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THE COMMUNITY PERCEPTION ON CSR ACTIVITIES OF CHEMICAL

INDUSTRY IN MAPTAPHUT INDUSTRIAL ESTATE

NAKARIN PANTHONG

An Independent Study Submitted in Partial Fulfillment


of the Requirements for the Master of Business Administration Degree
(International Program)
May 2010
Copyright 2010 by Naresuan University
This independent study entitled “The community perception on CSR
activities of chemical industry in MapTaPhut industrial estate” submitted in partial
fulfillment of the requirements for Master Degree of Business Administration
(International Program) is hereby approved.

………….……………………………………………………..
(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

(International Program), Naresuan University, 2009


Keywords Community Perception, CSR, CSR activities

ABSTRACT

Corporate social responsibility (CSR) refer to Strategies Corporation or


corporate conduct their business in a way that is ethical, society friendly and beneficial
to environmental and community in terms of development. This research analyses the
type of CSR activities (community support dimension VS environmental support
dimension), community perception on CSR activities and community perception on
the best approach of CSR activities, which are based on some theories available in the
literature.
Using survey data from 200 respondents in Map Ta Phut Community, this
research examines the link between CSR activities and community perception as well
as CSR activities and the best approach of CSR activities. The results show that CSR
activities have positive relationship with community perception and the best approach
of CSR activities. These results reinforce that the organization should provide more
useful information and share to the public either by having the people concerned
visiting the community regularly or announcing through the public broadcast. The
chemical industry should treat CSR as an important strategy as it is foreseen
increasingly important for the business today. Also, the corporate top management
should support CSR activities through intense and long haul commitment with social
awareness and caring mentality.
LIST OF CONTENTS

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

III RESEARCH METHODOLOGY......................................... 21


Population………………...........……………….............…...…….… 21
Sample…………………..........................................………............. 21
Variables……………...................................................…....…….… 21
Research Instrument…………..……….......................…...…….… 22
Data Collection……...................………………….......…...…….… 24
Data Analysis……......................………………….......…...…….… 24
LIST OF CONTENTS (CONT.)

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
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CHAPTER I

INTRODUCTION

Background of the Study


According to Fukukawa and Moon (2004, p. 46), corporate social
responsibility (CSR) is defined as an “activity by business that can be said to enhance
society, is removed from business for profit activity and is voluntary and thus not
required by law or any other form of governmental coercion.” In addition, de lad
Cuesta and Valor (as cited in Carrasco, 2007, p. 454) described the CSR as “the ethical
and legal compromises and duties of the enterprises with their groups of interest.
These compromises and duties come from the impacts of the enterprise’s activity over
the social, labour, environmental, and human rights ambits. Hence, the main objective
of CSR is to create and develop values, and acting responsibly and economically to the
environment, people, and community both short and long term (Gil Estallo et al.,
2007, p. 381). Companies, therefore, should be socially responsible for shareholders,
public administration, customers, cooperators, competitors, environment, staff, and
providers (Gil Estallo et al., 2007, p. 386).
CSR became an interesting issue in the middle of 1990s according to the
consumers’ fall in trust of enterprises. The main reasons of fall in trust are some
environmental and financial scandals during that period. Moreover, consumers
nowadays demand highly on ethical matters such as social justice, equity, and
environmental aspects. Corporations therefore are more concerned not only about
products and services quality, but also some ethical standards (Carrasco, 2007, p. 455).
Some studies indicated that supporting community can enhance public image and
prestige which in turn would increase the number of customers (Mescon and Tilson, as
cited in Besser and Miller, 2001, p. 224). In addition, it can enhance retention and
attraction of employees (Turban and Greening, as cited in Besser and Miller, 2001, p.
224).
Thus, companies in today world are concerning about the CSR due to the fact
that it can yield higher levels of profit, and competitive advantage (Gil Estallo et al.,
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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).

Rationale for the Study


Rayong is located in the eastern part of Thailand, about 179 kilometers from
Bangkok. The most important economic sectors of this province are agriculture,
industry, and tourism respectively. However, the industry sector provides the greatest
revenue accounting for 252, 279 million Baht or 47.8 per cent of the total revenue in
2006 (Somapa Information Technology, 2009, p. 1).
Since 1981, Rayong was selected to be the center of development area in the
eastern seaboard. It was aimed to be developed to become the new development center
of the country. Map Ta Phut Industrial Estate, therefore, was established and the estate
then became the center of natural gas refinery, petrochemical industry, oil refinery,
iron industry, and so forth. The chemical industry has the greatest amount of
investment accounting for 4,114 million Baht during 2003cc-cc2007 (Somapa
Information Technology, 2009, pp. 2cc- cc3).
These industries have been releasing a large quantity of toxic wastes to the
environment causing severe damage to the environment: Some of them caused
undersea garbage released during the transfer of goods between cargo ships in the sea;
sea water has been deteriorated due to contamination, mass death of marine animals,
and farmer’s crops damaged according to severe drought (Samabuddhi, 2009). In
addition, people in the communities nearby have been facing severe health problem.
According to the report of National Cancer Institute, the number of people having
respiratory problem in Rayong increased while that in other provinces has
dramatically decreased (Sukkamnerd, Nuntavorakarn, and Chuenchit, 2007, pp.
9cc-cc10). During 1997cc-cc2005, the number of cancer patients in Rayong province
has substantially increased accounting from 444.3 persons per 100,000 populations in
1997 to 1,263.5 persons per 100,000 populations in 2005 (Sukkamnerd,
Nuntavorakarn, and Chuenchit, 2007 p.12). In other words, the number of cancer
patients had increased by three folds during that period.
3

