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Social Responsibility Journal

From altruistic to strategic CSR: how social value affected CSR development a case study of Thailand
Patnaree Srisuphaolarn

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Patnaree Srisuphaolarn, (2013),"From altruistic to strategic CSR: how social value affected CSR development a case study of Thailand",
Social Responsibility Journal, Vol. 9 Iss 1 pp. 56 - 77
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From altruistic to strategic CSR: how social


value affected CSR development a case
study of Thailand

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Patnaree Srisuphaolarn

Patnaree Srisuphaolarn is
based at the Department of
Commerce and
Accountancy, Thammasat
University, Bangkok,
Thailand.

Abstract
Purpose The purpose of this paper is to investigate the adoption and evolution of corporate social
responsibility (CSR) in Thailand and to scrutinize 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 14 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 web sites, and a database provided by the Stock Exchange of Thailands
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, Public relations,
Social responsibility, Thailand
Paper type Research paper

Introduction

Received 10 October 2011


Accepted 11 October 2011
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 thanks
to two anonymous reviewers for
their constructive comments
that improve the work
tremendously. She would also
like to thank Assistant Professor
Dr Nuttapol Assarut for his
valuable comments that help
clarify the authors thoughts.

PAGE 56

Although the concept of corporate social responsibility (CSR) is not new, it was not until
recently that CSR became an important concept in many organisations. The concept has
been promoted to wider audiences by governments and international organisations 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.

SOCIAL RESPONSIBILITY JOURNAL

VOL. 9 NO. 1 2013, pp. 56-75, Q Emerald Group Publishing Limited, ISSN 1747-1117

DOI 10.1108/17471111311307813

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This is because many activities regarded as at a companys discretion to express


responsibility to society in the US 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. Governments failure to fulfill basic infrastructure needs offers MNEs
the opportunity to fill the gaps to express good corporate citizenship (Eweje, 2006). In short,
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; ONeil, 1986). This is essential to understand
how societys 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 Thailands Ministry of
Industry. A study of CSR in Asia regarding the penetration of CSR by domestic and
international companies suggests that among seven 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 Nations, 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 emphasises 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 prioritised. 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

VOL. 9 NO. 1 2013 SOCIAL RESPONSIBILITY JOURNAL PAGE 57

responsibility (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 co-operation to reduce environmental destruction and pursue
business growth while considering environmental impacts (United Nations, 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, due for enforcement in 2010. This
view is relatively closed to the continuous improvement concept kaizen, which focuses
more on the production process (Visser, 2010).

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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 et al., 1998; McWilliams and
Siegel, 2001; Amaeshi and Adi, 2007).

Different CSR development paths in different contexts


After a series of business scandals in US and European industries, companies are under
pressure to pay more attention to corporate governance and CSR. In short, it is necessary to
increase the publics trust in corporations and increase operational transparency and
availability, especially in the US (Auger et al., 2007). This leads to the necessity of increasing
communication with the public about company decision-making via annual reports and web
sites. 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 US 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.

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Corporate social responsibility in Thailand


The term Corporate Social Responsibility first appeared in Thai media in 2003 described as
a new trend of global standard (Prachachart Turakij, 2005). Three years later, the Thailand
Research Fund published a report concerning CSR development in business organisation
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 organisations 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 experiencing diversity in
interpreting the imported concept of CSR and thus, diversity in materialisation 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:
what are the specific characteristics of Thai CSR? and 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 30 companies considered highly socially responsible using a questionnaire survey and a
review of CSR award winners during a 2005 to 2008 competition. A total of 512 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 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

VOL. 9 NO. 1 2013 SOCIAL RESPONSIBILITY JOURNAL PAGE 59

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
analysed by a content analysis method. A list of the companies and details are shown in
Table I. 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.
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 web sites of both listed and non-listed
companies highly engaged in CSR, and a database provided by the Stock Exchange of
Thailands library regarding company profiles, rules, and regulations of governed-listed
companies. The 27 members of the CSR club (some of who 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].

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Table I 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
Charoen Pokphand (CPF)
Betagro

Large-scale retailer
Conglomerate (based on agricultural product)
Meat, poultry production

1998
1978
1960

(British-based) LTD
PCL
PCL

Notes: SOE State-owned Enterprise; PCL Public Company Limited; LTD Limited Company
Source: Complied from companies official web sites by author

PAGE 60 SOCIAL RESPONSIBILITY JOURNAL VOL. 9 NO. 1 2013

Initial findings
The link between Business Ethics, Corporate Governance and CSR. 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.

