Corporate Social Responsibility (CSR) and Foreign Direct Investment (FDI) Myanmar

CORPORATESOCIALRESPONSIBILITY & FOREIGNDIRECTINVESTMENT

MYANMAR

20th SEPTEMBER, 2015 Prepared By: ZAY YAR TUN

2

Corporate Social Responsibility (CSR)

Foreign Direct Investment (FDI)

CSR & FDI MYANMAR

CONTENT

3



CSR & FDI MYANMAR

CONTENT

4 Corporate Social Responsibility

DEFINITION OF CSR

TEXT BOOK SAYS…

RELATIONSHIP between CORPORATE AND STAKEHOLDERS

WHAT WE (MYANMAR PEOPLE) BELIEVE…

“PaRaHiTa” integrated into “Business” perspective

BUSINESS DICTIONARY DEFINED…

COMPANY’ sense of RESPONSIBILITY towards the COMMUNITY and ENVIRONMENT

WIKIPEDIA MENTIONED…

CORPORATE SELF-REGULATION integrated into a BUSINESS model


ECONOMICAL…

Be Profitable, maximize sales and minimize costs

PHILANTHROPIC…

Good corporate citizenship, CSR, Sustainability

ETHICAL…

Do Right, Fair, Justice, Ethical

LEGAL…

Obey the Law, Rules and Regulations

Good Business VS

Being Good in Business


TRIPLE BOTTOM LINE OF CSR


Evaluation of CSR


Evaluation of CSR


Evaluation of CSR

10

STRENGTH WEAKNESS

• Good Corporate Governance

• Good Reputation

• Effective Marketing/Branding Tool

• Certain extra cost

• Waste of time/human resources if

improper management

•

OPPORTUNITY THREATS

• Becoming international trend

• Customer’ behaviors/preference has

changed

• Win-Win situation for corporate and

communities

• Good practices but various ways

of understanding/definitions

• Wrong purpose to cover

irregularities or illegal business

activities

• Becoming just for show-off CSR

Corporate Social Responsibility

SWOT ANALYSIS OF CSR

11

STRENGTH WEAKNESS


• Good Reputation




improper management

•

OPPORTUNITY THREATS



changed


communities





activities




12

STRENGTH WEAKNESS


• Good Reputation




improper management

•

OPPORTUNITY THREATS



changed


communities





activities




13

STRENGTH WEAKNESS


• Good Reputation




improper management

•

OPPORTUNITY THREATS



changed


communities





activities




14

STRENGTH WEAKNESS


• Good Reputation



• Consume time/human resources

• Not effective if improper

management

OPPORTUNITY THREATS



changed


communities





activities




15



CSR & FDI MYANMAR

CONTENT

16 Foreign Direct Investment (FDI)

FDI is…

Investment to a country by a individual, private/public

company, government and so on, from another country

FDI

WHY FDI…

Seeking for Markets, Products, Resources, Efficiency,

Strategies, Assets and so on.

TYPES OF FDI…

New incorporation, Joint Ventures, Merger, Acquisition,

Shareholders, Strategic Partnership/Alliance and so on.


Myanmar


FDI Myanmar


FDI Myanmar Overview


FDI Law Myanmar

Opportunities…

Agriculture

Infrastructure

Energy

Mining

Manufacturing

Hotel & Tourism

Benefits…

Income Tax Exemption 5 consecutive years

Exemption of commercial tax for goods

produced for export

Exemption of customs duty for raw

materials 3 years

and so on.

(Number 21/2012)

Rules to follow…

All related laws/rules & regulations, Corporate Tax, Commercial Tax, Local employee

25%, 50% and 75% at 2nd

, 3rd

, 4th

years, CSR 1-3% on Net Profit

1-3%

21



CSR & FDI MYANMAR

CONTENT

22 CSR & FDI MYANMAR

WORLD GIVING INDEX

Myanmar

Myanmar

1


SAMPLE CSR PRACTICES

By FDI Myanmar

Multi-National-Company (MNC) operates in over 100

countries with about 200,000 employees

Signal Toothpaste CSR target: To provide oral healthcare

education to 4 millions students at 2016

Lifebuoy Health Soaps CSR target: Lifesaving Hand-

washing Program for a child reach 5 to everybody i.e 20

million people at 2020



By FDI Myanmar

International-Company operates in over 13 countries with

186 million subscribers, established in Myanmar 2014

Responsible Business :

- Human Rights, Labours Rights

- Children Rights and Digital Harassment (UNICEF)

- ISO 140001 (Environmental Management)

- Wikimedia Foundation: Information Sharing FOC

(Malaysia, Myanmar, Thailand, Bangladesh, Montenegro)

- OHSE for employee, vendors, suppliers, contractors

- Electronic Waste Management

(Recycling Handsets, Batteries, Energy Consumption)



By FDI Myanmar

International-Company operates in over 15 countries with

107 million subscribers, established in Myanmar 2014


- Strong Supports in Myanmar Football

- Education Supports (Mobile Education Project, Youth

Forums, English Language, Libraries: 20,000ppl)

- Empowering Women (Connected women conference)

- Health Supports (PSI programs: 120,000 ppl)



By FDI Myanmar

Public Listed (NYSE:KO) Company and Products sold in

over 200 countries with est. 129 millions consumers


- Women Economic Empowerment

(Target 25,000 women / 3 million USD by 2020)

- Waste Water Management System

(Environment Sustainability)

- OHSE management (Labors rights, Human Rights)



By FDI Myanmar

World 4th

Largest Oil & Gas Company operates in over 130

countries with 100,000 employee and established in

Myanmar since1995.