The aforesaid environmental and health problems led to dissatisfaction of


people in the communities. They called for the government and related public
organizations to take action on these problems. The government therefore interferes on
these problems by announcing Map Ta Phut as a pollutioncc-cccontrol zone. As a
result, Rayong Administrative Court in Thailand’s eastern seaboard ruled on March 3,
2009 that Office of the National Environment Board must announce all areas near and
in Map Ta Phut municipality as pollution control zones within 60 days of the court’s
order (Methawee, 2009).
The said policy has rendered many corporations in Map Ta Phut areas
seriously concerned about environment and society. According to Industrial Estate
Authority of Thailand, many organizations have initiated CSR (Corporate Social
Responsibility) campaigns to build up favorable relationship with the communities.
Therefore, this research will focus on the scope of CSR activities needed by the
chemical business in Map Ta Phut, aiming particularly to provide the appropriate
direction and strategies to those companies that are doing the business in this
particular area. According to Pipat Yodprudtikan (2008, p. 47), CSR is the set of
guidelines for businesses to be operated in the social responsible manner, which in
turn give rise to a “good resilience” of the organizations. This can be implied that CSR
may help the organizations gain support from communities in the long term.

Statement of the Problem


CSR is very important due to its influences on several aspects of a company’s
operations. An increasing number of consumers today would like to buy the products
and services from companies they trust. In addition, suppliers want to form business
partnerships with companies they can rely on as well as employees want to work in
companies they respect. Moreover, large investment funds want to support firms that
are socially responsible. Hence, satisfying all stakeholders allows firms to maximize
their commitment (Werther and Chandler, 2006, p. 19). According to Kotler and Lee
(2005, pp. 10cc-cc11), CSR can increase sales and market share, strengthen brand
positioning, enhance corporate image and clout, increase ability to attract, motivate,
and retain employees, decrease operating cost, and increase appeal to investors and
financial analysts. Hence, firms today are increasingly concerned with CSR. For
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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?

Purposes of the Study


1.ccTo examine the current CSR activities of chemical businesses in
Map Ta Phut Industrial Estate provided for communities in Map Ta Phut districts
5

2.ccTo examine the perceived CSR activities, both environmental and


community support dimension of chemical business in Map Ta Phut Industrial Estate
3.ccTo find out the best CSR approach of chemical business in Map Ta Phut
Industrial Estate

Significance of the Study


This research will provide information about CSR activities of chemical
business in Map Ta Phut Industrial Estate for enterprises producing chemical products
as they will be aware of appropriate CSR activities and financial support to the
community. The companies in Map Ta Phut Industrial Estate can also utilize the
result of the study to initiate effective CSR strategic planning and practices.

Scope of the Study


This study emphasizes on CSR activities of chemical business in
Map Ta Phut Industrial Estate where the productivity is causing the negative
environmental problems to the communities in Map Ta Phut districts. The study
focused on the perception of the people who live in the communities in Map Ta Phut
districts. The research took place between March 2010 and April 2010.

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.
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2.ccCommunity Support means the activities that the chemical companies


have been doing to support and help the community in Map Ta Phut such as donation,
building the house, provide the education to the children and etc.
Perception
Perception means individual’s view about an issue, a person or object. In this
research, the community’s perception consists of two dimensions: perception on CSR
activities received from the chemical industry; and the perception on the best approach
of CSR activities
Map Ta Phut Industrial Estate:
The location of where the local community lives cnearby. It produces
pollution into the environment that causes instability, disorder, harm and discomfort,
but it supports the communities.

