CSR and the ASEAN Community

Jerry BernasProgram Director

ASEAN CSR Network

Founding Organizations

OUR MISSION

To promote and enable responsible business conduct among businesses in ASEAN, and their stakeholders, to achieve sustainable, equitable and inclusive social, environmental and economic development.

OUR VISION

A responsible business community helping make ASEAN a better place to live for ALL

A proposed model for joint action

ASEAN Socio-Cultural Community Blueprint

Section C: Social Justice and RightsC.3. Promoting Corporate Social Responsibility (CSR)– Strategic objective: Ensure that Corporate Social

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

ASCC ACTION POINTS1. Develop a model public policy on Corporate Social Responsibility or

legal instrument for reference of ASEAN Member States by 2010.

2. Engage the private sector to support the activities of sectoral bodies and the ASEAN Foundation, in the field of corporate social responsibility;

3. Encourage adoption and implementation of international standards on social responsibility; (i.e. ISO26000)

4. Increase awareness of Corporate Social Responsibility in ASEAN towards sustainable relations between commercial activities and communities where they are located, in particular supporting community based development.

ASEAN and CSR in summary

• Recognizes CSR as a touch point between business and other sectors

• Promotes ASEAN conformity/adherence to international standards & principles

• Identifies need to bridge the development and knowledge gap within ASEAN

Agenda

• About ACN• Understanding CSR– Related concepts and terms– Myths and Misuses– International definitions and standards– Concept of ‘Materiality’– In practice

Related concepts and terms

• Corporate Philanthropy• Community Giving/

Development• Cause-Related

Marketing• Corporate Citizenship• Corporate Responsibility• Corporate Sustainability• Ethical Business

• Responsible Business• ‘Triple Bottomline’

Approach• Corporate Accountability• Sustainability Reportingw• Creating Shared Value• Social Entrepreneurship

Myths and Misconceptions

1. CSR = Philanthropy

2. CSR is only for large corporations

“What is CSR?”

“Corporate Social Responsibility is not about how money is spent, it is about how money is made”

What is common?

• It is about business action• It is voluntary in nature (beyond basic

compliance with law)• It is applicable to all business – whether big or

small• It is about a businesses relationship with its

key stakeholders

International Principles & Standards

Global Compact Principles

Human Rights1. Businesses should support and respect

the protection of internationally proclaimed human rights;

2. Principle 2 make sure that they are not complicit in human rights abuses.

Labour3. Businesses should uphold the freedom

of association and the effective recognition of the right to collective bargaining;

4. The elimination of all forms of forced and compulsory labour;

5. The effective abolition of child labour; 6. The elimination of discrimination in

respect of employment and occupation.

Environment7. Businesses should support a

precautionary approach to environmental challenges;

8. Undertake initiatives to promote greater environmental responsibility;

9. Encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption10. Businesses should work against

corruption in all its forms, including extortion and bribery

Societyand enviroment

Stakeholders

Expectations Impacts

ImpactsInterests

Organization

Figure 2: Relationship between an organization, its stakeholders and society

Figure 3: 7 core subject

Interdependence

Holistic approach

6.4.Labour

practices

6.4.Labour

practices

6.7.Consumer

issues

6.7.Consumer

issues

6.2 Organizational

ORGANIZATION

governance

6.2 Organizational

ORGANIZATION

governance

6.8.Communityinvolvement

and development

6.8.Communityinvolvement

and development

6.6.Fair operating

practices

6.6.Fair operating

practices

6.5.The Environment

6.5.The Environment

6.3.Human rights

6.3.Human rights

No ‘one-size-fits-all’ approach

• Varying expectations from stakeholders

• Varying focus and priority areas

• Varying regulatory and competitive frameworks

Materiality

Roots in financial reporting & risk management– Investors want to know the broader context in

which the company is operating – Companies have limited resources and so must

focus on what is ‘material’

2 key considerations:– Impact– Control

Materiality applied to CSR

• Impact– Dependent on nature of business– Contextualized with area of operations– Must consider not just the risk to the company, but

also risk to the stakeholders (especially vulnerable stakeholders)

• Control (+ influence) – Extends to entire supply chain– Considers company position within an industry/sector

CSR in practiceSteps Tools

1. Top-Level Commitment Global Compact

Internal Communications

2. Strategy/ Plan of Action ISO26000, OECD Guidelines,

Stakeholder Analysis, Materiality Assessment

3. Implementation Issue- or industry-based guidances

Strategic partnerships are key

4. Reporting & Communication GRI, Integrated Reporting

Documentation; Stakeholder Feedback

5. Back to Step 1

THANK YOU

jerry@asean-csr-network.org