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Overview of CSR in ASEAN and the Role of the ASEAN CSR Network

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This presentation was part of the ProSPER.Net Leadership Programme 2017 'Building Transformational Leadership Towards the SDGs'

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Overview of CSR in ASEAN and the Role of the ASEAN CSR Network

  1. 1. Supporters Overview of CSR in ASEAN, and the role of the ASEAN CSR Network
  2. 2. What is CSR? Corporate Social Responsibility (CSR) is NOT about how money is spent. It is about how money is made. It is beyond charity and philanthropy It is business responsibility for their impacts on society
  3. 3. Planet Environmental Performance Profit Economic Performance People Social Performance Environment (Planet) Economy (Profit) Society (People) What is CSR?
  4. 4. ASEAN Political-Security Community (APSC) “Support the ASEAN Foundation to strengthen its collaboration with the private sector and other relevant stakeholders to instill CSR” ASEAN Economic Community (AEC) “Work closely with stakeholders towards promoting CSR activities” ASEAN Socio-Cultural Community (ASCC) “It shall also promote PPP, social entrepreneurship and CSR for inclusive and sustainable socio- cultural development” “Promote the integration of Sustainable Consumption and Production strategy and best practices into national and regional policies or as part of CSR activities” ASEAN 2025: Forging ahead together CSR highlighted in ASEAN 2025 Blueprint
  5. 5. Status of CSR in ASEAN Countries Member of ACN? Number of UNGC business signatories Number of UNGC signatories UNGC network? Brunei Darussalam No 0 1 No Cambodia No 3 4 No Indonesia Yes 47 122 Yes Lao PDR No 0 1 No Malaysia Yes 32 47 Yes Myanmar Yes 308 317 Yes Philippines Yes 13 56 Yes Singapore Yes 49 64 Yes Thailand Yes 59 68 Yes Vietnam Yes 25 76 Yes As of Oct 2016 Source: UNGC
  6. 6. Status of CSR in ASEAN ASEAN will charts its own CSR agenda/framework, but can learn from others’ experiences Source: UNGC 1 0 111 1 61 65 55 65 36 66 1 4 122 1 47 317 56 64 68 76 0 50 100 150 200 250 300 350 Brunei Darussalam Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Vietnam UNGC Signatories in ASEAN Mar-14 Oct-16
  7. 7. 461 756 0 100 200 300 400 500 600 700 800 ASEAN UNGC Signatories in ASEAN Mar-14 Oct-16 Source: UNGC Status of CSR & Sustainability Signups
  8. 8. ASEAN will charts its own CSR agenda/framework, but can learn from others’ experiences “Voluntary” “Philanthropic” “Top-bottom” International commercial treaties constraints Little attention to SMEs What are the gaps? Status of CSR in ASEAN
  9. 9. www.asean-csr-network.org Vision A responsible business community that makes ASEAN a better place to live for all Mission To promote and enable responsible business conduct in ASEAN to achieve sustainable, equitable and inclusive social, environmental and economic development Who We Are • Registered as a company limited by guarantee in Singapore • International Charity Organisation status • Accredited as an ASEAN Entity under Annex 2 of the ASEAN Charter • A leading regional network of CSR networks in ASEAN ACN to help bridge the gaps
  10. 10. ASEAN CSR Vision 2020 was initiated and launched by the ASEAN CSR Network (ACN) in June 2014 with the support from the Swedish International Development Co-operation Agency (SIDA) The 3 pillars illustrates the multi-prong approaches that ACN uses to ensure that several measure are taken to work with respective partners to achieve the vision. ASEAN CSR Vision 2020
  11. 11. SHARED VISION CAPACITY BUILDING COLLECTIVE ACTION To coordinate the formulation of a shared CSR vision that is in line with international standards, and guide multi-sector collaboration in capacity building and policy development To harmonise CSR efforts at the regional level by providing a platform for coordination, cooperation and information exchange To support businesses and maximize their resources in doing CSR through knowledge sharing and training Turning the Vision into Action
  12. 12. Some examples Corporate Governance & Responsibility: Theory Meets Practice, 20 – 22 July 2016, Singapore organised by ACN and CGIO, NUS In realising the ASEAN CSR Vision 2020 Launch of Sustainability Consortium of Professionals and Educators (SCOPE)
  13. 13. Sustainability Consortium of Professionals and Educators (SCOPE) PLANS 1) A dedicated website 2) Roundtables for Professionals and Educators • 1st Roundtable in Nov 2017 3) Research workshop/conference for Academics 4) Teaching materials for Universities 5) Training programmes for Practitioners 6) Promote and showcase sustainability initiatives 7) Research projects Sign up at: http://tinyurl.com/scopeCSR
  14. 14. www.asean-csr-network.org AICHR Seminar on Promoting CSR & Human Rights in ASEAN, 3 – 4 Nov 2016, Singapore Organised by ACN, AICHR –S’pore and MFA L – R: Dr Amy Khor, Singapore’s Minister of State for the Environment & Water Resources and Health; H.E. Barry Desker, Singapore’s representative to AICHR Interactive Panel Discussions and Workshops One of the outcome of this was a Regional Strategy on CSR & Human Rights being drafted and presented to AICHR Speakers at Conference
  15. 15. Guidelines ACN had also been active in providing its expertise. Apart from conferences, research, ACN was also an active contributor to the ASEAN Guidelines for CSR on Labour The ASEAN Guidelines for CSR on Labour was adopted at the 24th ASEAN Labour Ministers Meeting which was convened on 15 May 2016 in Vientiane. Prior to this meeting, the Thai Ministry of Labour organised a workshop in March 2016 to draft the ASEAN CSR Model on Labour. ACN was one of the resource persons at the workshop. In August 2016, The Thai Ministry of Labour together with ASEAN Secretariat, ACN and ILO covened an ASEAN CSR on Labour Forum to socialize the Guidelines.
