up of intangibles. With 85 % of consumers reporting that they have a
more positive image of a company that is seen to make the world a better place
(Gareth Chadwick,2005), CSR is an essential strategy for ensuring the company’s
reputation.
2.ccFinancial Strength
Financial Strength is an independent opinion, based on a comprehensive
quantitative and qualitative evaluation, of a company’s balance sheet strength,
operating performance and business profile. (Guide to Best’s Financial Strength
Ratings, 2008). For the corporate social responsibility (CSR), the idea of corporations
should be “good corporate citizens” and take responsibility for their social and
environmental performance. Issues of labor and human rights in foreign countries,
environmental pollution and degradation, and diversity are just some of the issues
17
companies face in their daily operations that are subject to scrutiny. There are many
challenges in achieving sustainability for maintaining financial strength. (Green
Strategies, 2003).
Perception
Community Perception
Community is generally defined as a group of people sharing a common
purpose, who are interdependent for the fulfillment of certain needs, which live in
close proximity and interact on a regular basis. There are shared expectation for all
members of the group and responsibility taken from those expectations. The group is
respectful and considerate of the individuality of other persons within the community.
In a community, there is a sense of community which is defined as the feeling of
cooperation, of commitment to the group welfare, of willingness to communicate
openly, and of responsibility to and for others as well as to one’s self. Most
importantly, there exists community leaders who are responsible for the success of any
community event, depending on the needs of the community, and the individual’s own
feeling. The community leaders are individuals who strive to influence others to take
responsibility for their actions, there achievements, and the community welfare.
Corporate Social Responsibility helps to protect environment. Some of the
world’s largest companies have made a highly visible commitment to CSR, for
example, with initiatives aimed at reducing their environmental footprint. These
companies take the view that financial and environmental performance can work
together to drive company growth and social reputation. This attitude can only serve
to enhance the employment value proposition such as interest in “going green” gains
traction (Towers Perrin, 2009). “We green the earth” slogan made by some MNCs in
Malaysia who own large golf areas within the vicinity of residential areas is another
CSR initiative aimed to protect environment. Many noncc-ccprofit organizations have
been involved in learning and advocacy of environmental protection of CSR such as
those reported by the United Nations. They are, for example, a) “Friends of the
Earth” who highlights the environmental impact of some MNCs and compaign for
stronger laws on environmental responsibility; b) “Green Peace mission” is another
18
example of CSR initiative that gives benefit to society and community in preserving
the latter’s rights towards reaping healthy environment.
Environment Perception
The knowledge of how people act and why they act, associated with the
community organization, networks of influence and the intensity and form of
community participation is needed to determine where and how to act, to promote the
participation and cocc-ccresponsibility of all involved in a more appropriate
management of the earth.
The perception involves the selection, identification and encoding of
information within a context of information. The attitude of the group and companies
in accordance with their culture and accepts as true the message, which is consistent
with the images of society.
The area of research concerning the environmental perception of relations
between man and the biosphere can be summarized in the form of 5 objectives:
1.ccContribute to a more rational use of resources of the biosphere
harmonizing local knowledge (the interior) and those available in outside
2.ccIncrease in all fields based on rational understanding the different
perceptions of the environment
3.ccEncourage local participation in the development and planning, to a more
efficient processing and more appropriate
4.ccHelp to preserve or to record the perceptions and knowledge systems of
environment, which are in the way of rapid disappearance in many rural areas
5.ccAct as an educational tool and agent of change and look for opportunities
to train people on the search
Behind the companies: polluting and exploiting the natural resources there is
a whole chain of links where the whole society can be confronted. Regarding the
social, economic, environmental, cultural, and technological areas, a decision before
the environmental issue can be highlighted by positive and negative factors of
business.
To ensure the sustainability of its business companies are starting to eliminate
the waste from their processes and use of “rational” natural resources. All forms of
pollution should be understood as expressions of inefficient production processes, also
19
representing one of the most appropriate and sustainable ways of adding value to the
organization
The environmental perception of people must be stimulated and thus
contribute to the effectiveness of training environmental impacts. The empowerment
of people sensitized and aware is more effective than that performed without a base on
those initiatives.
It is essential the existence of local leaders to encourage the participation
participatory social mobilization aimed at trying to identify the key local issues and
recognition of social issues, the establishment of links with reality, the discovery of
social concerns and the quest for citizenship.
In any social movement, such as environmentalism, its organization and its
own history of struggle generate an awareness, open spaces and conditions for
carrying out its purposes. The environmental movement is characterized by a
pluralistic and heterogeneous composition, which are forming alliances around
common goals such as conservation of nature, the survival of man on Earth, life
quality, community participation in natural resources management, anti positions -
nuclear, toxic wastes, among others, the educational model, where education is geared
to sustainability.
