Bangkok--10 Jun--Grant Thornton
An altruistic desire to preserve the natural environment remains low on the agenda of businesses according to the 2011 Grant Thornton International Business Report. Just 36% of businesses globally are motivated to move to more ethical practices by a desire to 'save the planet', down from 40% in 2008.
However, businesses remain focused on the merits of corporate social responsibility (CSR) in terms of building brand, securing key staff and winning future contracts. Globally, 56% of businesses cite public attitudes/brand building and recruitment/retention of staff as the key drivers (alongside cost management) this year, highlighting the importance of public opinion in shaping businesses' CSR priorities.
As businesses in mature markets continue to grapple with sluggish growth, businesses in emerging economies appear most concerned with reducing their impact on the environment: 60% of the BRIC nations and 59% of those in the ASEAN group cite saving the planet as a driver towards more ethical business practices, compared to just 30% in the EU and 16% in North America.
Ian Pascoe, Managing Partner of Grant Thornton Thailand, said: "In an increasingly crowded and dynamic marketplace, businesses globally are becoming more aware that adopting a proactive approach to wider corporate social responsibility issues can help them to stand out in the minds of employees, consumers and potential partners. In Thailand, 65% of businesses indicate that saving the planet is a driver to implement more ethical business practices."
"Moreover, as businesses, and indeed consumers, in mature economies struggle with the fallout from the economic downturn, altruistic concerns over the environment have been forced into a backseat role. Businesses are focusing on the bottom line and consumers are looking for ways to make declining real disposable incomes go further. That said, businesses in emerging markets, as we have seen with the wider global economy, appear ready to take the initiative in driving the CSR agenda forward."
Meanwhile, levels of CSR activity undertaken in relation to the environment, workforce and wider community vary significantly across the globe. Businesses in northern Europe and Africa, together with much of North America and the Asia-Pacific region lead the way in initiating socially responsible practices, with those in mainland Europe lagging behind.
Ian Pascoe added: "CSR activities in Thailand have increased dramatically in recent years as businesses realise their value not only commercially, but also in terms of boosting their employee value. Employee value is becoming increasingly important as it is getting more difficult to attract and retain good staff."
The survey also uncovered some polarisation in the reporting of CSR practices: A quarter of businesses globally report their CSR activity, but this ranges from 53% in Latin America and 41% in the BRIC economies to 17% in North America and 18% in the G7 economies. Moreover, businesses are divided as to whether the reporting of CSR activity should be integrated with financial reporting: 44% agree that this represents best practice, but 40% disagree with a further 16% unsure.
Ian Pascoe concluded: "All businesses should look closely at the potential commercial benefits of reporting their CSR activity. A competitive advantage exists for those businesses which can demonstrate leadership in implementing socially responsible and transparent practices and seize the opportunity to attract and retain skilled workers, build brand value and secure future contracts with multinationals who frequently adopt strict CSR guidelines in selecting their suppliers."
Notes to editors
The Grant Thornton International Business Report (IBR) provides insight into the views and expectations of over 11,000 businesses per year across 39 economies. This unique survey draws upon 19 years of trend data for most European participants and nine years for many non-European economies. For more information, please visit: www.internationalbusinessreport.com.
Data collection
The research is carried out primarily by telephone interview lasting approximately 15 minutes with the exception of Japan (postal), Philippines and Armenia (face to face), mainland China and India (mixture of face-to-face and telephone) where cultural differences dictate a tailored approach. Telephone interviews enable Grant Thornton International to conduct the exact number of recommended interviews and to be certain that the most appropriate individuals are interviewed in an organisation which meets the profile criteria.
Data collection is managed by Grant Thornton International's core research partner - Experian Business Strategies. Questionnaires are translated into local languages with each participating country having the option to ask a small number of country specific questions in addition to the core questionnaire. From 2011, fieldwork takes place on a quarterly basis every quarter with fieldwork lasting approximately one month and a half.
Sample
IBR is a survey of medium to large privately held businesses*. The data for the IBR 2011 CSR report are drawn from interviews with more than 7,700 businesses across the globe conducted between November 2010 and January 2011.
The target respondents are chief executive officers, managing directors, chairmen or other senior executives (title dependent on what is most appropriate for the individual country) from 39 economies primarily across five sectors: manufacturing (25 per cent), services (25 per cent), retail (15 per cent) and construction (ten per cent) with the remaining 25 per cent spread across all sectors.
Locally, the sample tends to cover the sectors mentioned previously, with some countries being able to have local valid data for specific sectors or regions when the sample size is large enough.
*some counties may include a small proportion of listed businesses in their sample when reporting locally.
Further enquiries, please contact:
Ian Pascoe Lakpilai Worasaphya
Managing Partner Senior Manager, Marketing and Communications
Grant Thornton Grant Thornton
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