ASEAN CSR Vision 2020Mainstreaming Responsible Business Conduct

What’s next for CSR in ASEAN?

24 April 2014Raffles Hotel Le Royal, Phnom Penh

Cambodia

ASEAN Socio-Cultural Community BlueprintC3. Promoting Corporate Social Responsibility (CSR)

Strategic objective: Ensure that Corporate Social Responsibility (CSR) is incorporated in the corporate agenda and to contribute towards sustainable socio-economic development in ASEAN Member States.

The ASEAN Community Blueprint recognizes CSR as a tool for community-building

Actions Recommended1. Develop a model public policy on Corporate Social

Responsibility or legal instrument for reference of ASEAN Member States by 2010. Reference may be made to the relevant international standards and guides such as ISO 26000 titled “Guidance on Social Responsibility”;

2. Engage the private sector to support the activities of sectoral bodies and the ASEAN Foundation, in the field of corporate social responsibility;

3. Encourage adoption and implementation of international standards on social responsibility; and

4. Increase awareness of Corporate Social Responsibility in ASEAN towards sustainable relations between commercial activities and communities where they are located, in particular supporting community based development.

Converging principles & standards

Common frameworks and standards provide opportunities for engagement

ASEAN CSR Network• Established through the ASEAN Foundation

• Currently represented in 7 of 10 ASEAN countries

• Supports the objectives of ASEAN Community integration towards inclusive, equitable and sustainable socio-economic development

• Provides a platform for regional collaboration in CSR advocacy, capacity-building and collective action

• Partners with local stakeholders, international agencies and other regional bodies

Key trends in ASEAN

• Philanthropy still main mode of ‘CSR’, but slowly changing to a more strategic approach

• ASEAN bodies and govt’s taking an interest (i.e. AICHR baseline study on CSR, attempts at legislation)

• Stock exchanges taking action• Bursa Malaysia, Singapore Stock Exchange, Stock

Exchange of Thailand have all issued guidance on CSR/ Sustainability Reporting

• International Organizations shifting priority (and resources) to business engagement/ CSR

Key challenges

• Majority of businesses in ASEAN are small to medium-sized

• Tendency to focus on soft/ easy issues• Sensitivities when addressing hard issues: human rights,

corruption

• Lack of cohesive and coordinated national and regional strategies

What has worked/ What hasn’t

• Philippines

• Indonesia

• Myanmar

• Thailand

Philippines

• Plenty of voluntary private- sector led initiatives• Philippine Business for Social Progress• League of Corporate Foundations• Philippine Business for the Environment• ‘CSR Committees’ in most relevant business chambers/ associations

• Gov’t engaging but still stuck in ’corporate giving’ mindset• High contributions from private sector towards education &

disaster response• Tried to legislate “2% CSR” model but failed

• Strong emerging focus on 1 key issue: Corruption• Direct influence of current gov’t administration’s agenda

Plus over 40 other business associations

Funding support

Regional Working Group on Business Integrity

DPWH: Requires all contractors to sign “Integrity Pledge”

Step 1: Integrity Pledge

Step 2: Self-Assessment

Step 3: Certification

technical advise from

PHIINDSINMALVIETHA

Indonesia

• 2007: Law No. 40 on Limited Liability Companies (GR 47/2012)

• Applies to all companies in the natural resource sector (or related sectors)

• For SOEs: Related guidance recommending “2% mandatory CSR model”

• Up to now, still a contentious issue and implementation is not consistent

• Key focus area now is on Agriculture and Extractives• Also on corruption, human rights, and environment as cross-

cutting concerns• Interesting to see how things will change under new

President

Myanmar

• Global Compact Local Network established in 2011• Hosted by UMFCCI – CSR Unit established in 2013• Ambitious target to reach 1,000 signatories by 2015

• Admitted as candidate country to Extractives Industry Transparency Initiative (Jul 2014)

• A lot of attention from int’l community helping things move (but may also overwhelm local systems)

Thailand• Stock Exchange of Thailand leading the way

• Recommended guidelines translated to Thai in 2012 • CSR Club in TLCA and CSR Centre in SET set up to provide

research and training • Has announced intention to develop a Sustainability Index

(consulting with Johannesburg Stock Exchange)

• Business groups linking together for stronger impact• Thai Collective Action Coalition Against Corruption• Anti-Corruption Organization of Thailand (ACT)

• Challenge: How to ensure CSR extends to entire supply chain

What’s next for Lao?

• The discussions need to be led from within Lao• With private sector leading, and government & civil society

contributing

• Focus on key issues relevant to Lao (and its stakeholders)• Materiality + Localization + Value Chain

• Learn from others. Link with ASEAN.

• Keep the momentum going. Start small, dream big.

ACN’s commitment

• Provide support for• Learning and training opportunities• Link like-minded organizations across ASEAN• Support for Collective Action initiatives

• By 2015: • Small Grants Fund for Local Networks• Executive Education and Fellowship Opportunities

A proposed model for joint action