Corporate Social Corporate Social Responsibility in ASEANResponsibility in ASEAN

Corporate Social Responsibility Corporate Social Responsibility SeminarSeminar19 March 201019 March 2010SingaporeSingapore

Presented by:Presented by:Dr. Dr. FilemonFilemon A. Uriarte, Jr.A. Uriarte, Jr.Executive DirectorExecutive DirectorASEAN FoundationASEAN Foundation

ASEAN FOUNDATION

The Association of Southeast The Association of Southeast Asian Nations (ASEAN)Asian Nations (ASEAN)

§§ Established on 8 August 1967 in Bangkok by 5 countries: Established on 8 August 1967 in Bangkok by 5 countries: Indonesia, Malaysia, Philippines, Singapore and Thailand. Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei joined in1984, Viet Nam in 1995, Lao PDR and Myanmar Brunei joined in1984, Viet Nam in 1995, Lao PDR and Myanmar in 1997 and Cambodia in 1999.in 1997 and Cambodia in 1999.

§§ Aims to accelerate economic growth, social progress and Aims to accelerate economic growth, social progress and cultural development in the region; and promote regional cultural development in the region; and promote regional peace and stability.peace and stability.

§§ In 2003, the Association resolved to establish the ASEAN In 2003, the Association resolved to establish the ASEAN Community by 2015.Community by 2015.

§§ The ASEAN Charter was adopted during the Singapore Summit The ASEAN Charter was adopted during the Singapore Summit in 2007 to serve as the legal and institutional framework of in 2007 to serve as the legal and institutional framework of ASEAN. ASEAN.

ASEAN FOUNDATION

The Association of Southeast The Association of Southeast Asian Nations (ASEAN)Asian Nations (ASEAN)

ASEANASEAN FlagFlag§§ Adopted in November 1993Adopted in November 1993

ASEAN AnthemASEAN Anthem§§ The ASEAN Way : launched on 28 November 2008 The ASEAN Way : launched on 28 November 2008

and first officially played at the 14th ASEAN and first officially played at the 14th ASEAN Summit in February 2009Summit in February 2009

ASEAN FOUNDATION

§ Established by the ASEAN Leaders in December 1997 during ASEAN’s 30th

Commemorative Summit in Kuala Lumpur, Malaysia.

§ The Foundation aims to help bring about shared prosperity and a sustainable future for the entire ASEAN region.

ASEAN FOUNDATION

Our MissionOur Mission§§ To promote To promote greater awareness of greater awareness of

ASEANASEAN, and , and greater interaction greater interaction among the peoples of ASEANamong the peoples of ASEAN, as , as well as their well as their wider participation in wider participation in ASEAN activities through human ASEAN activities through human resources development. resources development.

§§ To contribute to the evolution of a To contribute to the evolution of a development cooperation strategy development cooperation strategy that promotes mutual assistance, that promotes mutual assistance, equitable economic development equitable economic development and the and the alleviation of povertyalleviation of poverty. .

ASEAN FOUNDATION

Mandate of the ASEAN Mandate of the ASEAN CharterCharter (Article 15)(Article 15)

The ASEAN Foundation shall support The ASEAN Foundation shall support ASEAN communityASEAN community--building by promoting building by promoting greater awareness of the ASEAN identity, greater awareness of the ASEAN identity, people to people interaction, and close people to people interaction, and close collaboration among the business sector, collaboration among the business sector, civil society, academia, and other civil society, academia, and other stakeholders of ASEANstakeholders of ASEAN

ASEAN FOUNDATION

Roadmap for ASEAN CommunityRoadmap for ASEAN Community(2009(2009--2015)2015)

§§ ASEAN PoliticalASEAN Political--Security Community Security Community §§ ASEAN Economic Community ASEAN Economic Community §§ ASEAN SocioASEAN Socio--Cultural Community Cultural Community

ASEAN FOUNDATION

Blueprint for the SocioBlueprint for the Socio--Cultural Cultural Community Community

Strategic objective:Strategic objective:

Ensure that Corporate Social Responsibility (CSR) Ensure that Corporate Social Responsibility (CSR) is incorporated in the corporate agenda and to is incorporated in the corporate agenda and to contribute towards sustainable sociocontribute towards sustainable socio--economic economic development in ASEAN Member States. development in ASEAN Member States.

