Corporate Social Responsibility Case Study 2022

Running head: CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY: A CASE STUDY OF THAI BEVERAGE
PLC
Name of the Student:
Name of the University:
Author’s Note:

1CORPORATE SOCIAL RESPONSIBILITY
EXECUTIVE SUMMARY
This report undertakes a critical analysis of “Corporate social Responsibility” (CSR) and also the
manner in which it is being used by the contemporary business corporations. For undertaking
this analysis, the case of Thai Beverage had been used. The report begins by shedding light on
the business activities of Thai Beverage. Next a literature review of the concept of CSR had been
undertaken in the light of theoretical frameworks of Carroll’s Pyramid of CSR, Three-Domain
Model of CSR, Stakeholder Theory and others. Furthermore, a brief overview of the different
CSR programs of the business corporation Thai Beverage had also been provided. Lastly, on the
basis of the limitations or the shortcomings of the present CSR programs followed by the
corporation Thai Beverage, three recommendations have been made, namely, gender equality,
diversity and inclusion and anti-discrimination. The adequate usage of these three
recommendations is likely to not only help Thai Beverage to fulfill its obligations as business
entity but would also offer it the opportunity to improve its workplace as well.

2CORPORATE SOCIAL RESPONSIBILITY
Table of Contents
Introduction......................................................................................................................................3
Core characteristics of CSR.............................................................................................................3
Carroll's Pyramid.............................................................................................................................4
Stakeholder-Theory.........................................................................................................................5
CSR strategies of Thai Beverage PLC.............................................................................................5
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

3CORPORATE SOCIAL RESPONSIBILITY
Introduction
Thai Beverage or more popularly called by the name of ThaiBev, founded by Charoen
Sirivadhanabhakdi in the year 2003, is Thailand’s or for that matter Asia’s largest beverage
making business corporation (Thaibev.com 2019). The concerned business corporation
specializes in the manufacture as well as the sale of different kinds of beverages which are
manufactured keeping into perspective the taste and the health requirements of the customers
(Loi 2019). More importantly, the business corporation under discussion here in order to enhance
the scope of its business had established its distilleries for the production of the beverages
offered by it in different nations like China, Scotland and others (Thaibev.com 2019). In this
relation, it needs to be said that the profitability of the corporation Thai Beverage for the year
2015 was 181.19 billion baht and this revenue of the corporation is expected to grow even
further in the face of the different business initiatives that the concerned corporation is presently
undertaking (Thaibev.com 2019).
Furthermore, the business corporation operates under different brand names like
Federbräu, Archa, Chang and others as per the various varieties of beverages that it offers to its
target market (Thaibev.com 2019). Moreover, it had been seen that the business corporation
under discussion here in the present times had also acquired different subsidiaries like Fraser and
Neave, Oishi Group, InterBev Group, Sabeco Brewery, Sermsuk and others for the effective
capitalization of the beverage industry of Asia (Loi 2019). In this relation, it needs to be said that
the business corporation Thai Beverage in order to improve its brand image and thereby to
increase its profitability is actively taking the help of different kinds of Corporate Social
Responsibility (CSR) initiatives which are intended to help it fulfillment its responsibility as a
business corporation.
Core characteristics of CSR
Grayson and Hodges (2017) are of the viewpoint that the business corporations through
their business activities and also through the unregulated usage of the natural resources of the
planet are putting a substantial amount of pressure on the planet. Adding to this, Crane, Matten
and Spence (2019) have noted that the focus of the different business corporations on the aspect

