From "Engaged" to "High Performance" CSR

Workshop on Business, Human Rights and Investments in Asia

Landmark 4, Landmark HotelMay 29th, Thursday 2008

From "Engaged" to "High Performance" CSR

Pipat Yodprudtikan Director, Thaipat Institute, Thailand

2

1) How are companies engaging CSR in Thai societies?

2) What is "High Performance" CSR and how do companies develop it within an organization?

Topics to discuss

3

• CSR began in Thailand since the inauguration of commerce organization. Since the term CSR was not yet established at that time, the activities are often called as charity, philanthropy, volunteering, etc. (CSR-in-context)

• After the sustainable development framework had been developed, and the term CSR recently exists, the understanding of CSR in Thai society is equivalent to social contribution. The CSR activities seem to separate from business processes and not relating to their day-to-day operations. (CSR-after-process)

• In recent years around 2004, CSR in Thailand has significant shift to promoting the integration of CSR into the business operations and involving the workforces across the organization.(CSR-in-process)

Development of CSR in Thailand

4

• Mandatory LevelBusiness must comply to legislations and laws such as consumer protection law, labour act, tax law, etc.

• Elementary LevelBusiness shall operate to create economic profit and return to shareholders without misappropriating the social values

• Preemptive LevelBusiness shall follow its code of conduct while operating in the community and pursuing the community and society development

• Voluntary LevelBusiness shall uplift its involvement in social and environment responsibilities as discretionary practices, not only limit to legal compliance

Level of CSR engagement

5

• Corporate Governance

• Fair Operating Practices

• Human Rights and Labour Practices

• Consumer Responsibility

• Development of the Community and Society

• Environment

• Innovation and Disclosure of CSR Practices

• Social and Environment Reporting

Thailand CSR principles and guidelines

6

Comparison of principles and guidelines

7

Components of Engaged CSR

Inside-OutProcess-Based

Social as CustomerResource Outputs

Engaged CSR

+++

จริ�งใจหริ�อเปล่�าให�เวล่าหริ�อเปล่�าทุ่��มเทุ่หริ�อเปล่�าทุ่�าตามทุ่��พู�ดหริ�อเปล่�า

8

Components of High Performance CSR

Selective IssuesStrategic Initiatives

Social SynergiesOutcome Statement

High Performance CSR

+++

จะทุ่�าอะไริ ทุ่�าอย่�างไริ ทุ่�ากั�บใคริ ทุ่�าได�แค�ไหน

9

Tools for achieving High Performance CSR

10

Responsible Balanced Scorecard

11

Right Performance Measurement & Report

• Can we really measure corporate responsibility?

• Choosing between KPIs & Progress Markers

• Sufficiency Reporting Framework: Global Standards + Indigenous Agendas

12

“We are not asking corporations to do something different from their normal business; we are asking them to do this normal business differently”

Kofi AnnanUN Former Secretary General