Conceptual Framework

Figurecc1ccConceptual Framework

H1: Different types of CSR activities (community support dimension VS


environmental support dimension) are related to different perceptions of the
community regarding the CSR activities received from the chemical industry.
H2: Different types of CSR activities (community support dimension VS
environment support dimension) are related to different perception of the community
regarding the best approach of CSR activities.
7

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

Corporate Social Responsibility


The World Business Council for Sustainable Development (WBCSD) defines
CSR as “business’ commitment to contribute to sustainable economic development,
working with their families, the local community, and society at large to improve their
quality of life.” This definition is elaborated further in one of WBCSD’s publication
(2000) in which they listed five priority areascc–cc(i) human rights, (ii) employee
rights, (iii) environmental protection, (iv) community involvement and (V) supplier
relations. Similar to the DTI, WBCSD also believes that by developing and
implementing a coherent CSR strategy, firms will gain bottomcc-ccline benefits.
Business for Social Responsibility (BSR) says that the term CSR is used
interchangeably with other various phrases including business ethics, corporate
8

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

Figurecc2ccThe Pyramid of Corporate Social Responsibility

Which step of the pyramid a company is categorized under depends on how


they apply CSR into their business. If a company falls under economic responsibilities,
they follow the belief that they have an obligation to produce the goods and services
that customers need and want, while making a profit at the same time. Under legal
responsibilities, companies pursue the goal of economic responsibilities within the
limitations of written law. Ethical and philanthropic responsibilities include doing
what is right and avoiding harm. An ethical responsibility refers to unwritten
standards, norms, values implicitly derived from society, even though this is more than
is required by law. Ethical responsibility differs from legal responsibility since there
will not be legal consequences if the company chooses not to follow these
responsibilities. However, companies that avoid taking ethical responsibility is still
risking consequences due to media survey where their ethical credibility may be
questioned by stakeholders. Philanthropic responsibilities are voluntary in nature and
are usually beyond what is expected by companies.
11

Legal of Corporate Social Responsibility


Achieving corporate profits and taking up social responsibilities are in fact a
matter of the contradictory relationship between the individual corporate business
benefits and the collective social benefits.
When dealing with the relationship of the two, the first priority should be
given to satisfying the integral social benefits while pursuing individual economic
benefits, which requires that companies take up certain social responsibilities while
seeking for optimal business benefits. Secondly, the criterion of regulation the various
contradictions of relationships of interests is to prioritize efficiency while giving
consideration to justice. That is, when efficiency contradicts with justice, efficiency
overtakes as the dominating factor. Companies should go after as high efficiency as
possible in order to acquire the optimal business benefits. However, moral factor will
have to be considered at the same time. If companies seek ruthlessly high efficiency
and high profitability and therefore damage the justice and fair rules of the society, all
the individuals in the society will ultimately have to pay a heavy price. As far as
companies are concerned, they should also make their shift from the selfcc-cccentered
business profits to the promotion of social benefits as a whole and take up certain
social responsibilities while not sacrificing self profit-making opportunities.
Benefits of Corporate Social Responsibility
According to a Business Respect article, corporate social responsibility is the
continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as
well as of the local community and society at large. In the same article, a wide CSR’s
definition is that CSR is about how companies manage the business processes to
produce an overall positive impact on society. The term CSR was in common use in
the early 1970s, and CSR really started through Ben & Jerry’s CSR activities such as
stakeholder meetings and donating 7.5 percent of pretax profits for community
(Marlin, & Marlin, 2003; and Rachman, Mescon, Bovee, & Thill, 1993). In addition,
CSR commonly includes issues related to business ethics, community investment,
philanthropy, donation, volunteerism, environment, governance, human rights,
marketplace and workplace (BSR Staff, 2003d, p.1). There are many issues about CSR
because CSR is connected to various social sectors. One of the important issues is
12

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

production or consumption of their products. Corporate citizenship is also rather


different from corporate philanthropy where companies simply wish to give money to
good causes with little regard for the benefits to the company of such giving. Rather it
is, as the definition from Diageo suggests, about being accepted by society such that
the company can trade sustainable.
3.ccEnvironment
How did the environment fare as a priority issue of corporate social
responsibility? Most felt that environmental stewardship was an important component
of CSR and that compliance with environmental legislation and regulations was
fundamental. However, it was emphasized that while in many parts of the world such
compliance is a given, in some areas this is still not the case. Poor enforcement
capacity of some governments and the heavy economic burdens of upgrading old
plants and cleaner technology (WBCSD, 2000).
4.ccCommunity
Many companies develop community projects in the vicinity of their sites, to
offset negative impacts or ‘give back’ to the community and local workforce.
Community investment covers a whole range of initiatives including: running health
programmes, sponsoring schools, playgrounds or community centers, employee
volunteering schemes, or signing a memorandum of understanding with communities
affected by a company’s impacts. However, this creates concerns around companies
taking on public functions, and public spaces becoming private (WBCSD, 2000).
5.ccQuality of life
Corporate social responsibility is the continuing commitment by business to
behave ethically and contribute to economic development while improving the quality
of life of the workforce and their families as well as of the local community and
society at large (WBCSD Stakeholder Dialogue on CSR, The Netherlands, Sept 6-8,
1998).
Corporate contribution conduct
The corporate contribution conduct consists of activities aims at school and
charity.
16

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

2007cc-ccPresent: Environmental impact in the Map Ta Phut area including


health problems, shallow-well water contamination and the evaporation of organic
compounds led noncc-ccgovernmental organizations (NGOs) to call on the
government to declare Map Ta Phut a pollution control area.

