Corporate Social Responsibility Practices in Asia: An Analysis

This report provides an overview of Corporate Social Responsibility (CSR) in Asia, examining its importance in business organizations. It investigates CSR reporting across different Asian countries, highlighting the development of unique CSR approaches compared to other continents. The report explores various CSR models, such as the triple bottom line and Carroll pyramid, and how they are implemented to achieve organizational goals and contribute to societal development. It discusses the influence of political, social, and ethical factors on CSR practices, including considerations for environmental sustainability, ethical dilemmas, and corporate governance. The report also reviews the challenges Asian businesses face, such as environmental degradation, ethical issues, and the importance of stakeholder trust, while emphasizing the need for transparency and ethical conduct. Through the analysis of different perspectives, the report underscores the significance of CSR in fostering long-term profitability, positive stakeholder relations, and overall societal advancement.

Corporate Social
Responsibility in Asia

Table of Contents
ABSTRACT.....................................................................................................................................1
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

ABSTRACT
This present document shadows the Corporate Social Responsibility (CSR) and its
importance on business organization. The main aim of this report is to investigate the CSR
reporting in Asia by analysing the different business organization who are working I different
countries. Further, this report also shows that the Asian countries has developed their own CSR
which is different from other continents. This present document will also showcase that CSR is
contributing its best in the development of society and nation with the help of different CSR
models. These models are effectively used in enterprise and with the help of it organizations are
able to achieve their stated goals and objectives.
INTRODUCTION
Corporate Social Responsibility (CSR) can be defined as a form of corporate self
regulation which is incorporated into different business models. It is a self regulatory mechanism
where business enterprise monitors their compliance activities by strictly following the laws,
ethical standards and different national as well as international norms. The main aim and
objective of this CSR is to increase their long term profits by developing positive relations with
customers, advanced ethical standards to reduce different business and legal risks; and by having
shareholders trust by taking responsibility for different corporate actions (Cadbury, 2006). This
present report has been prepared in order to study the CSR in Asia. These CSR strategies support
ventures in order to make positive impact on environment as well as stakeholders which involves
consumers, employees, investors and various others.
LITERATURE REVIEW
According to the Bakar, Sheikh and Ameer, (2011), corporate social responsibility is an
initiative taken by the organisation itself to towards its effect's on environment and society. It is
the process of integrating self regulation in its business model for the benefit of society in the
form of self regulation. Adopting this business organisation complies with the spirit of law and
ethical considerations of the operations. In his opinion, through practising corporate social
responsibilities activities, organisations caters to achieve long term profits with the different
stakeholders associated with it such as customers, public, shareholders, government, financier
and suppliers. On the contrary, Ellerup Nielsen and Thomsen, (2009) stated that the concept of
corporate social responsibility is used by the organisation for earning profits with no
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consideration towards benefiting society and environment. They adopt this to create a fake image
among public and utilize the benefits granted in this regard.
There are many theories and models prepared to explain the corporate social
responsibility concept and its use in Business organisation. In the context of Asia, it is seen that
though there are not much developed countries in the continent, but it plays vital role and has
significant share in the CSR activities in the world. According to Blombäck and Scandelius,
(2013), from his study has inferred that there are different patterns follow in practising CSR
activities. Such as China has more focus on upliftment of education and health of the society and
community. In that respect business organisations conduct programs and sessions in this respect.
Whereas, India emphasizes on the community agriculture and development and training and
skills development programs in different sectors are initiated (Colleoni, 2013.). While the
countries of Asia such as Malaysia, Philippines, Thailand and Singapore having rich natural
resources work towards preservation and conservation of environment. Hence, business
organisation in these countries has inclination towards this area.
According to Colleoni, (2013), there is the model which clearly states the motive of the
organisation for which it is practising corporate social responsibility activities that is triple
bottom line model. In this model activities are segregated in three parts that is towards people,
profit and planet. According to this model, an organisation who has inclination towards fulfilling
its responsibility towards people take initiative to bring benefits to the societies through its
activities. Such as Asian companies adopts strict policies with respect to the ethics, morals,
bribery and corruption. In this way it fulfils its responsibility towards the employees working in
their organisation. Further, it also adopts the process of conducting programs and sessions for the
upliftment of education and health condition of people and society in their suburbs. In contrast,
with it, Jackson, (2010) stated that organisations motive is to earn profitability. Hence, it adopts
measures to provide the higher rate on investments to the shareholders. For the purpose, it
convinces the financiers and banks about its objectives to attract investments and earn profits.