According to the IEAT, the rapid development of the industrial sector and the
formation of industrial clusters in the Map Ta Phut area have brought about
environmental and occupational health management problems such as air quality,
health problems and water resource shortages resulting in the public’s demand for a
systematic approach and involvement in problem-solving. Major problems during the
past few years can be summarized as follows:
2000cc-cc2003: Disturbing smell from petrochemical and refinery factories
was caused by the fact that factories are located near the community without a buffer
zone. With strong cooperation from relevant agencies, the problem has been mitigated
to a large extent.
2005: Drought and water shortage brought about a competition for water
resources between the community and the industrial sector. The public sector
successfully coped with this problem by taking necessary steps to address the issue
and to provide additional water sources.
20
Conclusion
CSR broadly represents the relationship between a company and the wider
community within which the company operates. It is recognition on the part of the
business that ‘for profit’ entities do not exist in a vacuum, and that a large part of any
success they enjoy is as much due to the context in which they operate as factor
internal to the company alone.
CSR is an important business strategy because, wherever possible, consumers
want to buy products from companies they trust; suppliers want to form business
partnerships with companies they can rely on; employees want to work for companies
they respect; and NGOs, increasingly, want to work together with companies seeking
feasible solutions and innovations in areas of common concern. CSR is increasingly
crucial to maintaining success in business by providing a corporate strategy,
around which the company can rally, but also giving meaning and direction to
day-to-day operation.
21
CHAPTER III
RESEARCH METHODOLOGY
Population
The population of this study comprised people living in communities of Map-
Ta-Phut Industrial Estate. There were 43,892 persons (Map Ta Phut Municipality,
2009) in total.
Sample
The focus of this research has been on the community perception on the
image of Chemical Industry in Map Ta Phut Industrial Estate as influenced by
CSR activities. The research surveys used 200 subjects who were conveniently
selected from the people working in Map Ta Phut and those who live in Map Ta Phut
Community. They are directly and indirectly affected by the environmental issues.
Variables
The variables of this study can be divided into 2 groups:
22
Research Instrument
The instrument of this research is a questionnaire that consists of 5 parts as
follows:
Part 1:ccDemographic factors, including gender, age, occupation and
education level. The questionnaire was designed to use close-ended questions which
aim to find out the demographic characteristics of the respondents
Part 2:ccTypes of CSR activities received from the chemical industry. The
questionnaire was designed to use the Likert scale which aimed to find out the types of
CSR activities that the community has received from the chemical companies in
Map Ta Phut Industrial Estate. It is divided into 5 scales and the meanings of the
given scales are as follows:
5 = strongly agree, meaning the respondents think that the CSR activities
received from the chemical industry is strongly agreeable.
4 = agree, meaning the respondents think that the CSR activities received
from the chemical industry is agreeable.
23
3 = neither agree nor disagree, meaning the respondents think that the CSR
activities received from the chemical industry is neither agreeable nor disagreeable.
2 = disagree, meaning the respondents think that the CSR activities received
from the chemical industry is disagreeable.
1 = strongly disagree, meaning the respondents think that the CSR activities
received from the chemical industry is strongly disagreeable.
Part 3: Community perception on CSR activities received from the chemical
industry. The questionnaire is designed to use the Likert scale which aims to receive
the feedback from the people in Map Ta Phut community. It is divided into 5 scales
and the meanings of the given scales are as follows:
5 = most, meaning the respondents perceive that the CSR activities received
from the chemical industry at in the highest level.
4 = much, meaning the respondents perceive that the CSR activities received
from the chemical industry at in the high level.
3 = moderate, meaning the respondents perceive that the CSR activities
received from the chemical industry at in the moderate level.
2 = less, meaning the respondents perceive that the CSR activities received
from the chemical industry at in the low level.
1 = least, meaning the respondents perceive that the CSR activities received
from the chemical industry at in the lowest level.
Part 4: Community perception on the best approach of CSR activities. The
questionnaire is designed to use Likert scale which aims to understand the community
opinion on the best approach of CSR activities to enhance the image of the chemical
business. It is divided into 5 scales and the meanings of the given scales are as
follows:
5 = strongly agree, meaning the respondents strongly agree with the best
approach of CSR activities.
4 = agree, meaning the respondents agree with the best approach of CSR
activities.
3 = neither agree nor disagree, meaning the respondents neither agree nor
disagree with the best approach of CSR activities.