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ActionsActions::ØØ Develop a model public policy on CSR or legal Develop a model public policy on CSR or legal

instrument for reference of ASEAN Member instrument for reference of ASEAN Member States by 2010. Reference may be made to ISO States by 2010. Reference may be made to ISO 26000 titled “Guidance on Social Responsibility”26000 titled “Guidance on Social Responsibility”

ØØ Engage the private sector to support the Engage the private sector to support the activities of activities of sectoralsectoral bodies and the ASEAN bodies and the ASEAN Foundation, in the field of corporate social Foundation, in the field of corporate social responsibilityresponsibility

Blueprint for the SocioBlueprint for the Socio--Cultural Cultural CommunityCommunity

ASEAN FOUNDATION

ActionsActions::ØØ Encourage adoption and implementation of Encourage adoption and implementation of

international standards on social responsibility international standards on social responsibility ØØ Increase awareness of Corporate Social Increase awareness of Corporate Social

Responsibility in ASEAN towards sustainable Responsibility in ASEAN towards sustainable relations between commercial activities and relations between commercial activities and communities where they are located, in communities where they are located, in particular supporting community based particular supporting community based development. development.

Blueprint for the SocioBlueprint for the Socio--Cultural Cultural CommunityCommunity

ASEAN Foundation catalyzed the formation of CSR ASEAN, a network of ASEAN Foundation catalyzed the formation of CSR ASEAN, a network of CSR practitioners in ASEAN to provide a platform for corporate CSR practitioners in ASEAN to provide a platform for corporate

foundations and corporations to integrate corporate social foundations and corporations to integrate corporate social responsibility in their corporate agenda and thereby contributing responsibility in their corporate agenda and thereby contributing

towards sustainable sociotowards sustainable socio--economic development in ASEAN Member economic development in ASEAN Member States.States.

CSR ASEAN:CSR ASEAN:A Network of CSR Practitioners in ASEAN CountriesA Network of CSR Practitioners in ASEAN Countries

ASEAN FOUNDATION

§§ Funded by the ASEAN Foundation; implemented by AIM; Funded by the ASEAN Foundation; implemented by AIM; 20 CSR practitioners in the region signed MOU in 20 CSR practitioners in the region signed MOU in support of establishing a CSR Network in ASEANsupport of establishing a CSR Network in ASEAN

§§ Recommendations of the project:Recommendations of the project:ØØ Develop guidelines on how the Network should be Develop guidelines on how the Network should be

organized including governance, membership and organized including governance, membership and collaborative activities.collaborative activities.

ØØ Address challenges such as cultural diversity, low Address challenges such as cultural diversity, low CSR awareness in some ASEAN countries and socioCSR awareness in some ASEAN countries and socio--economic gaps among the member countries.economic gaps among the member countries.

ØØ Conduct research on the state of CSR in ASEANConduct research on the state of CSR in ASEAN

Promoting Mutual Assistance among Promoting Mutual Assistance among Corporate Foundations in ASEANCorporate Foundations in ASEAN

ASEAN FOUNDATION

ASEANASEAN--EUROPE CSR EUROPE CSR ExchangeExchange§§ Funded by the ASEAN Foundation; Funded by the ASEAN Foundation;

implemented by LCF; to learn from the implemented by LCF; to learn from the experience of CSR Europe towards experience of CSR Europe towards formation of an ASEAN Network for CSR. formation of an ASEAN Network for CSR.

§§ A roundtable between CSR ASEAN A roundtable between CSR ASEAN practitioners and CSR Europe was held in practitioners and CSR Europe was held in July 2009 to share ideas and experiences.July 2009 to share ideas and experiences.