4CORPORATE SOCIAL RESPONSIBILITY
of the enhancement of their profitability had proved to be detrimental from the perspective of the
society and the environment. As discussed by Schrempf-Stirling, Palazzo and Phillips (2016), it
thus becomes important for the business corporations to take full responsibility for their business
activities and thereby take the help of activities which are likely to help it to contribute in an
effective manner towards the economy, environment and the society. The resultant effect of this
is that the different business corporations are taking the help of different measures which are
intended to resolve the diverse issues faced by the planet like pollution, climate change, social
inequality, gender discrimination and others (Lins, Servaes and Tamayo 2017). In this relation,
as discussed by Saeidi et al. (2015), the effective usage of the tool of CSR helps the business
corporations to not only contribute positively towards the planet but at the same time improve its
brand image in an exponential manner and thereby increase its sales volume (Flammer 2015).
For example, presently it had been seen that because of the large number of options which the
customers have they are focusing on the aspect of brand image and the environment friendly
measures used by the corporations (Jamali and Karam 2018). This in turn offers an explanation
for the large number of CSR initiatives undertaken by Thai Beverage in the recent times like its
“social contribution program”, community services, gender equality initiatives and others.
Carroll's Pyramid
As stated by Kang, Germann and Grewal (2016), Carroll's Pyramid of CSR is a relatively
simple framework which helps the corporations to understand why they should meet their
obligations as a business entity and also the different levels at which they need to do so. In this
relation, it needs to be said that the framework has four dimensions, namely, economic
responsibilities, legal responsibilities, ethical responsibilities and philanthropic responsibilities
(Dyck et al. 2019). Business corporations like Thai Beverage as part of their economic
responsibility are required to make a positive contribution towards the economic growth of the
nations in which they operate. Furthermore, as discussed by McWilliams (2015), the business
corporations even have an obligation to abide or comply with the different regulations of the
nations of their operations, business regulations and others as well.
In addition to these, the business corporations are also required to take into account the
fact that their business activities are completely modeled on ethical theories like Utilitarianism

5CORPORATE SOCIAL RESPONSIBILITY
and others so that the different stakeholders and others would be able to get the desired benefit
from the business operations of the same (Liang and Renneboog 2017). More importantly, the
three domains stated by “Three-Domain Model of CSR”, that is, the economic, legal and ethical
entities are similar to these three entities stated by Carroll’s model of CSR (Petrenko et al. 2016).
Lastly, the business corporations are also required to take various kinds of philanthropic
initiatives which would help it to improve the societal condition of the nation of its operation
(Ioannou and Serafeim 2015). In the light of these aspects, it can be said that the business
corporations in order to fulfill their responsibility as business entities need to take into account
the domains of economy, legal, ethics and philanthropy within the framework of their business
activities or operations.
Stakeholder-Theory
Kang, Germann and Grewal (2016) are of the viewpoint that one of the most important
precepts of the stakeholder theory is the fact that it states the need on the part of the business
corporations to take the help of the kind of actions which would be intended to offer the
maximum benefit to their stakeholders. As discussed by Flammer (2015), the business
corporations for the attainment of this end are required to take into account the concept of ethics
or morals and also take into perspective the opinions or the feedbacks of the stakeholders
associated with them as well. However, the major problem arises because the business
corporations completely disregard the interests of their stakeholders and are primarily focused on
the enhancement of their profitability (Lins, Servaes and Tamayo 2017). Thus, it becomes for the
corporations to take the kind of actions which will maximize the interests of their stakeholders
and thereby help them to fulfill their responsibility as business entities.
CSR strategies of Thai Beverage PLC
Thai Beverage is presently taking the help of different CSR initiatives in order to fulfill
its responsibility as a business entity in the nation of Thailand. In this relation, it needs to be said
that the lacuna of the entire CSR program of the business corporation under discussion here is its
“social contribution program” (Thaibev.com 2019). This program of Thai Beverage is primarily
intended to improve the societal condition of the nation of Thailand by making a positive
contribution towards the improvement of the quality of lives led by the people of Thailand. As a