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

According to the conceptual framework and hypotheses constructed based on


the literature review as detailed in the previous chapter, a survey research was
employed in order to find out vital findings and to test the hypotheses. The objective
of this chapter is to describe the methodology used in the research as follows:
-ccPopulation
-ccSample
-ccVariables
-ccResearch instrument
-ccData Collection
-ccData Analysis

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

1.ccIndependent Variables: Types of CSR activities that consist of 2


dimensions.
1.1ccEnvironment dimension: it comes from the activities that the
companies in Map Ta Phut have been doing to alleviate the pollution problem.
1.2ccCommunity support dimension: it comes from the activities that
the companies in Map Ta Phut have been doing to support and help the community.
2.ccDependent Variable
2.1ccPerception of community about CSR activities received from
the chemical industry: It concerns the community’s view on the CSR activities
received from the companies in Map Ta Phut.
2.2ccPerception of the best approach of CSR activities: It concerns
the community’s view on the best approach of CSR activities performed by the
companies in Map Ta Phut.
Basically, the dimensions of environment and community support are related
to the perception of community about CSR activities of chemical business.

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

2 = disagree, meaning the respondents disagree with the best approach of


CSR activities.
1 = strongly disagree, meaning the respondents strongly disagree with the
best approach of CSR activities.
The questionnaire was used as an instrument in order to collect primary data
from people living in related communities. Creating questionnaire items was based on
knowledge and theory gathered from review of literature. It was created in English
language and then translated into Thai language for Thai respondents. After that, the
researcher translated the Thai version questionnaires back into English language again
in order to check its validity. A precc-cctest was conducted by distributing 50
questionnaires to the community members, to verify the meaning of the concept and
reliability. Cronbach’s alpha was used for checking reliability. The questionnaire was
also checked for content validity by three experts.

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

community’s different perception about the CSR activities of chemical industry in


Map Ta Phut Industrial Estate.
26

CHAPTERddIV

RESULTS

The purpose of this chapter is to analyze and interpret data from


questionnaires in order to answer the research objectives. In this chapter, the result of
the data analysis are presented in 5 parts
-ccSummary of demographic data by using descriptive statistics
-ccAnalysis of the type of CSR activities
-ccAnalysis of the community perception on CSR activities
-ccAnalysis cof the community perception on the best approach of CSR
activities
-c Hypothesis Testing

Summary of demographic data by using descriptive statistics


The sample group includes gender, age, education, occupation and monthly
income per month. The details are of the following:
Gender
The following table (Table 1) illustrates frequency and percentage about the
gender of respondents. For 200 qualified answers, the largest group of the 121
respondents was female, accounted for 60.5 %, and the second group of the 79
respondents was male, accounted for 39.5 %.

Tablecc1ccGender of respondents

Gender Frequency Percentage (%)

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 %).

Tablecc2cc Age of respondents

Age Frequency Percentage (%)


18 to 25 years old 20 10
26 to 35 years old 31 15.5
36 to 45 years old 79 39.5
46 to 55 years old 34 17
over 56 years old 36 18
Total 200 100

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 %).

Tablecc3cc Education of respondents

Education Frequency Percentage (%)


Under Secondary School 28 14
Secondary School 18 9
High School 95 47.5
Higher than high school 59 29.5
Total 200 100
28

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.

Tablecc4cc Occupation of respondents

Occupation Frequency Percentage (%)


Business Owner 92 46
Factor Worker 68 34
Student 40 20
Farmer 0 0
Other 0 0
Total 200 100

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 %).

Tablecc5cc Monthly income of respondents

Average monthly income per month Frequency Percentage (%)


Under 5000 Baht 40 20
5,001 - 10,000 baht 6 3
10,001 - 15,000 baht 43 21.5
over 15,000 baht 111 55.5
Total 200 100
29

