CSR and the ASEAN Community Jerry Bernas Program 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 Rights C.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 POINTS 1.Develop a model public policy on Corporate Social Responsibility or legal instrument for reference of ASEAN Member States by 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 Rights 1.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. Labour 3.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. Environment 7.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-Corruption 10.Businesses should work against corruption in all its forms, including extortion and bribery

Society and enviroment Stakeholders ExpectationsImpacts Interests Organization Figure 2: Relationship between an organization, its stakeholders and society

Figure 3: 7 core subject

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 practice StepsTools 1. Top-Level CommitmentGlobal Compact Internal Communications 2. Strategy/ Plan of ActionISO26000, OECD Guidelines, Stakeholder Analysis, Materiality Assessment 3. ImplementationIssue- or industry-based guidances Strategic partnerships are key 4. Reporting & CommunicationGRI, Integrated Reporting Documentation; Stakeholder Feedback 5. Back to Step 1

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