A world-class product or service is no longer enough to put you on customers’ radar. You need a killer brand image, and customers need to see how you benefit your community.
The focus on environmental and social impact is a response to decades of environmental, employee, and market abuses. Customers are putting the onus of social and environmental change back on large organizations. Although some organizations take their social responsibility seriously, others do not.
That onus is precisely why corporate social responsibility (CSR) is vitally important. In recent decades, the economic growth of Asian countries has driven more business expansion, leading to advancements in CSR progress.
To help support the continued growth of CSR in Asian businesses and businesses operating in Asian countries, we put together this article. Coach Diversity Institute supports the progress of socially-minded projects, especially in diversity, equity, and inclusion (DEI).
The Role of CSR in Modern Business
Despite the challenges faced in many Asian countries, social and ethical responsibility is gaining traction. Businesses in these countries are recognizing the benefits thanks to multi-national Western organizations that bring CSR practices with them.
Some of the benefits of corporate social responsibility that organizations experience include:
- Enhanced brand reputation and image – CSR projects introduce corporate ambassadors into the community, spreading the word about the good deeds you’re doing. Customers and employees want to see the company benefiting the community, especially when it’s the community that patronizes the organization.
- Increased employee satisfaction – Doing good feels good, and when employees work for an organization that invests in doing good, they can take pride in their work. That pride leads to higher productivity, reduced turnover, and an easier time recruiting.
- Decreased costs – Sustainable environmental practices have long-term cost-saving benefits. Whether it’s solar panels, insulation investments, eco-friendly appliances, or motion-sensing switches, the reduced impact on electrical grids means lower utility bills.
- Governance and compliance – Alcoa’s focus on safety made it one of the most profitable companies on the planet. Apple’s move away from natural leather saves countless animals. Not only do self-regulation and compliance matter to officials, but they also directly benefit companies.
Human resource officers and social workers can take these benefits to stakeholders when presenting their business case. Investment in corporate social responsibility is an investment in people, local communities, and, ultimately, future bottom-line profits.
Examples of Effective CSR in Asia
Although widespread recognition lags behind the United States and Western Europe, there are shining examples of CSR strategies that are making noticeable headway across Asia. From Japan and Korea to India and Vietnam, here are a few instances of companies leading the charge:
Japan
Toyota is famous for its reliable vehicles and pioneering hybrid technology. As a socially responsible company, Toyota is once again taking on carbon emissions and green technologies with its establishment of a hydrogen headquarters, which will pioneer another world-changing innovation. As renewable energy, hydrogen promises to act more like traditional petrol, with only water dripping from tailpipes (Toyota).
Korea
Samsung is world-famous for going toe-to-toe with Apple in the smartphone world. A company of this size can and does a lot for the Korean community. Programs like the Underprivileged Youth Support Program and Stepping Stones for Hope give opportunities to individuals who would otherwise go without.
India
Under the leadership of Narendra Modi, India’s economy is experiencing sustainable development, but much work still remains, particularly in education and gender equality. Tata Sustainability Group is stepping in to help with massive investments in education, health services, and clean water. More than 11.5 million people benefit from these programs (Tata, 2019)
Vietnam
Businesses in Vietnam, on the whole, are trending toward a more socially and environmentally conscious mindset, as evidenced in 2023. This study found that large Vietnamese companies with women on the board were more likely to see a positive impact on CSR (Cogent Business & Management). The shift toward greater gender equality in senior positions also translates to higher bottom-line profits, as found at Honda Vietnam.
Overcoming Challenges with CSR in Asia
Philippe Debroux of Soka University in Tokyo, Japan, wrote a compelling research paper about the impact of corporate social responsibility in Asian countries. In this paper, Debroux outlines several challenges that contribute to the lagged rollout of CSR initiatives.
One of the most significant challenges comes from the lack of results, “For most of them, little is observed of the adoption of CSR practices reflecting a significant change in the conceptualization of the concept such that it implies an internalization of specific ways of doing business.” (Debroux)
The argument continues, as Debroux states that wealth accumulation is a key factor in CSR activities. For example, in the United States and Western Europe, companies with profit surpluses can return those profits to projects without the expectation of compensation or return on investment.
In most Asian countries, however, the per-capita income is less than $600 per month (International Monetary Fund). That means most companies aren’t generating enough profit to pay their employees decent wages, let alone contribute to non-profit generating activities.
