Embed Size (px)
DESCRIPTION
okok
Citation preview
Article Title Page
From altruistic to strategic CSR: how social value affected CSR development—a case study of Thailand Patnaree Srisuphaolarn Department of Commerce and Accountancy Thammasat University Bangkok Thailand [email protected] NOTE: affiliations should appear as the following: Department (if applicable); Institution; City; State (US only); Country. No further information or detail should be included Acknowledgments (if applicable): This research was conducted under the research grants by the Center of Excellence, Kasetsart University for the first phase and the Business Research Center of Thammasat Business School for the second phase of study. The author would like to express her thankfulness to two anonymous reviewers for their constructive comments that improve the manuscripts tremendously. She would also like to thank Assistant Professor Dr. Nuttapol Assarut for his valuable comments that help clarify the author thoughts. Biographical Details (if applicable): Patnaree is teaching Introduction to International Business, Cross Cultural Management and Comparative Business System at Thammasat Business School. Her research interests include internationalization of services business (health care services), innovation in services and social innovation. She received her Ph.D. from Hitotsubashi University, Tokyo, supported by the Japanese Government Scholarship. Structured Abstract: Purpose - This paper investigates the adoption and evolution of corporate social responsibility (CSR) in Thailand and scrutinizes the mechanisms that drove the direction of CSR activities to their current forms. Design/methodology/approach - Qualitative data were collected through in-depth interviews with executives of fourteen companies, and open-ended questionnaires filled out by three organizations, all of which the public perceives as highly socially responsible. Additional data were collected from two CSR seminars, official company websites, and a database provided by the Stock Exchange of Thailand’s library. Findings - The study reveals two key findings. One is the pattern of CSR development in Thailand that emphasizes social and environmental issues, which are less relevant to the business’ core activities. The other is that Thai social and religious values are important antecedents of CSR strategy and implementation. Corporations communicate CSR implicitly and execute a two-stage public relations strategy indirectly. Originality/value - This paper reveals a unique interpretation of CSR in developing economies where agrarian social values and informal networks still dominate. Most extant literature assumes that CSR in developing countries mimics western patterns. This paper asserts that it is instead an adaptation of western concepts to local culture in the case of Thailand, which affected the whole CSR process—idea generation, implementation, and communication. Keywords: Social values, CSR pattern, implicit CSR, public relations strategy. Article Classification: Research Paper
For internal production use only Running Heads:
1
From altruistic to strategic CSR: how social value affected CSR development—a case
study of Thailand
Introduction
Although the concept of corporate social responsibility (CSR) is not new, it was not
until recently that CSR became an important concept in many organizations. The concept has
been promoted to wider audiences by governments and international organizations such as
Hong Kong Special Administration Region, International Finance Corporation (IFC), United
Nations Development Programme (UNDP), CSR Europe, and World Business Council for
Sustainable Development (WBCSD). Key players that helped introduce the concept in
emerging countries were multinational enterprises (MNEs), whose missions include being
good corporate citizens in host countries (Jamali and Mirshak 2007, Perrini 2006). MNEs
relate local CSR activities to corporate CSR policies in home countries (Husted and Allen
2006).
Empirical studies on CSR activities suggest that different patterns and factors
influence appropriate CSR activities in each country, both developed and less developed.
Factors influenced by CSR activities and communications include national business systems,
levels of economic development, economic freedoms, and levels of corruption (Chapple and
Moon 2005; Baughn et al., 2007). Matten and Moon (2008) found that business systems in
Europe make communication of CSR less explicit in comparison to American companies.
This is because many activities regarded as at a company’s discretion to express
responsibility to society in the U.S. are actions that comply with laws and regulations in
Europe. Similar phenomena are found in China. Conversely, studies of CSR activities in
Nigeria reveal that economic development stages relate to patterns of CSR (Amaeshi et al.,
2006; Baughn et al., 2007). Economic development stages reflect the different needs of
people in the country. Government’s failure to fulfill basic infrastructure needs offers MNEs
the opportunity to fill the gaps to express good corporate citizenship (Eweje 2006). In short,
2
different social needs lead to different interpretations of CSR definitions, CSR contents, and
the ways to communicate them.
Among numerous empirical studies that support country-specific CSR, few elaborate
on the mechanisms that explain why and how CSR developed into its modern form (Haslam
2007, Welford 2005, Maignan and Ralston 2002, O’neil 1986). This is essential to understand
how society’s expectations lead to better CSR strategy, especially the public relations
strategy of how to report CSR. In defining CSR, Dahlsrud (2008) concludes that:
…the challenge for business is not so much to define CSR, as it is to
understand how CSR is socially constructed in a specific context and
how to take into account when business strategies are developed. (p.6)
It is worth investigating the interpretation of CSR, the phenomena that affect the
changes in CSR patterns, and the key players that influence the changes. Understanding
better the mechanisms that shape present CSR patterns in emerging markets leads to
appropriate CSR strategies of MNEs for the benefit of both companies and host countries.
Thailand was chosen as a case study for this paper because the country is a representative of
emerging markets with high MNE presences. Since the first National Economic and Social
Development Plan was launched in 1954, Thailand relies heavily on direct foreign investment
and international trade, especially exportation. In Thailand, CSR is embraced well such that
within a few years after formal introduction from an affiliated organization of the Stock
Exchange in 2007, CSR became part of the mission in most companies. Recently, there are
movements to include small and medium enterprises into the CSR developing program via
ISO 26000, introduced by Thailand’s Ministry of Industry. A study of CSR in Asia regarding
the penetration of CSR by domestic and international companies suggests that among seven
3
countries, only Thailand showed a prominent lead of domestic companies in CSR activities
(Chapple and Moon, 2005). In other words, local companies are active in this matter.
In addition, CSR in Thailand reflects a striking characteristic. Thai CSR is gearing
toward social and environmental issues with little attention given to CSR influences on
employees and the marketplace (Chapple and Moon 2005). Employees and the marketplace
are two major stakeholders among others in western CSR standards (e.g. CSR in Europe).
Amaeshi et al. (2006) ask whether CSR is western mimicry or an indigenous influence. This
paper scrutinizes further the mechanisms that underlie the development of CSR patterns as
they are today, specifically to what extent western standards influence and to what extent
indigenous forces influence CSR.
CSR Development
The CSR concept developed from two sources at different times but converged as a
business norm after the millennium. One source was CSR as business ethics and the other
was CSR as part of sustainable development programs promoted by the United Nation
(United Nation, 1992). The idea that a company should take responsibility rather than simply
achieve economic goals was raised through discussions on business ethics since the 1950s
(Carroll 1999). An assumption underlying this argument emphasizes proper means to make
and manage profits so that the company gains legitimacy for existence in society (Wood
1991). Puntasen (2008) and Collier and Esteban (2007) argue that Adam Smith describes
morality in his Wealth of Nations but it was omitted when mathematical tools were
introduced to verify economic theories. Most economists were induced into a world of
measuring. Ethics, which are not measured easily, became less prioritized. One of the
representative models of this CSR-as-business-ethics concept is the CSR Pyramid, which
demonstrates that a company has four responsibilities beyond the three basic responsibilities
toward economic outcomes of legal compliance, business practices, and responsibility
4
(Carroll 1999). It is the forth responsibility that Carroll states is at the discretion of the
company to do what is good for society, such as philanthropic CSR (see development of CSR
and corporate social performance in Wartick and Cochran 1985, Wood 1991). Business ethics
reflect the owners’ or executives’ personal values toward society (See more in Zsolnai 2007,
Fassin 2008).
CSR as part of sustainable development programs started in the early 1990s, initiated
by a Swiss industrialist shortly prior to the Earth Summit held by the United Nation. The
conference called for cooperation to reduce environmental destruction and pursue business
growth while considering environmental impacts (United Nation, 1992). This concept focuses
more on a commitment from the manufacturing sector. Thus, it led to attempts to set the new
industrial standard of ISO 26000, dued for enforcement in 2010. This view is relatively
closed to the continuous improvement concept - kaizen, which focuses more on the
production process (Visser 2010).
