[36th Edition] Business unusual: Exciting developments in CSR / November 2007

MESSAGE FROM THE CHIEF EXECUTIVE
Business unusual: Exciting developments in CSR

As Asia’s businesses compete in the global arena, expectations of corporate social responsibility are being more clearly defined. According to a recent survey by the Boston College Center for Corporate Citizenship, Asians view “business’ best contribution to society” primarily as “developing safer, healthier products and services” (51% of respondents), then as “working to solve a specific social problem” (23%), and lastly, as “donating money to charities” (18%).

In this issue, we look at CSR programs in action. CSR is bringing companies to develop ‘new markets,’ targeting masses of low-income communities as consumers. Poverty alleviation results in the process. Companies are also “going green” and campaigning to reduce, reuse and recycle. We also include a report on corporate response to the ongoing disaster crisis in Bangladesh, where we see the usual relief distribution being augmented by some corporate leaders planning effective rehabilitation activities.

There is also a growing trend by Asian businesses towards compliance and reporting driven partly by stricter government regulations around the region. This year, new laws and regulations to conduct CSR activities were legislated around the region, including in Thailand, the Philippines and Indonesia.

As with many path finding models, integration of CSR has its critics. Is CSR an attempt to deodorize the ugly in corporate behaviour? Or as gimmicry to enhance the company image? Our view however, is that the search for models of value-driven business has to continue, because it is only by accepting that the social contract is evolving that companies will continue to prosper, and with them, their stakeholders.

We hope to hear from you about your observations and questions about CSR in Asia today.

Rory Francisco-Tolentino

APPC has, for years now, co-organized the annual Asian CSR Forum and Awards, held recently at Ho Chi Minh, Vietnam on September 28-29. More than 550 delegates explored the theme, A Driving Force for Growth and Development: How CSR Can Reduce Poverty, Generate Investments and Trade, and Improve Business Performance.

At the close of the conference, CSR Awards recognized the projects of 18 winning companies who were chosen from among this year’s 186 project entries from 14 countries. Dr. Vo-Tong Xuan, Rector, An Giang University co-chaired the event with Mr. Ramon R. del Rosario, Jr., Chairman of the Board of Advisors, Asian Institute of Management-Ramon V. del Rosario, Sr. Center.

We feature three of the awarded projects.
(Visit www.asianforumcsr.com to read about the other Excellence Awardees and the conference report.)

• With training, rural villagers work in Business Process Outsourcing facilities for Satyam Computer Services Ltd.

Winner: Poverty Alleviation category

Business process outsourcing is transforming the lives of previously unemployed villagers in the rural areas of India’s Andhra Pradesh state. Hired to work in the BPO facilities, they apply newly learned computer and English skills to manage a broad range of business processes for numerous clients, including Satyam Computer Services Ltd, a leading IT services provider.

The GramIT (Rural BPO) facilities developed a unique technology platform to enable the engagement of the villagers. More than 300 people have been employed in three rural BPO centers in a short time, boosting the local economy. Continuous employee training has resulted in increased productivity levels surpassing even the norms of the city BPO. The Byrraju Foundation, an NGO founded in 2001 by Satyam Chairman and Founder B. Ramalinga Raju, implements the project.

“…. We are very proud of our efforts to work with people in rural India and transform their lives, and take great pleasure in receiving this award,” said Harsh Vardhan who received the Asian CSR Award for the company.

• The Green Champion: Hang Seng Bank

Winner: Environmental Excellence

In 2006, specific environmental objectives of Hang Seng Bank included reducing greenhouse gas emissions and water consumption, encouraging waste recycling and further raising environmental awareness of the staff.

The results are impressive. As reported by the Bank, its carbon dioxide emissions decreased by 4.2 per cent, freshwater consumption decreased by 22.7 per cent and the number of serviceable IT hardware donated to charities increased by 7.5 per cent. The Bank’s headquarters building management system was improved to reduce annual electricity consumption by 4 per cent, saving approximately HK$550,000. For their part, Bank employees have reduced paper consumption and volunteered for tree planting at Ma On Shan Country Park, which now has 50,000 trees planted since 1999.

(Visit this site for more information)

• Quality Pre-school Development for Sri Lanka’s Children

Winner: Excellence for Support and Improvement of Education

A new standard for pre-school development nationwide has been achieved by the collaborative project of Sri Lanka’s Ministry of Child Development and Women’s Empowerment and Hemas Holdings. As of 2007, there are 32 state-of-the-art ‘Piyawara’ pre-schools constructed and running, and turned over to the Local Councils in their respective areas.

The ‘Piyawara’ initiative started in 2003 as Hemas’ CSR project. When the tsunami disaster struck in 2004, Hemas replicated the pre-school development programme for affected areas in Sri Lanka through the Hemas Tsunami Foundation. CEO Husein Esufally said, “This award is an endorsement of the success of the Piyawara initiative and … for Sri Lanka’s endeavours to successfully uplift the standards of pre-school education across the geographical divide”.