opinions of thai exporters on iso 26000 : social ... · on social responsibility, opinions towards...

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1 Opinions of Thai Exporters on ISO 26000: Social Responsibility Udom Sayapunt Lecturer, Department of Marketing Faculty of Business Administration Rajamangala University of Technology Thanyaburi, Thailand Apisit Tungkiatsilp Lecturer, Department of Business Economics Faculty of Business Administration Rajamangala University of Technology Thanyaburi, Thailand Abstract Purpose The purpose of this research is to study the carrying out of activities on Social Responsibility, opinions towards ISO 26000: Social Responsibility, trend on the adoption of ISO 26000 for corporate use and opinions of Thai exporters on the preparations of Report on Social Responsibility. Design/methodology/approach Reviews of literatures in connection with the Corporate Social Responsibility (CSR) and ISO 26000: Social Responsibility are conducted and the consequences adopted for use in the creations of questionnaire as instrument in gathering data from Thai exporters on the Department of Export Promotion Lists and, in this connection, questionnaires from 311 Thai exporters are perfectly completed and, subsequently, adopted for use in the analysis.

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Page 1: Opinions of Thai Exporters on ISO 26000 : Social ... · on Social Responsibility, opinions towards ISO 26000: Social Responsibility, trend on the adoption of ISO 26000 for corporate

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Opinions of Thai Exporters on ISO 26000: Social Responsibility

Udom Sayapunt Lecturer, Department of Marketing Faculty of Business Administration

Rajamangala University of Technology Thanyaburi, Thailand

Apisit Tungkiatsilp Lecturer, Department of Business Economics

Faculty of Business Administration Rajamangala University of Technology Thanyaburi, Thailand

Abstract Purpose – The purpose of this research is to study the carrying out of activities on Social Responsibility, opinions towards ISO 26000: Social Responsibility, trend on the adoption of ISO 26000 for corporate use and opinions of Thai exporters on the preparations of Report on Social Responsibility.

Design/methodology/approach – Reviews of literatures in connection with the Corporate Social Responsibility (CSR) and ISO 26000: Social Responsibility are conducted and the consequences adopted for use in the creations of questionnaire as instrument in gathering data from Thai exporters on the Department of Export Promotion Lists and, in this connection, questionnaires from 311 Thai exporters are perfectly completed and, subsequently, adopted for use in the analysis.

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Findings – Most of the Thai exporters have apparently stipulated the policies and carried out social responsibility activities quite well. Notwithstanding the foregoing, the activity least carried out is the policy to employ handicapped persons to work with the companies. However, it is found that the Thai exporters extremely agree with ISO 26000: Social Responsibility to the extent that such international standard would build up the confidence, satisfaction and reliability of the corporate in the eyes of the customers, and trust to the shareholders, business partners, and investors. In addition, there is a trend that the Thai exporters will adopt ISO 26000 for use with the corporate and also are of the view that the report on the corporate social responsibility should be prepared for disseminations to the general public.

Originality/value – The value of this research is the obtaining of data relating to the carrying out of the activities and stipulation of the policies on the aspect of social responsibility of the corporate in Thailand which will lead to the social responsibility development in order to conform with ISO 26000: Social Responsibility.

Keywords Corporate Social Responsibility (CSR), ISO 26000: Social Responsibility, Thailand

Paper type Research paper 1. Introduction Business development on the fundamental of social responsibility has been a significant business administration concept for over 20 years whereby most of the corporate have stipulated the policy on the aspect of social responsibility or SR. Social responsibility is one of the duties of a firm to compellingly

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provide supports to the society for the betterment of the livelihoods in the long run, which is to say, that the company has taken into account not only the maximum profit or the foreseeing on the advantage of the corporate as the main goal but also the overall social responsibility. The more the corporate has shown its social responsibility the better would help built the goodwill and good corporate image including the helping on the creation of the positioning in customers’ minds as well as the competitive advantage (Ghauri & Cateora 2005, p. 469). Social responsibility is yet another important work as the corporate has begun to acknowledge that the social responsibility is a part of the business operations. Corporate Social Responsibility (CSR) will become involved with the stakeholders and that things which the corporate will have to be responsible to those persons group consist of a number of the matters whereby the activity on the corporate social responsibility is the expense of the cost which the company has invested for the stakeholders both within the corporate; such as, the staffs, shareholders, investors, etc., and the stakeholders outside the corporate; such as, the people, community, business ally, competitor, etc., (Fox 2002, p. 29) including the creation of the overall good social livelihoods, as well. CSR builds the great value to the stakeholders in all social groups no matter what it will be the building of the confidence in the consumers or customers, production and the bringing of good services into the society, looking after the staffs for better livelihoods, preserving the advantage for the shareholders, stipulating trade policy not to take the advantage out of the competitor and other activities connected with all groups of stakeholders. Every corporate, therefore, should pay attention on the social responsibility which will lead to the win-win situation (Kurschner 1996, p. 20), which is to say, that it will be both to the social advantage and to