24
Data Collection
The research questionnaires were sent to Industrial Estate Authority of
Thailand (IEAT), Map Ta Phut Industrial Estate for approval and the researcher
collected them back in one week. The researcher collected the data by giving them to
the sample and it took them 10cc-cc15 minutes to answer all the questions. The
questionnaires were distributed from 15 March 2010 until 15 April 2010.
Data Analysis
The researcher inputted the data into a statistical program for analysis and
examined the descriptive statistics and summarized the data. Percentage and frequency
were used to describe demographics information. Moreover, mean and SD were used
to describe types of CSR activities received from the level of community feedback on
CSR activities received from the chemical industry in Map Ta Phut, the community
perception on CSR activities received from the chemical industry in Map Ta Phut.
Pearson correlation test was conducted to analyze the relationship between
CSR activities regarding environmental dimension and community dimension and the
25
CHAPTERddIV
RESULTS
Tablecc1ccGender of respondents
Male 79 39.5
Female 121 60.5
Total 200 100
27
The following table (Table 2) illustrates frequency and percentage about the
age of respondents. For 200 qualified answers, the largest group of the age was
36cc-cc45 years old (39.5 %), the second group was over 56 years old (18 %) and the
third group of the age was 18cc-cc25 years old (10 %).
Education
The following table (Table 3) illustrates frequency and percentage about the
education of respondents. For 200 qualified answers, the largest group of the
education was high school (47.5 %), the second group of the education was higher
than high school (29.5 %) and the third group of the education was under secondary
school (14 %).
Occupation
The following table (Table 4) illustrates frequency and percentage about the
occupation of respondents. For 200 qualified answers, the largest group of the
occupation was business owners (46 %), the second group of the occupation was
factory worker (34 %) and the third group of the occupation was student (20 %).
However, there is no farmer and other occupation.
Monthly income
The following table (Table 5) illustrates frequency and percentage about the
monthly income of respondents. For 200 qualified answers, the largest group of the
monthly income was over 15,000 baht (55.5 %), the second group of the monthly
income was between 10,001cc–cc15,000 baht (21.5 %) and the third group of the
monthly income was under 5,000 baht (20 %).
aggressive tactics (Mean = 4.49, SD = 0.66), having a climate change strategy and
policy with measurable greenhouse and gas emission reduction targets (Mean = 4.44,
SD = 0.65), preventing the use of extremely or highly hazardous pesticides (as defined
by the World Health Organization) and chemicals classified as ozonecc-ccdepleting in
production (Mean = 4.44, SD = 0.68), having emergency systems in place for
community health and safety that comply with the best practices (Mean = 4.41, SD =
0.68), initiating the activities for sustainability (Mean = 4.35, SD = 0.79), the
knowledge of public relations of each companies (Mean = 4.32, SD = 0.82), the reuse
or recycle of material and/or products made from recycled materials (Mean = 4.29,
SD = 0.61), conducting and providing the knowledge of the health and safety risks to
all people in Rayong provinces (Mean = 4.24, SD = 0.67), encouragement of the
public relations activities to the communities (Mean = 4.23, SD = 0.84), providing
adequate disposal system for consumer waste such as outdated computers, mobile
phones, or other company products (Mean = 4.13, SD = 1.00), minimizing packaging
material to reduce waste (Mean = 4.20, SD = 0.79) and motivating the public relations
activities to the communities (Mean = 4.02, SD = 0.90).
However, the respondents moderately perceived that the best approach of
CSR activities from the chemical industry in regard to the implementing a whistle
blowing procedure and encourage employees and agents to report violations of the
organization (Mean = 3.94, SD = 0.94).
The following results show the community’s perception on the best approach
of CSR activities from chemical industry in Map Ta Phut Industry Estate (Figure 5).
34
Hypothesis Testing
H1: Different types of CSR activities (community support dimension VS
environmental support dimension) are related to different perception of the
community regarding the CSR activities received from the chemical industry.
Pearson’s correlation was used to analyze the relationship between types of
CSR activities (community support dimension and environmental support dimension)
and the community’s perception about the CSR activities of chemical industry in
Map Ta Phut Industrial Estate.
Community Support Dimension
Pearson’s correlation revealed a significant finding (r = 0.981, p < .05). This
demonstrates a significantly positive and strong relationship between ‘community
support dimensions’ as one type of CSR activities and community perception about
community support dimension.
Community Community
Support Type Perception
Community Support Type 1 .981**
Community Perception 1c
Environmental Community
Support Type Perception
Environmental Support Type 1 .904**
Community Perception 1c
CHAPTERddV
CONCLUSION
Conclusion
Demographic
This survey found that the respondents are mostly female factory workers.