Analysis of the type of CSR activities


In terms of the community support dimension of CSR activities, the
respondents highly perceived that the community received the CSR activities from the
chemical industry regarding “Sport Day”, “Anticc-ccDrugs” and “Sports for Youth”
projects to foster unity and relationship among industrial operators to prevent and
solve of drug-related problems and improve health and well being of the community
(Mean = 4.44, SD = 0.50), supporting institution such as building school and library
(Mean = 4.24, SD =0.43) and supporting and helping foundations by donation of
money and stuffs (Mean = 4.33, SD = 0.58).
Also, the respondents somewhat highly perceived that the community
received the following CSR activities from the chemical industry: organizing of
annual blood donation campaigns (Mean = 3.83, SD = 1.10), supporting and helping
in part of scholarship to give opportunity for students (Mean = 3.69, SD = 0.79),
helping and improving quality of life of people in society better (Mean = 3.68, SD =
0.78) and producing creative activities to improve and give the opportunity for people
in society (Mean = 3.65, SD = 0.95).
In terms of the environment support dimension of CSR activities, the
respondents neutrally perceived about the CSR activities of the chemical industry
regarding the proactive activities on habitat of coral reefs and beaches (Mean = 3.28,
SD = 1.03), the measures to offset greenhouse gas emissions through action such as
reforestation, plant the trees or purchase of energy from renewable sources (Mean =
3.22, SD = 1.11), maintaining a registration of all dangerous chemicals used and make
it publicly (Mean = 2.96, SD = 1.27), mechanism or adopt technologies to reduce
material consumption, emissions to air , water and waste stream to below the legal
requirement (Mean = 2.90, SD =1.37) and mechanism to identify, measure, record and
report all of the following: material consumption, waste, and emissions to air and
water (Mean = 2.86, SD = 1.19).
The following results show the type of CSR activities initiated by the
chemical industry and perceived by the respondents (Figure 3).
30

S trongly disagree S trongly agree Meaning


1 2 3 4 5 Mean SD of mean
Details Percentage (%) value
Community Support Dimension
Initiating “Sport Day”, “Anti-Drugs” and
“Sports for Youth” project to foster unity
and relationship among industrial Strongly
- - - 56.50 43.50 4.44 0.50
operators to prevent and solve of drug- Agree
related problems and improve health and
well-being.
Supporting and helping foundations by Strongly
- - 5.50 56.60 38.00 4.33 0.58
donation money and stuffs Agree
Supporting instruction such as building Strongly
- - - 76.50 23.50 4.24 0.43
school and library Agree
Organizing annual blood donation
- 17.50 17.50 29.50 35.50 3.83 1.10 Agree
campaigns
Supporting and helping in part of
scholarship to give opportunity for - 40.50 28.50 20.00 11.00 3.69 0.79 Agree
students
Helping and improving quality of life of
- - 51.50 29.50 19.00 3.68 0.78 Agree
people in society better
Producing creative activities to improve
and give the opportunity for people in - 8.50 43.00 24.00 24.50 3.65 0.95 Agree
society
Environmental Support Dimension
Taking proactive activities on Neither
rehabilitation of coral reefs and beaches 26.00 36.50 12.00 16.50 9.00 3.28 1.03 agree nor
disagree
Taking measures to offset greenhouse gas
emissions through action such as Neither
reforestation, planting of trees or 3.50 25.50 33.50 21.00 16.50 3.22 1.11 agree nor
purchase of energy from renewable disagree
sources
Maintaining a register of all dangerous Neither
chemicals used and amounts and make 18.00 17.00 27.50 26.50 11.00 2.96 1.27 agree nor
this register publicly available disagree
Having mechanism or adopt technologies
to reduce material consumption, Neither
emissions to air and water and waste 24.50 14.00 20.00 30.50 11.00 2.90 1.37 agree nor
stream to below the legal requirement disagree

Having the mechanism to identify,


Neither
measure, record and report all of the
21.00 15.50 20.00 43.50 - 2.86 1.19 agree nor
following: material consumption, waste,
disagree
and emissions to air and water

Figurecc3ccRespondent’s perception of type of CSR activities received


from Chemical Industry
31

Analysis of the community perception on CSR activities


In terms of the community support dimension, the community perceived that
CSR activities are useful in society and community (Mean = 4.41, SD = 0.49), build
up good relationship with community and people in this area (Mean = 4.41, SD =
0.49), especially when donating money and other necessary things to the community
(Mean = 4.38, SD = 0.64). Moreover, those activities also improve and give the
opportunity for people in society (Mean = 4.32, SD = 0.62), support education such as
building school building and library (Mean = 4.30, SD = 0.62), support relationship to
student in community (Mean = 4.29, SD = 0.61), and help and improve quality of life
of people in society (Mean = 4.26, SD = 0.69). The community also highly perceived
on youth care program (Mean = 4.25, SD = 0.68).
In terms of environment support dimension of community perception on CSR
activities, some of the respondents perceived CSR activities regarding the production
process and good environment management (Mean = 4.01, SD = 0.76), useful
activities and care environment (Mean = 3.87, SD = 0.83) and the conduct of waste
management (Mean = 3.83, SD = 0.80),
The following results show the community’s perception on CSR activities
received from chemical industry in Map Ta Phut Industry Estate. The results of
analysis are shown in the figure 4.
32