Likewise, cultural differences in individual identity led to the recognition of socially responsible activities in Anglo-European and North American companies in the 1990s. In Asian societies, these cultural differences are still largely absent in many organizations, and where they are present, they show blatant signs of inequities.
For instance, in Japan, companies recognize that CSR practices benefit the organization through improved employee well-being, lower absenteeism rates, and higher retention. Therefore, companies provide long-term job guarantees and good treatment of workers—but only for male employees (Debroux).
The cultural significance placed on male employees means female workers still face traditional challenges, like lack of job opportunities, lower pay, and senior role gatekeepers. And Japan isn’t the only society where this phenomenon is the case.
To combat these issues, Western multinational corporations shift internal mindsets about Asian partners from natural resource-minded to social and environmental impact-minded. Partnerships with local non-governmental organizations (NGOs) to roll out initiatives help to unify CSR goals and core business model objectives.
Integrating CSR with Corporate Strategy
As highlighted in Debroux’s paper, maximizing the impact of CSR programs means influencing Asian counterparts and integrating initiatives with business strategy. You can boil the process down to a handful of helpful steps:
- Obtain business leader buy-in – Sustainable practices start at the top, and changes to high-level projects often require senior approval. Creating a business case for CSR projects and getting your leadership team excited is half the battle.
- Define your CSR initiatives – Some corporations have the profits to set up community grants. Others can only afford to swap your supply chain to provide more fair-trade materials. Define the scope of your CSR efforts and target the most feasible projects.
- Set clear goals – To measure the effectiveness and impact of your initiatives, you need to set measurable parameters. These parameters could include things like carbon footprint, donation sizes, or days spent volunteering.
- Invest in training and education – Multi-cultural awareness programs and unconscious bias courses are a must for businesses operating in Asia. The knowledge gained about cultural differences will enable your teams to better support CSR initiatives.
- Integrate programs into business practices – Now’s the time to set your plan into motion. Roll out changes to volunteer programs, partner with new vendors, and engage with the community about these changes.
- Track and adapt – Keep tabs on your metrics and celebrate hitting your milestones. Don’t forget, however, to adjust and pivot if things aren’t working out as planned. Corporate social responsibility is an ongoing effort.
Stakeholders and senior leadership will be some of the first people you want to communicate with. Not only will the initial buy-in be vital to getting projects off the ground, but continued support will be necessary, especially as the ability to give more back presents itself.
Measuring and Reporting CSR Impact
Several steps in launching CSR projects rely on setting goals and measuring the results. Business operations depend on the ability to track, represent, and understand data, and as CSR is an integrated part of your operations, it stands to reason there are KPIs associated with their implementation.
Tracking social causes requires a blend of qualitative and quantitative measurements, and finding the right balance is key to unlocking the truth behind the data. For example, one metric we recommend tracking is stakeholder and employee engagement.
To track this metric, you’ll want to use anonymous qualitative surveys to gauge staff perceptions of project impact. Naturally, you can codify those responses to generate numerical data points to analyze sentiment further.
On the other hand, you can track quantitative measurements, such as greenhouse gas emissions. Your utility department can issue usage statements, allowing you to make energy-efficient adjustments. Once optimized, you can view a graph of your energy usage over time, showing you a qualitative measurement of your progress.
Other popular metrics include diversity of headcount, net promoter scores (NPS), customer satisfaction, wage distributions, community outreach days, and even retention rates. These changes won’t happen overnight, but over extended periods, you’ll start to notice trends, allowing you to diagnose and make changes.
Lead with Purpose: Enhance Your CSR with Coach Diversity Institute
Corporate social responsibility has the power to transform your organization’s relationship with the community around it. Companies are taking social, economic, and environmental responsibility for human rights, recognizing their importance to the company’s values and competitive advantage. Ethical behavior is more than greenwashing, hosting fundraisers, and throwing money at the problem. It’s practicing stewardship for social issues, climate change, and economic responsibilities.
While much work remains, you can continue to be a bastion of CSR in your workplace by establishing your own initiatives. It also helps if you have a partner invested in changing the lives of those you work with and serve.
Ready to educate your teams on the importance of corporate social responsibility? Reach out to Coach Diversity Institute to get started today. Our experts can help you ensure every team member has the education they need to support your CSR causes!