  16. 16. www.asean-csr-network.org Regional Business Integrity Conference, Culture of Business Integrity, 6 – 7 Mar 2017, Singapore Organised by ACN Delegates at Conference Working Group on Business Integrity and Partners One of the outcomes of this meeting was the signing of the regional business integrity pledge "Integrity Has No Borders", showing their commitment and support for the business integrity movement in ASEAN. Speakers and ACN Board of Trustees at Conference
  17. 17. ASEAN CSR Fellowship ACN organised the inaugural fellowship programme which selected 16 Fellows from different countries in ASEAN being groomed as the new leaders in CSR. This programme is on-going throughout 2017 Fellows will be visiting 4 countries in ASEAN to participate in study tours, meet government officials, business leaders, academics, civil society practitioners and conclude with a Capstone Project which Fellows can implement in their respective countries
  18. 18. Small Grants Fund Programme Launched in February 2015, the Small Grants Fund is designed to provide access to supplementary funding ranging from SGD $3000-$10,000 to local and regional organisations engaged in work to promote CSR with an interest in linking their work to regional objectives. Typical projects supported include Business and Human Rights, Business and Labour, Business Integrity, Food Security and Sustainable Agriculture; all of which are relevant to the ASEAN CSR Vision of 2020 which seeks to mainstream responsible business conduct to build an inclusive, equitable and sustainable ASEAN. Thus far, the past 3 rounds have seen a total of 29 projects backed in 9 ASEAN countries, amounting to SGD $280,000 given in grants.
  19. 19. www.asean-csr-network.org Research The following studies were carried out between ACN and CGIO, NUS which looked into the depth of sustainability reporting as well as Corporate Disclosure on Business Integrity carried out in countries in ASEAN
  20. 20. Participating Organisations The following were ACN’s Founding and Participating Organisations since its inception.
  21. 21. Corporate Partners Corporate Partners support ACN with financial contribution and also, other collaboration such as speaking at conferences, training to promote responsible practices.
  22. 22. Supporting Partners The following were some of ACN’s past and current Supporting Partners who had supported ACN in its research, workshops, training, conferences. Support could be in kind or by providing knowledge, resources. WORKING GROUP ON BUSINESS & HUMAN RIGHTS
  23. 23. Donors The following donors had made it possible for ACN to cover its operations as well as run its programmes to promote responsible business.