Strongly Disagree Strongly


1 2 3 4 5 Mean SD Meaning of
Details Percentage (%) mean value
Community Support Dimension
Having useful activities in society and Stongly
- - - 59.50 40.50 4.41 0.49
community Agree
Having good relationship with Stongly
- - - 59.50 40.50 4.41 0.49
community and people in this area Agree
Donating money and other necessary Stongly
- - 8.50 45.00 46.50 4.38 0.64
things to the community Agree
Having activities to improve and give Stongly
- - 8.50 51.00 40.50 4.32 0.62
the opportunity for people in society Agree
Supporting education such as building Stongly
- - 8.50 53.00 38.50 4.30 0.62
school building and library Agree
Supporting scholarship to students in Stongly
- - 8.50 54.00 37.50 4.29 0.61
community Agree
Helping and improving quality of life of Stongly
- - 14.00 46.00 40.00 4.26 0.69
people in society Agree
Youth-care program Stongly
- - 14.00 47.50 38.50 4.25 0.68
Agree
Environmental Support Dimension
Having conducted Waste Management
- - 42.00 33.50 24.50 3.83 0.80 Agree

Having useful activities and care


- - 42.00 29.00 29.00 3.87 0.83 Agree
environment
Having production process and good
- - 28.00 43.00 29.00 4.01 0.76 Agree
environment management

Figurecc4ccRespondents type of CSR activities received from Chemical


Industry in Community

Analysis of the community perception on the best approach of CSR activities


The respondents highly perceived that the best approach of CSR activities
from the chemical industry concerns the health and safety measures and emergency
systems for the community in Map Ta Phut (Mean = 4.62, SD = 0.59), assistance to
any employee with their families who live in Map-Ta-Phut Community to gain access
to essential health care services (Mean = 4.57, SD = 0.50), ensuring that the lobby
activities does not misinform, misrepresent, threaten, and use compulsion and
33

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

Strongly disagree Strongly agree


Me aning
Details 1 2 3 4 5 Mean SD of me an
value
Percentage (%)
Have adopt the health and safety
Strongly
measures and emergency systems for - - 5.50 27.50 67.00 4.62 0.59
Agree
the community in Map-Ta-Phut.
Provide assistance to any employee with
Strongly
their families who live in Map-Ta-Phut - - - 43.00 57.00 4.57 0.50
Agree
Community to gain access to essential
Ensure that the lobby activities does not
Strongly
misinform, misrepresent, threaten, and - - 9.00 33.50 57.50 4.49 0.66
Agree
use compulsion and aggressive tactics
Have a climate change strategy and
Strongly
policy with measurable greenhouse and - - 8.50 39.50 52.00 4.44 0.65
Agree
gas emission reduction targets.
Prevent to use extremely or highly
Strongly
hazardous pesticides (as defined by the - 9.00 11.00 34.50 45.50 4.44 0.68
Agree
World Health Organization) and
Have emergency systems in place for
Strongly
community health and safety that comply - - 11.00 37.50 51.50 4.41 0.68
Agree
with the best practices
Initiate the activities for sustainability
Strongly
- - 19.50 26.00 54.50 4.35 0.79
Agree

The knowledge of public relations of


Strongly
each companies - - 22.50 23.00 54.50 4.32 0.82
Agree

Reuse or recycle material and/or use


Strongly
products made from recycled materials - - 8.50 54.00 37.50 4.29 0.61
Agree

Conduct and provide the knowledge of


Strongly
the health and safety risks to all people - - 13.50 49.00 37.50 4.24 0.67
Agree
in Rayong provinces
Encouragement of the public relations
Strongly
activities to the communities - - 26.00 25.50 48.50 4.23 0.84
Agree

Provide adequate disposal system for


Strongly
consumer waste such as outdated - 8.00 20.00 23.00 49.00 4.13 1.00
Agree
computers, mobile phones, or other
Motivation of the public relations
Strongly
activities to the communities - 8.50 14.00 44.50 33.00 4.02 0.90
Agree

Implement a whistle blowing procedure


and encourage employees and agents to - 8.50 22.00 36.50 33.00 3.94 0.94 Agree
report violations of the organization

Figurecc5ccRespondents of community perception on the best approach


of CSR activities
35

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.

Tablecc6ccRelationship between CSR activities and community perception


about community support dimension

Community Community
Support Type Perception
Community Support Type 1 .981**
Community Perception 1c

Note: **. Correlation is significant at the 0.01 level (2cc-cctailed)

Environmental Support Dimension


Pearson’s correlation revealed a significant finding (r = 0.904, p < .05). This
demonstrates a significantly positive and strong relationship between ‘environmental
support dimensions’ as one type of CSR activities and community perception about
environmental support dimension.
36

Tablecc7ccRelationship between CSR activities and community perception


about environmental support dimension

Environmental Community
Support Type Perception
Environmental Support Type 1 .904**
Community Perception 1c

Note: **. Correlation is significant at the 0.01 level (2cc-cctailed)

In conclusion, there are the significant strong relationships between CSR


activities and community perception of CSR activities received from the chemical
industry, therefore the hypothesis 1 is supported.
H2: Different types of CSR activities (community support dimension VS
environmental support dimension) are related to different perception of the
community regarding the best approach of CSR activities.
Pearson’s correlation was used to analyze the relationship between types of
CSR activities (community support dimension and environmental support dimension)
and the best approach of CSR activities of chemical industry in Map Ta Phut Industrial
Estate.
Community Support Dimension
Pearson’s correlation revealed a significant finding (r = 0.934, p < .05). This
demonstrates a significantly positive and strong relationship between ‘community
support dimensions’ as one type of CSR activities and the best approach about
community support dimension.
37