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the business itself; such as, a reduction in the quantity of the waste as an assistance on the environmental conservation, a reduction in the raw materials and the productions of goods or services by taking the consumers into the account which will turn them to become good customers or to have loyalty toward the corporate, etc. The concept on corporate social responsibility is not at all a new concept; it is the concept having been in existence for several decades. The wording ”Corporate Social Responsibility or CSR” has become international spoken words making various organizations beginning to increasingly acknowledge the aspect of social responsibility and that it is one of the business strategies which those organizations have adopted for use in order to gain advantage over the competitors in business competitiveness. The growth of the concept on CSR have begun to spread to business organizations worldwide to the extent that the government of the respective country and international government agencies have begun to render supports on the stipulations of policy on the aspect of social responsibility. There are creations on the networks or organizations giving knowledge and understanding on the aspect relating to the international concept on social responsibility (International Center for Corporate Social Responsibility n.d.), therefore, various companies have begun to increasingly acknowledge CSR in order to assist the society in the overall picture to further their developments in a properly good way. According to Corporate Social Responsibility Institute (2008, p. 3), corporate social responsibility widely known at the present time and having the same principle as that of the sufficiency economy had been originated from the Earth Summit in 1992 where a new direction on the development was

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declared that on the ”Sustainable Development”, the environmental and social matter; such as, the problem of global warming, natural disaster, etc., should be taken into account in addition to the economic advantage as a sole purpose. In 1999, CSR train of concept began to manifest a clearer development when Mr. Kofi Annan, the United Nations Secretary-General, had called for business enterprises throughout the globe to show themselves as good global citizenships including the declaration of “The UN Global Compact” for further use as a frame of sustainable developments for business corporate and in the succeeding year, Organization for Economic and Cooperation Development (OECD) issued the OECD Guidelines for Multinational Enterprises recommending such multinational enterprises of OECD member countries to adopt CSR and establish trade contacts only with trading partners having CSR. The principle of corporate social responsibility can be shortly and concisely concluded by the saying of Björn Stigson, Chairman of World Business Council for Sustainable Development (WBCSD) that “Business cannot succeed in a society that fails”. Presently, there has been a draft on international standard on the aspect of social responsibility proposed by International Organization for Standardization (ISO), stipulating the international standard governing ISO 26000: Social Responsibility by giving the definition of social responsibility as the responsibility toward the decision and act in the activity of such corporate having with the society and environment with transparency and ethics. The substance covers 7 main points which are Human Rights, Organizational Governance, Fair Operating Practices, Labor Practices, Environment, Consumer Issues and Community Involvement and Development. The draft of ISO 26000 has begun since 2005 and will be put to use in 2010 (Thai Industrial Standards Institute n.d.). Therefore, the researcher is interested in

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studying the opinions toward ISO 26000, conducting the surveys on the carrying out of activities or stipulations of policies on social responsibility as well as studying the trend on the needs to adopt the ISO governing social responsibility for use with the corporate and the opinions of Thai exporters toward the preparations of the report on social responsibility.

2. Literature Review Social responsibility is one of business strategies adopted for use by various corporate in business competitiveness. The growth of the concept on corporate social responsibility have begun to spread to organizations worldwide. There are creations on the networks giving knowledge and understanding on the aspect relating to the international concept on corporate social responsibility, therefore, various corporate have begun to increasingly acknowledge CSR in order to assist the society as a whole.

2.1 Definition of Corporate Social Responsibility On the definition of corporate social responsibility, various academicians and organizations have given its meaning or definition as follows:

Plunkett (1994, p. 819) states that social responsibility is an intention not only to create the business exclusively on the part of a person and corporate but also a protection on and a creation of such advantage to the other persons and society including an attempt to avoid an act detrimental to the other persons and society.

Mondy (1998, p. 22) defines corporate social responsibility as an obligation of an executive in seeking for a method to preserve or protect the benefits of the public more than the benefits solely on the part of the corporate.

