The Social Development and Human Security Ministry is planning to

urge higher tax allowances on the Finance Ministry for individuals

and companies that channel more of their income into projects of benefit

to society.

The move was revealed yesterday by Social Development and Human Security Minister Paiboon Wattanasiritham at a seminar on corporate social responsibility (CSR), hosted by Prachachart Turakij.

Paiboon said higher tax allowances would be pushed as a national agenda item to encourage individuals and corporations to channel more of their income into socially beneficial projects. The current allowances have been unchanged for 14 years.

He pointed out that higher allowances would affect only a tiny portion of government revenue.

At present, tax deductions on social donations by individual taxpayers are capped at 10 per cent of after-expenses taxable income. Those of corporations are capped at 3 per cent.

The ministry proposes to raise the levels to between 20 per cent and 30 per cent of after-expenses taxable income for individuals and 5 per cent for corporations, the minister said.

"Society is moved by three forces: the government, the corporate world and the public," he said during the closing ceremony of the seminar entitled "The Power of CSR: The Changing Face of Globalisation".

Panellists agreed that CSR was vital for the sustainability of business in a world where consumers tend to buy products and services from companies with commitments to social activities.

"A survey in Europe showed that 86 per cent of consumers are more likely to buy products from companies engaged in CSR activities. Seventy per cent of consumers said it is important to buy products and services from companies with commitments to CSR," said Tomoko Takazawa, growth communications and corporate citizenship leader of GE Money Asia.

Panellists including the CSR/Assurance partner of PricewaterhouseCoopers, Sudwin Panyawongkhanti, Thammasat University lecturer Suthisak Kraisornsuthasinee and CP Seven Eleven assistant managing director Poonthana Musikbunlert, agreed that to succeed in CSR campaigns was not easy. While top executives must show their commitment to social responsibility, their employees must also be willing to share the same goals. The strategies must also be tailor-made to suit the needs of beneficiaries.

Takazawa said GE Money's global strategy was to provide financial education to women. However, the strategies of units in different countries vary according to the conditions in their communities. For example, in the Philippines, where most women travel out of their hometowns for work, GE Money's CSR campaign aims to help them become job creators. The campaign is similar in Thailand.

"We have a global strategy, but we also need to look at the needs of local communities," he added.

Suthisak said that while commitment from top executives is necessary, all companies should also be prepared for limitations on their social activities. Nevertheless, it is worth investing in CSR, as "companies with CSR activities will have an edge over competitors in a world where competition is not limited only to product quality and pricing".

Achara Deboonme

The Nation