Tablecc8ccRelationship between CSR activities and the best approach


perception about community support dimension

Community Support Type Best Approach

Community Support Type 1 .934**


Community Perception 1c

Note: **. Correlation is significant at the 0.01 level (2cc-cctailed)

Environmental Support Dimension


Pearson’s correlation revealed a significant finding (r = 0.987, p < .05). This
demonstrates a significantly positive and strong relationship between ‘environmental
support dimensions’ as one type of CSR activities and the best approach about
environmental support dimension.

Tablecc9ccRelationship between CSR activities and the best approach


perception about environmental support dimension

Environmental Support Type Best Approach

Environmental Support Type 1 .987**


Community Perception 1c

Note: **. Correlation is significant at the 0.01 level (2cc-cctailed)

In conclusion, there are the significant strong relationships between CSR


activities and the best approach of CSR activities received from the chemical industry,
therefore the hypothesis 2 is supported.
38

CHAPTERddV

CONCLUSION

The objective of this chapter is to present the results of the research. It


consists of 5 parts:
-ccConclusion
-ccDiscussion
-ccLimitation of the Study
-ccRecommendation
-ccSuggestion for further studies

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

However, the respondents somewhat perceived that the community received


the CSR activities from the chemical industry regarding the organizing annual blood
donation campaigns, producing creative activities to improve and give the opportunity
for people in society, helping and improving quality of life of people in society better,
supporting and helping in part of scholarship to give opportunity for students. The
respondents highly perceived that the community received the CSR activities from the
chemical industry about supporting institution such as building school and library,
initiate “Sport Day”, “Anticc-ccDrugs” and “Sports for Youth” project to foster unity
and relationship among industrial operators to prevent and solve of drug-related
problems and improving health and well-being and support and helping foundations
by donation of money and stuffs.
Community perception on CSR activities received from the Chemical
Industry in Map Ta Phut Industry Estate
The respondents somewhat perceived that the CSR activities received from
the chemical industry in Map Ta Phut Industrial Estate concerns the conducting of
waste management, the useful activities and caring environment and production
process and good environment management.
Nevertheless, the respondents highly perceived that the CSR activities
received from the chemical industry in Map Ta Phut Industrial Estate are related to the
useful activities in society and community, building up good relationship with
community and people in this area as well as improving and giving the opportunity for
people in society, helping and improving quality of life of people in society,
supporting relationship to student in community, supporting education such as
building school building and library. The community also highly perceived youth care
program and donating money and other necessary things to the community.
Analysis of the community perception on the best approach of CSR
activities
The respondents perceived that the best approach of CSR activities received
from the chemical industry concerns the implementation of a whistle blowing
procedure, and encouraging employees and agents to report violations of the
organization.
40

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.

Limitation of the Study


1.ccThe sample group came from various backgrounds which might have had
an effect on the questionnaires. Some of the people could easily understand the
questions clearly, but some needed more explanations about what corporate social
responsibility activities.
2.ccThe questionnaire distribution period was during Thailand public holiday;
therefore, the respondents might not have any feeling to answer the questions. The
questionnaires are quite substantial, therefore the researcher took more time of each
questionnaire to explain to the respondents. Some of the respondents might be in a
hurry and provided the answer inaccurately.
3.ccWhen the researcher approached the respondents and talked about
Map Ta Phut environment, some of the respondents were not cooperative and they
even refused by walking away.
4.ccSome of the respondents refused to answer the questionnaires as they
might be afraid of consequences from the political issues.

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.
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45

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APPENDIX
51

Naresuan University

Topic: Community Perception on CSR activities of Chemical Industry in


Map Ta Phut Industrial Estate

This survey is conducted by MBA International student under Independent


study. These questionnaires take approximately 10cc-cc15 minutes to complete.
Participation in this survey is voluntary. The information collected is used for
independent study proposes only, and will not be used against any organization in any
way. Before survey data are leased, your answers are combined with those of other
respondents and result are produced in a format in which no individual can be
identified. For more information about this study, please contact Nakarin, MBA
Student at mailto:nutbkk@gmail.com or (662) 4324503 and thank you for
participation in this survey.