Schacter (2000, p. 7) mentions that corporate social responsibility is the overall relationship of the corporation with all of its stakeholders; such as,

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customers, employees, communities, shareholders, investors, government, suppliers and competitors.

Wessels (2002, p. 92) defines that corporate social responsibility is about the core behavior of companies and the responsibility for their total impact on the societies in which they operate.

Ghauri & Cateora (2005, p. 49) consider that social responsibility is a matter that a corporate has shown its role to the society apart from the economic goal and caused a rendering of assistance to a society constructively leading to being a better society in the long run.

Kotler & Lee (2005, p. 3) conceive that corporate social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources.

International Center for Corporate Social Responsibility (2006, n.d.) defines that corporate social responsibility refers to the attention of business to community involvement, socially responsible products and processes, and socially responsible employee relation.

Business Ethics Center of Jerusalem (2006, n.d.) gives the definition of social responsibility as a stipulation of a policy of a corporate affecting the overall society.

Corporate Social Responsibility Institute (2008, p. 6) gives the definition of corporate social responsibility to mean that it is the conducting of business under the Code of Ethics and good supervision simultaneously together with the attention and looking after the society and environment in order to lead to sustainable business development.

Thaipat Institute (2008, n.d.) gives the definition of corporate social responsibility as the carrying out of an activity within and outside the corporate

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by taking into account the social effect both at the adjacent level (the party having direct involvement with the corporate such as, customers, trading counterparts, families, staffs, local community on which the corporate is situated) and far level (the party having indirect involvement with the corporate; such as, business competitors, people in general) by using the resources existing within the corporate or the resources from outside the corporate in order to make them coexist in the society happily and peacefully.

From the all abovementioned definitions, the researcher can conclude the meaning of ”Corporate Social Responsibility” as that it is an activity or duty of a corporate in taking responsibility to the persons related with the corporate both within and outside the corporate to receive mutual benefits both for those having direct involvement with the corporate; such as, shareholders, investors, staffs, business allies, etc., and for those having indirect involvement with the corporate; such as, community, people, competitors, environment, etc., where the social responsibility will be of an assistance to make the corporate successful and consequently lead the corporate to sustainable business development.

2.2 Background on ISO 26000: Social Responsibility International Organization for Standardization has prepared a proposal stipulating international standard on the subject of social responsibility in order to make available the international standard relating to the process, pattern, management system that takes into account the rules and regulations, code of ethics, health, environment, safety and use of labors, etc., and circulated such proposal to member countries for considerations as well as requesting them to assign the experts from related organizations from government, industrial sector, labor sector, consumers, non-government development agencies and others to participate in stipulating such standards where the consideration on

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the draft of ISO 26000 has commenced since the beginning of 2005, and anticipated that it can be put to use in 2010 . The substance of ISO 26000 covers 7 main points; which are Human Rights, Organizational Governance, Fair Operating Practices, Labor Practices, Environment, Consumer Issues and Community Involvement and Development [Technology Promotion Association (Thailand-Japan) 2008, n.d.] containing the details as follows:

Point 1: Human Rights; An entrepreneur should carry out the policies and activities harmoniously compatible with the Universal Declaration of Human Rights without any treatments of discriminations on the races, colors of complexions, religions, ages, sexes or political opinions; should have positive operating procedures toward the diversities as being the factors for the variations and should accept the social, environmental, legal and cultural differences within the organizations and inter-organizations; accept the limitation on the ability on language communications, experiences, trainings or educations, deformations or others.

Point 2: Organizational Governance; An entrepreneur should attentively comply with the rules and regulations and respect the laws; should have its own management and carry out its activities in a manner of adhering to the morality and ethics and being praiseworthy which consist of sincerity and honesty. The examples of unethical performances are corruption, dishonesty, distortion, threatening, discrimination and favoritism practice, etc.

Point 3: Fair Operating Practices; An entrepreneur should clearly and reasonably express and explain to the stakeholders with regard to the duties, policy, decisions and acts for which the organization is responsible and the effect being inflicted or may be inflicted upon the stakeholders. The organization should express matters on the objectives, progress, success and failure, hindrance and opportunity of the organization where there should be a

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regular and careful report by taking into account the aspects of trades or other security.

Point 4: Labor Practices; An entrepreneur must express its responsibilities and shall not evade the rights of its employees and place its emphasis on the safety, health, staff’s potential development, provide supports on and respect staffs’ fair treatments; give importance in complying with the law, child labor and indiscriminate labor lay-off.

