1. CSR IN ASEAN: PAST, PRESENT, FUTURE
THOMAS THOMAS CEO, ASEAN CSR Network

2. What is CSR?
Corporate Social Responsibility is NOT about how money is spent. It is about how money is made.
EU: The responsibility of enterprises for their impact on society
It is beyond charity and philanthropy

3. Introduction to ASEAN Established: 8 Aug 1967 Founders: Expanded to:
Indonesia
Malaysia
Philippines
Singapore
Thailand
Brunei
Vietnam
Laos
Myanmar
Cambodia
7 Jan 1984
28 July July 1997
30 April 1999

4. 1967 Bangkok Declaration
An initiative to ensure peace and stability in the region, through a commitment to work together and deal peacefully with mutual differences.

5. Fundamental Principles
Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations
The right of every State to lead its national existence free from external interference, subversion or coercion
Non-interference in the internal affairs of one another

6. Fundamental Principles
Settlement of differences or disputes by peaceful means
Renunciation of the threat or use of force
Effective cooperation among member states

8. ASEAN countries: the same yet different
Countries
Total land area
(2014)
Total population (2013)
Population density
(2013)
Annual population growth (2013)
GDP at current US$
GDP per capita
Km2
Thousands
Persons / Km2 %
US$ million
US$
US$ ppp
Brunei
5,270
417.8 79
1.3
16,111.1
38,563.3
71,776.6
Cambodia
176,520
15,135.2 86
1.8
15,238.7
1,006.8
3,041.1
Indonesia
1,811,570
249,865.6
138
1.2
868,345.7
3,475.3
9,561.1
Lao PDR
230,800
6,769.7 29
11,242.5
1,660.7
4,822
Malaysia
328,550
29,717 90
1.6
313,159.1
10,538.1
23,338
Myanmar
653,290
53,259 82
0.9
56,800
1,066.5 -
Philippines
298,170
98,393.6
330
1.7
272,066.6
2,765.1
6,535.9
Singapore
700
5,399.2
7,713
297,941.3
55,182.5
78,763.4
Thailand
510,890
67,010.5
131
0.3
387,252.2
5,779
14,393.5
Vietnam
310,070
89,708.9
289
1.0
171,390
1,910.5
5,294.4
ASEAN
4,325,830
615,676.5
142
1.32
2,409,547.2
3,913.7
As of April 2015
Source: World Bank

9. ASEAN Community: Three Pillars
ASEAN Economic Community (AEC)
ASEAN Socio-Cultural Community (ASCC)
ASEAN Political- Security Community (APSC)
Transforming ASEAN into a region with free movement of goods, services, investment, skilled labour, and freer flow of capital
A common identity with an inclusive, equitable and harmonious society
Continued political and security cooperation

10. Promoting CSR is a key component of ASCC Blueprint
Objective: CSR is incorporated in the corporate agenda, contributing towards sustainable socio-economic development.
Actions:
Develop a model public policy on CSR. Reference to international standards (ISO26000);
Engage the private sector;
Encourage the adoption and implementation of international standards on social responsibility;
Increase awareness of CSR towards sustainable relations between commercial activities and communities.
“Social Justice and Rights”, ASCC Blueprint

11. ASEAN Economic Community

12. ASEAN GDP in 2014 almost doubled
ECONOMY
2007
2014
ASEAN GDP in 2014 almost doubled
USD $1.33 trillion
USD $2.57 trillion

13. 3rd largest in Asia 7th largest in the world ASEAN ECONOMY
In 2014, ASEAN economy was:
3rd largest in Asia
7th largest in the world

14. 3rd largest in the world in 2014
ASEAN
POPULATION
3rd largest in the world in 2014
China
India
ASEAN EU US
1,357 mil
1,259mil
504 mil
319 mil
622
mil

15. ASEAN
POPULATION
More than 50% of ASEAN’s population is under 30 years old
(compared to 39% of East Asia’s, 34% of Europe’s)

16. Number of UNGC business signatories Number of UNGC signatories
Different levels of development of CSR
Membership of the ACN and the UNGC business signatories
Countries
Member of the ACN?
Number of UNGC business signatories
Number of UNGC signatories
UNGC network?
Brunei Darussalam No 1
Cambodia 2
Indonesia
Yes 44
116
Lao PDR
Malaysia 40 52
Myanmar
206
213
Philippines 13 55
Singapore 48 65
Thailand 25 33
Vietnam 16 66
As of April 2015
Source: UNGC

17. Country grouping Higher income Brunei Singapore Middle income
Indonesia
Malaysia
Philippines
Thailand
Vietnam
Lower income
Cambodia
Laos
Myanmar
*Groupings are not official designations assigned by any governing body

