CSR IN ASEAN:

PAST, PRESENT, FUTURE

THOMAS THOMAS
CEO, ASEAN CSR NETWORK
What is CSR?

Corporate Social Responsibility is NOT

about how money is spent. It is about
how money is made.

EU: The responsibility of enterprises for

their impact on society

It is beyond charity and philanthropy

 Introduction to ASEAN
Established: 8 Aug 1967

Founders:
Expanded to:
Indonesia Brunei 7 Jan 1984
Malaysia Vietnam 28 July 1995
Philippines Laos
23 July 1997
Singapore Myanmar
Thailand Cambodia 30 April 1999
1967 Bangkok Declaration

An initiative to ensure peace and stability

in the region, through a commitment to
work together and deal peacefully with
mutual differences.
Fundamental Principles

Mutual respect for the independence, sovereignty,

equality, territorial integrity, and national identity of all
nations

The right of every State to lead its national existence

free from external interference, subversion or coercion

Non-interference in the internal affairs of one another

Fundamental Principles

Settlement of differences or disputes by peaceful means

Renunciation of the threat or use of force

Effective cooperation among member states

 ASEAN countries: the same yet different
Total land area Total population Population density Annual GDP at current GDP per capita
(2014) (2013) (2013) population US$ (2013)
Countries growth (2013) (2013)
Km2 Thousands Persons / Km2 % US$ million US$ US$ ppp
Brunei 5,270 417.8 79 1.3 16,111.1 38,563.3 71,776.6
Cambodia 176,520 15,135.2 86 1.8 15,238.7 1,006.8 3,041.1

Indonesia 1,811,570 249,865.6 138 1.2 868,345.7 3,475.3 9,561.1

Lao PDR 230,800 6,769.7 29 1.8 11,242.5 1,660.7 4,822
Malaysia 328,550 29,717 90 1.6 313,159.1 10,538.1 23,338
Myanmar 653,290 53,259 82 0.9 56,800 1,066.5 -
Philippines 298,170 98,393.6 330 1.7 272,066.6 2,765.1 6,535.9

Singapore 700 5,399.2 7,713 1.6 297,941.3 55,182.5 78,763.4

Thailand 510,890 67,010.5 131 0.3 387,252.2 5,779 14,393.5

Vietnam 310,070 89,708.9 289 1.0 171,390 1,910.5 5,294.4
ASEAN 4,325,830 615,676.5 142 1.32 2,409,547.2 3,913.7 -
As of April 2015
Source: World Bank
ASEAN Community: Three Pillars

ASEAN Political- ASEAN Economic ASEAN Socio-Cultural

Security Community Community (AEC)
(APSC) Transforming ASEAN into a region
with free movement of goods,
Continued political and security services, investment, skilled labour,
cooperation and freer flow of capital
Community (ASCC)
A common identity with an inclusive,
equitable and harmonious society
Promoting CSR is a key component of
ASCC Blueprint
Objective: CSR is incorporated in the corporate agenda, contributing
towards sustainable socio-economic development.
Actions:
Develop a model public policy on CSR. Reference to international
standards (ISO26000);
Engage the private sector;
Encourage the adoption and implementation of international standards
on social responsibility;
Increase awareness of CSR towards sustainable relations between
commercial activities and communities.
Social Justice and Rights, ASCC Blueprint
ASEAN Economic Community
 ASEAN
ECONOMY
2007 2014

ASEAN GDP in
2014 almost
doubled

USD $1.33 USD $2.57

trillion trillion
 ASEAN
ECONOMY
In 2014, ASEAN economy was:
rd
3 largest in Asia
th
7 largest in the world
 ASEAN
POPULATION
3rd largest in the world in 2014
China India ASEAN EU US

1,357 1,259 622 504 319

mil mil mil mil mil
 ASEAN
POPULATION

More than 50% of ASEANs population is under 30 years old

(compared to 39% of East Asias, 34% of Europes)
 Different levels of development of CSR
Membership of the ACN and the UNGC business signatories

Countries Member of the Number of UNGC Number of UNGC UNGC network?