Point 5: Environment; An entrepreneur should bear responsibility to environmental impact arising out of its activities, products and services; proceeding with actions on the improvements both on the part for which the corporate is responsible and on the part which it can help promote to be carried out; seek the way to prevent any operations which will adversely affect the environment and health, assess and reduce the risks which will adversely affect the environment in order to prescribed preventive and corrective measures including the responsibility for the consequences adversely affecting the environment or society as a result of pollution.

Point 6: Consumer Issues; An entrepreneur should accept that stakeholders may have the interest in the operations on the products and by-products of its activities which, in this connection, discussions with the stakeholders should be held and opportunity should be opened for the stakeholders to express their opinions relating to the activities of the corporate and let them know of the policy, proposals and decisions adversely affecting various information data; such as, policy, proposals and decisions adversely affecting the stakeholders including stakeholder indications, stipulation of suitable procedures in communications and considerations on lawful opinions of the stakeholders.

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Point 7: Community Involvement and Development; An entrepreneur should have continuous attempts on “the attainment of current needs without prejudicing the needs of the future generations” by the operations of sustainable development notwithstanding whether it will be on the aspect of sociality (including the aspect of culture), environment and economy which shall be in a manner of continuation and gradualness without setting the goal for reaching at a certain time by taking into account the welfare of the world society both at the present and in the future and the management on the richness and natural resources. 2.3 ISO 26000: Social Responsibility in Thailand For Thailand, there has been a study and a presentation on the mechanism and good and most efficient procedures on the presentation of international standard on social responsibility to be acceptable as the public policy of the country. Thailand is one of the leading countries adopting Social Responsibility to be the public policy which, in this connection, Thai Industrial Standards Institute (n.d.) held a seminar on the subject of international standardization on social responsibility on Tuesday, 23 November 2004 in order to disseminate, create understanding on the subject of social responsibility and prepare the readiness for related persons in country and people interested in this matter to know of the present situation and understand the matter in relation to such standardization including the brainstorming on the opinions of related persons and organizations to support the considerations and determination on the standpoint of Thailand. The substance of the seminar was the giving of the details on the proposal with regard to the international standardization on social responsibility, point of views and experiences of Japan on the standardization and practices in compliance with the social responsibility standard including Thai Labor

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Standard in relation to social responsibility. The seminar was attended by a total of 130 persons and among this total number, 93 persons were from government sector, 10 from private sector, 10 from educational sector, 17 from central bodies. The circulations of questionnaire to obtain the opinions of the seminaries could be concluded that 91 percent of the seminaries were in agreement, 7 percent were not in agreement with the preparation of ISO 26000: Social Responsibility by International Organization for Standardization (ISO) while 2 percent of the seminaries had different opinions which, in this respect, the seminaries expressed their opinions that Thailand should take part in the international standardization with ISO which is 75 percent of them and that Thailand should follow up the progress without the necessity to seriously participate in which is 25 percent of them. 2.4 Social Responsibility International Standard Subsequent Effect The preparation on ISO 26000 is believed to present a greatly wide effect, particularly, on international trades and the adoptions for practicing within the bodies connected with business sector throughout the world. However, when taking into account the world trend, it is found that the acceptance on ISO 26000: Social Responsibility to become the public policy of the country, the dissemination or knowledge, creation of understanding on the subject of social responsibility and the preparation on the readiness for related persons in the country and persons interested in the matter to know of the present situation and understand the aspect in relation to international standardization on social responsibility are indeed necessary. The issuance of ISO 26000 may be in the form of the giving of suggestions in the operations in compliance with the standard which is not in a manner of direct certification in order to prevent it from being contradictory to or

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duplicated with the existing original standard; such as, ISO 9000: Organizational Management, ISO 14000: Environmental Management Standard. However, even it is not compulsory for all countries or organizations to compellingly take steps to have the standards certified, but, if some countries will stick to it as a material substance and take it as an opportunity to establish trade barrier, for example, the case of European Union country group which need to import goods from various countries may require the entrepreneurs in the exporting countries to have ISO 26000 Certificate before they will agree on the imports of the goods. If any exporters should have none of such Certificate, they may not be able to export any goods, etc. Entrepreneurs are compelled to monitor close follow-ups on the situation on the announcement on the use of such ISO 26000 and be prepared in mapping out the plan in accordance with the frame of the ISO in order to avoid the rising of trade obstacles in the future. 3. Methodology Populations and samplings used in this research are 311 Thai entrepreneurs engaged in goods and service export business on the Exporter List of Department of Export Promotion. Questionnaires are used as instruments in this research in gathering and compiling data by forwarding the questionnaires via postal services to the Thai exporters and by classifying them in accordance with the industrial groups; such as, food, leather, PVC, furniture, gems and jewelries, household products, agricultural goods/minerals/fuel, toys and games, textiles, clothes and adornments, service trade, printing/packaging business, animal feeds, vehicle/spare parts and components/machinery, construction materials/equipments, electricity/electrical appliances and components, chemicals/cosmetics/medicines, gifts/decorated items/handicrafts and commerce.

