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GOOD CORPORATE & SOCIAL GOVERNANCE TO INTEGRATE ASEAN ECONOMY. By Emil Salim, 17/1/2007 esalim@rad.net.id. ASEAN DEVELOPMENT FEATURES.
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GOOD CORPORATE & SOCIAL GOVERNANCE TO INTEGRATE ASEAN ECONOMY By Emil Salim, 17/1/2007 esalim@rad.net.id
ASEAN DEVELOPMENT FEATURES • Development is based on land, minerals, natural, forests resources and services, with government and private sector as main actors in free market, globalize economy; • Its nature is exploitative, short term financial gain oriented dictated by economic oriented market profits; • Non-marketable social and ecological services are at the periphery of economic development; • Poor governance makes correction of market failures not effective; • Asean development is not sustainable, life-styles imitate materially based developed western pattern;
CONVENTIONAL BUSINESS CREED • The business of business in business. Corporate responsibility is to produce and sell, create employment, and pay taxes; • Corporate are responsible to shareholders who, as part of society serve best by making profits; • Government set the rules for market to operate, division of labor provides results; • Globalization and free trade will push corporate in higher level of economic efficiency; • Asean economic solidarity is only on paper;
CONVENTIONAL CORPORATE PARADIGM • Economic considerations dominates and subordinates social & ecological concerns • “More” and “short term gain” is preferred rather than “less” and “long term gain;” • Corporate focuses on “I or Us (without you)” as against “We or Us (with you); • To transform “homo-economics” into “economic animal” to grow, control and out-compete; • Corporate Social Responsibility is pursued to raise intangible benefits for the corporate;
PAST DEVELOPMENT’S LESSONS • Conventional development creates 20/80 world; • Asean population grows uncontrolled; • Asean environment degrades (deforestation, over fishing, high pollution) endangering life support system (water, air, climate, soil, genes); • Asean social cohesion weakened due to social conflicts and increase in-equity; • Asean suffers illegal logging, illegal fishing, illegal human flows, illegal trade, haze exports;
REVIVAL OF ASEAN SOLIDARITY 1. Asean shares common social values and interdependent eco-system as Asean integrating system to subordinate economic system; 2. Internalize valuation of social & ecological costs into economic business costs to get the price right through market corrections by governance; 3. Governance embodied equal partnership in decision-making among government-business-civil society representing specific social & ecological interests;
PROMOTE SUSTAINABLE LYFESTYLE • Promote spiritual, knowledge & cultural base lifestyle while putting more emphasis to reduce material content of consumption; • Raise value added on social & ecological resources through science and technology; • Emphasize use of renewable natural resources, renewable & closed cycle energies base growth; • Spatial & resource use planning in sustainable development to reduce ecological footprints; • Promote Asean values in sustainable lifestyles;
ASEANCORPORATE SOCIAL RESPOSIBIITY • Corporate social responsibility is to improve internally life quality of employees/stakeholders; externally life quality of society and humanity; • Corporate development impacts exceed its own boundaries and affects whole nation and Asean; • Corporate acts of social responsibility is not based on charity but real cost effectiveness; • Corporate responds to tangible real incentives to strive for Asean economic integration; • Corporate needs to get the market prices right to integrate;
BLUE PRINTTOWARDS ASEAN INTEGRATION • Five pillars of Asean integration are: food, energy, education-health, employment andecological sustainability or FE4S; • National sector policies need to be synchronized for Asean to be self-sufficient with high quality; • Government must set the appropriate frame-work in cooperation with corporate & civil society • Corporate social responsibility is coherent with implementing the Blue Print towards Asean integration.
FOLLOW UP ACTION • Strive for people centered Asean by engaging corporate, specific interests groups of civil society in national and regional dialogue with governments to draw comprehensively FE4S; • Strive for market corrections to get the price right by internalizing external non-econ.costs; • Draw on existing Asean experiences to plan; • Start socializing Blue Print of Asean Charter; • Draw an Asean specific Corporate Social Responsibility plan to integrate Asean 2025;