GRF 2nd One Health Summit 2013: Presentation by VIRAKUL, Prof. Busaya, National Institute of Development Administration (NIDA)

1. Global challenges, sustainable
development, and their implications for
organization performance
Busaya Virakul, Ph.D., Associate Professor
School of Human Resource Development (HRD),
National Institute of Development Administration (NIDA)
2nd Global Risk Forum (GRF) One Health Summit 2013
One Health - One Planet - One Future: Risks and Opportunities
17 - 20 November 2013 in Davos, Switzerland

2. Objectives
• This paper presents an overview model of
organization performance which embeds
corporate social responsibility (CSR), corporate
governance (CG), and sustainability concepts
at the strategic level.

3. Key words: Global challenges
• … any major trend, shock, or development that
has the potential for serious global impacts
(OCHA-PDSB, 2010, p. 4)
Source: Geldorf, K. (2010, January). Global challenges and their impact on international
humanitarian action. Retrieved, 20 October 2013, from
https://docs.unocha.org/sites/dms/Documents/Global_Challenges_Policy_Brief_Jan10.pdf
[UN Office for the Coordination of Humanitarian Affairs (OCHA)- Policy Development and
Studies Branch (PDSB)]

4. 15 Global Challenges
The 15 Global Challenges provide a framework to assess the global and local
prospects for humanity.
Source: The Millennium Project. (2010).
Retrieved, 2 December 2012, from
http://www.millenniumproject.org/millennium/challenges.html

5. Key words: Sustainable development
• Development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs.
(UNWCED,1987; the Brundtland Commission’s
report - Our Common Future)
Source: United Nations World Commission on Environment and Development
(UNWCED). (1987). Our common future. Oxford, UK: Oxford University Press.

6. Key words: Corporate social
responsibility (CSR)
• The continuing commitment by business to
behave ethically and contribute to economic
development while improving the quality of life
of the workforce and their families as well as of
the local community and society at large
(WBCSD, 2013, p. 3)
Source: World Business Council for Sustainable Development (WBCSD), The. (2013).
Corporate Social Responsibility: Making good business sense. Retrieved, 15 April
2013, from http://www.wbcsd.org/work-program/business-role/previouswork/corporate-social-responsibility.aspx

7. Business and stakeholder relationships
Environmental groups
Local
State
General publics
Federal
Community
Government
Unions
Corporate raiders
Business
Owner
Private citizens
Women
Employees
Minorities
Older employees
Institutional investors
Consumers
Consumer activists
Civil liberties activists
Product liability threats
Source: Carroll, A. B., & Buchholtz, A. K. (
6 Business & society: Ethics and stakeholder
management. Mason, OH: Thomson-South Western. (p.

8. Key words: Corporate governance
(CG) or Good governance (GG)
• The formal system of oversight, accountability, and
control for organizational decisions and resources
(Ferrell, Thorne, & Ferrell, 2011, p. 89);
• Corporate governance deals with the rights and
responsibilities of a company’s management, its
board, shareholders and various
stakeholders(OECD, 2013).
Source: (a) Ferrell, O. C., Thorne, D. M., & Ferrell, L. (2011). Social responsibility business.
Singapore: Cengage Learning. (b) Organization for Economic Co-operation and
Development, The (OECD). (2013). Corporate governance principles.
http://www.oecd.org/daf/ca/corporategovernanceprinciples/frequentlyaskedquestionsab
outtheoecdprinciplesofcorporategovernance.htm (Retrieved, 15 April 2013)

9. Key words: Sustainability of
organization
• An approach to business that considers
economic, environmental, and social issues in
balanced, holistic, and long-term ways that
benefit current and future generations of
concerned stakeholders (De Lange, Busch, &
Delgado-Ceballos, 2012, p. 151;
Elkington, 1999; UNWCED, 1987)
• Profits, Planet, and People – The Triple Ps
Source: De Lange, D. E., Busch, T., & Delgado-Ceballos, J..(2012, October). Sustaining
sustainability in organizations. Journal of Business Ethics, 110(2), pp. 151-156. DOI
10.1007/s10551-012-1425-0

10. Research framework
• Capitalism and consumerism are the current
socioeconomic forces.
• The world has finite resources. We have already
used up 30%-50% of natural resources belonged
to our younger generations’.
• If business companies emphasize capitalism and
consumerism to the fullest, the world may face
many global challenges ahead.

11. Research framework
• Business has enormous power in either
promoting or reducing people’s well being.
• Including interests of every stakeholder in a
balancing way is a key approach for future
business.
• Business organizations which practice such
approach could sustain their existence in the
long run.