6CORPORATE SOCIAL RESPONSIBILITY
matter of fact, it is seen that through this program the corporation not only actively supports the
work of different charitable or humanitarian organizations of Thailand which focus on
community service but also actively organizes different kinds of events and others that are
intended for the attainment of the same end (Loi 2019). For instance, while focusing on different
kinds of community welfare programs, the program under discussion here also “focuses on social
welfare, education, public health, art and culture, and sports” (Thaibev.com 2019). The
commitment to the improvement of the societal condition of the nation of Thailand shown by the
business corporation Thai Beverage becomes apparent from the fact that for the year 2018 the
concerned corporation dedicated a budget of “270 million Baht” towards the different CSR
programs followed by it (Loi 2019). Some of the most important CSR initiatives undertaken by
Thai Beverages in the year 2018 as part of its commitment towards the improvement of the
societal condition of the nation of Thailand are listed below-
 Fight the Cold: Through this initiative of the corporation which was undertaken in
collaboration with the “Ministry of Interior” more than 100,000 blankets and woolen
cloths were offered to the under-privileged people of Thailand (Thaibev.com 2019).
 ThaiBev Safety Road Campaign During Songkran Festival and New Year Holiday:
This initiative was undertaken by Thai Beverage in collaboration with the Police
Department of Thailand to promote awareness regarding safe driving and also the
adverse effects of reckless driving (Thaibev.com 2019).
 ThaiBev’s Support for Prem Tinsulanonda Fellowship Program: Through this
initiative the business corporation under discussion here offers financial support to the
deserving students so that they can pursue higher education in the domains that they
want to (Thaibev.com 2019). Presently, it had been seen that the corporation had
extended this program and the students even get the opportunity to go abroad and
undertake their education.
 Establishment of “Chang Clinic”: This primary focus of this CSR program of Thai
Beverage is to improve the quality of the healthcare facilities which are available to the
people of Thailand who live below the line of poverty (Thaibev.com 2019). As a matter
of fact, it is seen that through this program the concerned corporation offers high quality
healthcare services, to the people, for which they do not have to bear any charges.

7CORPORATE SOCIAL RESPONSIBILITY
The above mentioned CSR initiatives of the business corporation Thai Beverage along with
the others which it follows within the domain of sports, arts and others is an indication of the
active commitment of the concerned corporation towards the improvement of the societal
condition of the nation of Thailand. More importantly, it had been seen that through these CSR
programs the business corporation under discussion had not only been able to fulfill its
responsibility as a business entity but at the same time had also been able to derive various
benefits from the same as well. For example, the effective usage of these CSR programs had
helped the corporations to improve its brand or market image in a substantial manner which in
turn had not only boasted the sales volume of the corporation but also positively affected its
profitability as well (Loi 2019). In the light of these aspects, it can be said that the wide range of
CSR programs used by Thai Beverage is one of the most factors which had helped the concerned
corporation to gain monopoly within the beverage industry of Asia.
Recommendations
Thai Beverage follows a wide range of CSR programs which had been instrumental in the
success attained by it over the years. However, a major drawback of the CSR programs followed
by the business corporation under discussion here can be said to be the fact the CSR programs
focus on the development of the community or the society despite the large number of workplace
issues that the corporation itself is facing. Some of the most troubling issues in this respect are
gender inequality, lack of diversity and inclusion, discrimination and others. Thus, it becomes
important for the corporation Thai Beverage to integrate these issues within the CSR programs
followed by it. Important measures that the corporation can follow are listed below-
 Gender Equality: Thai Beverage have the opportunity to integrate the issue of gender
inequality within the CSR programs followed and for the effective attainment of this
objective the change needs to begin right from the workplace of the concerned
corporation itself. In this relation, it needs to be said that despite having adequate
qualifications as well as experience the women workers in the nation of Thailand had
to face a substantial amount of inequality within the workplace and also within the
framework of the society of the concerned nation as well. Thus, for the improvement
of the condition of women in the nation of Thailand, Thai Beverage need to begin the