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On this research, questionnaires are used in gathering and compiling data on the carrying out of activities and/or stipulations of the policies on social responsibility, opinions toward ISO 26000: Social Responsibility, trends on the adoptions of ISO 26000 for use with the corporate and opinions of Thai exporters toward the preparation of report on social responsibility and that the confidence value of the questionnaires are tested by analyzing α – Coefficient and the reliability value of 0.916 is attained.

4. Results 4.1 The carrying out of activities or stipulations of policy on Social Responsibility of Thai exporters – it is found that Thai exporters have well managed on the carrying out of the activities and stipulations on the policy on social responsibility by giving importance on the stakeholders which can be concluded as follows: (1) Responsibility to shareholders– It is found that 92.0 percent of Thai exporters have stipulated policy on business administrations with transparency (corporate governance); checks can be made by shareholders whereas the policy on the preservation of benefits of and honesty to the shareholders finds that 91.6 percent of them have stipulated that policy. In addition, 86.8 percent of the exporters have stipulated the policy giving the shareholders to have equal rights in receiving information with regard to the variations or the carrying out of the business and that there are risk managements in such business conducting (See Table I). Table I Activities and/or stipulations of policy on the aspect of

responsibilities to shareholders

Yes No

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Activities and/or Policy Frequency % Frequency % 1. Stipulating policy on business administration with transparency (Corporate Governance) checkable by shareholders.

286 92.0 25 8.0

2. Stipulating policy on the preservations of benefits and honesty to shareholders; such as, firm determination on building up the growth to the business.

285 91.6 26 8.4

3. Giving the shareholders the equal rights in receiving information relating to the variations or the carrying out of business of the corporate.

270 86.8 41 13.2

4. Risk management or risk prevention system in the carrying out of business.

270 86.8 41 13.2

(2) Responsibility to customers – Most of Thai exporters, or 99.0 percent, give importance on the creation of satisfactions and responsibilities to customers by offering them with quality and standard goods and services whereas 98.1 percent of the exporters have stipulated the policy by taking into account the safety of the customers and strictly adhering to the commitments and trade requirements having with the customers. In addition, 96.8 percent and 89.4 percent of exporters have the policy on giving accurate and full information on the products and services with no deception to the customers and disclosing the problems arising from the use of the goods or services and after sale-services and receipts of complaints of the customers derived from the use of goods or services. (See Table II)

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Table II

Activities and/or stipulations of policy on the aspect of responsibilities to customers

Activities and/or Policy

Yes No Frequency % Frequency %

1. Creation of satisfactions and responsibilities to customers by offering them with quality and standard goods and services.

308 99.0 3 1.0

2. Producing goods or services by taking into account the safety of the customers on the use of goods and services.

305 98.1 6 1.9

3. Stipulating policy to strictly adhere to the commitments and trade requirements having with the customers; such as, making delivery of goods on time, distributing goods at the price agreed upon.

305 98.1 6 1.9

4. Giving accurate and full information on the products and services with no deception to the customers including the disclosures to the customers of the problems arising from the use of the products or services.

301 96.8 10 3.2

5. After sale-services and receipts of complaints of the customers derived from the use of goods or services.

278 89.4 33 10.6

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(3) Responsibilities to society and environment – Thai exporters have taken into account not only the shareholders or customers but also given importance on the overall society. This research finds that 93.2 percent of exporters have the policy to adhere to and comply with the law relating to the environment while 81.7 percent of them have the policy on providing supports and assistance to the society or community with the activities for public interests suchlike on the organizing of environmental activities with regard to the responsibilities to the community. This research also finds that 80.4 percent of exporters have carried out such activities whereas only 71.4 percent and 48.2 percent of them have carried out the activities or policy on the organizing of activities with regard to the environmental conservation and policy on the acceptance of the handicapped for employment with the corporate, respectively. (See Table III) Table III

Activities and/or stipulations of policy on the aspect of responsibilities to society and environment

Activities and/or Policy

Yes No Frequency % Frequency %

1. Adhering to and complying with the law relating to the environment.

290 93.2 21 6.8

2. Providing supports and assistance to the society or community with the activities for public interests; such as, contributions of cash or things to assist the victims of disasters and presentations of educational scholarships.