§§ Include series of consultation meetings Include series of consultation meetings with national CSR networks, chambers of with national CSR networks, chambers of commerce and business groups in Manila, commerce and business groups in Manila, Jakarta, Bangkok, Singapore and Kuala Jakarta, Bangkok, Singapore and Kuala Lumpur.Lumpur.

ASEAN FOUNDATION

Outputs of the LCF StudyOutputs of the LCF StudyFramework on the agenda, membership, governance, Framework on the agenda, membership, governance, sustainability and projects of the ASEAN Network for CSR.sustainability and projects of the ASEAN Network for CSR.ØØ Agenda of the Network:Agenda of the Network:

•• Platform for networking and exchange at the regional levelPlatform for networking and exchange at the regional level•• Repository of ASEAN knowledge on CSRRepository of ASEAN knowledge on CSR•• CapacityCapacity--builderbuilder•• Advocate for CSR in the regionAdvocate for CSR in the region

ØØ A “network of networks” A “network of networks” –– the founding members are:the founding members are:•• Indonesia Business LinksIndonesia Business Links•• International Chamber of Commerce International Chamber of Commerce –– MalaysiaMalaysia•• League of Corporate Foundations (Philippines)League of Corporate Foundations (Philippines)•• Singapore Compact for CSRSingapore Compact for CSR•• Thai Chamber of Commerce and Industry Thai Chamber of Commerce and Industry

ASEAN FOUNDATION

Outputs of the LCF StudyOutputs of the LCF StudyØØ Structure and GovernanceStructure and GovernanceØØ Funding and sustainabilityFunding and sustainabilityØØ Program thrusts/ Suggested Activities and ProjectsProgram thrusts/ Suggested Activities and Projects

•• Participation in regional and national CSR conferencesParticipation in regional and national CSR conferences•• Dialogue and linkage with other CSR networksDialogue and linkage with other CSR networks•• Workshops and TrainingsWorkshops and Trainings•• Research and DocumentationResearch and Documentation

ØØ Key ChallengesKey Challenges•• Diverse country profiles and economic disparities Diverse country profiles and economic disparities

among member states affect CSR practices.among member states affect CSR practices.•• Low level of awareness and common understanding of Low level of awareness and common understanding of

CSRCSR

ASEAN FOUNDATION

CSR ASEAN:CSR ASEAN:A Network of CSR Practitioners in ASEAN CountriesA Network of CSR Practitioners in ASEAN Countries

§§ MOU among the 5 founding members agreed in principle.MOU among the 5 founding members agreed in principle.§§ Formal launching in July in Manila.Formal launching in July in Manila.§§ Proposed projects are:Proposed projects are:

ØØ Dialogue with CSR China during the Annual Asian CSR Dialogue with CSR China during the Annual Asian CSR Forum in October 2010Forum in October 2010

ØØ CapacityCapacity--building for CLMV countries (Cambodia, Laos, building for CLMV countries (Cambodia, Laos, Myanmar and Viet Nam)Myanmar and Viet Nam)

ØØ Harmonization of CSR understanding in ASEANHarmonization of CSR understanding in ASEANØØ Develop model public policy on CSR in the region with Develop model public policy on CSR in the region with

reference to other international standards on social reference to other international standards on social responsibilityresponsibility

ASEAN FOUNDATION

Global Compact Leaders SummitGlobal Compact Leaders Summit55--6 July 2007, Geneva, Switzerland6 July 2007, Geneva, Switzerland

§§ Geneva DeclarationGeneva Declaration

§§ The Principles for Responsible InvestmentThe Principles for Responsible Investment

§§ The Principles for Responsible Management EducationThe Principles for Responsible Management Education

§§ Caring for Climate Caring for Climate

§§ The CEO Water MandateThe CEO Water Mandate

ASEAN FOUNDATION

Global Compact Leaders SummitGlobal Compact Leaders Summit

Geneva DeclarationGeneva Declaration

ØØ The Role of Business in SocietyThe Role of Business in Society

ØØ Actions for UN Global Compact ParticipantsActions for UN Global Compact Participants

ØØ Actions for GovernmentsActions for Governments

ASEAN FOUNDATION

Global Compact Leaders SummitGlobal Compact Leaders Summit

The Principles for Responsible InvestmentThe Principles for Responsible Investment