Later research suggests that CSR should not be an extra expense unless it generates
benefits for the business. Porter and Kramer (2006) propose that integrating CSR into the
value chain is a source of competitive advantage. Kotler and Lee (2005) propose six CSR
initiatives that include socially responsible business practices as a way to do well by doing
good. In line with this doing-well-by-doing-good concept, empirical research explores the
effects of CSR on financial performance. They aim to increase the motivation of business
practitioners to get involved in CSR activities and justify resource allocations to activities
less related to the main objectives of the business (Balabanis, Phillips, and Lyall 1998,
McWilliams and Siegel 2001, Amaeshi and Adi 2007).
Different CSR development paths in different contexts
After a series of business scandals in U.S. and European industries, companies are
under pressure to pay more attention to corporate governance and CSR. In short, it is
5
necessary to increase the public’s trust in corporations and increase operational transparency
and availability, especially in the U.S. (Auger, Devinney, and Louviere 2007). This leads to
the necessity of increasing communication with the public about company decision-making
via annual reports and websites. Corporate governance focuses on transparency of business
processes and performance while CSR focuses on extra business activities. Currently,
separation of annual and CSR reporting is the norm for large international corporations. CSR
specialists are hired, CSR departments are established, and CSR communication strategies
are planned.
The situation is different in Europe. Matten and Moon (2008) found that European
companies tend to communicate CSR less explicitly than U.S. counterparts. They argue that
business systems explain the difference. In Europe, CSR is part of legislation; there is no
need to communicate activities as extensively as American corporations do. In addition,
research regarding CSR in Africa suggests that stages of economic development contribute to
CSR activities in developing countries like Nigeria (Amaeshi et al., 2006). However, a survey
of CSR activities in Asia showed no single pattern of CSR in seven Asian countries - India,
South Korea, Thailand, Singapore, Malaysia, the Philippines, and Indonesia. One explanation
lays in national factors such as national business systems rather than economic development,
economic sectors, or social development (Chapple and Moon 2005). Baughn et al. (2007)
suggest that economic development, economic freedom, and level of corruption have positive
relationships with CSR. This implies that a society has specific expectations different from
one society to another, and cultures, historical backgrounds and business practices influence
these expectations (Lorenzo-Molo, 2009). Multinational corporations wanting to express
responsibility as good corporate citizens in host countries should have a thorough
understanding of what determines CSR activities that a specific society embraces.
Corporate Social Responsibility in Thailand.
6
The term Corporate Social Responsibility first appeared in Thai media in 2003
described as a new trend of global standard (Prachacart Turakij 2005). Three years later, the
Thailand Research Fund published a report concerning CSR development in business
organization management processes (Yodprutikarn et al., 2006). Using CSR forerunners as
sources of qualitative data, the report describes how a company could become socially
responsible and points out that there are two types of CSRs: the in-process type integrates
CSR into every production process and activity used to make a profit; the after-process type
deals with how to manage the profit gained for the sake of society. This in-process and after-
process CSR, later on, become influential concepts for companies that would like to catch up
on CSR. Inspired by the 2004 Tsunami in the southern part of Thailand, the Stock Exchange
of Thailand established the Corporate Social Responsibility Institute (CSRI) in 2007. Since a
tsunami is evidence of environmental destruction, institute executives asserted that a business
should extend operations to link with community, society, and the environment
(Assawapiriyanon 2007). In the same month, Thai Industrial Standard Institute and Kenan
Institute Asia published a working draft of ISO 26000, discussing guidelines for
manufacturers to respond with new industrial standards for CSR (Kenan Institute Asia 2008).
These are some examples of attempts made by the formal public sector to transplant CSR
from the west to Thailand, forces both from International and domestic organizations to
introduce and diffuse CSR to Thai businesses and push them toward implementation. Since
then, the term CSR is heavily visible and audible to the public.
As corporate image-building activities via donations and other societal marketing
programs were commonly found in daily mass media in Thailand during the 1990s, critics
questioned whether Thai companies could distinguish between CSR and public
relations/societal marketing, and whether Thai CSR is related to sustainability (Business Thai
2007; Business Thai 2008; Prachachart Turakij 2005). Thailand is no exception to
7
experiencing diversity in interpreting the imported concept of CSR and thus, diversity in
materialization of the concept. There are confusions about how to measure CSR performance,
how to report performance formally, and other issues because Thai companies tried to catch
up with American standards, which were developed under different contexts and public
expectations.
Research Questions
After reviewing the literature, the present author developed two main research
questions: (1) what are the specific characteristics of Thai CSR? and (2) how has the concept
of CSR developed in Thailand? The former question addresses how business practitioners
interpret CSR, and the key factors influencing such interpretation; the latter investigates key
phenomena and the responses of the key players to those phenomena that shape CSR
development. A discussion of the results answers whether there is a prominent difference
between CSR patterns in Thailand and western counterparts. In doing so, multinational
companies benefit from a deeper understanding of the Thai context so that they can serve this
emerging market better.
Methods and results
The study consisted of two phases to trace the development path of the CSR concept,
and add companies with international presences to recheck the CSR pattern found earlier. The
first was conducted in 2009 and the second in 2011. In the first phase, the author chose a list
of thirty companies considered highly socially responsible using a questionnaire survey and a
review of CSR award winners during a 2005 to 2008 competition. Five-hundred twelve open-
ended questionnaires were distributed in Bangkok metropolitan areas asking respondents to
give the names of companies that they perceive as highly socially responsible and the reasons
supporting their choices. These companies were approached for an in-depth interview session
8
based on semi-structured question lists sent to the companies prior to the interview. Eight
companies responded to our request and the interviews took place during the last week of
June to early August, 2009. In the second phase, nine companies responded to a request for
interview and to fill out the open-ended questionnaires. Six interviews took place and three
questionnaires were completed in July. Each interview took approximately one and a half
hours except for one company that took three hours. The data were transcribed and analyzed
by a content analysis method. A list of the companies and details are shown in Table 1.
Respondent companies included a British-based, multinational company, a joint venture
between Norwegian and Thai companies, listed and non-listed local companies serving both
local and international market, and Thai conglomerates serving foreign markets with a
production base outside of Thailand.
[Insert Table 1 here]
To understand the key players, key phenomena, and key factors that shaped the
distinguished pattern of Thai CSR and how it developed, additional data were collected from
three sources: three CSR seminars, official company websites of both listed and non-listed
companies highly engaged in CSR, and a database provided by the Stock Exchange of
Thailand’s library regarding company profiles, rules, and regulations of governed-listed
companies. The twenty-seven members of the CSR club (some of whom were respondents)
publishing data under Form 56-1 - as required by the Stock Exchange of Thailand as an
official report of company performance for investors and the base for Annual Reports of most
companies - were investigated carefully.1
Initial findings:
The link between Business Ethics, Corporate Governance and CSR
1 CSR Club was founded in September 2009 by active, listed companies (CSRI) extending the concept of CSR
to other listed companies and their supply chains. It was supported by the Stock Exchange of Thailand, the
Securities and Exchange Commission, and the Corporate Social Responsibility Institute.
9
Reviewing secondary data of rules and regulation announced by the Stock Exchange
of Thailand, the author found a development of concept of CSR from business ethics and
corporate governance.
As one of the key influences that drive contemporary CSR, the Stock Exchange of
Thailand is active in raising the bar for listed companies to meet international standards. It
initiated the Internal Control measure in 1995 to ensure transparency in reporting and to
protect stockholders, and appointed a committee in 2001 to study corporate governance and
communicate with the public (Stock Exchange of Thailand, 2002). Corporate Governance has
been the urgent agenda for the nation after the 1997 financial crisis. Experts assert that weak
governance was the cause; there was ‘reckless lending by financial institutions, overusing
short-term foreign currency denominated loans to finance long-term investments,
expropriation of company funds by directors, managers or large shareholders, shady and risky
business deals, and poor financial reporting and audits’ (Persons, 2006).