Most of them are in the age of 36cc-cc45 years old, with high school as their highest
education level, and monthly income above 15,000 baht per month.
Type of CSR activities received from Chemical Industry
The respondent neutrally perceived the CSR activities from the chemical
industry as concerning the mechanism to identify, measure, record and report all of the
following: material consumption, waste, and emission to air and water. Other
activities include: the mechanism or adopt technologies to reduce material
consumption; emissions to air and water and waste stream to below the legal
requirement; maintaining a register of all dangerous chemicals used and amounts and
make this register publicly available as well as the measures to offset greenhouse gas
emissions through action such as reforestation; planting the trees or purchase of energy
from renewable sources; and take proactive activities on rehabilitation of coral reefs
and beaches.
39
Also, the respondents highly perceived that the best approach of CSR
activities from the chemical industry concerns those aiming at motivating the public
relations activities to the communities, encouraging of the public relations activities to
the communities, building up the knowledge of public relations of each companies,
initiating the activities for sustainability, having a climate change strategy and policy
with measurable greenhouse and gas emission reduction targets, preventing to use
extremely or highly hazardous pesticides (as defined by the World Health
Organization) and chemicals classified as ozone-depleting in production, the reuse or
recycle of material and/or use products made from recycled materials, conducting and
providing the knowledge of the health and safety risks to all people in Rayong
provinces. The community also highly perceived of adopting the health and safety
measures and emergency systems for the community in Map Ta Phut, ensuring that the
lobby activities does not misinform, misrepresent, threaten, and the use compulsion
and aggressive tactics, provide community with information regarding the
environmental and social conditions, minimize packaging material to reduce waste,
provide adequate disposal system for consumer waste such as outdated computers,
mobile phones, or other company products, have emergency systems in place for
community health and safety that comply with the best practices and provide
assistance to any employee with their families who live in Map Ta Phut Community to
gain access to essential health care services.
Discussion
In this part, we discuss the results that we have obtained from the research
and the result of previous research that is mentioned in the literatures review.
The corporate social responsibility is a commitment to improve community
well-being through discretionary, business practices and contribution of corporate
resources. The researcher believes that the above statement is true after we have got
the research results from the respondents. The researcher found the CSR activities
that the community in Map Ta Phut received from Chemical Industry have aligned
with the previous research from Balabanis that the CSR activities are about
environment protection (reduction of emission and waste and the recycling of
material), donating to charities, involving anything about human right to AIDS
41
education, providing urban investment, and providing and support institution such as
building school and library (Kotler and Nancy Lee, 2005).
The community perceived that the CSR activities that they have received
from the chemical industry are very much aligning with what stated in the literature
review.
Recommendation
Recommendation: for related parties
Based on the result of the research, we noticed that the community perception
of CSR activities is on the high level. Although some of the respondents might not
understand some of the technical questions in the questionnaires especially the social
and environmental treat such as “the mechanism to identify, measure and record and
report…” they still agreed with and acknowledged the CSR activities in Map Ta Phut.
This means that most of people who live in community of Map Ta Phut Industrial
Estate perceived the CSR activities that been initiated by the chemical industry.
However, some of the activities regarding social environment needs to be more
42
addressed and useful information shared to the public either by having the people
concerned visiting the community regularly or announcing through the public
announcement such as local newspapers, flyers, banners, etc.
The chemical company should treat CSR as a strategy of the company as it is
becoming increasingly important for business today. This is because the society
expects more from the companies which keep generating the pollutions and definitely
affecting the health of people in the community. This issue has increasingly been in
the light of recent corporate scandals, which reduced the public trust of the corporation
as well the public confidence in the ability of regulatory bodies and organizations to
control corporate excess. CSR is particularly important within a globalizing world
because of the way brands are built on perceptions, ideals and concepts that usually
appeal to higher values. Therefore, CSR can be described as a total approach to
business. As for Map Ta Phut Industrial estate, CSR is about common sense policies
that represent a means of integrating a complete “social perspective” into all aspect of
operations. The goal is to maximize true value and benefit for an organization while
protecting the huge investment corporation make today in their brands.
However, there are some barriers preventing businesses from fully
implementing CSR, driven from the external environment as well as the internal
system. Based on this research, lack of understanding about CSR definition is a
primary barrier to build understanding between business, government, and society.
There is a real need of continuing effort to educate the society and train business
leaders, employees and other stakeholders. Other barriers generally consists of those
government related factors (legislation, tax and governance), customers, community
behavior and the influence of society.
