Corporate Social Responsibility for Asian Business: How relevant?

Mark DevanPublic Affairs Manager

Ford Malaysia

• "Only when the last tree is cut; only when the last river is polluted; only when the last fish is caught; only then will they realize that you cannot eat money." – American Indian Proverb

• We are stewards/custodians of the planet– “You will reap what you sow”

What does CSR mean to Asian Companies?

• Building a relationship of TRUST with stakeholders– An organization depends on the community and is symbiotically

linked with it.• Employees/Customers/Shareholders/Government

– Long term view of business as opposed to quick profits• Investing in the community• Effectively utilizing and growing human & natural resources

• How relevant is CSR to us?– A company’s success depends on its ability to maintain this

relationship of TRUST.• It will increase a company’s competitiveness and profitability • Ensuring sustainability of its business into the future

What is CSR?

• What is CSR?

– CSR is about how companies manage the business processes to produce an overall positive impact on society.

• Mallen Baker (www.mallenbaker.net)

– "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large“

• The World Business Council for Sustainable Development in its publication "Making Good Business Sense" by Lord Holme and Richard Watts

Ford Motor CompanyEnvironmental Pledge

"We see no conflict between business goals and social and environmental needs. I believe the distinction between a good company and a great one is this: A good company delivers excellent products and services; a great one delivers excellent products and services and strives to make the world a better place."

Bill FordExecutive ChairmanFord Motor Company

Challenges & Ideas for Implementation

• Start inside out– Company must have its house in order before

reaching out to the larger community – Economic - Profitability

– Environmental – Social

– Put employees first • This will be the first step in overcoming barriers and prejudice

when engaging staff in CSR programmes– Why give?, What’s in it for me?, No time, etc.

Challenges & Ideas for Implementation

• Getting buy in: – Management

• Quick profits vs. investing in the companies sustainability for the future

• Tie back to bottom line • This is NOT a publicity stunt - that’s the by-product of a great CSR

project– Employees

• What’s in it for me? Incentive to participate in terms of recognition, time, resources, etc.

• No hidden agenda– Community/NGO’s

• Need to show that their projects are sustainable and if possible not just rely on corporate funding alone

• Demonstrate transparency and accountability in use of funding

Challenges & Ideas for Implementation

• The CSR programme itself must be sustainable– Need for us to find an optimum balance in our CSR projects so

that we can sustain projects long term• Financial allocation• People power

– Start small at where you’re at now– Ford Conservation & Environmental Grants Programme

• Seed money to kick off projects• Over the last 7 years, RM1.3 million has been awarded to 101 local

projects

• Collaboration instead of competition in the area of CSR among companies

• Shared data base of NGO’s/individuals involved in community projects and their needs

Incentives for Implementation

• More to life than just work…• CSR brings new meaning & purposes to our work• Infuses new work ethics and values

– You can make a difference…

– Global Walk to Cure Diabetes • Employee initiative that has raised over RM100,000 in the last two

years for diabetes organisations

• We need to ensure that our people experience the “joy of giving”– “Its more blessed to give than to receive”

• Giving is a two-way street because those who give will also receive• How? The cause/community that you support will now

influence/change the way you see the world

“A business that makes nothing but money

is a poor business”

Henry Ford