Responsible Business Practices In South East Asian Countries

Business ethics describe right actions and keeping the decorum of business environment in transactions with customers or any other stakeholders, in order to keep the values of the business. Social responsibility is one-step more than the business ethics, it clear the role of business activities for the members of society in safeguarding, maintaining and promoting society and natural environment.

Corporate social responsibility

The University of Edinburgh (2018) explained that corporate social responsibility (CSR) involves working with various factors such as partnership with local communities, investment in societies, building better relationship with employees and customers and protecting the natural environment as operational activities significantly influence employees, customers, societies and stakeholders, while keeping the main objective of earning profit. White (2006) argued that CSR is necessary in achieving commercial success as it honor ethical values and respect people, communities, and the natural environment. Lantos (2001) pointed out that strategic CSR accomplish business goals because good deeds considered as best for business ethics practices as well as for society to progress.

Implications and watchdogs

In this modern era, CSR become important for employer to show their business activities to employees, customers and other stakeholders in order to make compliance with standards as it help to build competitive edge, protect and promote brand along with building trust in the market. Stock exchange commission, chamber of commerce, business associations and civil societies are important external stakeholders, which observed business activities and their impact on their related societies and environment very carefully.

Common Business ethics

Multinational businesses (MNC) in East Asian countries are following the guidance of stock exchange and external stakeholders related to CSR along with earning profit. Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam are the East Asian countries who has almost complete the legislation for CSR and working for its implications. Cambodian companies with the help of village communities is planting trees, providing water facilities and giving health and education facilities to poor families. Indonesian companies are working in the field of Philanthropy; some companies’ denote ambulances, and open orphanage house; however, they are also following the CSR framework of Malaysia and Singapore to increase their CSR activities.

Malaysian companies are working with local communities and different development authorities to clean sea and promote awareness to keep clean sea through different programs. In Singapore, companies with mutual understanding of urban development authorities, social enterprises and associations opened marina bay harbor for their public. Vietnam chamber of commerce overlooking companies activities to ensure CSR and in the result, foreign companies are working for children welfare. It is observe that Singapore is strictly following the CSR laws while the Philippines, Laos, Cambodia and Vietnam working for compliance with standards and there is need to increase the power of regulators. On the other side, Indonesia make CSR necessary but its implication along with objectives are still not clear.

It is evident that common themes of all East Asian countries is to promote healthy societies and have almost completed their CSR legislation for the purpose of compliant with international standards to gain competitive edge but implications remain less. It can also observe that internal and external stakeholders such as government, trade bodies and associations, employees, customers, suppliers, local communities, religious organizations actively taking part in promoting CSR activities for protecting their natural environment of societies.

Why differences in responsible business practices occur? There are different concerns, which create differences in responsible business practices. Some East Asian countries look at CSR as religious activities or to promote western activities and this the base, which affected the CSR legislation process incomplete and keep it non-applied in their related State. Even some companies considered CSR as a tool of state to create tension and corruption. While more than 90 percent, companies in East Asian countries are small and medium enterprise and they do not have financial capacity or desire to take part in social activities.

The main factors, which create differences for implementing CSR legislations in all East Asian countries, are the change in institutional parameters, political, labor, corporate and social structures, which create differences in CSR themes. All these factors affected negatively to the legislation implications process collectively. According to Anon., (2011) it is observe that some countries mostly depend on export and foreign investments.

Therefore, their respective government does not want to put any pressure on these foreign industries. On the second side, if CSR providing benefits but it also affect negatively to the country. No doubt, that all East Asian countries are facing the social, environmental and governance issues. Mostly companies’ use CSR as a tool to write-off their taxes, to hide their illegal activities, corruption, and to avoid accountability. Thirdly, peoples do not have knowledge about the actual meaning of CSR theme and do not provide long-term values to their communities.

Discussion

There are positive as well as negative side effects of CSR but observation showed that CSR is necessary to eliminate poverty, unemployment and provide basic needs. McPherson (2018) who argue that CSR is necessary for

1. to end harassment and inequality at workplace,
2. to promote diverse environment,
3. to enhance brand activism,
4. to make recover from disaster effects,
5. to build standards for suppliers, and
6. to prioritize privacy and data protection.

It also found that stakeholders such as state agencies, business chambers and associations along with civil societies could change culture using their updated knowledge. Religious institute can also his play vital role in responsible business doings. The combination of business sector and academia industry can help to understand and promote the actual theme and meaning of CSR.

Conclusion

To sum up, it is clear that the common theme of all East Asian countries are to promote responsible business ethics in order to protect their societies however due to change in political, labor, corporate and social structures difference arises in these ethical practices while different external and internal stakeholders can play vital role in implication of CSR. We suggest that tripartite CSR initiatives should be take, which involve state, companies, and civil societies as it increase country and industry competitiveness through responsible business ethics.