筑波学院大学紀要第８集

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2013年

A Study of CSR in Thailand I：
Awareness and Practice
Nitaya ONOZAWA＊
Abstract
The CSR concept is apparently gaining momentum in business management in Thailand. The
meanings of CSR in global context are verified meanwhile the awareness and responses from domestic
perspective are also reviewed. Some leading companies in Thailand are accepting CSR as a core
strategy for their sustainable business development. Some large enterprises are acting as a role model in
performing the CSR as a duty. However it was found that in some CSR reports, their guidelines of CSR
are somewhat the blend of new concepts and traditional cultural elements.

Key words：awareness of CSR concept, CSR in Thai context, Buddhist influence, Philosophyof Economic Sufficiency

Introduction
In general, it is understood that the concept of CSR(corporative social responsibility)isderived from the guidance of the United Nations Global Compact1(UNGC)which has proposedten principles of conduct for business as follows:. . . . . The UN Global Compact asks companies to embrace, support and enact, within theirsphere of influence, a set of core values in the areas of human rights, labour standards, theenvironment and anti-corruption:
Human Right
Principle 1:Businesses should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2:make sure that they are not complicit in human rights abuses.

＊ 経営情報学部経営情報学科、Tsukuba Gakuin University
1 http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html― 13 ―

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LabourPrinciple 3:Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining;
Principle 4:the elimination of all forms of forced and compulsory labour;
Principle 5:the effective abolition of child labour; andPrinciple 6:the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7:Businesses should support a precautionary approach to environmental challenges;
Principle 8:undertake initiatives to promote greater environmental responsibility; andPrinciple 9:encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10:Businesses should work against corruption in all its forms, including extortion andbribery.
It should be noted that behind the UNGC's guidance mentioned above, the CSR wasoriginated from the business background.
CSR efforts began to spread after the World Trade Organization Ministerial Meeting on
30 November 1999 discussed crucial steps in showing its commitment on not only economics,
but also social and environmental aspects. Many multi-national corporations(MNC)have started
their initiatives in CSR implementation and also developed policy advocacies to promote CSR
among their groups of companies, subsidiaries and branches globally.2
In Pareena &Olsen' s work as a the report byThe Network of NGO and Business
Partnerships for Sustainable Development(Thailand), United Nations DevelopmentProgram(UNDP) they make a remark that.....
"Corporate Social Responsibility" has become a popular term, yet there is no universallyaccepted definition of what it means. It is multidisciplinary in nature covering a wide range ofissues. Therefore, there are different definitions and adaptations in different companies.3
CSR Terminology in Thai Language
Considering the terminology in Thai , the literally meaning of CSR(corporate socialresponsibility)is /kwam rab phid chob doy ruam tor sang khom/() which sounds too long and complicated to speak out, in many occasions and projects it has
been simplified to a shorter term as / khuen suu sang khom/(2，3Pareena & Olsen― 14 ―)which literally means aNitaya ONOZAWA：A Study of CSR in Thailand I：Awareness and Practice"return to the society". Thinking of the nuance in Thai language, the first terminology assumes
only the responsibility of the organization, but the latter implies the reciprocal relationshipbetween an organization and society in which "something has been taken from society" so that
it is to be "returned or given back" to the society. The language might not cause confusion but
it can lead to different aspects of understanding about human relationship and some certain
issues when it is adapted to real practice as a policy in doing business in Thailand. Below aresamples of the "give-back" concept by Minor International Public Company in Thailand4.

Diagram 1: Minor CSR Stakeholders, Give Something Back CSR Programs
Source: Minor CSR Report 2010

Diagram 2: CSR Inspiration, the ability to give something backSource: Minor CSR Report 2009

No matter how the wordings are used in Thai .... there was general agreement that theconcept is still very new and there is no real consensus among business leaders about thedefinition, focus, or scope of CSR in Thailand. This was noted to be especially true for local
Thai Small and Medium-sized Enterprises (SMEs), whereas large Multinational Companies(MNCs) usually had CSR programs that originated at headquarters in the West.5
4Minor CSR Report 2010, 2009― 15 ―