ØØ seek to disseminate the seek to disseminate the tenentstenents of corporate of corporate citizenship among capital marketscitizenship among capital markets

ØØ Six commitments related to environmental, Six commitments related to environmental, social, and corporate governance (ESG) issuessocial, and corporate governance (ESG) issues

ASEAN FOUNDATION

Global Compact Leaders SummitGlobal Compact Leaders Summit

The Principles for Responsible Management The Principles for Responsible Management EducationEducation

ØØ Seek to take the case for universal values and Seek to take the case for universal values and business into business schools around the world.business into business schools around the world.

ØØ Six principles covering purpose, values, method, Six principles covering purpose, values, method, research, partnership, and dialogue.research, partnership, and dialogue.

ASEAN FOUNDATION

Global Compact Leaders SummitGlobal Compact Leaders Summit

Caring for ClimateCaring for Climate

ØØ CEOs of 150 companies from around the world CEOs of 150 companies from around the world pledged to speed up action on climate change pledged to speed up action on climate change and called on governments to agree as soon as and called on governments to agree as soon as possible on Kyoto followpossible on Kyoto follow--up measures to secure up measures to secure workable and inclusive climate market workable and inclusive climate market mechanisms.mechanisms.

ASEAN FOUNDATION

Global Compact Leaders SummitGlobal Compact Leaders Summit

CEO Water MandateCEO Water Mandate

ØØ CEOs of 6 global corporations urged their CEOs of 6 global corporations urged their business peers everywhere to take immediate business peers everywhere to take immediate action to address the global water crisis and action to address the global water crisis and launched the project "The CEO Water Mandate" launched the project "The CEO Water Mandate" designed to help companies better manage designed to help companies better manage water use in their operations and throughout the water use in their operations and throughout the supply chains. supply chains.

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OECD Guidelines for Multinational OECD Guidelines for Multinational EnterprisesEnterprises

§§ They are recommendations addressed by They are recommendations addressed by governments to multinational enterprises governments to multinational enterprises that provide voluntary principles and that provide voluntary principles and standards for responsible business standards for responsible business conduct consistent with applicable laws. conduct consistent with applicable laws.

ASEAN FOUNDATION

OECD Guidelines for Multinational OECD Guidelines for Multinational EnterprisesEnterprises

§§ Concepts and PrinciplesConcepts and Principles§§ General PoliciesGeneral Policies§§ DisclosureDisclosure§§ Employment and Industrial RelationsEmployment and Industrial Relations§§ EnvironmentEnvironment

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OECD Guidelines for Multinational OECD Guidelines for Multinational EnterprisesEnterprises

§§ Combating BriberyCombating Bribery§§ Consumer InterestsConsumer Interests§§ Science and TechnologyScience and Technology§§ CompetitionCompetition§§ TaxationTaxation

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World Business Council for World Business Council for Sustainable DevelopmentSustainable Development

§§ Brings together some 200 international Brings together some 200 international companies in a shared commitment to companies in a shared commitment to sustainable development through sustainable development through economic growth, ecological balance and economic growth, ecological balance and social progress.social progress.§§ Four focus areas: energy and climate, Four focus areas: energy and climate,

development, business role and development, business role and ecosystems.ecosystems.

ASEAN FOUNDATION

WBCSD Regional NetworkWBCSD Regional Network

§§ An alliance of 60 CEOAn alliance of 60 CEO--led business led business organizations united by a shared organizations united by a shared commitment to providing leadership for commitment to providing leadership for sustainable development in their sustainable development in their respective countries or regions.respective countries or regions.§§ WBCSD : Global WBCSD : Global §§ Regional Network : Local/RegionalRegional Network : Local/Regional

ASEAN FOUNDATION

Similarities across AsiaSimilarities across Asia--Pacific Pacific countriescountries

§§ Origins and conceptualization of CSR are rooted in Origins and conceptualization of CSR are rooted in historical and cultural traditions of each country and historical and cultural traditions of each country and deeply influenced by ethical concepts and religious deeply influenced by ethical concepts and religious practice.practice.