12. The organization of the paper
• Global challenges as external factors impacting
organizations
• Sustainable development: An approach to rectify
major global problems
• Some selected cases pertaining to global
challenges
• CSR, CG, and sustainability: The elements of an
organization’s strategic plan
• A model of an organization’s performance
embedding CSR, CG, and sustainability at the
strategic level

13. Some selected cases
•
•
•
•
•
Map Ta Phut Port/Industrial Zone
Dawei Project
Xaiyaburi Dam in Loas
The Melamine Scandal in China in 2008
Extraction of natural resources in developing
countries – Thailand, India, Myanmar, Indonesia,
etc.
• The global financial crisis of 2008 and the
Barclays scandal in 2012

14. ALJAZEERA
“Toxic Thailand”
Industrial pollution in Thailand can be deadly, but a new court
ruling which has suspended 76 polluting projects is costing jobs
and billions in lost revenue. On this episode of 101 East, we ask if
Thailand can strike a balance between big business and the
environment.
Last Modified: 24 Apr 2010 11:55 GMT
Accessed: 6 July 2013
Source:
http://www.aljazeera.com/programmes/101east/2010/04/2
0104219545638882.html

15. Map Ta Phut: A Blessing for All?
Source: Thai Universities for Healthy Public Policies
(TUHPP). (2011b). Map Ta Phut Episode 1: Map Ta
Phut: A Blessing for All? Retrieved, 30 December
2012, from http://www.tuhpp.net/files/E1.pdf

16. Protests against building
Xaiyaburi dam and other
dams along the Mekong
River

17. “China 'sorry' after milk
crisis”
BBC News,
Last Updated Saturday October
: GMT;
http://news.bbc.co.uk/cbbcnews/hi/news
id_7670000/newsid_7677900/7677990.st
m
http news bbc co uk cbbcnews hi newsi
d_7630000 newsid_7632000/7632039 st
m
China's government has apologized after more than
50,000 children got sick from drinking milk that had
chemicals in it
Tesco have taken a brand of Chinese sweets off their
shelves because of fears they could have a poisonous
The Melamine Crisis, 2008 chemical in them
Melamine in the milk formula can
damage kidneys

18. Factors affecting the morality of managers
Peers
Individual
Policy
Superior Organization’s
moral climate
Industry’s moral climate
Business’ moral climate
Society’s moral climate
International moral climate
Source: Adapted from Carroll, A. B., & Buchholtz, A.K. (
9 Business and society. Cincinnati, OH:
South-Western College Publishing. (p. 311

19. Marketing
Internal environment
Employee and labour
relations
Labour force
Operations
Human
resource
management
Technology
The Economy
Legal considerations
Society
The Environment of Human Resource Management
External environment
Other
functional
areas
Finance
Customers
Competition
Shareholders
Unions
Source: Mondy, R. W., & Noe, R. M. (2005). Human resource management. Upper Saddle
River, NJ: Pearson Education International. (p. 8)

20. Organizational factors
• Moral motivation by
CEO/ top management
• Financial/Performance
motivation
• Stakeholders’
expectations
Surrounding factors
• Globalization
• Technological changes
• Local/International
laws and regulations
• Business competition
• Natural resource
conditions
• Stakeholders‘
expectations
Strategic business plan
for CSR
CSR framework
• Employees
• Customers
• Stockholders
• Environment
• Business colleagues
(Suppliers, partners)
• Communities
• Society
Source: Virakul, B., Koonmee, K. & McLean, G. N. (2008). CSR activities in the awardwinning Thai companies. (a) Paper presented at th International Conference on
Corporate Social Responsibility - September
, Durham Business School,
England. (b) Social Responsibility Journal ( ), pp.
-
Outcomes
• Stakeholders’ trusts
• Organization’s
reputation/Rewards
• Financial benefits
• Competitive
advantages
• Business leadership
• Community growth
CSR activities
• Operation work
- Employee welfares
- Customer welfares
• Philanthropic work
- Education
- Arts & Culture
- Sports
- Environment
- Public welfares

21. A model of business performance embedding
CSR, CG, and sustainability at the stretegic level
Internal factors
• Leadership of
CEO/Top management
• Financial/Performance
motivation
• Stakeholders’ expectations
• Organization’s resources
•
•
•
•
•
•
External factors
Globalization/Global
challenges
Technological changes
Local/International
laws and regulations
Business competition
Natural resources
Stakeholders’ expectations
Strategic business plan
contains 4 elements:
Business, CSR, CG, &
Sustainability ---> to formulate
Vision, Mission, Direction, and
Business goals
•
•
•
•
•
Business activities
embedding CSR, CG, &
sustainability concepts
Production, Sales, Finance,
Marketing, Quality control
Organizational management
and development
Monitoring & Evaluating
performance
Research and development
Others.
•
•
•
•
•
•
•
Outcomes
Sustainable organization
Stakeholders’ trusts
Organization’s reputation
Financial benefits
Competitive advantages
Business leadership
Community growth
•
•
•
•
Evaluation and
Reporting
Business domain
CSR domain
CG domain
Sustainability domain

22. Future research
• Appropriate indicators of organization’s performance
having CSR, CG, and sustainability elements embedded
at a strategic level.
• Approaches to enhancing employees’ understanding of
embedding business, CSR, GG, and sustainability of
organization at a strategic level.
• The relationships between organization’s performance
and such practices.
• Critical issues in embedding business, CSR, GG, and
sustainability of organization at a strategic level.
• Case studies of organizations practicing such
approaches.