Supported by the foundation of the National Corporate Governance Committee in
2002, the Stock Exchange of Thailand issued the Corporate Governance Principle and set up
the Corporate Governance Center to support implementation of Corporate Governance by
listed companies in July of the same year. Four years later, the Stock Exchange of Thailand
revised the Corporate Governance Principle to comply with the 2004 OECD Principle of CG,
and the World Bank CG-ROSC (Report on the Observance of Standards and Ccodes).
According to the revised principle, listed companies must reveal a clear policy toward society
and the environment; they must report clearly rights of shareholders, a policy to treat
shareholders equally, roles of company toward stakeholders, disclosure of company
performance and transparency, and the extent of the committee’s responsibilities. It also
suggests that companies clarify who the stakeholders are and their legal rights. Stakeholders
include customers, employees, suppliers, shareholders and investors, creditors, community
10
within which the organization is situated, government and governmental bodies, and society
(Stock Exchange of Thailand, 2006).
Prior to promotion of corporate governance, the Stock Exchange of Thailand issued a
Code of Conduct in 1995 and revised it in 2000 and 2008 accordingly. The code emphasizes
company responsibility toward stakeholders, including society and the environment; it
suggests laws and regulation compliance and employee responsibilities to society and the
environment (Stock Exchange of Thailand, 2008).
Besides the Stock Exchange of Thailand, the author found the name of international
organizations or industrial standards introduced as benchmarking or guiding principles
regarding social and environmental responsibility, business ethics and codes of conduct, and
sustainable development in many companies’ Forms 56-1; they include Global Compact, the
World Business Council of Sustainable Development, Dow Jones Sustainability Index, CSR-
DIW (Corporate Social Responsibility-Department of Industrial Work), SHE (Safety, Health,
and Environment), and the U.S. Foreign Corrupt Practices.
The Thai companies and the CSR concept prior to the 2007 boom
Reviewing Form 56-1 as early as 2004, the author found the phrases ‘responsibility to
society and environment,’ ‘carry business with responsibility to society and environment,’
and similar phrases in corporate governance reports and in mission and vision statements
under the section of business ethics or codes of conduct.2 Companies in the early 2000s
placed social responsibility as a part of good corporate citizenship.
Though many companies reported activities related to present-day social
responsibility activities, the term ‘social responsibility’ was first printed as a separate section
on Form 56-1 later in 2006. Some companies like Unique Mining, Banpu Corporation, Siam
Cement Group (SCG), PTT (the former Petroleum Authority of Thailand), and Bangchak
2 Comprehensive Listed Company Information Database, Stock Exchange of Thailand.
11
Petroleum, published CSR reports or Sustainability Reports in 2007 to publicize CSR
activities. Some companies like Phatara Securities set up separate units to explore CSR since
2005. The period between 2005 and 2007 enjoyed a significant leap for CSR in annual
reports.
It is clear that the CSR concept is not foreign to Thai companies. Before CSR was
widely known in 2007, there were already some forerunners that conducted strategic CSR by
integrating CSR into every process of their business activities. (Yodprutikarn 2006, The
Stock Exchange of Thailand Database, 2011). Some companies like SGC, PTT, Bangchak,
and CPF (Charoen Pokphand Foods) even placed corporate social responsibility or likewise
statements into company philosophies since the foundation period. Others like Kasikorn
Bank, Bangkok Bank, Siam Commercial Bank put CSR into mission and vision statements.
However, they treated the concept as taken-for-granted, and did not promote it to outsiders.
Putting these forerunners aside, most of the companies were engaging in donation-
based CSR. Setting a so-called ‘social tax budget’ is common practice for Thai enterprises.
Donations to religious causes, offering scholarships, fund-raising for hospitals, help-the-
victims-of-disasters donation programs, and similar donations are demanded implicitly from
big corporations by the surrounding communities, if not the public. This reflects the social
values of an agrarian society where bilateral patronage is crucial in a relatively collectivist
society. Thus, CSR existed but was not planned or reported systematically. CSR activities
could be found within Human Resources Departments, Public Relations, or elsewhere in the
organization, but were not company-wide.
The CSR Boom and CSR concept development
The 2007 CSR boom enacted dramatic change from a focus on donations to higher
involvement. Business media introduced CSR as a new global business practice, with the
perception that CSR is related to corporate governance, business ethics, and sustainable
12
development. Every company was eager to know about the concept and how to implement it.
This raised the level of awareness among practitioners that a mere donation could be regarded
as pseudo-CSR. Those inactive in CSR were in the stages of catching up and revision,
looking for best practices from domestic forerunners in CSR such as SCG, PTT, and
international consulting companies. Those involved in CSR started sharing experiences to
revise their communication strategy to include a wider audience. Consequently, this increased
awareness - if not pressure - to develop a CSR project.
The big corporations that embraced the concept became more active in turning CSR
from vision to action; they incorporated it into corporate long-term policy. Supported by in-
house research, rounds of meetings were conducted to ensure clear directions. Internal public
relations tools were used to assure awareness and approval of instituting CSR organization-
wide. High-ranking executives, consumers, and shareholders were active in endorsing CSR
plans. One company stated that every new employee learned and practiced CSR until it
became a part of the company’s DNA, with the first lessons learned from the company CEO.
Almost all respondents emphasized employee involvement and tried to set a social
contribution mindset as a corporate value.
The decision to be more active in CSR could take a top-down approach from the
Board of Directors, or a bottom-up approach by the Corporate Communication Department.
The Board of Directors could also be influenced by a higher authority such as the Ministry of
Finance, who is the biggest shareholder of the specific companies, or could be inspired by the
goal to catch up with international standards, an engagement with World Business Council of
Sustainable Development, for example. As demonstrated in the initial findings, companies in
Thailand have been seeking legitimacy to operate in society as a good corporate citizen.
Thus, there is at least one distinguishing project to represent their CSR position in society by
carrying that project on a long-term basis. With a code of conduct set by the Stock Exchange
13
of Thailand to have a clear policy regarding the role of business toward society and
environment, most CSR activities deal with social and environmental issues.
The pattern of CSR in Thailand
Figure 1 illustrates how patterns developed since the CSR Boom.
[Insert Figure 1 Here]
[Insert Table 2 Here]
Reactive CSR
As mentioned above, most respondents revealed that before 2007 they conducted CSR
mostly in the form of donations and contributions to nearby communities, although in a
relatively passive manner. The companies responded to requests for donations to the extent
that the annual budget provided for them. In some companies, projects initiated by
individuals were conducted to serve communities but were limited to small-scale, regional, or
branch-specific projects. The motives at this CSR stage were for ethical reasons if not self-
actualizations. The former was the case where a large business was perceived as a high-
income earner; thus, it was expected to help less privileged people. The latter was the case
where individuals had special skills or knowledge; thus, he/she desired to share them with the
community (e.g. skills in traditional musical instruments, sports, computer operations, etc.).
Activities were receiver-initiated; the author names this stage ‘reactive CSR’, where main
activities centered on donations and societal marketing.
Turn-key CSR
During the era of responsive CSR, some companies started to engage in turnkey CSR.
Instead of giving away money or goods, companies pursued CSR strategies that relied on
utilization of company competencies to increase CSR involvement and ensure higher
efficiency of project implementation; in most cases, non-profit organizations that run good-
cause activities lack management skills and tend to rely on altruistic appeal. They generally
14
do not treat their units as cost-centers, relying too heavily on incoming revenue, not
operational efficiency. Businesses could fill this gap. For example, Thai Life, a life insurance
company, used its integrated marketing communication competencies to assist the Thai Red
Cross to achieve a target number of organ donors. In Thailand, there are people who believe
that donating organs results in being reborn without that specific organ. Thus, the target was
far from attainable. The company helped to turn the audience’s perceptions away from
negative attitudes and toward a better understanding of the necessity of becoming donors.
