Corporate Environmental and Social Responsibility in the East Asia and Pacific Region

The East Asia and Pacific region experienced not only rapid economic growth, but also considerable environmental damage over the last few decades.

 

For economic growth to continue without further degradation to the environment, governments and business leaders have begun to address the private sector’s role in sustainable development.

 

One of the private sector responses is Corporate Environmental and Social Responsibility (CESR), which are voluntary business contributions through companies core business activities that seek to address environmental and social concerns of the society at large.

 

Driven by the ethics and labor concerns in developed countries in the 70s, similar concerns about the operations of multinational corporations, and environmental disasters in the 80s, the private sector began to undertake environmental management initiatives such as voluntary codes of conduct and environmental management systems.

 

This discussion paper serves as a first step towards a CESR strategy in the East Asia and Pacific region. CESR awareness is increasing, and large companies have started to undertake CESR activities. There are two sets of tools described in the report that are used to implement corporate environmental and social responsibility; these include environmental reporting, codes of conduct, environmental management certification and standards, public disclosure programs and public recognition programs.

The paper outlines different activities in regional countries, for example disclosure of corporate environmental performance has been piloted in China, Indonesia, Thailand, the Philippines, and Vietnam. Public recognition programs have been supported by national governments in Cambodia, Indonesia, Malaysia and Thailand. Environmental management certification and standards are spreading, with a majority in the region belonging to Chinese companies.

 

In order to spread CESR among companies in the region, both the World Bank and IFC have roles to play. There is need for improving stakeholder activities, including those of governments, consumers, and investors, which affect companies' behavior and their corporate environmental and social responsibility.