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

Part 2: Types of CSR activities received from Chemical Industry


Explanation Please answer the question by filling 3 in the blank … or the area that
it is your answer (5=strongly agree, 4= agree, 3=neither agree nor disagree, 2= disagree,
1=strongly disagree)

Details Strongly disagree Strongly agree


1 2 3 4 5
Social and environmental treatment
6. Having the mechanism to identify, measure,
record and report all of the following: material … … … … …
consumption, waste, and emissions to air and water
7. Having mechanism or adopt technologies to
reduce material consumption, emissions to air and
… … … … …
water and waste stream to below the legal
requirement
8. Maintaining a register of all dangerous chemicals
used and amounts and make this register publicly … … … … …
available
9. Taking measures to offset greenhouse gas
emissions through action such as reforestation,
… … … … …
planting of trees or purchase of energy from
renewable sources
53

Details Strongly disagree Strongly agree


1 2 3 4 5
10. Taking proactive activities on rehabilitation of
… … … … …
coral reefs and beaches
Community
11. Organizing annual blood donation campaigns … … … … …
12. Producing creative activities to improve and
… … … … …
give the opportunity for people in society
13. Helping and improving quality of life of people
… … … … …
in society better
14. Supporting and helping in part of scholarship to
… … … … …
give opportunity for students
15. Supporting instruction such as building school
… … … … …
and library
16. Initiating “Sport Day”, “Anti - Drugs” and
“Sports for Youth” project to foster unity and
relationship among industrial operators to prevent … … … … …
and solve of drug-related problems and improve
health and well - being
17. Supporting and helping foundations by
… … … … …
donation money and stuffs
54

Part 3: Community perception on CSR activities received from the Chemical


Industry in Map Ta Phut Industry Estate
Explanation Please answer the question by filling 3 in the blank … or the area that it
is your answer (5=strongly agree, 4= agree, 3=neither agree nor disagree, 2= disagree,
1=strongly disagree)

Strongly Disagree Strongly


Details
Agree
1 2 3 4 5
Social and environmental treatment
18. Having conducted Waste Management … … … … …
19. Having useful activities and care environment … … … … …
20. Having production process and good
… … … … …
environment management
Community
21. Having useful activities in society and
… … … … …
community
22. Having good relationship with community and
… … … … …
people in this area
23. Having activities to improve and give the
… … … … …
opportunity for people in society
24. Helping and improving quality of life of people
… … … … …
in society
25. Supporting scholarship to students in
… … … … …
community
26. Supporting education such as building school
… … … … …
building and library
27. Youth - care program … … … … …
28. Donating money and other necessary things to
… … … … …
the community
55

Part 4: Community perception on the best approach of CSR activities.


Explanation Please answer the question by filling 3 in the blank … or the area that
it is your answer (5=Strongly agree, 4=agree, 3=neutral agree, 2=disagree, 1=Strongly
disagree)

Details Strongly disagree Strongly agree


1 2 3 4 5
29. Implement a whistle blowing procedure and
encourage employees and agents to report violations … … … … …
of the organization
30. Motivation of the public relations activities to
… … … … …
the communities
31. Encouragement of the public relations
… … … … …
activities to the communities
32. The knowledge of public relations of each
… … … … …
companies
33. Initiate the activities for sustainability … … … … …
34. Have a climate change strategy and policy with
measurable greenhouse and gas emission reduction … … … … …
targets
35. Prevent to use extremely or highly hazardous
pesticides (as defined by the World Health
… … … … …
Organization) and chemicals classified as ozone-
depleting in production
36. Reuse or recycle material and/or use products
… … … … …
made from recycled materials
37. Conduct and provide the knowledge of the
health and safety risks to all people in Rayong … … … … …
provinces
56

Details Strongly disagree Strongly agree


1 2 3 4 5
38. Have adopt the health and safety measures
and emergency systems for the community in … … … … …
Map Ta Phut
39. Ensure that the lobby activities does not
misinform, misrepresent, threaten, and use … … … … …
compulsion and aggressive tactics
40. Provide community with information about the
… … … … …
environmental and social conditions
41. Minimize packaging material to reduce waste … … … … …
42. Provide adequate disposal system for consumer
waste such as outdated computers, mobile phones, … … … … …
or other company products
43. Have emergency systems in place for
community health and safety that comply with the … … … … …
best practices
44. Provide assistance to any employee with their
families who live in Map Ta Phut Community to … … … … …
gain access to essential health care services

••• Thank you very much for your participation on this survey •••
BIOGRAPHY
58

BIOGRAPHY

Name – Surname Nakarin Panthong


Date of Birth September 15, 1972
Address 199/82 M.4 Mantana Pinklao Rama5 Village,
Bangkluay, Nonthaburi 11130 Thailand
Workplace Dow Chemical (Thailand) Co., Ltd
8, I - 4, MapTaPhut Industrial Estate,
MapTaPhut, Muang, Rayong 21150 Thailand
Position Regional I/S Delivery Lead
Work Experiences
2004 IBM (Thailand) Co., Ltd
1998 Nokia Asia Pacific (Singapore) Co., Ltd
1996 Jardine One Solution (Singapore) Co., Ltd
Education Background
2006 B.B.A. (Business Information Technology), Dhurakij
Pundit University, Thailand

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