A CSR club member, Phatara Securities reported in its Form 56-1 that it helped
manage the Andaman Coast Coral Restoration Project by utilizing its managing skills in
project operation, accounting and bookkeeping, and fund raising. PTT also revealed the key
success factors for its forest restoration project; its primary input was managing skills,
matching experts to the local community and monitoring project outcomes for continuous
improvement. CPF and Krungthai Bank (KTB) pursued similar strategies contributing to
community and education development.
During the time of CSR Boom, companies entered a trial-and-error period to fine tune
their CSR direction. After restructuring policy and organization, directions were clearer in
each company. The different directions of the CSR movement in each company were based
on historical background, experiences in conducting CSR, business impacts on environments,
reach to sources of knowledge outside the companies, and levels of collaboration with third
parties, private companies, governmental bodies, and communities.
According to most of extant literature, CSR is discretionary. The problem was
deciding in what direction companies shaken by the CSR Boom opted to further CSR
strategies. Analyzing the content of the interviews, the author found three distinguished
patterns of CSR development. Possible are combinations of multiple CSR patterns in a single
company.
15
[Insert Table 3 here]
Issue-based CSR
Issue-based CSR suggests strategies in which companies develop special projects
fully dedicated to help solve or preempt social/environmental problems. In this stage, the
companies do not merely donate but become involved in extending their business
competencies to help solve social/environmental problems.
These projects target underprivileged children, strengthen family bonding, promote
education (scholarships, building schools, opportunities to use student capabilities, etc.),
increase forest areas, sponsor research on energy-saving products, and many others. While
the companies initiate specific units to drive these projects, cooperation from government and
non-government entities is prominent; however, it is a company-initiated activity. Hence, the
companies are still the givers and communities are the receivers. Since companies focus on a
specific social/environmental issue and run projects long-term, the author names this pattern
of social contribution as ‘issue-based CSR’.
Examples of issue-based CSR include the following cases: TRUE, a cable channel
operator, worked with content providers so modern programming could be broadcast for free
into rural schools, supporting their primary project ‘Plook Panya - enhancing knowledge.’
BEC, an entertainment company, provided opportunities to orphans and underprivileged
children to enjoy world-class shows; teenagers engaged in the world-class sporting events.
By using special computer-assisted programs, AIS, a mobile phone company, hired
employees with hearing and sight disabilities to work as call-center staff, making those
people feel self-sufficient and economically independent in addition to their primary project
of ‘Sarn Rak - enhance the family bond.’ Another mobile phone service provider, DTAC,
used its mobile network to initiate hotlines for agricultures and aquacultures. DTAC sent
16
short messages regarding crops and marketing tips on three areas - rice growing, farming, and
marine farming - to its members for free. It provided two-way communication via local radio
stations that volunteered as partners. For this program on agriculture tips clinic, disk jockeys
were former scholarship recipients funded by the company. CPF and Betagro used their
technologies to raise poultry and meat production efficiency. KTB used financial expertise to
initiate a KTB lecture series to increase public financial literacy. GHB initiated a project to
build homes for disaster victims and underprivileged people via Habitat for Community
Thailand, a non-government organization. SCB enhanced pre-college student skill
development in creativity and teamwork. EGAT (Electric Generating Authority of Thailand)
and KTB sponsored schools in local areas and created a role model school for benchmarking.
Recipient-based CSR
Recipient-based CSR suggests strategies in which the company assists communities
initiate projects to solve problems and increase well-being. In this stage, companies function
as assistants or coaches while the communities are the project initiators and drivers.
Examples include SCG’s mini-dam building and water source preservation project, PTT 84’s
sub-district community development, Bangchak’s project system ‘find your solution’
community development, and KTB’s community school development. These are extended
projects from prior issue-based projects. All of these companies reached the same conclusion
after a period of involvement in prior projects. The best way to reach the goal of social and
economic development is to enhance community realization of its own ability to change; it is
better if companies position themselves as supporters and coaches.
To solve a drought problem in summers and a flood problem during rainy seasons,
SCG initiated a project to build a series of small dams along small creeks in a village where
the company plant was located. Instead of flowing down the hill quickly and drying up, the
water was stored shortly at each step to increase accumulation. As a result, small plants grew
17
and the eco-system was restored. This is still an issue-based CSR. However, when the
community realized that this could help increase their well being, they approach SCG to
extend the project to other villages. This is the start point of recipient-based CSR. Another
project involved making natural water resources, cannels and rivers, cleaner by educating
people who live near the water resources. The company started the project but community
members who became change agents carried it out. Village meetings resumed, products and
services that supported sustainable development were created, and community members
started to be confident and proud. Again, this project has been extended to other villages. On
top of that, new related projects have been initiated by the community. This is an excellent
example in Thailand because economic and social development strategies have been
especially centralized and hierarchical since the 1950s. People in rural areas generally hold
prejudices that they are inferior to educated people in Bangkok and other large cities. Though
the project was started as issue-based community development CSR, it turned out to be a total
human development program; CSR is related to social innovation.
Integrated CSR
Since most respondent companies engage in international marketing or production,
they learned how to integrate CSR and company competitiveness. In this stage, companies
pursue CSR via international standard process innovation catch-up and product innovation to
introduce more environmental or user-friendly products. Example is SCG eco-value product.
SCG develops products that are ecologically and user friendly. Some examples of these
products include radiant-reducing paper for industrial and home uses and home-building
materials that reduce temperatures in buildings and lower energy needs for air conditioners.
PTT, Bangchak, CPF (Chareon Pokaphand Foods), Betagro, and Bangkok Bank are
representatives of the manufacturing sector from which clear examples could be raised. Thai
18
Life created a new product to serve under-protected traffic police and soldiers on duty; the
company offers these policies for free. As part of corporate governance, the company takes
production processes seriously, complying strictly to laws and paving new ways for greener
production processes.
In this stage, company views their operation as a means to enhance their CSR to
achieve the ‘better society creation’, integrating CSR into their daily operation.
Analysis and Discussion
Interpretation and implementation of CSR
Analyzing the interviews and CSR patterns that emerged until 2011, companies
interpret CSR as the responsibility of a good corporate citizen to pay it forward to society via
efficient resource management, namely management tools. It is an extension of
Corporate Governance to create guidelines regarding company roles toward stakeholders
outside the company, rapidly gaining legitimacy to implement - if not strategize - CSR. A
CSR boom enhances greater involvement by employees, customers and shareholders in
generating and implementing CSR projects.
[Insert Table 4. here.]
When CSR is interpreted in this way, doing good is accepted as the primary concept
underlining CSR. Since doing good is universal for Thai society, collaboration at multiple
levels and stages of CSR implementation is possible. Companies in the same industry, many
that are direct competitors, could collaborate to implement a CSR project initiated by the
principal company, as seen in the case of the DTAC agricultural hotline, which drew
cooperation from other mobile phone service providers such as TRUE and AIS. If the CSR
project is convincing as a project dedicated to social and environmental development, other
companies or organizations tend to join without the hesitation of ‘not-invented-here’
syndrome. Since nationalism promoted since the 1950s announced Thais’ duties toward the
19
nation, religion, and the King, any activities dedicated to these three institutions are regarded
as good deeds and gain legitimacy for support automatically. Knowledge sharing is also
highly observed; companies put best practices as their CSR and are proud to be society’s role
model.
The author also found that although companies run various CSR projects, they secure
a remarkable one as a principal project and extend other projects from it. This secures CSR
positioning to communicate to a target audience. Since companies view CSR as a company
function or product, they do not mind outside participation; it is regarded as publicity and
promotion of the principal companies’ CSR.