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No wonder that the role model companies in CSR practice in Thailand are those largeenterprises or the big market capitalization companies which operate the organization byinternational management standard.
The International Concept of CSR
After having studied five different definitions from
1. The European Union or EU,
2. World Business Council for Sustainable Development or WBCSD,
3. Business for Social Responsibility or BSR,
4. Canadian Chamber of Commerce and CSR Asia (both in Hong Kong) and5. the ISO 26000 – Committee (Draft Version ),Pareena & Olsen proposes the conclusion about the nature of the CSR that,
The five definitions articulate two common essences of CSR.
1. Businesses are urged to show concern and take actions and responsibilities to society andenvironment, and2. businesses should integrate environmental and social implications into their day-to-day
business operations.
They conclude that ...in sum, CSR is integrated into three areas (often referred to as triple
bottom line): namely people (society), planet (environment) and profit (economics), as shown inthe diagram below,6

Diagram 3: Triple bottom line
Source: Pareena&Olsen

5，6

Pareena & Olsen― 16 ―

Nitaya ONOZAWA：A Study of CSR in Thailand I：Awareness and Practice

The diagram of the "triple bottom line" as a guideline should certainly inspire companies
in their CSR implementation. For example the Minor International, one of the big size
capitalization listed companies in SET (Stock Exchange of Thailand) illustrated in their CSR
report of 2010 a similar structure.

Diagram 4: Minor SCR... Sustainable Development... Triple Bottom Lines
Source:Minor CSR Reort 2009, 2010

It is undeniable that CSR has gained momentum rapidly in business in Thailand. The bigcapitalization company like the PTT (Petroleum of Thailand) illustrates their vision of businessor strategic framework clearly that the CSR is accounted as one of the three pillars of theirsustainable growth strategy, as shown below:

Diagram 5: PTT Strategy Framework
Source: PTT Group's CSR Report 2010― 17 ―

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Purpose of Study
The first part of this study aims to generalize and review the awareness and responsesof CSR in Thailand. The second part aims to examine the operation on the CSR activities insome particular companies which will be selected as case studies from the list of more thanfour hundred companies in the SET (Stock Exchange of Thailand). Also some unlisted but
outstanding companies in CSR performance will be selected for this study as well.
The industry and sector of business in Thailand can be categorized as shown in the tablebelow:7

7

Stock Exchange of Thailand― 18 ―

Nitaya ONOZAWA：A Study of CSR in Thailand I：Awareness and PracticeTable 1. Industry and Sector Classification of Business in SET

A total of 469 companies in 27 sectors, 8 categories of industry usually are classified into
three types of market capitalization, the big, medium and small. The value of the big market
capitalization must be over 10,000 million baht, the medium one is more than 2,500 million, andthe small one is lower than 2,500 million. Some companies are domestic market oriented whilesome are multi/international oriented. They all have different business models even among
the companies in the same sector of business. However, in terms of the quality of business
management from now on into the future, the CSR practice will definitely play important role.
Sooner or later the CSR is inevitable path for all listed companies, by then the concept of theCSR should become as simple as what Baker defines. According to Baker, CSR is about how
companies manage the business processes to produce an overall positive impact on society.8
He also proposes a diagram of how business nowadays looks like.
8Baker, M.

― 19 ―

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Diagram 6: The Business in Society
Source: Baker, Mallen

The Awareness of the CSR Concept
Currently the CSR is gaining attention and acceptance in wider range of business inThailand. Many noted multiple new institutes, awards, and workshops that have somedegree of backing to push the CSR agenda in a Thai context, including the Corporate SocialResponsibility Institute (CSRI) at the SET (Stock Exchange of Thailand), the new CSR
department at the Royal Foundations, and The NETWORK of NGO and Business Partnerships
for Sustainable Development in Thailand.9In 2002 the Asian Forum on Corporate Social Responsibility (AFCSR) was launched by theAIM-Ramon V. del Rosario, Sr. Center for Corporate Social Responsibility, which became oneof the first research centers in Asia concentrating on corporate responsibility issues. So far
the AFCSR is supposed to be the largest annual conference on corporate social responsibility(CSR) in this region. With the cooperation at international level it will host the 11th annual
conference in Bangkok in October 2012. The annual award program is one of the AFCSR
highlight activities. The awards seek to identify and honor companies as well as to provide
role models of best practices for other companies. The four focus areas are:
1. Environment and Value Chain Management
2. Governance and Society
3. Labor and Employee Engagement
4. Product Responsibility and Consumer Rights
9Pareena & Olsen― 20 ―