  24. 24. Thank You Please follow us https://www.facebook.com/ASEANCSRNetwork/ https://twitter.com/aseancsrnetwork http://asean-csr-network.org
  25. 25. Scope of the Study “Sustainability Reporting in ASEAN” Top 100 mainboard companies by market capitalisation (as of 30 June 2015) Covered disclosed information from 1 Jan 2014 to 31 Dec 2015
  26. 26. Indonesia (IDX) Malaysia (Bursa) Singapore (SGX) Thailand (SET) Sustainability Reporting Enforcement Level CSR disclosure as a part of listing rule from financial year ending on or after 31 December 2012 Sustainability statement disclosure as a listing requirement starting from year 2007 ‘Comply or explain’ basis as a part of listing rule from financial year ending on, or after 31 December 2017 CSR disclosure as a part of listing rule, effective from 1 January 2014 Sustainability Reporting Written Guidance Nil Bursa’s ‘Sustainability Reporting Guide’ SGX’s ‘Guide to Sustainability Reporting for Listed Companies’ CSR Institute’s (CSRI) ‘Guidelines for Sustainability Reporting’ Sustainability Index KEHATI-SRI Index FTSE4Good Bursa Malaysia Index SGX Sustainability Indices Nil Sustainability reporting initiatives in ASEAN
  27. 27. Companies with sustainability reporting [VALUE] 100 71 100 0 10 20 30 40 50 60 70 80 90 100 Indonesia Malaysia Singapore Thailand NumberofCompanies
  28. 28. ASEAN will charts its own CSR agenda/framework, but can learn from others’ experiences 48.4 47.7 48.8 56.8 20 25 30 35 40 45 50 55 60 65 70 Indonesia Malaysia Singapore Thailand LevelofDisclosure Average level of disclosure in ASEAN 50.4 Level of sustainability disclosure in ASEAN 60.7 63.2 64.9 77.5 55.4 48.0 51.3 56.0 31.4 36.3 37.1 41.4 46.1 43.4 41.9 52.3 20 30 40 50 60 70 80 90 100 Indonesia Malaysia Singapore Thailand LevelofDisclosure Governance Economic Environmental Social Level of sustainability disclosure by indicator Overall Level of Disclosure
  29. 29. • Higher quality of disclosure generally observed when countries used GRI framework • GLCs/SOEs tend to fare better on their quality of disclosures • Companies see the relevance in sustainability but majority of them are unable to identify its key impacts, risk and opportunities • Only a small proportion of companies disclosed information on materiality from all countries Summary of Key Findings (General Observations)
  30. 30. • Indonesia – Economic and Social indicators are relatively well-disclosed but need to look further into Governance and Environmental aspects • Malaysia – more comprehensive sustainability reporting landscape expected with the newly-implemented reporting guide by Bursa • Singapore – higher proportion of companies are expected to communicate sustainability when on the ‘comply or explain’ basis • Thailand - highest quality of disclosure, especially within the Energy sector What are the reasons? Summary of Key Findings (Country Observations)
  31. 31. Recognition • SET Sustainable Awards • SET Social Enterprise Investments Awards SET Sustainability Rankings • Thailand Sustainable Investment List • Dow Jones Sustainability Indices (DJSI) Government Initiatives • Ministry of Industry has initiated ‘Green Industry Project’ • Minstry of Social Development and Human Secuirtiy developed a “CSR Strategic Plan” in 2014 Capacity Building • CSRI distributed a handbook based on GRI • SEC offers 7 types of reporting workshops SEC: Securities and Exchange Commission SET: Stock Exchange of Thailand CSRI: Corporate Social Responsibility Institute, which is under the SET 1. Push from Government & SEC/SET
  32. 32. 2. Business risks: Higher scores linked to business risks Environmentally-sensitive industries have business risks that are related to sustainable efforts Less resources required relative to other sectors Positive relationship between social and environmental scores
  33. 33. 2. Business risks: Higher scores linked to business risks Rank Name Sector 1 Thai Oil Energy 2 Siam Cement Materials 3 PTT Exploration & Production Energy 4 PTT Global Chemical Materials 5 IRPC Energy 6 Ratchaburi Electricity Generating Utilities 7 PTT Energy 8 Charoen Pokphand Foods Consumer Staples 9 Banpu Energy 10 Advanced Info Telecommunication Services Majority of Top 10 companies with highest sustainability disclosure rate are from the energy/ environmentally-sensitive industries Top 10 companies
  34. 34. 3. Sufficiency Economy Philosophy 3736 36 out of the top 100 companies disclosed the King’s Sufficiency Economy Philosophy as a reason behind their sustainability activities 37 out of the top 100 companies disclosed that they were influenced by Buddhism
  35. 35. 3. Sufficiency Economy Philosophy unique to Thailand Thai Sustainable Development Sufficiency Economy Philosophy Thai Buddhism The King of Thailand Sustainability in Thailand focuses on pho phieng, sufficient, adequate — or “just enough”
  36. 36. 3. Sufficiency Economy Philosophy critical to better practices Thai Sustainable Development Sufficiency Economy Philosophy Recognise need for culturally sensitive, home-grown approaches
  37. 37. Thailand also tops ASEAN on ‘corporate disclosure on business integrity’ Top 50 companies • By market capitalisation as of 31 December 2015 • In 5 ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, and Thailand) • Publicly available information as of 31 April 2016
  38. 38. Category Question Description Internal commitment to anti-corruption 1 Zero-tolerance statement 2 Commitment to comply with laws 3 Leadership support 4 Code applied to all employees and directors 7 Training programme for all employees and directors External commitment to anti-corruption 5 Code applied to agents 6 Code applied to suppliers 8 Gifts, hospitality, travel policies 9 Prohibition of facilitation payments 13 Disclosure of political contributions Reporting and monitoring 10 Prohibition of retaliation for reporting 11 Confidential reporting channel 12 Regular programme monitoring
  39. 39. 39% 40% 43% 47% 57% 45% 0% 10% 20% 30% 40% 50% 60% Indonesia Malaysia Philippines Singapore Thailand Overall level of disclosure on business integrity Average level of disclosure rate per country Average level of disclosure rate across 5 countries

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