254 81.7 57 18.3

3. Organizing environmental activities 250 80.4 61 19.6

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with regard to the responsibilities to the community; such as, waste treatments before releasing such treated wastes to the community, non-creation of noise pollution, etc.

4. Organizing activities on environmental conservation; such as, recycling materials remained left from the production process.

222 71.4 89 26.6

5. Policy on the acceptance of the handicapped for employments with the corporate.

150 48.2 161 51.8

(4) Responsibilities to suppliers – It is found that 95.5 percent of Thai exporters have stipulated policy firmly adhering to and complying with the commitments given to the suppliers which, in this connection, 92.3 percent of the exporters have treated all sellers of the production factors equally with no monopolizing practice on any particular supplier. However, only 76.5 percent of them practicing the selections and placing the purchase orders on raw materials from suppliers have had the policy or activities on social responsibility and environment. (See Table IV) Table IV

Activities and/or stipulations of policy on the aspect of responsibility to suppliers

Activities and/or Policy

Yes No Frequency % Frequency %

1. Stipulating policy firmly adhering to and complying with the commitments

297 95.5 14 4.5

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given to suppliers; such as, making payment on the price of goods on time.

2. Treating all suppliers equally with no monopolizing practice on any particular supplier.

287 92.3 24 7.7

3. The selections and the placing of purchase orders on raw materials from suppliers having the policy or activities on social responsibility and environment.

238 76.5 73 23.5

(5) Responsibilities to the staffs – Most of Thai exporters, or 96.8 percent of Thai exporters have the policy respecting the private rights and human rights on the differences on the sexes, races and religions of the staffs and the giving of the returns and welfares to all staffs fairly and lawfully in accordance with the law. It is also found that 92.0 percent of them have the policy on the giving of opportunity on trainings and self-development for all staffs and the arrangements of the working place with safety. However, only 88.1 percent, 86.2 percent and 73.3 percent of exporters have given the opportunity for the staffs to take part in solving the problems of the corporate, to take part in stipulating policy or activities on energy conservation and enhancing the staffs to receive higher level educations, respectively. (See Table V)

Table V

Activities and/or stipulations of policy on the aspect of responsibilities to the staffs

Activities and/or Policy

Yes No Frequency % Frequency %

1. Respecting the private rights and 301 96.8 10 3.2

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human rights on the differences on the sexes, races and religions of all staffs.

2. Giving the returns and welfares to all staffs fairly and lawfully in accordance with the law.

301 96.8 10 3.2

3. Giving opportunity on trainings and self-development for all staffs.

286 92.0 25 8.0

4. Arranging the working place with safety; such as, having fire preventive system and fire escapes.

286 92.0 25 8.0

5. Giving the opportunity to the staffs to take part in solving problems of the corporate.

274 88.1 37 11.9

6. Stipulating the policy or activities on energy conservations by giving the opportunity to the staffs to take part in such stipulations.

268 86.2 43 13.8

7. Stipulating policy on enhancing the staffs to receive higher level educations.

228 73.3 83 26.7

(6) Responsibilities to competitors – Most of Thai exporters, or 96.5 percent, have stipulated policy on business competitiveness by complying with the rules and regulations or trade law both in country and/or of international level while 95.8 percent of them have carried out their businesses without taking any advantage out of or destroying competitors through illegal means. However, only 92.0 percent and 91.3 percent of them have stipulated policy on the ethics in business competitiveness and non-imitation or non-infringements of goods or services of competitors, respectively. (See Table VI)

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Table VI

Activities and/or stipulations of policy on the responsibility to competitors

Activities and/or Policy

Yes No Frequency % Frequency %

1. Business competitiveness by complying with the rules and regulations or law on the Trade both in country and/or of international level.

300 96.5 11 3.5

2. Stipulating policy on the carrying of out business without taking any advantage out of or destroying competitors through illegal means.

298 95.8 13 4.2

Table VI

Activities and/or stipulations of policy on the responsibility to competitors

Activities and/or Policy

Yes No Frequency % Frequency %

3. Stipulating policy on the ethics in business competitiveness; such as, a non-cutting down on the price of goods and services, a non-attack on a competitor with an intention to damage such competitor.