According to Heal, (2005), there are some objectives that seeks the fulfilment of
responsibilities towards environment. The countries such as Thailand and Malaysia has
inclination towards it. In that respect different measures have been adopted by the business
organisations operating in that region such as for increasing awareness about the preservation,
taking initiatives for the cleaning of environment, more plantation and others.
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Hill and et.al., (2007) has explained the use of corporate social responsibility in Asia with
the use of Carroll pyramid. In this model along with the above three aspects, two additional
dimensions are explained that are ethical responsibility and philanthropic responsibilities. In his
opinion, in countries such as India and Thailand more focus has been laid by the organisations
operating in it with respect to abiding ethical responsibility. In that respect, they are recognized
for following the certain code of conduct in the organisation that is laid for the employees in
which a set of principles and values are described on the basis of which organisation works.
India, has more considerations towards fulfilling this through abiding with human rights,
corporate governance, providing rights to employees, consumer protection, whistle blower's
rights and other related (Münstermann, 2007). Along with it, India abides with the philanthropic
responsibilities as there are number of organisations such as Wipro, Vedanta, Reliance who are
among the companies with the highest donations.
In contrast, with the above research made, Taubken and Leibold, (2010) has stated that
organisations operating in Asia does not comply with the ethical responsibilities. For instance in
his study he has mentioned that as per the global fraud survey, it is found that organisation in
Asia lacks transparency and adopts illegal methods in their working. In that respect it is seen
than in global corruption perception index the countries of Asia has lower ranking. The have the
existence of high amount of absolute level of corruption in their organisation.
According to Ligeti and Oravecz, (2009), there are many factors that affects the corporate
social responsibilities activities practised by the organisation. Few factors such as political and
social factors contribute significantly in deciding the pattern followed by the organisations
operating in the different countries. Political factors includes the laws and regulations made by
the government and other organisation which are supposed to be complied by the organisation.
Such as with respect to the employees' working, customer-employee relationship, rights,
reservation and other related. Existence of these laws and regulations creates the inclnation of
fulfilling corporate responsibilities by the organisation. On the other hand, social factors refers to
the choices and preferences of people hold for their operations and activities. It creates the
framework to be followed by countries and organisation. For instance, countries like china has
more orientation towards making investments for the benefit of society such as on community
education and health betterment.
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According to Ziek (2009), there has been differences in the CSR activities followed by
the countries in different manner. From the study it has been inferred that the country chin has
been indulged in the development and growth. With its focus on the growth and proper allocation
of the resources of the countries caters to comply with the environmental responsibility and focus
on the development and utilization of nature at African region. For instance it has been critically
said by Hill and et.al., (2007) that there are many instances seen where the fulfilment of
responsibility by china has globe against the continent Africa as it leads of the destruction and
evolution of corruption in that area.
According to Pohl and Tolhurst, (2010), in there study has made the comment that there
are organisation
Contemporary issues in which the organisation conducts its business operations lays a
direct and significant impact on the overall performance and productivity of the company in the
hyper competitive global environment. From the view point of Vanhamme and Grobben, (2009),
the major ethical issues which the organisations have to face if it operates its business operations
in Asia includes the environmental degradation, carbon-di oxide emission, hazardous utilization
of natural and extinct resources, disposal of wastage, emission of dangerous gases and the related
challenges. All such challenges forces the company to liquidate its business and attain sudden
downturn in its overall performance.
In today's era of globalisation and technologies, every organisation is running on the path
of maintaining winning edge in the tough trading business environment. For this it makes use of
heavy plant and machinery which generates high CO2 emission. This results in degrading the
environment thereby resulting in ozone layer depletion which indicates the overall depletion of
environment in the worst manner. The recent study on contemporary issues reveals that British
Gas was not at all in the path of maintaining sustainable business activities. This failure resulted
in oil leakage in the Pacific Ocean which exploited the entire marine life in a disastrous way.
Furthermore, it created a significant loss in the profitability and performance of the said
company in the hyper competitive environment.
Complex business practices and growth within the economy has created a wide and
deliberate impact on business practices in the economy. Issues related ethics and social
responsibility as developed a significant impact on the business growth issues. Companies in the
present era has developed unique and well defined measures to analyse the ethical practices in
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the business however the effect of the same has been analysed on trust and loyalty of
stakeholder. Organizations adopt ethical practices in the companies for enhancing brand image in
the market. It also helps companies in building trust and loyalty with its stakeholder. A business
enterprise is expected to manage Transparency of data for enhancing growth of business unit in
this competitive market. Corporate governance one of the common business practice that
companies adopt in order to develop an effective and well developed impact on ethical business
practice. According to Bakar, Sheikh and Ameer, (2011) corporate governance helps a business
unit in creating a well defined impact on rightful business practices and ethical integrity. This
practice focuses on developing a well defined structure to control and regulate business practice
and attain organizational needs and requirements. It has helped the companies in attaining well
defined means of business objectives for enhancing successful measures of ethical practices.
