CSR should begin with employees

 Many are focussing on external-to-the-corporation aspects of CSR and missing out on internal-to-the-firm aspects. Of course staff are members of society and eligible to benefit from a firm's social altruism. But as the saying goes "charity begins at home". That every worker is treated fairly and with dignity is one aspect of CSR. This is an aspect that board directors tend to overlook.

But whether management creates a working environment that inspires its personnel into putting in their best effort is not evaluated. Whether management is hiring companies or outsourcing to companies that are conducting business on a transparent and fair basis is not evaluated. In companies and organisations that I am involved in, companies vying to provide personnel outsourcing services must stipulate in their contract that they are abiding by labour laws and regulations. This requirement levels the playing field for bidding, supports firms practising good governance and promotes ethical business practices within the community.

To appraise management, an evaluation-from-below is conducted. The facts obtained are often surprising and illuminating. Such an evaluation enhances fairness in evaluating management and determining the bonuses and other merit rewards that management should properly be awarded. It also indicates to directors what improvements need to be made in terms of management style.

I have advocated that firms should establish a day-care centre for the pre-school children of employees, especially if they are construction workers. These workers receive low daily wages and both parents need to work, so their children are often left without proper care or are sent off to be raised by relatives or friends. This reliance on foster parents by necessity is more likely to produce juvenile delinquents, a future burden to society, than quality human resources for the nation. An on-site day-care centre capably staffed will enhance the quality of children and let them access the warmth of their parents. It should also improve the work efficiency of the parents, who no longer have to worry about the safety of their children. As on-site day-care centres are a social benefit, the government should promote them and allow costs to be fully deductible from taxes.

So, CSR can be good for both the corporation and society, especially with government encouragement and assistance.

Anucha Chintakanond, assistant professor, member of the National Economic and Social Advisory Council's working group, and chairman of Krung Thai IBJ Leasing