For the environmental dimension, all knows that environmental problem are
shared by humanity, but are perceived by only a small fraction of the population and
an even smaller portion of public or private units are implementing them. The
environmental perception of the people in the community must be stimulated and thus
contributing to the effectiveness of environmental impacts. The empowerment of
people to sensitize in and be aware of the said issue is more effective than that
performed without a base on those initiatives. It is essential for the existence of local
leaders (Sub District Administration Organization) to encourage the participation from
43
the community to identify the key local issues, and recognize the social issues. These
social works will be the great opportunity to improve the quality of life for all people
within the community and other areas.
The most important finding in our study, and contrary to the prediction, is the
positive association between types of CSR activities (community support dimension
VS environmental support dimension) and the community perception, as well as the
association between types of CSR activities (community support dimension VS
environmental support dimension) and the best approach on the CSR activities. It
confirms that those relationships are significantly important for a number of reasons.
From the community support dimension, CSR activities should have a
common role in community development as follows: 1) the chemical industry should
share the negative consequences as a result of industrialization to the community, 2) it
should also help get talents from the community to work closely with the chemical
industry to implement the appropriate community support from CSR activities point of
view, 3) CSR program should be seen as an aid to alleviate poverty, and 4) initiating
the good CSR activities should be conducted on a continuous basis to the community
as well as to other areas.
Finally, the corporate top management should support CSR policies through
intense and long haul commitment with social awareness and caring mentality. The
stakeholders should have good understanding about the issues through effective
communication could help companies strengthen its CSR practices.
Recommendation: for future research
The comparative study of the community perception on CSR activities
(community support dimension VS environment support dimension) is new in the
area. Based on the survey, there are many points still open to explore. For the future
study, we could research about the community perception and corporate social
responsibility activities in different industries besides chemical industry in order to
compare their determinants. Also, the future study should focus on how to find the
social expectation from the corporate responsibility of such organization in order to
know the expectation of the community which will help the corporate to introduce
appropriate kinds of CSR activities to align with the need of society.
REFERENCES
45
REFERENCES
Assael, Henry. (1998). Consumer behavior and marketing action (6th ed.). Ohio:
South - Western College Publishing.
Ahluwalia Rohini, Burnkrant Robert E. and, Unnava H. Rao. (2000). Consumer
response to negative publicity: The moderating role of commitment.
Journal of Marketing Research. 37(2), 203 – 214.
Ahluwalia Rohini. (2002). How prevalent is the negativity effect in consumer
environment?. Journal of consumer Research. 29(3), 270 – 279.
Balmer John M. T. (2001). Corporate identity, corporate branding and corporate
marketing - seeing through the Fog. European Journal of Marketing.
35(3), 248 - 291.
Belch, George E. and Belch, Michael A. (1998). Advertising and Promotion:
An Integrated Marketing Communications Perspective (4th ed.). Boston :
McGraw – Hill.
Besser, T.L. and Miller, N. (2001). Is the good corporation dead?: The community
social responsibility of small business operators. Journal of Socio -
Economics. 33(2001), 221 - 241.
Brammer, S, Brooks, C. and Pavelin, S. (2006). Corporate social performance and
stock returns: UK evidence from disaggregated measures. Financial
Management, Autumn, 97 - 116.
BSR - Business for Social Responsibility. (2007). Overview of Corporate Social
Responsibility. Retrieved April 17, 2009, from http://www.bsr.org/
research/issue-brief-details.cfm? DocumentID=48809.
Carrasco, I. (2007). Corporate social responsibility, values, and cooperation.
International Atlantic Economic Society. 13, 454 - 460.
Clarkson Max B.E. (1995). A stakeholder framework for analyzing and evaluating
corporate social Performance. Academy of Management Review. 20(1),
92 – 117.
Carroll, A. (1989). Business and Society: Ethics and Stakeholders Management.
New York: South - Western Publishing.
46
Naresuan University
Part 1: Demographic
Direction: Tick 3 in the blank
1. Gender
Male
Female
2. Age
18cc–cc25 years
26cc–cc35 years
36cc–cc45 years
46cc–cc55 years
Over 56 years
3. Education
Under Secondary School
Secondary School
High School
Higher than high school
52
4. Occupation
Student
factory worker
Farmer
Business owner
Others, please specific___________________________
5. Monthly income
Under 5,000 Baht
5,000 – 10,000 Baht
10,001 – 15,000 Baht
Over 15,000 Baht
Thank you very much for your participation on this survey
BIOGRAPHY
58
BIOGRAPHY