Big businesses should increasingly concern themselves with social and community issues rather than focusing solely on making profits, according to the CEO of the Prince of Wales International Business Leaders Forum (IBLF).

For instance, the conflict between multinational retail companies and Thailand's small, traditional retailers could be resolved if the giant retailers made a social commitment before expanding into a community, IBLF chief Robert Davies suggested in an interview with The Nation during a visit to Bangkok early this week.

"A dialogue between both sides should be created soon, otherwise the problem may not be solved easily," he said.

By operating efficiently, Davies said all large retailers in Thailand could help improve small shop operations by transferring technology and management know-how.

"They [major retail giants] should focus on the transfer of modern technology and management know-how rather than damaging the small retailer by aggressively expanding business in a community," he said.

In addition, he urged the government to help in the conciliatory process with a balance of benefits for both, otherwise multinational companies may face trouble in doing business here.

Davies, who is a co-founder of the IBLF with Britain's Prince Charles, added that rapid economic growth in Asia had widened the gap between the rich and the poor. Business should contribute part of the profit to help develop society, in order to ensure sustainable growth of the world's economy, he suggested.

Despite explosive economic growth in Asia, the region remains one of the poorest continents, he said.

He urged larger companies to share their profits by making a contribution to social development. A business may share a percentage of its income with a non-profitable organisation to improve social standards, he said.

Davies said a developing world economy also created many problems, not only related to trade but also in the social and environmental areas. These problems include outbreaks of disease affecting at least 60 per cent of Asians, and poor living standards in some communities.

Davies is a veteran speaker, moderator, opinion writer and columnist for many magazines. He believes that social and economic development should run in parallel.

The IBLF is supported by the direct involvement of chief executives and corporate resources of more than 100 of the world's most influential international companies. The organisation operates in more than 60 countries, including China, India, Vietnam, Indonesia, the Philippines and Thailand.

The IBLF was launched as a personal initiative of His Royal Highness the Prince of Wales in 1990. A non-profit organisation that offers a hand to help society through business, it is committed to alleviating property, increasing health and living standards and increasing educational opportunities for poor children.

Petchanet Pratruangkrai

The Nation