Nitaya ONOZAWA：A Study of CSR in Thailand I：Awareness and PracticeIn 2006, in parallel with the international trend and to encourage the CSR consciousness
in business circle in Thailand, the Stock Exchange Market of Thailand (SET) (governmentorganization) decided to create a new award, the Best Corporate Social Responsibilities (CSR)
Awards to the list of the annual SET Awards. Generally, the categories of the awards are to
be changed from year to year corresponding to the market and economic situation, but theBest CSR Award has never been dropped off from the list since its start.
Outstanding Thai Company
CSR Asia has measured the state of corporate social responsibility among the largest
listed companies in ten markets operating in the Asia Pacific region. Included in the ranking
are the top 20 companies by market capitalization from Australia, China, Hong Kong, India,Japan, Malaysia, Pakistan, Philippines, Singapore and Thailand. ...... uses 51 indicators ..... The 51
CSR indicators are organized into the following six headings:
1. Governance, codes and policy
2. CSR strategy and communication
3. Marketplace and supply chain
4. Workplace and people
5. Environment
6. Community and development.10
Regarding the twenty companies chosen by size of the market capitalization in Thailand,
it was found that,The Siam Cement Public Company tops the list in Thailand and also ranks 14th
overall out of the full sample of 200 companies from 10 Asian countries in the 2009 rating.
Consistently high scores across the six categories demonstrate the multi-dimensional natureof the company's commitment to CSR and are indicative of the importance of transparency,
reporting and stakeholder communications in order to achieve their CSR goals.11
Actually the Siam Cement Public Company is one of the award winning repeaters in SETAwards program.
This reflects the view of Mr. Chaovalit Ekabut, President, SCG12 Paper who states that,"CSR is not an extra activity, it is our duty. And it is important that all stakeholders should beengaged to contribute their parts in the activity in order to develop mutual trusts in achieving
a common goal. In today's world, society is the one who really determines the "license tooperate" for any business, and it is ready to do that any time."13

10，11，13 CSR Asia Center at AIT
12 Siam Cement Group― 21 ―

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CSR and Philosophy of Economic Sufficiency
Another perspective about the CSR concept in Thailand is that the CSR is well embraced
as a driving force for corporations' development but the CSR is a community based conceptthat needs strong support for the community foundation, and such support can be derived
from the philosophy of economic sufficiency. As stated by Veena,
What makes CSR in Thailand unique .... It builds strongly on a local development
concept called ‘Sufficiency Economy Philosophy' , which was initiated by His Majesty
King Bhumiphol Adulyadej ..... the Sufficiency Economy Philosophy is focused on building
a strong economic foundation and self-reliance at a local community level ..... CSR and theSufficiency Economy Philosophy share many common characteristics, such as communitybased development, local networking, stakeholder participation, partnership and collaborationand the importance of community context and local wisdom. Hence, the Sufficiency Economy
Philosophy plays a supportive role in strengthening and leveraging the potential of CSR to
respond to local conditions, economic activities and a community-based lifestyle.14
The Sufficiency Economy Philosophy or/prachaya sethakij phor phiang/() in Thai term, has been proposed by King Bhumiphol as a guiding methodology for recovering
Thai economic condition after the nation's economic crisis in 1997, but for some reason,
His Majesty's initiative philosophy has been ignored for many years until after the severe
economic crisis in Euro zone and the United States of America in recent years, the concept
has been brought to be reconsidered as a proper economic philosophy for the overall Thai.
Royal Influence
Going along with Veena's idea on the supportive role of the King's philosophy, Pareena &Olsen does report that,
Another aspect that has had an effect on attitudes toward CSR practices is theenormous amount of respect and devotion Thai people have for the monarch, His Majesty
King Bhumibol Adulyadej. The king and the royal projects and foundations that he has setup to advocate development causes and assist the poor have had a strong influence on thenational development agenda (Vichit-Vadakan, 2002). A large number of respondents referred
especially to the National Agenda of Giving and Volunteering initiated in 2006/2007 for his
80th birthday. This has led recently to the establishment of a new CSR department in theRoyal Foundations, which are among the largest and strongest development organizations inthe nation. This no doubt has led many in the business community and civil society to take up
the cause and seek new ways to support the initiative.15
1415