286 92.0 25 8.0

4. Stipulating policy on a non-imitation or non-infringements of goods or services of competitors.

284 91.3 27 8.7

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4.2 Opinions of Thai exporters toward ISO 26000: Social Responsibility – Thai exporters have been found to extremely agree with ISO 26000 that it will be of the help in building up confidences, satisfactions and reliabilities of the corporate in the eyes of the customers which, as a result, many companies have prepared reports on social responsibility for disseminations to the general public which is a telling to the societies that the business enterprises have done good and proper things for the societies and that the mean of the aforementioned are 4.36, 4.29 and 4.26, respectively. In addition, Thai exporters rather agree that ISO 26000 will help reduce the conflicts between the companies and the communities, conserve environmental condition for the general public which, in this connection, Thai exporters rather agree that the policy on social responsibility will be of important matter toward the carrying out of business in the future and that the mean for these are 4.18, 4.18 and 4.01, respectively. (See Table VII)

Thai exporters, also, rather agree with ISO 26000 that it will help ease the obstacles on international trade regulations in the future, create interests in the corporate to the investors, and make the outsiders see that the business enterprises play the roles to help reduce social environmental problems the mean for these are 3.99, 3.96 and 3.93, respectively. Moreover, Thai exporters rather agree with ISO 26000 that it will help reduce the risk on illegal acts; create the sustainability to the corporate in the long run, reduce the gaps of differences among people in the societies and create happiness to the overall general public and that the mean for these are 3.89, 3.89, 3.86 and 3.83, respectively. Thai exporters have also been found to be rather in agreement with ISO 26000 that it will help stimulate customers to buy products/services, create the competitive advantage of the corporate and help increase sales and profits indirectly and that the mean for these are 3.60, 3.57 and 3.43, respectively. Furthermore, Thai exporters have also been found to

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be rather in agreement with the fact that the carrying out of activities on social responsibility will involve costly expenses where the mean for this is 3.51. However, Thai exporters are not certain whether social responsibility is just merely a tool of an advertisement and the high prices of products/services can be set if ISO 26000 should be adopted which, in this connection, the mean on these are 3.17 and 2.94, respectively. (See Table VII)

Table VII

Opinions of Thai exporters toward ISO 26000:Social Responsibility

Opinions toward ISO 26000 X S.D. Interpretation

1. Building confidences, satisfactions and reliabilities in the eyes of customers.

4.36 .74 Extremely agree

2. Assisting in telling all people in societies that companies have done good and proper things for the societies.

4.29 .75 Extremely agree

3. Building up confidences and trusts to shareholders/business partners/investors.

4.26 .81 Extremely agree

4. Reducing continuing conflicts between companies and society and community.

4.18 .82 Rather agree

Table VII

Opinions of Thai exporters toward ISO 26000:Social Responsibility

Opinions toward ISO 26000 X S.D. Interpretation

5. Help conserve environmental condition for the public.

4.18 .80 Rather agree

6. CSR will be of much importance on the carrying out of business in the future.

4.01 .84 Rather agree

7. Will help reduce obstacles and rules and regulations on international trades in the future.

3.99 .91 Rather agree

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8. Creating interests in the corporate to investors. 3.96 .88 Rather agree

9. Making outsiders to know that companies play the roles in reducing social and environmental problems.

3.93 .85 Rather agree

10. Reducing the risks on the illegal acts. 3.89 .96 Rather agree

11. Creating sustainability for the corporate in the long run.

3.89 .96 Rather agree

12. Activities on social responsibility help reduce the gaps and differences among people in the societies.

3.86 .91 Rather agree

13. If various companies should adopt ISO 26000 for use, it would help create happiness to the societies publicly.

3.83 .88 Rather agree

14. ISO 26000 will help stimulate customers to buy products/services.

3.60 .95 Rather agree

15. Having ISO 26000 creates advantage on competitiveness of the corporate.

3.57 .95 Rather agree

16. The conducting of activities on social responsibility involves costly expenses.

3.51 1.04 Rather agree

17. Help increase sales and profits indirectly for companies.

3.43 .94 Rather agree

18. Social responsibility is just merely an advertising tool of the corporate.

3.17 1.12 Uncertain

19. Can set up high prices of products/services if ISO 26000 should be adopted.

2.94 1.00 Uncertain

4.3 Trend on the adoption of ISO 26000: Social Responsibility for use with the corporate/organizations and opinions toward the preparation of Social