In addition, high collaboration between businesses, government bodies, and non-
government bodies was observed in the same or different industries with the principal
business that initiated the project. Although most companies focus on education and
community development including environment restoration, these are generally not the
companies’ expertise. Thus, companies need to bring in expertise, which involve government
bodies such as the Office of Education Commission (pre-college education) and Forestry
Department (forest restoration process), and non-governmental bodies that specialize in
community development such as Population and Community Development Association
(PDA) and Habitat for Community Thailand. One respondent stated that CSR is better use of
existing scattered national resources via company management skills.
Most respondents revealed that CSR is a learning process. Getting involved in
projects rather than merely giving away money or material support, the company learns how
the entire process has been done inefficiently prior to involvement; they realize that what the
business could best contribute to the society is management skill - how to get things done
efficiently - which is every firm’s core competence. More involvement drew the company to
learn more about a project’s key success factors such as participant and target community
20
involvement. It is a matter of trust whether the project works and yields good results. Thus,
gaining community understanding and cooperation is essential. After the project yields a
positive outcome, more initiatives are proposed by people from the community; an inside-out
development starts. They conclude that their primary CSR direction is to upgrade people’s
management skills and turn people toward efficiency, if not the locus of control over their
own destiny.
CSR is also an internal human resource development tool. Bangchak put engagement
in CSR activities as a performance index for each employee. Many respondents revealed that
incorporating CSR into company corporate values by getting people more engaged in CSR
activities enhances relationships among employees from different departments or divisions.
By extending hands to others, employees take part in company activities more readily. Many
respondents revealed they would like to vote for their own companies as highly socially
responsible ones since they are proud that the companies are devoted to society. This is
evidence that embedding the ‘extending a helping hand’ ethic into every level of
organizational culture ensures success of CSR implementation, if not publicity by the
employees (Webley and Werner, 2008).
The nature of the business is related to how companies use resources for CSR
projects. Resource extract companies like petroleum or mining businesses focus on
environmental issues of nearby communities, especially forestry restoration; mobile phone
companies use their infrastructure and technology to pool and diffuse customized knowledge
and general or area-specific education. Entertainment businesses use their wide-audience
reach to encourage public participation. Agricultural businesses use their knowledge and
technology to develop community skills career development. These cases could be treated as
examples of strategic CSR in a wider definition, rather than mere integration into products.
Most respondents emphasized that their CSR policy excludes relatedness to core products to
21
prevent misunderstandings that they are conducting pseudo-CSR; knowledge sharing and
catching up with international standards make the company learn more about CSR in
domestic and international domains. Explicit publication of CSR and adoption of strategic
CSR are increasingly acceptable.
An observation by a western author revealed that Thai businesses place heavy
emphasis on social and environmental issues but less emphasis on employees and business
partners. The role of business toward employees and business partners is governed by
business ethics and codes of conduct as seen from the revision of Form 56-1. Influenced by
the Eighth National Economic and Social Development (1997 to 2002), emphasizing the
importance of human resources development, many listed companies reported lengthy
descriptions of policy and implementation regarding how to develop human resources,
including setting up employee-friendly working environments (e.g., AIS, DTAC). However,
since most companies treat this issue under business ethics or corporate governance, they
only reported employee-related activities as CSR recently.
When asked how each CSR project was initiated, most respondents revealed that the
starting point was analysis of real and contemporary social demands. DTAC asserted that
CSR is a human-related concept; basic human needs concerns food, shelter, medicine, and
clothes. Thailand has long been regarded as a primary rice exporter. Thus, the agricultural
sector was chosen as the primary target. Similar processes were found in KTB, True, and
SCB primary education projects.
CPF, SCB, PTT, Bangchak, Krungthai and Betagro are among many companies that
started the project inspired by the King’s speech or royal projects. In Thailand, King
Bhumipol is an influential figure; his ‘Sufficient Economy’ philosophy diffused during the
1997 financial crisis influenced the thinking processes of many respondents, especially
22
concerning idea generation and screening.3 DTAC provides an example of using sufficiency
economy philosophy in both processes. DTAC executive stated that the philosophy
announced in Sufficient Economy serves as a good idea selection and idea initiative criterion.
DTAC CSR projects proved successful internationally; the company was approached and
funded by the World Bank and USAID to extend its Epidemic Alert project via mobile phone
networks to other parts of the world. At its business forum, DTAC shared its secret to success
with other Telenor partners in fourteen countries.
Further analysis suggests that these companies realized various social and economic
development tasks that could not be fulfilled timely by governments with unstable
development policies. Almost all respondents deal with education, especially youth
development. Uneven income distribution still exists; it is perhaps even widening. Education
is viewed as the only means to upgrade economic and social status. Respondents stated firmly
that youths are the hope of the nation, and deserve full opportunity support. Many
emphasized the importance of emotional intelligences as well as Thai values in educating the
new generation.
While Thailand CSR is dedicated primarily to education and environment, CSR in
Africa is concerned with infrastructure construction. From these cases, one conclusion can be
reached: though a renowned economist insists that it is the job of government to deal with
social issues, where there is governmental failure, businesses as corporate citizens can take
part as an extended form of CSR to resolve that failure.
[Insert Table 5. here.]
The driving mechanism of Thai CSR
3 Sufficient Economy Philosophy origin is traced to Buddhism. King Bhumipol is known as a serious
practitioner of Buddhism, and has applied the teachings into practice, supporting all the royal projects aimed to
upgrade the standard of living of Thai people. For more details, see www.sufficienteconomy.org.
23
It is clear that CSR in Thailand is directed toward solving social problems, if not
creating a better society and dealing with environmental issue. Little relatedness is made to
company core businesses when it comes to implementing a CSR strategy. Many focus on
how to manage profits, returning a portion to society. Some integrate CSR into every
business process, implying that CSR includes accountability such as developing products
from which consumers and society better benefit.
One factor that could explain this phenomenon is the social values in Thai society,
based on Buddhist values. In Thailand, there is a saying “Pid Thong Lang Pra” (putting the
gold leave at the back of the Lord Buddha Image). This means do good things even though
nobody sees. The implication of this saying is to do good things and do not announce them;
doing good is a personal virtue, not something to be advertised. Once advertised, it loses its
virtue. Since Thai businesses perceive CSR as Business Ethics, Codes of Conduct, and
corporate governance, they place CSR campaigns under doing ‘good.’ With Thai CSR
directed toward social and environmental issues, CSR is interpreted as a helping hand from
people in a stronger position helping the weaker ones. This is why most of the companies in
this study emphasized that they carry the projects merely for the sake of a better standard of
living and select projects that have little or no direct relatedness to their products. The public
could perceive business-related CSR activities as an advertisement in disguise, which could
damage rather than build the corporate image. Thus, social value affects the interpretation of
CSR and hence the corporate value towards CSR implementation.
In addition, high levels of collaborations among parties, including knowledge sharing,
are observed widely in Thai CSR. This contradicts normal business practices where
commercial secrets are involved. There is a tendency to hoard knowledge in collective
societies. This ensures Thai business practitioners interpret CSR as non-business efforts,
social causes in which everyone should take part, including competitors.
24
The other factor is interpretations of the term ‘responsibility.’ Some respondents
perceived that responsibility carries a negative meaning and is used to show corrective
measures after a negative consequence. Thus, many companies use the term ‘for society or
social contribution’ to represent the term ‘corporate social responsibility,’ instead of directly
translating the term into Thai. Religious influences made born-to-be CSR people who have
positive attitudes about doing good. Revealed in the interviews were implicit messages that
they are less focused on maximizing profit without balancing social costs. In short, they opt
to optimize profit instead. As arguments in the west suggest, CSR should be repositioned as
an ethically-neutral concept to draw acceptance from business practitioners who are part of
the camps that support economic goals; this is not the case in Thailand (Amaeshi and Adi,
2007). There is no resistance to the concept of ‘doing well by doing good’ in this Asian
country. As one respondent demonstrated, CSR trends offer new business opportunities.
