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CSR Emerging trend in Asia
From BGRC Conference May 11-12, 2007
Agenda
11
Major Issues
China and Asia’s economic boom
22...
2
CSR Perceptions: Shareholder Rights
“What do you think should be the most important focus of CSR
in a business?”
143 exe...
3
CSR Practices in Asia
South Korea
Yuhan-Kimberly
Hygiene supplies
• Diapers, pads, tissues, toilet paper, fabrics
Numero...
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CSR: Emerging Trend in Asia

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Luncheon Talk 17 May 2007

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CSR: Emerging Trend in Asia

  1. 1. 1 CSR Emerging trend in Asia From BGRC Conference May 11-12, 2007 Agenda 11 Major Issues China and Asia’s economic boom 22 CSR Practices in Asia China India Hongkong South Korea 33 Main Discussions Green GDP CSR for corporations Major Issues: The Environmental Consequences of China’s Economic Boom (1/3) China’s Economic Growths Real GDP growth rate of 9.8% in 2005 Population of 1.3 billion (1/5 of the world population) Annual growth in real GDP per capita, China vs. world, 1980- 2005 (%) shows that China is outperforming the world 0 2 4 6 8 10 12 14 16 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 C hina W orldSource: IMF (2006) Major Issues: The Environmental Consequences of China’s Economic Boom (2/3) Major Environmental Issues: Air pollution (sulfur dioxide particulates) from reliance on coal produces acid rain; Water shortages, particularly in the north China; Water pollution from untreated wastes; Deforestation and ecological deterioration Estimated loss of one-fifth of agricultural land since 1949 to soil erosion and economic development; Trade in endangered species Air pollution in Beijing Plastic bags on the trees Water Pollution Major Issues: The Environmental Consequences of China’s Economic Boom (3/3) Source: World Bank 2006 Key success of China’s environmental control is the GOVERNMENT by strengthening rule of law, participation and scientific development CSR Practices in Asia China Government State Environmental Protection Administration (SEPA) • Role: To disseminate national environmental policy and regulations, collect data and provide technological advice on both national and international environmental issues • Actions: Cleaner Production Promotion Law, Severe punishment on 4,162 polluting companies, Suspend 161 projects that would damage environment with total investment of RMB770 billion Public awareness Media, internet, TV, and newspaper reported damage of waterfalls according to the film shooter in May 2006. This news has aroused wide attention among people.
  2. 2. 2 CSR Perceptions: Shareholder Rights “What do you think should be the most important focus of CSR in a business?” 143 executives working for multinationals in China Source: BDL Media Ltd. CSR Perceptions: Charity Source: BDL Media Ltd. “What do you think should be the most important focus of CSR in a business?” 30 CSR managers (or equivalent) at top multinationals in China Sample Company: Degussa The global market leader in specialty chemicals Degussa’s “Corporate Citizenship” Our economic success is closely integrated with ecological and social responsible businesses With innovations we face up to the challenges of the future We achieve environment and health protection with the high security of our equipment and products Therefore we need well trained as well as engaged and motivated employees With our business and open dialogues we’re winning trust and acceptance of the society Integrate CSR into company’s economic and human resources. Gain trust and acceptance of the society. CSR Practices in Asia India Process and Product Certifications Provide greater information regarding environmental and social ‘credence attributes’ of company’s products and/or processes to industrial buyers, consumers, regulators, and other stakeholders. ‘Credence Attributes’ – characteristics of products that a buyer is not able to determine before purchase and during use. ISO 9000 / ISO 14000 CSR Practices in Asia Hongkong It’s a collective effort. Power plants contribute the maximum of air pollution Prudent usage of electricity would indirectly help stop the air pollution Government effort by introducing rules and regulations on vehicles, power generation CSR Practices in Asia South Korea Saemankeum Pros Land Reclamation Total of about 40,000 Hectares Food & Water Shortage Transportation by land Employment : 13,390,000 Increase Cons Elimination of Tideland Over 90% eliminated Decrease in living organisms Decrease in land value (3.3x) Economical benefits with enormous environmental side effects
  3. 3. 3 CSR Practices in Asia South Korea Yuhan-Kimberly Hygiene supplies • Diapers, pads, tissues, toilet paper, fabrics Numerous awards • Wall Street Journal’s Asia’s Best Company to Work For – Rank 6 (2003) • Korea’s Most Respectable Companies – Rank 4 (2004) It purchases environmentally friendly supplies for its production, has its own environmental auditing tools and department, and also, evaluates its suppliers in terms of environmental-friendliness in terms of deciding if they are suitable to do business with. Main Discussions Green GDP Calculated GDP by taking environmental friendliness into account Obstruction: Chinese government CSR for corporations What should be CSR for corporations? • Contribution for society (Donation) or • Public relations Keynote Speeches by 1. Alessandra Tisot (UNDP - Poverty Eradication in China) 2. Gary Strieker (Sustainable Environment) 3. Government Official (Environmental Regulations in China) 4. Fred Dubee (UN Global Compact) 5. Chandran Nair (Asia Sustainable Development)

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