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Responsibility Report – Thai exporters have been found with the trend to adopt ISO 26000 for use with the corporate with the mean of 3.50 and are in agreement the Social Responsibility Report should be prepared for disseminations to the public with the mean of 3.64. (See Table VIII) Table VIII

The adoption of ISO 26000 for use with the corporate and opinions toward the preparation of Social Responsibility Report

Opinions X S.D. Interpretation

1. Trend on adoption ISO 26000: Social Responsibility for use with corporate.

3.50 .86 Trend for adopting for

use

2. Opinions toward Social Responsibility Report preparation.

3.64 .90 Agreeable

5. Conclusion and Recommendations: Most Thai exporters have carried out activities and stipulated good policy on social responsibility toward all groups of stakeholders in accordance with the principle point on the draft ISO 26000: Social Responsibility; such as, (1) Organizational Governance by stipulating policy in carrying out business for business growth in order to preserve the benefits of shareholders and business partners, the carrying out of business with honesty and fairness to the suppliers, (2) Consumers Issues by giving importance on the productions of goods and services by taking into account the safety, (3) Environment by carrying out social activities on the aspect of environment, (4) Labor Practices by giving opportunity on trainings and self-development for all staffs, giving returns and welfares to all staffs fairly and legally, (5) Fair Operating Practices by carrying out business without taking any advantage over or destroying competitors through an illegal means, refraining from making imitation or

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infringement of copyright, (6) Community Involvement and Development by supporting and assisting society or community with the activities for public interests and (7) Human Rights by respecting private rights and human rights on the difference on the sexes, races and religions of all staffs, etc. In addition, ISO 26000 will help create the confidences, satisfactions and reliabilities in the eyes of the customers, confidences and trusts to shareholders/business partners/investors, creating commitments of staffs with the corporate and help conserve environmental condition which is an advantage and the creation of happiness to the society as a whole. Furthermore, social responsibility will be a very important matter in the carrying out of business in the future, particularly, the adoption for use of ISO 26000 with the corporate will constitute international trade conditions in the future which, in this connection, if any Thai exporters not receiving recognition on such international standard may not be able to export goods to the country that stipulates conditions on ISO 26000. Therefore, Thai exporters must be prepared in advance by carrying out the activities or stipulating policy on social responsibility as well as preparing Social Responsibility Report for use in support of the assessment on further application for ISO 26000: Social Responsibility. References Corporate Social Responsibility Institute 2008, Corporate Social Responsibility Guidelines, Icon Printing, Bangkok.

Fox, T 2002, ‘Corporate Social Responsibility and Development: In quest of an agenda’, Development. vol. 45, no. 3, September, pp. 29-36, (online ProQuest).

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Ghauri, P & Cateora, P 2005, International Marketing, 2nd ed., McGrawHill, Berkshire.

International Centre for Corporate Social Responsibility n.d., Research and Teaching, viewed March 2008, http://www.nottingham.ac.uk/nubs/ICCSR/aboutus.php

Kotler, P, & Lee, N 2005, Corporate Social Responsibility: Doing the most good for your company and your cause, Hoboken, New Jersey: John Wiley & Sons.

Kurschner, D 1996, ‘Five ways ethical business creates fatter profits’, Business Ethics, No. 10, pp. 20-3.

Mondy, Wayne R 1998, Human Resource, Prentice Hall College Division.

Plunkett, Warren R 1994, Introduction to Management, Belmont, Wadsworth.

Schacter, M 2000, Altruism, Opportunism and Points in Between Trends and Practices in Corporate Social Responsibility, Institute On Governance Ottawa, Canada

Technology Promotion Association (Thailand-Japan), 2008, ISO 26000: Social Responsibility, viewed March 2008, http://www.tpa.or.th

Thai Industrial Standards Institute n.d., Social Responsibility, viewed March 2008, http://www.tisi.go.th/iso_sr/index.html

Thai Industrial Standards Institute 2006, Social Responsibility – SR, http://www.tisi.go.th/iso_sr/csr.html

Thaipat Institute 2008, Thai Corporate Social Responsibility, viewed March 2008, http://thaicsr.blogspot.com

Wessels, C 2002, Core Business: A Reflection on Responsibility in Reputation Management, viewed 2 March 2006,

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http://www.fbk.eur.nl/DPT/CCC/ALUMNI/files/abstracts2002/Anne%20Catelijne%20Wessels.pdf Corresponding authors Udom Sayapunt can be contacted at: [email protected] Apisit Tungkiatsilp can be contacted at: [email protected]