Thus, doing well is not necessarily cannibalized by doing good in the case of Thai
companies. This explains why in the early 2000s there were few Thai companies engaged in
strategic CSR (Kraisornsuthasinee and Swierczek, 2009).
In summary, the mechanism that drove the direction of CSR in Thailand toward
society/community and environmental areas is social value. Since direct relatedness to
products is avoided, being a good corporate citizen could only materialize by doing good to
society and the environment. In addition, social value affects the companies’ public relations
strategies; each publicized only the CSR projects related to the company’s main theme of
CSR, reporting fewer activities than they had done. Companies tend to preserve their budget
to conduct CSR project rather than using that budget for promotion of their CSR. Taking care
of employees and business partners as well as customers was put under a corporate
governance frame of thinking. Hence, CSRs in Thailand are different from those in Europe or
the United States because the focus of CSR is placed heavily on only the two areas of
25
society/community and environment; little emphasis is placed on the workplace and
marketplace in self-reports such as annual reports or official websites. This finding supports
Matten and Moon’s (2008) that there is a difference in the communication styles between
U.S. corporations and companies elsewhere. The ‘implicit CSR’ in Thailand exists because of
religious virtues, not because it is embedded in law. It is discretionary rather than legal
obligation that expresses social responsibility.
Recent literature emphasizes the importance of stakeholders and their involvement in
corporate governance and CSR (Zollo et al., 2009; Spitzeck and Hansen 2010). This study
suggests a well-knit integration and collaboration among a broad set of stakeholders - local
communities, government agencies, the public, and the corporations - throughout the entire
CSR process (i.e. idea generation, implementation, and communication). Since the
conversation on mainstream CSR moves toward strategic CSR, this case study expresses a
similar direction, CSR as a source of innovation for both products and processes as well as
social innovation even though the initial concept was rather different (Porter and Kramer
2006). The integrated CSR mentioned in this paper could be benchmarked with corporate-
shared values as proposed by Porter and Kramer (2011), where social rather than economic
needs should be addressed.
Conclusion, Implication, limitation, and future research
The conclusion of this study is threefold. First, CSR in Thailand differs from
American and European CSR in that business ethics prevails; high levels of collaboration are
prominent. Second, though superficially, Thai CSR is directed toward social and
environmental issues, with the ultimate aim of human development. Third, though strongly
based on business ethics, Thai companies came to the same conclusion as western academia
26
with regard to strategic CSR; however, Thai strategic CSR focuses on social innovation
through company products and services.
Therefore, implication from this study lies basically on communication strategy. Since
Thai social values do not support explicit CSR public relations strategies, MNEs from
western societies should be careful in planning CSR activities and communications. In
accordance with the respondent company’s policies, only activities carried out for a period of
time and whose benefits were obvious are publicized. The communities engaged in the
project are testimonials to the company’s sincerity to contribute to society. It can be more
easily understood as a ‘two-stage CSR’ public relations strategy where a narrow range of
public relations was first made to the concerned community and a wider range followed once
the project was sustainable and substantial.
Companies with good CSR records could further integrate CSR without concern that
the public would perceive their ‘going green’ as ‘image washing’ (Ginberg 2004). The
responding companies generally insisted that they conduct CSR for the sake of social
contribution; the only business return is ‘immunity’ that protects their businesses in times of
economic downturns. The companies could gain this positive and unintended consequence
through a strong grounding of recipient-based CSR records.
For MNEs that implement CSR in developing countries, a hybrid model demonstrated
by DTAC is an excellent example. While it preserves the general concept from its Norwegian
business partner, DTAC blends that guideline with local social values. Except Thailand,
countries in South East Asian share a similar historical background during the colonization
period; hence, resistance to western ideas still exists (Higgins and Debroux, 2009). If CSR is
introduced as a western standard, it will not take hold in the host country without difficulties.
Considering social values as the primary factor in managing CSR reduces tensions and gains
more cooperation.
27
This study carries with it some limitations. Most of the respondent companies were
well-established with relatively long histories, which might not represent all corporations in
Thailand. Studies of small and medium enterprises could give a clearer picture of how Thai
companies developed the CSR pattern so that MNEs could better deal with supply chain
management when it comes to the CSR standard as a criterion to choose suppliers.
References Amaeshi, K. M. et al. (2006) “Corporate social responsibility in Nigeria: western mimicry or
indigenous influences?”, Social Science Research Network Working Paper Series.
----------, and Adi, B. (2007) “Reconstructing the corporate social responsibility construct in
Utlish”, Business Ethics: A European Review, No. 16 Vol. 1 pp. 3-18.
Assawapiriyanon, V. (2007) “Perd tua stabun turakij pur sangkom yang pen thang karn laew
tang pao turakij kuen kamrai soo sangkom thai (corporate social responsibility instituted is
officially launched now aiming to return profit to the Thai society)”, Money Channel,
http://www.moneychannel.co.th/Menu6/BreakingNews/tabid/98/newsid533/34169/Default.as
px., accessed 20 September 2009. [in Thai].
Auger P., Devinney, T. M., and Louviere, J. J. (2007) “Using best-worst scaling methodology
to investigate consumer ethical beliefs across countries”, Journal of Business Ethics, No. 70,
pp. 299-326.
Balabanis, G., Phillips, H. C., and Lyall, J. (1998) “Corporate social responsibility and
economic performance in the top British companies: are they linked?”, European Business
Review, No. 98 Vol. 1, pp. 25-44.
Baughn, C. C., Bodie N. L., McIntosh, J. C. (2007) “Corporate social and environmental
responsibility in Asian countries and other geographical regions”, Corporate Social
Responsibility and Environmental Management, No. 14, pp. 189-205.
Business Thai (2007) “CSR yang nii si khong thae (the real CSR)”, 28 May, http://www.
businessthai.co.th/content.php?data=411229 Technology-Digital accessed 31 October
2008. [in Thai].
---------------- (2008) “CSR thiam krong mueng (pseudo CSR is all around)”, 23 September,
http://www.businessthai.co.th/content.php?data=414645_VIP%20Varieties, accessed
31 October 2008. [in Thai].
Carroll, A. B. (1999) “Corporate social responsibility: evolution of definitional construct”,
Business and Society, No. 38 Vol. 3, pp. 268-295.
Chapple W. and Moon, J.: 2005, “Corporate social responsibility (CSR) in Asia: a seven-
country of CSR web site reporting”, Business and Society, No. 44 Vol. 4, pp. 415-441.
28
Collier, J. and Esteban, R. (2007) “Corporate social responsibility and employee
commitment”, Business Ethics: A European Review, No. 16 Vol. 1, pp. 19-33.
Dahlsrud, A. (2008) “How corporate social responsibility is defined: an analysis of 37
definitions”, Corporate Social Responsibility and Environmental Management, Vol. 15, pp.1-
3.
Eweje, G. (2006) “The role of MNEs in community development initiatives in developing
countries - corporate social responsibility at work in Nigeria and South Africa”, Business and
Society, Vol. 45 No. 2, pp. 93-129.
Fassin, Y. (2008) “SMEs and the fallacy of formalizing CSR”, Business Ethics: A European
Review, Vol. 18 No. 3, pp. 364-378.
Ginberg, J. M. (2004) “Choosing the right green marketing strategy”, MIT Sloan
Management Review, Fall pp. 79-84.
Haslam, P. A. (2007) “The corporate social responsibility system in Latin America and the
Caribbean” in Andrew Crane and Dirk Matten (eds.) Corporate Social Responsibility in
Global Context Sage Major Works (London: Sage Publication) [reprinted. Focal Policy
Paper.]
Higgins, C. and Debroux, P. (2009) “Globalization and CSR in Asia”, Asian Business and
Management, Vol. 8, pp. 125-127.
Husted, B. W. and Allen, D. B. (2006) “Corporate social responsibility in the multinational
enterprise: strategic and institutional approaches”, Journal of International Business Studies
No. 37, pp. 838-849.
