Developing a CSR Definition and Strategic Model from the Sufficiency Economy Philosophy

Abstract

Corporate social responsibility (CSR) is becoming more important in business practices since there is a growing demand for sustainability. However, to date the definition of CSR is still varied causing problems in its application. Therefore, it is the objective of this research to develop a CSR definition and framework for implementation. The Sufficiency Economy Philosophy proposed by His Majesty King Bhumibol of Thailand was incorporated into the study to develop a firm’s strategy in dealing with its various stakeholders. This is because the Sufficiency Economy Philosophy focuses on the good values that will promote good within the community, which promotes a viewpoint in sustainability. This unique definition and resulting model is the first contribution of this research. The second contribution is the study of how firms can collaborate with the government in creating sustainable CSR practices. The third contribution of this paper is the wide cross section of companies studied including companies listed in the Stock Exchange of Thailand to small and medium enterprises. In addition a case study was conducted to further refine the framework developed. The CSR framework developed in this study proposes three stages in the development of sustainable CSR. The first is the basic stage showing accountability for business operations with a focus on long-term planning. The second stage is the integration of CSR practices with strategy in realigning work process and maximizing utility of resources. The final stage is the best practice where innovation drives the development of new products and services setting a new direction for the firm. The Hi-Q Company case study adds the importance of the dimension of partnership with stakeholders such as the government in ensuring that the CSR initiative will be a sustainable one.