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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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Rosamaria C. Moura-Leite, Robert C. Padgett, (2011),"Historical background of corporate social responsibility", Social Responsibility
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Andrea Prez, Ignacio Rodrguez del Bosque, (2014),"Customer CSR expectations in the banking industry", International Journal of Bank
Marketing, Vol. 32 Iss 3 pp. 223-244 http://dx.doi.org/10.1108/IJBM-09-2013-0095
Luu Trong Tuan, (2012),"Corporate social responsibility, ethics, and corporate governance", Social Responsibility Journal, Vol. 8 Iss 4 pp.
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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
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.
VOL. 9 NO. 1 2013, pp. 56-75, Q Emerald Group Publishing Limited, ISSN 1747-1117
DOI 10.1108/17471111311307813
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).
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).
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.
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].
Business area
Year founded
Business form
Utility provider
1898
SOE
Port management
1951
SOE
1953
SOE
1978
Bangchak Petroleum
1985
Conglomerate business
1913
PCL
Banking service
1966
Banking service
1907
PCL
Bangkok Bank
Banking service
1944
PCL
Insurance service
1942
LTD
1990
PCL
1990
PCL
1989
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
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.
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
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.
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.
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
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
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
Producer and
contributors via
products
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
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
Company/CSR
pattern
Reactive
Turn-key
Issue-based
Recipient-base
Integrated
Process innovation
catching up, product
innovation initiated
EGAT
Scholarship,
contest, donation
Community
development basically
forestry restoration
Port Authority
of Thailand
Scholarship,
contest, donation
GHB
Scholarship,
contest, donation,
support
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
Process innovation
catching up, production
innovation initiated
SCG
Scholarship,
contest, donation
Community development
Community relationship
management,
forestry-restoration
Eco-value products
KTB
Scholarship,
contest, donation
School development,
education
SCB
Scholarship,
contest, donation
Bangkok Bank
Scholarship,
contest, donation
Thai Life
Scholarship,
contest, donation
BEC TERO
Scholarship,
contest, donation
AIS
Scholarship,
contest, donation
TRUE
Scholarship,
contest, donation
DTAC
Scholarship,
contest, donation
Tesco
Scholarship,
contest, donation
CPF
Scholarship,
contest, donation
Betagro
Scholarship,
contest, donation
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
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.
N/A
Pay it forward to society, ability to share, accountability towards ones own duty
Bangchak Petroleum
Social benefit
Bangkok Bank
N/A
True Corporation
BEC Tero
Tesco-Lotus
Everyday is CSR
Betagro
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
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).
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.
Description
Concept of responsibility
CSR initiatives
Sources of inspiration
Collaboration pattern
As source of information
In planning process
In implementing process
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.
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.
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.
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
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
1. Alisa Sony, David Ferguson, Rian Beise-Zee. 2015. How to go green: unraveling green preferences of consumers. Asia-Pacific
Journal of Business Administration 7:1, 56-72. [Abstract] [Full Text] [PDF]