Veena
Pareena & Olsen― 22 ―

Nitaya ONOZAWA：A Study of CSR in Thailand I：Awareness and Practice

Buddhist Influence
Another strong influence to the CSR concept among the Thai is the Buddhist belief,
since more than 95% of population is pragmatic Buddhist. The belief in law of Karma is deeprooted and becomes part of a person's logic and judgment. Therefore, ".... ethical behavior
in business, economics and society more generally is the responsibility of individuals rather
than of organizations taken in the abstract." ..... Nonetheless, it was found that increasing
numbers of businesses are embracing Buddhist principles and that acts of giving are laudedsocially, especially when specific cases are made known through the media (Vichit-Vadakan,2002). While it is not possible to make an ethical judgment on motivations for CSR, Buddhist
tradition no doubt is a strong factor encouraging socially responsible practices in the private
sector in Thailand.16
Below is a diagram derived from the published CSR report of 2009 of Minor International
Public Company.17 Apparently, their CSR policy is the collaboration between the modern
western concepts and the traditional Buddhist principles, the royal virtues and the King's
initiative idea.

Diagram 7:Guidelines of Minor CSR
Source:Minor CSR Report 2009

The translation of the above diagram:
The CSR of Minor is based on the business compass for society
Combined with Principles of UN Global Compact, OECD Guideline, ISO 26000,
The Ten Royal Precepts, Buddhist Principles
And the Philosophy of Economic Sufficiency
As a Guideline1617Pareena & Olsen
Minor CSR Report 2009― 23 ―

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Conclusion
In the beginning stage of embedding the new concept of CSR as a business strategy inThailand, it is necessary to make a frame for common understanding which compromises andblends with the Thai cultural context. The belief system, the cosmology, traditional ways oflife and culture at psychological level such as the love and loyalty towards the monarch areinevitable to use as supportive factors. In the years to come, more changes are expected tohappen and become a new chapter of the CSR awareness and practice in Thailand.
References
Baker, Mallen, 2004, Corporate Social Responsibility
From http://www.mallenbaker.net/csr/definition.php
CSR Asia Center at AIT, 2009, Corporate Social Responsibility in Thailand
From http://www.csrcenter.ait.asia/
Minor CSR Report 2009
From http://www.royalgarden-resort.com/international/PDF/Minor%20CSR%20for%20SET10.pdf
Minor CSR Report 2010
From http://www.minorinternational.com/Download/csr_report10_update.pdf
Minor CSR Report 2011
From http://www.minornet.com/Download/20120502-MINT-CSR2011.pdf
Pareena Prayukvong & Olsen, M. 2009 "Research on the CSR Development in Thailand, United Nations Development
Programme
From http://www.ngobiz.org/picture/File/Final%20%20Report%20on%20CSR%20Development%20in%20Thailand%20_
Original%20Version_.pdf
Pipat Yodprutikarn, 2010 Mirroring Thai CSR
From http://www.csrthailand.net/en/knowledge/detail/58
PTT Group's CSR Report 2010
from http://www.pttplc.com/Files/QSHE/an-2553/03.pdf
Sopon Phornchokchai, 2008, The Real CSR(CSR),(in Thai language)Thai Appraisal Foundation

From http://www.thaiappraisal.org/thai/journal/publicationb16.php
Thai business launches Corporate Social Responsibility Institute 2012
From http://www.thaipr.net/general/152958
The Stock Exchange of Thailand 2012
From http://www.set.or.th/en/products/index/setindex_p2.html
UNGC 2012
From http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html
Veena Cute-ngarmpring, 2012, CSR and Local Development in Thailand
From http://www.csrinternational.org/tag/veena-cute-ngarmpring― 24 ―