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An annual publication of the University of San Francisco Center for the Pacific Rim Volume V · Number 2 August · 2005 Copyright 2005 Special Issue: REDEMOCRATIZING SOUTH EAST ASIA THROUGH CITIZEN, CORPORATION, AND GOVERNMENT ALLIANCES Editors Joaquin Gonzalez John Nelson Is There Room for More Social Responsibility in Asia’s Business and Economic Graduate Student Turn Around? Editor >>..................................................Joaquin L. Gonzalez III 1 Pamela Nagashima Government and Citizen Engagement at the Local Level in Thailand: Nan Editorial Consultants Municipality’s ”Roundtables” and ”Expert Panels” Barbara K. Bundy >>.............................................................Alex M. Mutebi 16 Hartmut Fischer Patrick L. Hatcher Richard J. Kozicki The Penang, Malaysia Experiment in People, Private, and Public Partnerships: Stephen Uhalley, Jr. Xiaoxin Wu Process, Progress, and Procedures >>................................................................Tan Pek Leng 29 Editorial Board Yoko Arisaka Bih-hsya Hsieh Citizens, Government, Business and the Transformation of a Ravaged Philippine Uldis Kruze City: The Case of San Fernando, Pampanga Man-lui Lau Mark Mir >>...............................................................Edel C. Guiza 44 Noriko Nagata Stephen Roddy Initiating Participatory Democracy in Indonesia: The Case of Surakarta Kyoko Suda Bruce Wydick Municipality >>.......................................................................Pratikno 59 Asia Pacific: Perspectives is a peer-reviewed journal published at least once a year, usually in April/May. It Asia Pacific: Perspectives welcomes submissions from all fields of the social sciences and the humanities with relevance to the Asia Pacific Center for the Pacific Rim region.* In keeping with the Jesuit traditions of the University of San Francisco, Asia Pacific: Perspectives 2130 Fulton St, LM202 San Francisco, CA commits itself to the highest standards of learning and scholarship. 94117-1080 Our task is to inform public opinion by a broad hospitality to divergent views and ideas that promote cross- Tel: (415) 422-6357 cultural understanding, tolerance, and the dissemination of knowledge unreservedly. Papers adopting a Fax: (415) 422-5933 comparative, interdisciplinary approach will be especially welcome. Graduate students are strongly [email protected] encouraged to submit their work for consideration. * ‘Asia Pacific region’ as used here includes East Asia, Southeast Asia, South Asia, Oceania, and the Russian Far East. Downloaded from http://www.pacificrim.usfca.edu/research/perspectives USF Center for the Pacific Rim Asia Pacific: Perspectives · August 2005 1998; Richter, 2001; Li and Batten, 2001; Asia Africa Intelli- gence Wire, 2003, among others). Four major Asian CSR conferences in 2003 also attest to this. Is There Room for More The infusion of CSR interventions into the business and Social Responsibility in economic bloodstreams of Asia has shown a certain degree of pervasiveness especially in the current era of intense global- Asia’s Business and ization, from the boardroom to the supply chain, from corporate headquarters to regional subsidiaries, from busi- Economic Turn Around? ness models to operations applications, from assembly line workers to frontline clients, from the rights of humans to the by Joaquin L. Gonzalez III, Ph.D. rights of the environment. As a result, CSR is becoming a popular reinventing and reengineering tool of the 21st Abstract century particularly in business circles. Not surprisingly, as This article provides an overview of Corporate Social Responsibility CSR potions took effect and Asian economic recovery came (CSR) and its impact on social development with a special emphasis on into sight, a plethora of research and conferences have Asia. One underlying argument that it makes is that, although many of emerged sharing ”best practices” culled from successful the CSR interventions being applied globally are relatively ”new” to Asia, CSR, when operationally defined as “corporation-community collabora- experiences. In contemporary Asia, CSR is not only being tion (CCC) towards social development,” becomes a vintage concept touted as a cure-all but also a potent concoction that could familiar to generations of Asian entrepreneurs and the communities they help sustain reforms and prevent future outbreaks of organi- serve. However, in spite of its long history, Asian corporation-community zational infections and managerial dysfunction. A paradigm collaboration in social reform is an under-studied area of policy research shift in terms of revitalized business practices is being felt in and attention even in recent CSR conferences and publications in Asia. the Asian neighborhood. From