The Tigers take their time

In my previous blogs, when i said that Corporate Social Responsibility is an increasing phenomenon, i was referring more to the Western world. The Asian tigers, however, still have to catch up.

Though there are several companies in Asia’s emerging economies that contribute to their local community, the trend has only just started because the competitive and rapidly growing market means that any CSR initiatives are still seen simply as an excessive financial cost; at their booming stages, corporations are trying to save more and spend less.

Only 100 Indian corporations are involved in social activities (which is a small number considering the enormity of the Indian market) because of the simple fact that they all see Corporate Social Responsibility to be inherent in paying taxes or adopting safe and beneficial labour laws. Additional philantropic acts are still on the low because they are perceived as excessive financial costs. In Taiwan even, there is more foreign investment in CSR initiatives than amongst local businesses.

Nevertheless, the tigers are taking baby steps. As recently as March 16th, the Taiwan Corporate Social Responsibility Association developed a course that enterprises have to take which would outline the practices and benefits of CSR as a way to promote it amongst local corporations. Even in India, a common strategy was developed for several corporations, including the Anil Dhirubhai Ambani Group, that ensured transparency of all their social operations. Vice-president of the Anil Dhirubhai Ambani Group, Sudhir Kumar Sinha stated that the new strategy will help the Indian market “define and understand” Corporate Social Responsibility practises and will thus help it to expand.

On March 17th, Aquafina, PepsiCo India’s water brand, developed new packaging labels that aim to promote water conservation within its local communities and acheive a “positive water balance” as stated by CEO Sanjeev Chadha. This step is part of their 5-year water conservation programme, which has already managed to cut water usage by 60 per cent in their manufacturing practises.

Additionally, India’s Tata Steel company has long adopted a positive outlook to Corporate Social Responsibility. It was one of the first Indian corporations to develop labour welfare, even before they become compulsory lawful practises, it has also developed educational institutions for tribals around India, giving them to oppurtunity to enter the economy and leave poverty. Furthermore, Tata developed the ‘Lifeline Express’, which is basically a train that travels out to rural areas of India to provide the people there with medication and health care, as well as setting up several low-cost hospitals around India’s more impoverished regions.

Yet, no matter how long Tata’s acheivement list continues to grow or how much water Pepsi manages to save, the basic point is that Corporate Social Responsibility is still a ‘luxury item’ in Eastern markets. It’s an additional expense that only large, well-established corporations are able to embrace.

So, we can be sure that despite the few socially responsible gems in the emerging markets, the tigers still have a long way to go.