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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 Corporate Governance Center,
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 Centre 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 Codes).
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 committees 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 within which the organisation is situated, government and
governmental bodies, and society (Stock Exchange of Thailand Corporate Governance
Center, 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 emphasises
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
organisations 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 US 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 Petroleum,
published CSR reports or Sustainability Reports in 2007 to publicize CSR activities. Some

VOL. 9 NO. 1 2013 SOCIAL RESPONSIBILITY JOURNAL PAGE 61

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 et al., 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.

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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 organisation, 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 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
organisation-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 companys DNA, with the first lessons learned from the
company CEO. Almost all respondents emphasised 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 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 (see Table II).
The pattern of CSR in Thailand. Figure 1 illustrates how patterns developed since the CSR
Boom.

PAGE 62 SOCIAL RESPONSIBILITY JOURNAL VOL. 9 NO. 1 2013

Table II Characteristics of Thai CSR

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Characteristics/CSR
pattern
Reactive CSR

Turn-key CSR

Issue-based CSR

Recipient-based
CSR

Reduce/relief social
problems

Improve standard of
living, environments

Improve standard of
living,
environments
Company products
and process

Integrated CSR

Companys role

Be timely responsive Reduce/relief


to request of
immediate social
donation
problems

Means

Things/money

Companys
Company initiated,
resources,
independent
especially implicit
project(s)
assets knowledge,
expertise, and
competency

Company and
community
collaboration

Outcome

Short-term need
fulfillment

More
Well-being, better
effective/efficient
standard of living
project management

Further area
Greener product/
process; product
development by
community initiatives that contribute to
better society

Companys role

Donor/giver

Assistant to the
project

Project initiator and


manager

Coach/supporter

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 Company and


with high interaction society as a whole

Producer and
contributors via
products

Source: Summarized by author

Figure 1 The development and direction of CSR patterns in Thailand

Reactive CSR. As mentioned previously, 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

VOL. 9 NO. 1 2013 SOCIAL RESPONSIBILITY JOURNAL PAGE 63

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-actualisations. 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 centred on donations and societal marketing.

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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 utilisation of company competencies to increase CSR involvement and ensure
higher efficiency of project implementation; in most cases, non-profit organisations that run
good-cause activities lack management skills and tend to rely on altruistic appeal. They
generally do not treat their units as cost-centres, 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 audiences 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 organisation, 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 (see
Table III).
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, co-operation 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

PAGE 64 SOCIAL RESPONSIBILITY JOURNAL VOL. 9 NO. 1 2013

Table III Examples of company CSR activities in each pattern

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Company/CSR
pattern

Reactive

Turn-key

Issue-based

Recipient-base

Integrated

Creek-spy (to monitor


discharged water quality),
bird-watching and eco
tourism

Process innovation
catching up, product
innovation initiated

EGAT

Scholarship,
contest, donation

Community
development basically
forestry restoration

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

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, Lemon
Farm to support local
farmers

Community relationship
management,
forestry-restoration,
recycling of used cooking
oil

Find your solution


Project system

Process innovation
catching up, production
innovation initiated

SCG

Scholarship,
contest, donation

Community development

Community relationship
management,
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 museum, Thai


traditional music
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 occupationa,
awareness of family bond

BEC TERO

Scholarship,
contest, donation

Disaster relief, e.g. flood,


tsunami, etc.

AIS

Scholarship,
contest, donation

Awareness of family bond

TRUE

Scholarship,
contest, donation

Rural area education


development

DTAC

Scholarship,
contest, donation

Tesco

Scholarship,
contest, donation

CPF

Scholarship,
contest, donation

Betagro

Scholarship,
contest, donation

Epidemic alert via mobile


network project (for
international
implementation)

Agricultural news hotlines,


Every day doing good

Housing for Elderly

Every doing good

Agricultural news hotlines,


epidemic alert via mobile
network project

Research and
Development fund on T-5
electric bulb
Royal project rural area
occupation development

Contract-farming,
community development,

Process innovation
catching up, production
innovation in-process

Contract-farming,
community development,
education development

Process innovation
catching up, production
innovation initiated

Note: aTraffic police, soldier working in highly dangerous areas, and doctors in rural areas
Source: Summarized by author

VOL. 9 NO. 1 2013 SOCIAL RESPONSIBILITY JOURNAL PAGE 65

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-centre 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 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 organisation. 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.