§§ CSR is gradually moving from its historical focus on CSR is gradually moving from its historical focus on business philanthropy to a broader set of activities that business philanthropy to a broader set of activities that integrate the practice of CSR into the core strategy of integrate the practice of CSR into the core strategy of the organization.the organization.

ASEAN FOUNDATION

Similarities across AsiaSimilarities across Asia--Pacific Pacific countriescountries

§§ Efforts at measurement and reporting are growing Efforts at measurement and reporting are growing rapidly in the belief that formal monitoring and rapidly in the belief that formal monitoring and evaluation of outcomes will enhance credibility of CSR evaluation of outcomes will enhance credibility of CSR and make it easier to substantiate.and make it easier to substantiate.

§§ CSR has evolved in response to profound external forces CSR has evolved in response to profound external forces such as meeting regulatory obligations and responding such as meeting regulatory obligations and responding to public opinions that demand higher standards of to public opinions that demand higher standards of accountability.accountability.

§§ Larger companies are increasingly turning to Larger companies are increasingly turning to partnerships with other stakeholders in implementing partnerships with other stakeholders in implementing CSR activities.CSR activities.

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Patterns of CSR activities in Patterns of CSR activities in developed economiesdeveloped economies

§§ Great emphasis on the importance of environmental Great emphasis on the importance of environmental stewardship and strengthening of environmental stewardship and strengthening of environmental management practicesmanagement practices

§§ Strong and active civil society involvement. Strong and active civil society involvement.

§§ An important driver is the management of supply chain often An important driver is the management of supply chain often in response to wellin response to well--articulated consumer concerns.articulated consumer concerns.

§§ Strong traditions of community outreach including corporate Strong traditions of community outreach including corporate community investment that extends beyond charity.community investment that extends beyond charity.

§§ Companies are increasingly engaged in strategic partnerships Companies are increasingly engaged in strategic partnerships with stakeholders within communities in which they operate. with stakeholders within communities in which they operate.

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Major ChallengesMajor Challenges

§§ Appropriate responses to globalization.Appropriate responses to globalization.

§§ Identification and addressing gaps in CSR practices.Identification and addressing gaps in CSR practices.

§§ Development of common standards of good practice Development of common standards of good practice throughout the supply chain.throughout the supply chain.

§§ Assurance of exemplary corporate behavior worldwide.Assurance of exemplary corporate behavior worldwide.

ASEAN FOUNDATION

Patterns of CSR practices in Patterns of CSR practices in developing economiesdeveloping economies

§§ Emphasis on the role of multinational enterprises in Emphasis on the role of multinational enterprises in importing good CSR practices, which are emulated by importing good CSR practices, which are emulated by local corporate community.local corporate community.

§§ Key drivers are the requirements of the global Key drivers are the requirements of the global marketplace and their supply chains.marketplace and their supply chains.

§§ Tendency for global protocols to influence CSR Tendency for global protocols to influence CSR practices.practices.

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Major challengesMajor challenges

§§ Raising further awareness of CSRRaising further awareness of CSR

§§ Building capacities within existing institutions to Building capacities within existing institutions to drive adoption of CSR.drive adoption of CSR.

§§ Making the case to the local business community to Making the case to the local business community to adopt CSR.adopt CSR.

§§ Transferring competencies to individual companies.Transferring competencies to individual companies.

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IndonesiaIndonesia

§§ State of CSR is still in early stages but State of CSR is still in early stages but development indicates encouraging signs.development indicates encouraging signs.

§§ Concept of social responsibility imbedded in Concept of social responsibility imbedded in Indonesian culture (“Indonesian culture (“gotonggotong royongroyong”).”).

§§ Promotion of CSR has been marked with Promotion of CSR has been marked with initiatives in both government and private initiatives in both government and private sectors.sectors.

