রবিবার, ১৪ জুলাই, ২০১৩

Firms reluctant to tell of their community work

The research was announced before the CSR Asia Summit 2013 in Bangkok on September 17-18 at the Centara Grand at Central Plaza Ladprao.

The research involved a selection of 80 companies among the largest listed on four prominent Asian stock markets - Hong Kong Stock Exchange, Indonesia Stock Exchange, Malaysian Stock exchange, and Singapore Stock Exchange.

The companies selected were those with the largest stock volumes on April 25, (Malaysia), April 29 (Hong Kong and Singapore) and May 2 (Indonesia).

In order for a company to qualify for the research, it must also have had publicly available information in the form of a webpage, CSR/sustainability report and/or annual report, in English or with an English translation.

It allowed for comparison between the four diverse industries represented in the survey, including banking and finance, ITC, pharmaceuticals, and property and real estate.

The research found that the companies surveyed had invested their priorities among children and education for about 73 per cent of the total and the delivery of CCI projects through local non-profit organisations. The CCI disclosure was activity, output based - listing trips and projects.

The research showed a high percentage, 75 per cent of the forty companies, CCI focused on children. Initiatives ranging from working with primary schools, after school clubs and providing healthcare. Senior citizens were the least represented demographic, only 10 per cent of companies had a CCI activity focusing on the elderly.

There was very limited discussion around the goals of community investment or defining what positive impact a company was trying to achieve.

According to the survey the Malaysian stock exchange was the most represented with 13 out of 20 companies reporting on CCI.

There was no formal or consistent way companies disclosed CCI information.

From the forty companies that reported on CCI, only 50 per cent provided information which was clearly labeled and easy to locate.

The remaining companies dispersed information through CSR/ sustainability webpages, reports and annual reports. Identifying and extracting CCI information was not straight forward or uniform.

Twenty companies included a distinct section in a report covering CCI. There were many variations in how companies grouped and named their CCI information.

Headings included 'Supporting Public Welfare', 'Corporation & Society', 'Social Programmes', 'Empowering Communities', and 'Community Development'.

Banking & finance and property & real estate had the highest number of companies reporting on CCI efforts. ITC companies performed poorly with only five out of the twenty companies surveyed providing any CCI information.

Across all stock exchanges, 23 companies clearly outlined and explained why they undertook CCI.

Among those with a CCI strategy, there was an overarching theme that being actively involved in the community and 'giving back' meant companies could state that they were a socially responsible business.

A total of nineteen companies had at least one initiative linked to core business practices - for pharmaceuticals this involved the provision of healthcare and medicine, for banking and finance, training in finance and for property and real estate the building of schools.

Out of the forty companies who reported on CCI, 82 per cent clearly stated that they donated money, however only 43 per cent of those companies disclosed the amount invested. Some companies revealed the amounts for specific programmes, but not all of their CCI.

There is limited evidence that companies are donating time and resources to communities. Disclosure on the involvement of employee-volunteering in CCI was relatively low, with only seventeen companies clearly stating that employees were a part of the community initiatives.

Only four companies provided further details on employee volunteering in terms of number of hours and frequency.

Although the companies reviewed were able to tell good 'stories' about CCI, unfortunately there was no evidence to suggest that any company was measuring and reporting the real value, impact and success.

Source: http://www.nationmultimedia.com/business/Firms-reluctant-to-tell-of-their-community-work-30210383.html

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