18. HIGHER INCOME GROUP: Brunei & Singapore
ENABLING ENVIRONMENT FOR CSR
Governments play major role in CSR agenda setting
Strong regulations & enforcement allow companies to focus on internal processes & risk mitigation
CSR as a tool for maintaining business competitiveness, fostering innovation
CHARACTERISTICS OF CSR APPROACH
Anti-corruption & transparency high on agenda
MNCs, government-linked companies leading the way in CSR practice
Low civil society participation & collaboration in CSR space; but consumer expectations voiced through social media

19. MIDDLE INCOME GROUP: Indonesia, Malaysia, Philippines, Thailand, Vietnam
ENABLING ENVIRONMENT FOR CSR
Governments view CSR as complimentary to the anti-poverty agenda
Strong civil society serves as both watchdog & strategic partner
Business associations & networks actively advocating for greater CSR
CHARACTERISTICS OF CSR APPROACH
CSR practice starts off with philanthropy, evolves towards stakeholder engagement & license to operate
Innovate “Bottom of the Pyramid” approaches, multi-sector partnerships emerging
Climate change & related issues being taken seriously

20. LOWER INCOME GROUP: Cambodia, Laos, Myanmar
ENABLING ENVIRONMENT FOR CSR
Political, economic change is on the horizon
Strong presence & influence of international agencies in the development agenda
Competition to attract foreign investors may boost interest in international CSR standards
CHARACTERISTICS OF CSR APPROACH
Very low awareness, CSR in nascent stages
State-controlled enterprises can influence, set benchmarks for CSR practice in the country
Foreign investors may use CSR as a competitive edge in gaining entry to key industries

21. Attention to UNGC focus areas
Group
Environment
Labour
Human Rights
Anti-Corruption
Community Development
Higher income
High
Mid
Low
Middle income
Lower income

22. Commonalities 1
Community development and philanthropy still main mode of CSR practice 2
CSR as strategy for regional and global recognition and participation 3
Governments still figuring out how to promote CSR

23. ASEAN Community Vision 2025
We resolve to… realise a rules-based, people-oriented, people-centred ASEAN Community, where our peoples enjoy human rights and fundamental freedoms, higher quality of life and the benefits of community building, reinforcing our sense of togetherness and common identity…

24. To Realise the Vision: Responsible Business in ASEAN
Political-Security
Economic
Socio-Cultural
Good Governance
Consumer Protection – Strengthen Product Safety, Promote Sustainable Consumption
Better Agricultural Practices
Enable Sustainable Production & Equitable Distribution
Sustainable Economic Development
Gender Equality
Inclusive – Reduce Inequalities
Sustainable Consumption & Production
CSR for Inclusive & Sustainable Socio-Cultural Development
Good Governance / Transparency
Anti-Corruption In Public & Private Sectors
Promotion of Human Rights
Protect Migrant Workers, Women and Children against trafficking in persons

25. Responsible Business as a priority in ABAC Agenda
Free movement of skilled labour
Promote labour migration rights
Responsible business practices
Encourage adoption of CSR initiatives – specifically human rights
Employers to formally adopt “decent work” principles
ISO and UN Guiding Principles
Eliminate forced labour
Sustainable Development
Private sector to set and achieve targets for sustainable development
Measure sustainability

26. The Challenge Converting a good plan in words: Moving from words
To works - real action
With Responsible Business conduct mainstreamed

27. Future looks promising:
ASEAN 2015: Forging Ahead Together
ASEAN Business Advisory Council – Responsible Business
ASEAN Human Rights Declaration
Includes the Right to Development
ASEAN Intergovernmental Commission on Human Rights
Stock Exchanges
ASEAN Guidelines for CSR on Labour
ASEAN Wide Guidelines on CSR and Human Rights

28. ASEAN CSR Network: Making the Vision into Action
Established in 2011 in support of ASEAN Community integration
A responsible business community making ASEAN
a better place to live for ALL
To mainstream responsible business conduct in support of sustainable, inclusive and equitable socio-economic development in ASEAN

29. ASEAN CSR Vision 2020: Mainstreaming responsible business conduct in ASEAN
SHARED VISION
CAPACITY BUILDING
COLLECTIVE ACTION
To coordinate the formulation of a shared CSR vision that is line with international standards, and guide multi-sector collaboration in capacity building and policy development
To support businesses and maximize their resources in doing CSR through knowledge sharing and training
To harmonize CSR efforts at the regional level by providing a platform for coordination, cooperation and information exchange