This practice has helped the economies in managing the internal and external business efficiency
for enhancing business growth measures in the market. Moreover, enhancing control and
development measures for business growth has helped companies in attaining high and effective
business objectives in the market.
Moral and ethical dilemma is one of the major and crucial concerns for the business units.
It has helped the companies in confusing between making right and wrong business decisions.
Moral dilemma for the business is to choose between personal benefit and rightful business
practices. This often proves to be high opportunity cost forth businesses. These situations can be
explained as choosing between downsizing or training. Issues regarding employee pressure and
organizational success is another dilemma which companies are continuously facing in the
present era. Every company should have an ethical policy that spells out its penalties for
infractions. Moreover, management must lead by example, showing that the company takes
ethics seriously and that violators will be punished according to the organization's policies,
including possible suspension or termination.
According to the Colleoni (2013), every organisation should lay its significant concern
over the political, legal and environmental factors in which it operates its business performance.
Also, it should take into consideration the major contemporary and ethical issues that seeks to
create vital impact on the profitability of the business organisation. Further, it has been inferred
that differences in the activities encounter varied results in it.
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CONCLUSION
The above study is prepared to elucidate the different components associated with the
corporate social responsibilities. Corporate social responsibility is an initiative taken by the
organisation to comply with different responsibilities such as towards the society, environment,
global citizens, to the organisation itself and many shareholders. Corporate social responsibility
has been the topic of debate for many people as it has the varied views on this. From the point of
view of the definition it is said that there are different opinions associated with it. Such as some
have given the narrow definition in this and other has explained it in the broader perspective
including the different components in it. Further, it has been stated that there are the differences
exist in the adoption of the concept of the CSR activities among the countries of Asia. For
instance in the countries such as china has the orientation towards the upliftment of the education
and health condition in the country and hence different steps have been taken in this respect.
Further, it has been found the countries such as India has he inclination towards the fulfilment of
the ethical considerations and the proceedings. In order to comply with their are different
measures have been adopted such as when it states that it is abiding the ethical norms contrast
opinions have been given sich as it lists as the country with the highest amount of corruption.
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REFERENCES
Books and Journals
Bakar, A., Sheikh, A. and Ameer, R., 2011. Readability of corporate social responsibility
communication in Malaysia. Corporate Social Responsibility and Environmental
Management. 18(1). pp. 50-60.
Blombäck, A. and Scandelius, C., 2013. Corporate heritage in CSR communication: a means to
responsible brand image?. Corporate Communications: An International Journal. 18(3).
pp. 362-382.
Cadbury, A., 2006. Corporate social responsibility. Twenty-First Century Society. 1(1). pp. 5-
21.
Colleoni, E., 2013. CSR communication strategies for organizational legitimacy in social media.
Corporate Communications: an international journal. 18(2). pp. 228-248.
Ellerup Nielsen, A. and Thomsen, C., 2009. CSR communication in small and medium-sized
enterprises: A study of the attitudes and beliefs of middle managers. Corporate
Communications: An International Journal. 14(2). pp. 176-189.
Heal, G., 2005. Corporate social responsibility: An economic and financial framework. The
Geneva papers on risk and insurance-Issues and practice. 30(3). pp. 387-409.
Hill, R. P. and et.al., 2007. Corporate social responsibility and socially responsible investing: A
global perspective. Journal of Business Ethics. 70(2). pp. 165-174.
Jackson, S., 2010. Research Methods: A Modular Approach. USA: Cengage Learning.
Ligeti, G. and Oravecz, Á., 2009. CSR communication of corporate enterprises in Hungary.
Journal of Business Ethics. 84(2). pp. 137-149.
Münstermann, M., 2007. Corporate social responsibility (Vol. 48). Springer-Verlag.
Pohl, M. and Tolhurst, N., 2010. Responsible business: how to manage a CSR strategy
successfully. John Wiley & Sons.
Taubken, N. and Leibold, I., 2010. Ten rules for successful CSR communication.Responsible
Business: How to Manage a CSR Strategy Successfully. pp. 129.
Vanhamme, J. and Grobben, B., 2009. “Too good to be true!”. The effectiveness of CSR history
in countering negative publicity. Journal of Business Ethics. 85(2). pp. 273-283.
Ziek, P., 2009. Making sense of CSR communication. Corporate Social Responsibility and
Environmental Management. 16(3). pp. 137-145.
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