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MARKETING TALK

Doing good and doing well through CSR

Recent research conducted by the Kenan Institute shows Thai consumers have a good understanding of corporate social responsibility, or CSR to many of us.

Published on March 24, 2008



More than 50 per cent said they felt CSR was essential to business and more than 50 per cent said they would buy products if they knew their makers had demonstrated they abide by CSR codes.

In particular, Thai consumers agree they expect all companies - regardless of size or origin (foreign or local) - to appreciate the importance of CSR and incorporate its ideas as part of their corporate strategy.

A few days ago I was invited to talk at a public-relations conference in Kuala Lumpur.

Although most of the audience attending the session was from the field of PR, there were also many attendees from other quarters.

I was pleased that the event showed more companies are paying attention to CSR.

There were so many questions on how a company should conduct social responsibility and who should be involved.

Obviously my answers cannot be definitive ones as there are many variables to consider, depending on situations. But I enjoyed the opportunity to present my facts and ideas for their consideration.

First of all, we must ask whether there is social-responsibility awareness in a corporate plan?

HRH the Prince of Wales once said: "You cannot have a successful business in a failing society."

This is a very powerful and meaningful view that helps creates a sense of accountability, unity and belonging which contributes to the health and prosperity of any business.

 For communities to prosper, companies must understand societal issues and help create social benefits through social interaction. Obviously "business interactions" in the CSR aspect has more meaning than just corporations giving to charity or indulging in philanthropic activities where companies are giving money and time to help people.

As for sustainable development, it was environmental guru Lester Brown who said, "A sustainable society is one that satisfies its needs without diminishing the prospects of future generations."

It is a simple and beautiful definition that reminds us that we are consuming the future resources of future generations. It would be interesting to see how we can as businesses satisfy our needs without encroaching on the properties of the children of tomorrow.

Some might ask how I see the correlation between sustainability and CSR. Clearly if you map long-term targets and resources you need to tackle for your business without considering sustainable development, many such businesses could cease to exist.

One example can be taken from Unilever.

More than two-thirds of the raw materials it uses come from agriculture.

So the company needs to secure its future ability to operate by ensuring it has sustainable resources to produce its brands.

The company also needs to ensure its consumers do not run out of resources.

That is why big corporations have come up with many sustainability initiatives with the aim of ensuring that future resources are protected.

From the consumer standpoint, if CSR is integrated into a business plan, it can be a real driver for success.

Pongtip Thesaphu

Communications & corporate relations director

Unilever Thai Trading Limited

The Nation



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