The Role of the Business Community in Environmental Governance: Biodiversity, CSR and Private Sector Engagement in Thailand

15-Sep-11
1
The Role of the Business Community in Environmental Governance:
Biodiversity, CSR and Private Sector Engagement
in Thailand
Master of Arts in Environment, Development, and Sustainability
Inter-departmental Program
Graduate School
Chulalongkorn University
Academic Year 2010
© Chulalongkorn University / Walker Young 2011
Mr. Walker Young
Introduction
• Convention on Biological Diversity
– Signed by Thailand in 1992
– Ratified by Thailand in 2004
18 August 2011 © Walker Young / Chulalongkorn University 2
• 2009 National Capacity Self-Assessment (NCSA)
Report of CBD Implementation in Thailand
▬ Survey of CBD-related practitioners, academics,
government partners found that 35% experienced low levels
of collaboration with the private sector
(Limjirakan et al., 2009)
Introduction: Thesis Statement
1. Is the private sector in Thailand interested in supporting or
implementing actions or programmes related to biological
diversity?
2. How can the academic and government sectors better engage the
private sector in order to attain a multi-stakeholder approach
t d ti l bi di it t?
towards national biodiversity management?
3. For those businesses already taking action, what is the level of
participation in CBD-relevant activities and which type of activities
are being implemented?
4. Which CBD Articles and Conference of the Parties (COP)
decisions are currently being addressed by businesses?
Literature Review
• The Case for Private Sector Engagement in Environmental
Governance
– Research is debated; some support collaboration of private sector with the
government/state (Larner and Craig, 2005; Logan and Wekerle , 2008) while
others are more cautious of such partnerships (Lane, 2003; McCarthy and
Prudham, 2004)
• Making the Case:
1. The Negative Environmental Impacts of Business
• Business actions have negative impact on biodiversity
(Shrivastava, 1995; Heal, 2007; Mills and Waite, 2009)
• Businesses as “driving forces” of global warming (Le Menestrel et al., 2002)
• Businesses as cause of ecological problems in general (Scherer and Palazzo, 2008)
2. Lack of Participation from the Private Sector
– COP 8 decision VIII/17 identifies private sector as ”arguably the least engaged of all
stakeholders in the implementation of the Convention, yet daily activities of business
and industry have major impacts on biodiversity” (SCBD)
Literature Review
• Reasons for Private Companies to Engage in
Public-Private Partnerships
– Financial Incentives: PGR provides substantial profits
to agricultural companies (Frisvold and Condon,
1998) d th b i th USD 500 800
1998) and other businesses, worth USD 500 – 800
billion per year as of 1999 (ten Kate and Laird, 1999)
– Corporate Social Responsibility (Vogel, 2005)
– Risk Reduction in Operating Environs: environmental
performance can reduce risk to business operations
(Crowther and Capaldi, 2008)
Literature Review
• Private Sector Engagement in Implementing the CBD
COP 10
etings
No. of references to "private" sector or "business" in COP decisions
76%
0 10 20 30 40 50 60 70 80 90
COP 8
COP 9
# of references
COPMee
• Thematic areas with greatest number of references to “private” sector or
“business”:
(1) Financial Resources; (2) Private sector engagement; (3) Technology &
Knowledge Transfer; (5) Access & Benefit Sharing
increase
in 4 years

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2
Methodology
• The Case Studies of the Charoen Pokphand
Group and PTT Public Company Limited
– Desk Study
– Field Visits:
• PTT’s Sirinath Rajini Mangrove Forest Ecology Learning
Center in Pranburi, Thailand
• The CP Group’s Native Chicken Academic and
Demonstration Center in Chonburi, Thailand
– Interviews
Methodology
• Survey Questionnaire
– Thai and English language
– Online
– All businesses of any size, with operations in
y p
Thailand, are eligible to participate
– Academic, government and NGOs ineligible
– Link to survey distributed via e-mail to business
groups/associations
Research Findings
• The Charoen Pokphand Group
– CSR Framework; Environmental Management and Farmer’s
Benefits; Native Chicken and Buffalo Breeding Programmes;
Relationship of the CP Group’s Environmental Projects to the
Implementation of the CBD
• PTT Public Company Limited
PTT Public Company Limited
– CSR Framework; Environmental Management; Sirinath Rajini
Mangrove Ecosystem Learning Center; Relathionship of PTT’s
Environmental Projects to the Implementation of the CBD
• Survey Questionnaire
– Response Rate; Demographic of Participants; Management
Standards; Recycling; The CBD and Biodiversity; Environmental
Outreach; Corporate Social Responsibility; Public-Private
Partnerships; Private Sector Engagement
Research Findings: The CP Group
• Thailand’s largest business
conglomerate
• CP Foods is major business unit,
focusing on food and agriculture
– Accordingly, their outreach projects
focus on benefit to farmers
Top 5 Thematic Areas of CBD Benefitting from CP Group’s
Environmental Outreach Projects:
1. Private Sector Engagement
2. Access and Benefit-Sharing (ABS)
3. Financial Resources
4 C i ti Ed ti d P bli A (CEPA)
Research Findings: The CP Group
4. Communication, Education and Public Awareness (CEPA)
5. Technology &
Knowledge Transfer
© 2008 Charoen Pokphand Foods PCL
Research Findings: PTT
• Regional integrated energy and
petrochemical company
• Thailand’s largest energy producer
Top 5 Thematic Areas of CBD Benefitting from PTT’s
Environmental Outreach Projects:
1. Private Sector Engagement
2. Communications, Education, and Public Awareness (CEPA)
3. Financial Resources
4. Indigenous Knowledge
5. Access and Benefit Sharing (ABS)