8CORPORATE SOCIAL RESPONSIBILITY
process of change right from its workplace which in turn would help it to convince the
other people of the concerned nation to do the same.
 Diversity and Inclusion: An important issue common among the majority of the
workplaces of the nation of Thailand is the problem of inadequate management of
diversity. In this relation, it needs to be said that the population of the nation of
Thailand is highly diverse in nature yet at the same time it is seen that the business
corporations of the concerned nation including Thai Beverage have failed to capitalize
on the benefits offered by the diversified workforce. Thus, it is likely that through the
adequate usage of the process of diversity management the business corporation under
discussion here would not only be able to foster diversity within its workplace and
derive various benefits from the same but would also be able to contribute towards
societal change as well.
 Anti-Discrimination: Discrimination is another important problem that the people of
the nation of Thailand had to face both in the societal framework and also within the
workplaces of the concerned nation as well. Thus, it is likely that the business
corporation Thai Beverage would be able to fulfill its social responsibility as a
business corporation effectively by contributing towards the resolution of this issue.
The corporation thereby needs to create a workplace culture wherein no form of
discrimination would be entertained and would be punished severely.
Conclusion
To conclude, the business corporations not only need to take responsibility for the
damage that they are causing to the planet through their business activities but also take the help
of adequate measures for the improvement of the condition of the planet as well. It is precisely
here that the construct of CSR becomes important from the perspective of the different business
corporation. For example, it had been seen that the majority of the business corporations are
taking the help of different kinds of CSR initiatives for contributing positively towards the
improvement of the condition of the planet. More importantly, it had been seen that the effective
usage of the construct of CSR offers different kinds of benefits to the business corporations
themselves like the improvement of brand image, chance to earn higher profitability and others.

9CORPORATE SOCIAL RESPONSIBILITY
These aspects of CSR become apparent from the above analysis of the same in the particular
context of the business corporation Thai Beverage.

10CORPORATE SOCIAL RESPONSIBILITY
References
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
Dyck, A., Lins, K.V., Roth, L. and Wagner, H.F., 2019. Do institutional investors drive corporate
social responsibility? International evidence. Journal of Financial Economics, 131(3), pp.693-
714.
Flammer, C., 2015. Does corporate social responsibility lead to superior financial performance?
A regression discontinuity approach. Management Science, 61(11), pp.2549-2568.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Hopkins, M., 2016. The planetary bargain: corporate social responsibility comes of age.
Springer.
Ioannou, I. and Serafeim, G., 2015. The impact of corporate social responsibility on investment
recommendations: Analysts' perceptions and shifting institutional logics. Strategic Management
Journal, 36(7), pp.1053-1081.
Jamali, D. and Karam, C., 2018. Corporate social responsibility in developing countries as an
emerging field of study. International Journal of Management Reviews, 20(1), pp.32-61.
Kang, C., Germann, F. and Grewal, R., 2016. Washing away your sins? Corporate social
responsibility, corporate social irresponsibility, and firm performance. Journal of
Marketing, 80(2), pp.59-79.
Liang, H. and Renneboog, L., 2017. On the foundations of corporate social responsibility. The
Journal of Finance, 72(2), pp.853-910.
Lins, K.V., Servaes, H. and Tamayo, A., 2017. Social capital, trust, and firm performance: The
value of corporate social responsibility during the financial crisis. The Journal of Finance, 72(4),
pp.1785-1824.

11CORPORATE SOCIAL RESPONSIBILITY
Loi, L. 2019. 4 Stocks This Week (Beverages) [19 October 2018] Food Empire; F&N; ThaiBev;
Yeo's. [online] DollarsAndSense.sg. Available at: https://dollarsandsense.sg/4-stocks-this-week-
beverages-19-october-2018-food-empire-f-thaibev-yeos/ [Accessed 18 Aug. 2019].
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management,
pp.1-4.
Petrenko, O.V., Aime, F., Ridge, J. and Hill, A., 2016. Corporate social responsibility or CEO
narcissism? CSR motivations and organizational performance. Strategic Management
Journal, 37(2), pp.262-279.
Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of competitive
advantage, reputation, and customer satisfaction. Journal of business research, 68(2), pp.341-
350.
Schrempf-Stirling, J., Palazzo, G. and Phillips, R.A., 2016. Historic corporate social
responsibility. Academy of Management Review, 41(4), pp.700-719.
Thaibev.com 2019. Thai Beverage Public Company Limited. [online] Available at:
http://www.thaibev.com/ [Accessed 18 Aug. 2019].