Jamali, D. and Mirshak, R. (2007) “Corporate social responsibility (CSR): theory and
practice in a developing country context”, Journal of Business Ethics, No. 72, pp. 243-262.
Kenan Institute Asia (2008) “ISO/WD 26000 international standard on corporate social
responsibility: a draft”, Working Draft No. 3.
Kotler, P. and Nancy, L. (2005) Corporate Social Responsibility: Doing the most good for
your company and your cause, New Jersey: Wiley.
Kraisornsuthasinee, S. and Swierczek, F. W. (2009) “Doing well by doing good in Thailand”,
Social Responsibility Journal, Vol. 5 No. 4, pp. 550-565.
Lorenzo-Molo, M.C. F. (2009) “Why Corporate Social Responsibility (CSR) remains a myth
- the case of the Philippines”, Asian Business Management, Vol. 8 No.2, pp. 149-168.
Matten, D. and Moon, J. (2008) “‘Implicit’ and ‘explicit’ CSR: a conceptual framework for a
comparative understanding of corporate social responsibility”, Academy of Management
Review, No.33 Vol. 2, pp. 404- 424.
29
-------------. (2008) “‘Implicit’ and ‘explicit’ CSR: a conceptual framework for a comparative
understanding of corporate social responsibility”, Academy of Management Review, Vol. 33 No. 2, pp.
404- 424.
Maignan, I. and Ralston, D. A. (2002) “Corporate social responsibility in Europe and the
U.S.: insights from businesses’ self-presentations”, Journal of International Business Studies,
Vol. 33, No. 3, pp. 497-514.
McWilliams, A. and Siegel, D. (2001) “Corporate Social Responsibility: A Theory of the
Firm Perspective”, Academy of Management Review, Vol. 26, No. 1, pp. 117-127.
O’Neil R. F. (1986) “Corporate social responsibility and business ethics: a European
Perspective”, International Journal of Social Economics, Vol. 13 No. 10, pp. 64-76.
Perrini, F. (2006) “SMEs and CSR theory; evidence an implications from an Italian
perspective”, Journal of Business Ethics, Vol. 67, pp. 305-316.
Persons, O. S. (2006) “Corporate governance in Thailand: what has been done since the 1997
financial crisis?”, International Journal of Disclosure and Governance, Vol. 3, No. 4, pp.
288-305.
Porter, M. E. and Kramer, R. M. (2011) “Creating shared value: how to reinvent capitalism—
and unleash a wave of innovation and growth”, Harvard Business Review, January- Febraury,
pp. 62-77.
-------------- (2006) “Strategy & society: the link between competitive advantage and
corporate social responsibility”, Harvard Business Review reprint R0612D.
Prachachart Turakij (2005) “Borisat Thai kab CSR puer PR makkwa puer Sangkom (Thai
companies and CSR: for PR rather than for social contribution)”, 24-26 October,
http://www.tisi.go.th/clip_news/news028html, accessed 31 October 2008 [in Thai].
Puntasen, A. (2008) Buddhist Economics: evolution, theory and the application to various
economic subjects, Bangkok: Center for Buddhist Studies, Chulalongkorn University.
Spitzeck, H., and Hansen, E. G. (2010) “Stakeholder governance: how stakeholders influence
corporate decision making”, Corporate Governance, Vol. 10 No. 4, pp. 378-391.
Stock Exchange of Thailand (2008) Codes of Conduct for Stock Exchange of Thailand Group,
Bangkok.
Stock Exchange of Thailand Corporate Governance Center (2002) Corporate Governance
Principle, Bangkok.
--------------- (2006) Corporate Governance Principles (Revised), Bangkok.
United Nations (1992) Earth Summit: UN Conference on Environment and Development
official URL: http://www.un.org/geninfo/bp/enviro.html, accessed 29 February 2009.
Wartick, S. L., and Cochran, P. L. (1985) “The evolution of the corporate social performance
30
Model”, Academy of Management Review No. 10, pp. 758-769.
Webley, S. and Werner, A. (2008) “Corporate codes of ethics: necessary but not sufficient”,
Business Ethics: A European Review, Vol. 17 No. 4, pp. 405-415.
Welford, R. (2005) “Corporate social responsibility in Europe, North America and Asia:
2004 survey results”, The Journal of Corporate Citizenship, No. 17, pp. 33-52.
Wood, D. J. (1991) “Corporate social performance revisited”, Academy of Management
Review, No. 16, pp. 691-718.
Visser, W. (2010) “CSR Global and Asian outlook movement: from theory to
Implementation”, Seminar documents presented at the Stock Exchange of Thailand; 2 April
2010, Bangkok, Thailand.
Yodprutikarn et al. (2006) The development of CSR in business organization management
process: the first phase—the study of characteristics, components and development tools,
Final Report, Bangkok: The Thailand Research Fund [In Thai].
Zollo, M. et al. (2009) “Towards an internal change management perspective of CSR:
evidence from project RESPONSE on the sources of cognitive alignment between managers
and their stakeholders, and their implications for social performance”, Corporate Governance,
Vol. 9 No. 4, pp. 355-372
Zsolnai, L. (2007) “Business, ethics and spirituality: Europe-Asia view”, Business Ethics: A
European Review, No. 16 Vol. 1, pp. 87-92.
31
Tables and Figures
Table 1. List of Respondent Companies
Company Name Business Area
Year
founded Business Form
Electronic Generating
Authority of Thailand
(EGAT) Utility provider 1898 SOE
Port Authority of Thailand Port management 1951 SOE
Government Housing Bank
(GHB)
Banking Service, specialized in
housing loan 1953 SOE
PTT
(Petroleum Authority of
Thailand) Petroleum refinery and distribution 1978
SOE turned
PLC in 2001
Bangchak Petroleum Petroleum refinery and distribution 1985
SOE turned
PLC in 1992
Siam Cement Group (SCG) Conglomerate business 1913 PCL
Krungthai Bank (KTB) Banking service 1966
SOE turned
PLC in 1994
Siam Commercial Bank
(SCB) Banking service 1907 PCL
Bangkok Bank Banking service 1944 PCL
Thai Life Assurance
(Thai Life) Insurance service 1942 LTD
Advanced Info System
(AIS)
Telecommunication (mobile phone
service provider) 1990 PCL
True Corporation
(True)
Telecommunication and contents
providers 1990 PCL
Total Access Communication
(DTAC)
Telecommunication (mobile phone
service provider) 1989
PCL
(JV of Telenor,
Norway in
2000)
BEC Tero Entertainment service 1994 PCL
Tesco-Lotus Large-scale retailer 1998
(British-based)
LTD
Charoen Pokphand (CPF)
Conglomerate (based on
agricultural product) 1978 PCL
Betagro Meat, poultry production 1960 PCL
Source: Complied from companies’ official websites by author.
Note: SOE = State-owned Enterprise; PCL = Public Company Limited;
LTD = Limited Company.
32
Table 2. Characteristics of Thai CSR.
Characterists/
CSR Pattern
Reactive CSR
Turn-key CSR
Issue-based CSR
Recipient-based CSR
Integrated CSR
Company’s Role
Be timely
responsive to
request of
donation
Reduce/relief im
mediate
social problems
Reduce/relief social
problems
Improve standard of
living, environments
Improve standard of
living, environments
Means
Things/money
Company’s resources,
especially implicit assets—
knowledge, expertise, and
competency.
