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

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

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 1995 23 July 1997 30 April 1999

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.

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

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

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

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

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

ASEAN Economic Community

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

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

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

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)

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

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

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

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

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

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

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

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…

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

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 26000 and UN Guiding Principles Eliminate forced labour Sustainable Development Private sector to set and achieve targets for sustainable development Measure sustainability

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

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

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 www.asean-csr-network.org

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