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§§ Most companies in Most companies in “compliance stage” “compliance stage” where where they adopt policythey adopt policy--based compliance as a cost based compliance as a cost of doing business. of doing business. §§ Some have reached the Some have reached the “managerial stage”“managerial stage”

where they embed societal issues in their core where they embed societal issues in their core management process.management process.§§ A few in A few in “strategic stage”“strategic stage” where companies where companies

integrate societal issues in their core business integrate societal issues in their core business strategies.strategies.

IndonesiaIndonesia

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PhilippinesPhilippines

§§ Birth of CSR concept and its initial practice can be Birth of CSR concept and its initial practice can be traced back to 1950s.traced back to 1950s.

§§ Market forces have been the major drivers of CSR Market forces have been the major drivers of CSR behavior.behavior.

§§ Persistent social problems are the main challenges Persistent social problems are the main challenges to sustaining commitment to and making resources to sustaining commitment to and making resources available for CSR.available for CSR.

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PhilippinesPhilippines

§§ Most CSR efforts are philanthropic in nature with Most CSR efforts are philanthropic in nature with education and health being the main recipients.education and health being the main recipients.

§§ Growing internal expressions of CSR linked to Growing internal expressions of CSR linked to operations of the organization with companies operations of the organization with companies promoting employee involvement. promoting employee involvement.

§§ Leaders who play significant role in CSR are the Leaders who play significant role in CSR are the principal agents for the CSR promotion strategy. principal agents for the CSR promotion strategy.

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SingaporeSingapore

§§ Development of CSR is influenced by country’s Development of CSR is influenced by country’s unique characteristics as a city state that has unique characteristics as a city state that has achieved economic success where government achieved economic success where government remains a key architect of the economy and has remains a key architect of the economy and has considerable influence over corporate behavior.considerable influence over corporate behavior.

§§ GovernmentGovernment--centric approach influences CSR centric approach influences CSR strategies with much emphasis on compliance with strategies with much emphasis on compliance with legislative requirements as a means of achieving and legislative requirements as a means of achieving and regulating socially responsible behavior.regulating socially responsible behavior.

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§§ Practice of CSR is at its early stages of Practice of CSR is at its early stages of development substantially influenced by religious development substantially influenced by religious beliefs and traditional norms of ethical practice.beliefs and traditional norms of ethical practice.

§§ Full integration of CSR into business management Full integration of CSR into business management at the strategic level is not yet widely evident at the strategic level is not yet widely evident reflecting insufficient commitment by top reflecting insufficient commitment by top management and the general perception that CSR management and the general perception that CSR is primarily business philanthropy.is primarily business philanthropy.

ThailandThailand

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ThailandThailand

§§ Engagement with NGOs deals with sound environmental Engagement with NGOs deals with sound environmental practices and social development while engagement practices and social development while engagement with government emphasizes compliance with with government emphasizes compliance with environmental, health, labor and safety standards. environmental, health, labor and safety standards.

§§ The CSR challenges include narrow perception of CSR The CSR challenges include narrow perception of CSR by many leaders, threat of economic downturn, and by many leaders, threat of economic downturn, and negative perceptions that of CSR standards as a form negative perceptions that of CSR standards as a form of trade barrier.of trade barrier.

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VietnamVietnam

§§ CSR activities are regulated and supervised by the CSR activities are regulated and supervised by the government and corporate social policies observe government and corporate social policies observe state regulations as outlined in the companies’ state regulations as outlined in the companies’ annual plans. annual plans.

§§ CSR thrust includes meeting requirements of CSR thrust includes meeting requirements of import partners, avoiding conflicts with local labor import partners, avoiding conflicts with local labor and to some extent philanthropy. and to some extent philanthropy.

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§§ Enterprises and government are the main players Enterprises and government are the main players for promoting CSR where enterprises determine the for promoting CSR where enterprises determine the success of CSR and government promulgates success of CSR and government promulgates policies and supervises implementation.policies and supervises implementation.

§§ The main challenge is to raise the level of The main challenge is to raise the level of awareness of CSR since consumers have limited awareness of CSR since consumers have limited appreciation of CSR and do not relate it with social appreciation of CSR and do not relate it with social concerns.concerns.

VietnamVietnam