Company initiated,
independent project
(s)
Company and
community
collaboration
Company products and
process
Outcome
Short-term need
fulfillm
ent
More effective/efficient
project managem
ent
Well-being, better
standard of living
Further area
development by
community initiatives
Greener product/
process; product that
contribute to better
society
Company’s Role
Donor/giver
Assistant to the project
Project initiator and
manager
Coach/supporter
Producer and
contributors via
products
Parties involved
Representatives
of the two
organizations
(receiver/donor)
Benefit recipient group and
company with company as
main actor
Benefit recipient group
and company with
company as main actor
Group and company
with high interaction
Company and society
as a whole
Source: Summarized by author
33
Table 3. Exam
ples of Company CSR activities in each pattern
Company/
CSR
pattern
Reactive
Turn-key
Issue-based
Recipient-base
Integrated
EGAT
scholarship, contest,
donation
Community
development--basically
forestry restoration
Creek-spy (to m
onitor
discharged water
quality), bird-w
atching
and eco tourism
Process
innovation
catching up,
product
innovation
initiated
Port
Authority
of Thailand
scholarship, contest,
donation
Clean port at Laem
Chabang and ASEAN
GHB
scholarship, contest,
donation, support
House building for
disaster victims and
underprivileged
Housing for
Elderly
PTT
scholarship, contest,
donation
Forestry-restoration
Forestry-restoration
Education
development
Process
innovation
catching up,
product
innovation
initiated
Bangchak
scholarship, contest,
donation
Over-supplied seasonal
produce as sales
premium, Royal project
on substitute energy,
Lem
on Farm to support
local farm
ers
Community
relationship
managem
ent, forestry-
restoration, recycling
of used cooking oil
‘Find your solution’
Project system
Process
innovation
catching up,
production
innovation
initiated
34
Table 3. Exam
ples of Company CSR activities in each pattern (Continued).
Company/
CSR
pattern
Reactive
Turn-key
Issue-based
Recipient-base
Integrated
SCG
scholarship, contest,
donation
Community
development
Community
relationship
managem
ent, forestry-
restoration
Forestry and water
sources preservation;
eco tourism
Eco-value
products
KTB
scholarship, contest,
donation
KTB lecture series,
education standard
upgrading
School development,
education
SCB
scholarship, contest,
donation
Primary to high school
students skill
development
Bangkok
Bank
scholarship, contest,
donation
Art m
useum, Thai
traditional m
usic
promotion
Loan for
environmental
friendly
innovation
Thai Life
scholarship, contest,
donation
Thai Red-Cross organ
donation Project
Awareness of family
bond
Life insurance
plan for specific
occupation*,
awareness of
family bond
BEC
TERO
scholarship, contest,
donation
Disaster relief, e.g.,
flood, tsunam
i, etc.
AIS
scholarship, contest,
donation
Awareness of family
bond
35
Table 3. Exam
ples of Company CSR activities in each pattern (Continued).
Company/
CSR
pattern
Reactive
Turn-key
Issue-based
Recipient-base
Integrated
TRUE
scholarship, contest,
donation
Rural area education
development
DTAC
scholarship, contest,
donation
epidem
ic alert via
mobile network
project (for
international
implementation)
Agricultural new
s
hotlines, ‘Every day
doing good’
‘Every doing good’
Agricultural
new
s hotlines,
epidem
ic alert via
mobile network
project
Tesco
scholarship, contest,
donation
Research and
Development fund on
T-5 electric bulb
CPF
scholarship, contest,
donation
Royal project rural
area occupation
development
Contract-farm
ing,
community
development,
Process
innovation
catching up,
production
innovation in-
process
Betagro
scholarship, contest,
donation
Contract-farm
ing,
community
development,
education development
Process
innovation
catching up,
production
innovation
initiated
Source: Summarized by author.
Note: * Traffic police, soldier working in highly dangerous areas, and doctors in rural areas.
36
Table 4. Interpretation of CSR in Thai companies.
Company Key words regarding CSR from Executive viewpoints
Electronic Generating
Authority of Thailand
(EGAT) Co-habitat (between business and society)
Port Authority of Thailand n/a
Government Housing
Bank (GHB)
Pay it forward to society, ability to share, accountability towards
one's own duty
PTT (Petroleum Authority
of Thailand)
Balance of economic, social and environmental management to
achieve a sustainable society. Company as a part of society need
to fulfill this task
Bangchak Petroleum Social benefit
Siam Cement Group
(SCG) Company credo, mission, DNA.
Krungthai Bank (KTB)
"Investment" of social capital, not expenditure; co-habitat and
sustainability
Siam Commercial Bank
(SCB) Pay it forward to society
Bangkok Bank n/a
Thai Life Assurance Showing of gratitude to the society/country as a nation
Advanced Info System
(AIS) Pay it forward to society
True Corporation Pay it forward to society
Total Access
Communication (DTAC) "Thing that you can do everyday (doing good)"
BEC Tero Corporate culture (doing good)
Tesco-Lotus A part of society (corporate citizenship)
Charoen Pokphand (CPF) "Everyday is CSR"
Betagro Contribution to others for the sake of society sustainability
Source: Transcribed and paraphrased by author.
37
Table 5. Summary of Specify Characteristics of Thai CSR
Key concepts
Description
The concept of CSR
Corporate citizenship—pay it forward to society
Business Ethics—extend the helping hands to the
weaker
Efficiency in resource management.
Concept of doing good
Doing good deed is a personal asset, and is not to
pronounce to the world.
Concept of responsibility
Corrective action to negative consequences caused
by the company.
Role of top leaders
Role model and are socialized by employees and
shapes corporate culture.
CSR initiatives
• sources of inspiration
Buddhism teachings, the King's speech, the Royal
Projects, current social problems from media,
company value, company competences.
• parties involved in idea
generation
Top executives, P.R./CSR Dept., community
members, employees, customers, and
shareholders
Collaboration pattern
• as source of information
Government agencies, local communities,
employees, and other companies
• in planning process
In-house CSR team, company executive board,
third-party consultant institute (Thai Pat Institute)
• in implementing process
Employees, customers, suppliers/business partners,
NGO/NPO (e.g. Habitat and PDA.), companies in
the same industries/competitors, the general
public
Role of public relations in
CSR
"Soft sales" rather than "hard sales" of the company
CSR activities
Source: Compiled from interview data by author.
38
Figure 1. The Development and Direction of CSR Patterns in Thailand.
Source: Summarized by author
Reactive
CSR
Issue-based
CSR
Recipient-
based CSR
‘Turn-key’
CSR
Integrated
CSR
CSR Boom
CSR treated as irrelevant
to the organization
CSR treated as relevant to
organization operations
CSR linked to
company’s core
competencies
CSR as
DNA
L e a r n i n g & c o n t i n u o u s a d j u s t m e n t
Social Value
39
Appendex I. List of CSR Club Members
No. Company Name Business Area Notes
1 East Water Utility services
2 Kasikorn Bank Banking services
3 Siam Commercial Bank* Banking services
4 Total Access Communication* Mobile phone services
5 True Corporation* Mobile phone services under CPF group
6 Bangchak Petroluem*
Petroleum refinery and
distribution
President of the
Club
7 Thai Vegetable Oil Vegetable oil producer
8
CPF (Charoen Pokphand
Foods)* Ago-industrial conglomerate
9 SE-Education Printing House and Retailing
10 PTT Chemicals Petroleum-related products
11
PTT Exploration and
Production Petroleum exploration
12 SCG* Conglomerate
13 Siam City Cement
Cement production and
distribution
14 Bangkok Metro Transportation service
15 EGCO Electricity generating house
EGAT as biggest
shareholder
16 Phatara Securities Securities trading house
Kasikorn Bank's
group
17
Somboon Advance
Technology Automotive parts
18 Muang Thai Life Assurance Life assurance
Kasikorn Bank's
group
19 Minor International Conglomerate
20 Bumrungrad Hospital Health service provider
21 Amata Industrial estate
22 Unique Mining Services Coal mining
23 Pranda Jewelry
Jewelry production and
export
24 PTT*
Petroleum refinery and
distribution
25 Banpu Coal mining
26 Prachachart Turakij Business Newspaper
27 Matichon Group
Printing House and
newspaper
Source: Complied by author.
Note: *Companies that are this study’s respondents to interviews or questionnaires.