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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 SCGs mini-dam building and water source
preservation project, PTT 84s sub-district community development, Bangchaks project
system find your solution community development, and KTBs 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
realisation 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 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

PAGE 66 SOCIAL RESPONSIBILITY JOURNAL VOL. 9 NO. 1 2013

could be raised. Thai 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

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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 (see Table IV).
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
co-operation 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 organisations tend to join without the hesitation of not-invented-here
syndrome. Since nationalism promoted since the 1950s announced Thais duties toward the
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
societys 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 firms core competence. More involvement drew the company to
learn more about a projects key success factors such as participant and target community
involvement. It is a matter of trust whether the project works and yields good results. Thus,
gaining community understanding and co-operation is essential. After the project yields a
positive outcome, more initiatives are proposed by people from the community; an inside-out

VOL. 9 NO. 1 2013 SOCIAL RESPONSIBILITY JOURNAL PAGE 67

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Table IV 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 ones 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

development starts. They conclude that their primary CSR direction is to upgrade peoples
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
organisational 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

PAGE 68 SOCIAL RESPONSIBILITY JOURNAL VOL. 9 NO. 1 2013

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 emphasised that their CSR policy excludes relatedness to core
products to 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.

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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), emphasising 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 Kings 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 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 14 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 emphasised 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 (see Table V).

The driving mechanism of Thai CSR


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

VOL. 9 NO. 1 2013 SOCIAL RESPONSIBILITY JOURNAL PAGE 69

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
emphasised 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.

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Table V 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 Kings speech, the Royal Projects,


current social problems from media, company value,
company competences

Parties involved in idea generation

Top executives, PR/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

PAGE 70 SOCIAL RESPONSIBILITY JOURNAL VOL. 9 NO. 1 2013

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.

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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 companys 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 US because the focus of CSR is placed heavily on only the two areas of
society/community and environment; little emphasis is placed on the workplace and
marketplace in self-reports such as annual reports or official web sites. This finding supports
Matten and Moons (2008) that there is a difference in the communication styles between US
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 emphasises 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 with regard to

VOL. 9 NO. 1 2013 SOCIAL RESPONSIBILITY JOURNAL PAGE 71

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 companys 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 companys 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 and Bloom, 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.

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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 colonisation
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 co-operation.
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.

Notes
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.
2. Comprehensive Listed Company Information Database, Stock Exchange of Thailand.
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

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Appendix

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Table AI List of CSR club members


No.

Company name

Business area

Notes

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

East Water
Kasikorn Bank
Siam Commercial Banka
Total Access Communicationa
True Corporationa
Bangchak Petroluema
Thai Vegetable Oil
CPF (Charoen Pokphand Foods)a
SE-Education
PTT Chemicals
PTT Exploration and Production
SCG*
Siam City Cement
Bangkok Metro
EGCO
Phatara Securities
Somboon Advance Technology
Muang Thai Life Assurance
Minor International
Bumrungrad Hospital
Amata
Unique Mining Services
Pranda Jewelry
PTT*
Banpu
Prachachart Turakij
Matichon Group

Utility services
Banking services
Banking services
Mobile phone services
Mobile phone services
Petroleum refinery and distribution
Vegetable oil producer
Ago-industrial conglomerate
Printing House and Retailing
Petroleum-related products
Petroleum exploration
Conglomerate
Cement production and distribution
Transportation service
Electricity generating house
Securities trading house
Automotive parts
Life assurance
Conglomerate
Health service provider
Industrial estate
Coal mining
Jewelry production and export
Petroleum refinery and distribution
Coal mining
Business Newspaper
Printing House and newspaper

Under CPF group


President of the Club

EGAT as biggest shareholder


Kasikorn Banks group
Kasikorn Banks group

Note: aCompanies that are this studys respondents to interviews or questionnaires


Source: Compiled by author

About the author


Patnaree Srisuphaolarn is teaching Introduction to International Business, Cross Cultural
Management and Comparative Business System at Thammasat Business School. Her
research interests include internationalisation of services business (health care services),
innovation in services and social innovation. She received her PhD from Hitotsubashi
University, Tokyo, supported by the Japanese Government Scholarship. Patnaree
Srisuphaolarn can be contacted at: patnaree@tbs.tu.ac.th

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