ACN? business signatories signatories
Brunei Darussalam No 0 1 No
Cambodia No 2 2 No
Indonesia Yes 44 116 Yes
Lao PDR No 0 1 No
Malaysia Yes 40 52 Yes
Myanmar Yes 206 213 Yes
Philippines Yes 13 55 Yes
Singapore Yes 48 65 Yes
As of April
Thailand Yes 25 33 No 2015
Source: UNGC
Vietnam Yes 16 66 Yes
 Country grouping

Higher income Middle income Lower income

Brunei Indonesia Cambodia

Singapore Malaysia Laos
Philippines Myanmar
Thailand
Vietnam

*Groupings are not official designations assigned by any

governing body
HIGHER INCOME GROUP:
Brunei & Singapore

ENABLING ENVIRONMENT FOR CSR

Governments play major role in CSR agenda setting
Strong regulations & enforcement allow companies to focus
on internal processes & risk mitigation
CSR as a tool for maintaining business competitiveness,
fostering innovation

CHARACTERISTICS OF CSR APPROACH

Anti-corruption & transparency high on agenda
MNCs, government-linked companies leading the way in CSR
practice
Low civil society participation & collaboration in CSR space; but
consumer expectations voiced through social media
MIDDLE INCOME GROUP:
Indonesia, Malaysia, Philippines, Thailand, Vietnam

ENABLING ENVIRONMENT FOR CSR

Governments view CSR as complimentary to the anti-
poverty agenda
Strong civil society serves as both watchdog & strategic
partner
Business associations & networks actively advocating for
greater CSR

CHARACTERISTICS OF CSR APPROACH

CSR practice starts off with philanthropy, evolves towards
stakeholder engagement & license to operate
Innovate Bottom of the Pyramid approaches, multi-sector
partnerships emerging
Climate change & related issues being taken
seriously
LOWER INCOME GROUP:
Cambodia, Laos, Myanmar

ENABLING ENVIRONMENT FOR CSR

Political, economic change is on the horizon
Strong presence & influence of international agencies in
the development agenda
Competition to attract foreign investors may boost
interest in international CSR standards

CHARACTERISTICS OF CSR APPROACH

Very low awareness, CSR in nascent stages
State-controlled enterprises can influence, set benchmarks
for CSR practice in the country
Foreign investors may use CSR as a competitive edge in
gaining entry to key industries
 Attention to UNGC focus areas

Group Environment Labour Human Anti- Community

Rights Corruption Development

Higher income High Mid Low High Mid

Middle High Mid Low Mid High

income
Lower income Low Low Low Low Mid
 Commonalities

Community development and

philanthropy still main mode of CSR
practice

CSR as strategy for regional and global

recognition and participation

Governments still figuring out how to promote

CSR
ASEAN Community Vision 2025

We resolve to realise a rules-based, people-

oriented, people-centred ASEAN Community,
where our peoples enjoy human rights and
fundamental freedoms, higher quality of life and
the benefits of community building, reinforcing
our sense of togetherness and common identity
To Realise the Vision:
Responsible Business in ASEAN
Political-Security
Good Governance / Transparency
Anti-Corruption In Public & Private
Sectors
Promotion of Human Rights
Protect Migrant Workers, Women and
Children against trafficking in persons
Economic
Good Governance
Consumer Protection Strengthen
Product Safety, Promote Sustainable
Consumption
Better Agricultural Practices
Enable Sustainable Production &
Equitable Distribution
Sustainable Economic Development
Socio-Cultural
Gender Equality
Inclusive Reduce Inequalities
Sustainable Consumption & Production
CSR for Inclusive & Sustainable Socio-Cultural
Development
 Responsible Business as a priority in
ABAC Agenda
Free movement of skilled labour
Promote labour migration rights
Responsible business practices
Encourage adoption of CSR initiatives specifically human rights
Employers to formally adopt decent work principles
ISO 26000 and UN Guiding Principles
Eliminate forced labour
Sustainable Development
Private sector to set and achieve targets for sustainable development
Measure sustainability
The Challenge

Converting a good plan in words:

Moving from words
To works - real action
WithResponsible Business conduct
mainstreamed
Future looks promising:

ASEAN 2015: Forging Ahead Together

ASEAN Business Advisory Council Responsible Business
ASEAN Human Rights Declaration
Includes the Right to Development
ASEAN Intergovernmental Commission on Human Rights
Stock Exchanges
ASEAN Guidelines for CSR on Labour
ASEAN Wide Guidelines on CSR and Human Rights
ASEAN CSR Network:
Making the Vision into Action
Established in 2011 in support of ASEAN Community
integration

A responsible business community making ASEAN

a better place to live for ALL

To mainstream responsible business conduct in

support of sustainable, inclusive and equitable
socio-economic development in ASEAN www.asean-csr-
network.org
 ASEAN CSR Vision 2020:
Mainstreaming responsible business conduct in ASEAN
SHARED VISION
To coordinate the formulation
of a shared CSR vision that is
line with international
standards, and guide multi-
sector collaboration in
capacity building and policy
development
CAPACITY BUILDING COLLECTIVE ACTION
To support businesses and
To harmonize CSR efforts at
maximize their resources in
the regional level by providing
doing CSR through
a platform for coordination,
knowledge sharing and
cooperation and information
training
exchange