- Human Rights, Business Ethics, Industrial Safety,

Environmental (ISO14001, Waste Management)

- Socio-economic Programs: access to education, public

health, road infrastructure for 50,000 people from 25 villages

(1995 to now).



By FDI Myanmar

World Leading Integrated Company operates in 5

continents with 32,00 service stations


- SHINE Program : Sustainable Health Improvement and

Empowerment (1,500 villages 1 million ppl and Targets 2017:

310 villages with 160,000ppl)

- SOCIO ECONOMIC Program: 33 villages 50,000ppl at 28

million USD



By FDI Myanmar

Established since 1837 (178 yrs) public listed company

(NYSE:PG) distribution of products in 180 countries


- Clean Drinking Water Project: 2 million USD (45 million litres

of Clean Drinking Water have been provided to various area

since 2011)

- Provided 31 million litres of clean drinking waters in 2008

cyclone Nargis

- Health Support and Hygiene Behaviours


P&G Clean Drinking Water Project Video

https://www.youtube.com/watch?v=LexUb0ia_bY





EXPERIENCE SHARING

Integrated as mission statements: to be an environmentally

responsible organization

High-quality fuel products: to reduce the environmental footprint

i.e selling high sulphur content products.

To be obtained and in-line with ISO 14001:2004 Environmental

Management System.

25,000 Trees (40 Acres) planted and counting…


EXPERIENCE SHARING

Road Safety Program

Supporting Traffic accident victims

Participating National Road Safety Week


REVIEW & RECOMMENDATION

CSR IN

PHILANTROPHY

CSR IN RISK

MANAGEMENT

CSR IN VALUE

CREATION

CSR IN BUSINESS APPROACH

- BUSINESS STRATEGY TO CSR STRATEGY

- BUSINESS PLAN TO CSR PLAN

- BUSINESS MANAGEMENT TO CSR MANAGEMENT

- BUSINESS REPORT TO CSR REPORT (SUSTAINABILITY REPORT)

A “SOCIAL LICENCE” TO OPERATE BUSINESS??


BRAIN STROMING

35

BRAIN STROMING

CASE-1

Well know Multi-National-Company (MNC) invested various business

in a country.

In government officials visited around the area where they built a

factory, they were asked to help the village by building up the

schools, by repairing the roads and by nurturing the environment.

And the company implemented accordingly to support the villages.

Question: Do you think that company practice CSR? WHY?

CSR & FDI MYANMAR

36

An International firm built up a factory near the river though a bit

far from the village.

After a few years the villagers claimed that the river became not

clean enough to use as the major source of water for them.

The company insisted that they have proper waste management

system since from the beginning.

Government authority instruct the company to do feasibility study

now and take full responsibility to make the river clean back. And

they do accordingly.

BRAIN STROMING

CASE-2

Question: Do you think that company practice CSR? WHY?

CSR & FDI MYANMAR

37

CREDITS/REFERENCE:

David Crowther, Guler Aras: “Corporate Social Responsibility”

Subhasis Ray.S.Siva Raju: “Implementing Corporate Social Responsibility”

MIC/DICA/GIZ: “Myanmar Investment Guide 2014”

McKinsey Global Institute : “Myanmar Moments: Unique Opportunities and Challenges”

The World Bank Group: Myanmar Economic Monitor 2013

MCRB-Vicky Bowman: “Responsible Business in Myanmar and CSR”

Oxford Business Group: “The Report Myanmar 2015”

www.en.wikipedia.org/wiki/Corporate_social_responsibility

Mango Group: “Unilever CSR Initiative”

Unilever: “Sustainable Living Plan”

Telenor Myanmar: “Business Sustainability Update”

Ooredoo: “Annual Report 2014”

Coca Cola: “Sustainability Report 2014-15”

Chevron: “2014 Corporate Social Responsibility Report Highlights”

Total: “Yadana CSR Annual Report 2014”

P&G: “2014 Sustainability Report”

UN Global Compact: “Max Energy COP 2013 and 2014”

CORPORATESOCIALRESPONSIBILITY & FOREIGNDIRECTINVESTMENT

MYANMAR

20th SEPTEMBER, 2015

THANK YOU

FOR

YOUR ATTENTION

&

“ A ”

“ Q ”

Prepared By: ZAY YAR TUN