Bangladesh in South Asia to China in East Asia, currently, heavier emphases by scholars and practitioners is being accorded to global and This article provides an overview of CSR and its impact regional-level CSR issues such as human rights, environmental and on social development with a special emphasis on Asia. One health concerns, worker welfare, corruption, and social safety nets as well underlying argument that it makes is that, although many of as firm-level CSR issues such as board governance, ethical fund manage- the CSR interventions being applied globally are relatively ment, shareholder accountability, corporate restructuring, and corporate ”new” to Asia, CSR, when operationally defined as “corpora- citizenship. The article attempts to move beyond the over-exposed CSR motivations into an examination of new trends within relatively old tion-community collaboration (CCC) towards social develop- frontiers. It also tries to create a social dimension to the already overflow- ment,” becomes a vintage concept familiar to generations of ing financial and economic stories about CSR. The article also discusses Asian entrepreneurs and the communities they serve (see the role of governments in CCCs. Carroll 1977; Aquino, 1981; Dhiravegin, 1985; Cox et al., 1987; Harivash, 1990). However, in spite of its long history, Asian corporation-community collaboration in social reform is an I. Introduction: CSR and Asia under-studied area of policy research and attention even in In East Asia, Confucius said, "If one's actions are motivated recent CSR conferences and publications in Asia (see empha- only by profit, one will have many enemies." sis in Kawamoto, 1977; Takeuchi, 1978; Singh et al., 1980; Krishnaswamy, 1986; Mahmud, 1988). From Bangladesh in In North America, Chase National Bank CEO George Cham- South Asia to China in East Asia, currently, heavier emphases pion pointed out that: “Business must learn to look upon its social responsibilities as inseparable from its economic by scholars and practitioners is being accorded to global and function.” regional-level CSR issues such as human rights, environmen- tal and health concerns, worker welfare, corruption, and Thousands of years apart, these parallel thoughts social safety nets as well as firm-level CSR issues such as emerged from two continents, across from each other in the board governance, ethical fund management, shareholder Pacific region. accountability, corporate restructuring, and corporate citizen- Interestingly, Corporate Social Responsibility (CSR) is one ship (see Chowdhury and Kabir, 2000; Gescher, 2002; Hol- of the panaceas prescribed by an emerging ”school” of land, 2002). academic institutions and international consultants who seek Moreover, CSR is not the only development concept that to propel firms and economies out of the current world is evolving in theory and practice. The content and context of business slump. Broadly, CSR is seen as the antidote to social development itself, including its policies and processes, market lethargy and corporate decay. Moreover, this school are also experiencing marked changes. Asia is a mix of sees CSR as the shock therapy needed to resuscitate the countries experiencing varying degrees of westernization, private sector and revive it as an engine of growth and democratization, modernization, and globalization. These progress, especially in transitional economies. In East Asia, processes have made Asia a region of contrasts and, at times, the miracle-turned-crisis situation provided the perfect extremes. On the one hand, there are Asian sub-regions where operating setting for these ”doctors of management,” most of some of the nouveau rich countries of the world reside, whom came from the West, to perform surgical CSR proce- particularly in the northeast. On the other hand, there are dures and prescribe corrective CSR dosages for both domestic Asian sub-regions where some of the poorest countries in the and multinational firms (see Reder, 1994; Economist Intelli- world are located, for instance in the south. Another underly- gence Unit, 1997; Dunong, 1998; Emerson, 1998; Wu and Chu, http://www.pacificrim.usfca.edu/research/perspectives Corporate Social Responsibility in Asia / Gonzalez · 1 USF Center for the Pacific Rim Asia Pacific: Perspectives · August 2005 ing argument of this paper is that in both rich and poor II. Contextual Trends: Asian Business, Social neighborhoods, one could find local Asian firms from SMEs Development, and Modes of CSR to family-owned conglomerates, which have grown and It is difficult to examine current CSR practices in Asia expanded over the years of their operation with simultaneous without situating country experiences in the dynamic context heavy involvement in community projects like creating