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3
Research Findings: Survey Questionnaire
Is your company / organization part of the government,
private sector (business), academic institution or non-profit
group? (Select the one which best describes your
company):
Government / state-
3
4
1
owned
Private Sector /
business
Academic institution
or research institute
Non-profit
organization
36
Response Rate = 5.74 – 8.74 %
What is the scope of your company / organization?
(Select one):
19.4%
Local or
comm nit
16.7%
16.7%
47.2%
community
National
Regional
International /
Global
How many employees does your company / organization
have?
1 - 10
11 - 100
101 - 500
501 - 1,000
1,001 - 5,000
More than 5,000
Not sure
Answer Options Response
Percent
Response
Count
ISO9000 8.6% 3
ISO9001 14.3% 5
Please identify which of the following standards and reporting mechanisms
your company / organization has adopted (Select all that apply):
ISO14000 25.7% 9
ISO14061 2.9% 1
SA8000 8.6% 3
UN Global Compact 8.6% 3
GRI, AA1000, or ISAE3000 0% 0
None 5.7% 2
I do not know which standards/certifications my
company has adopted.
34.3% 12
Does your company / organization have a recycling program? (Select
one):
17%
Yes
No
Not sure
23%
60%
Answer Options Response Percent Response Count
Paper 95.2% 20
Plastic 33.3% 7
Please indicate which materials your company recycles [Check all that apply]:
Plastic 33.3% 7
Electronic Equipment 33.3% 7
Used Printer Cartridges 38.1% 8
Not sure 4.8% 1

15-Sep-11
4
5 (Sometimes)
7 (Often)
25%
30%
How often do environmental issues get discussed in the context
of your company’s daily operations and business model?
2
3 (Not Often)
4 6
8
9
10 (Everyday)
0%
5%
10%
15%
20%
Does your company / organization have a corporate social responsibility (CSR)
program?
Answer Options
Response
Percent
Response
Count
Yes 71.9% 23
No 18.8% 6
Not sure 9.4% 3
answered question 32
skipped question 4
What are the priorities of your company’s CSR program [Please select a maximum of
two responses]:
Answer Options %
Response
Count
Sustainable development 56% 10
Education and job skills training for local people 50% 9
Environmental enhancement, improvement or
44% 8
restoration / Agriculture / Conservation
44% 8
Poverty reduction 22% 4
Preservation of local culture / historical sites 6% 1
Not sure 6% 1
Community infrastructure improvement 0% 0
Other (please specify) 2
answered question 18
skipped question 13
Disqualified for not following instructions: 5
20%
25%
30%
35%
40%
45%
50%
In your company / organization, approximately what percentage of
outreach programming is social and what percentage is
environmental?
0%
5%
10%
15%
20%
100%social
75%social/25%
environmental
50%social/50%
environmental
25%social/75%
environmental
100%
environmental
Notsure
Conclusion
1. The Interest of the Private Sector in Thailand in
Supporting or Implementing Actions or Programmes
Related to Biological Diversity
 The private sector in Thailand is
interested in supporting or
Would your company be interested in
partnering with the Thai government on
projects relating to biodiversity or
environmental management?
implementing actions or programmes
related to biological diversity and
many (> 50%) are already doing so
 One-third are interested in
partnering with Thai government on
environmental projects
Yes
No
Maybe
Not sure
Conclusion
2. Engagement in Multi-stakeholder Approaches to
National Biodiversity Management
 No businesses (0%) had ever knowingly been contacted by the Ministry
of Natural Resources and Environment (MONRE) or the Office of Natural
Resources and Environmental Policy and Planning (ONEP)
 Most businesses, however, are willing to contribute to public-private
partnerships in certain thematic areas:
 Capacity Building
 Advisory Services
Recommend: Government or academia should initiate engagement
in relevant thematic areas, and ensure that project costs are
monitored and managed effectively

15-Sep-11
5
Conclusion
3. Participation Levels and Types of CBD-relevant Activities
Among Businesses Already Taking Action
 Two-thirds of businesses already implementing environmental outreach
projects
 Main types of outreach projects:
yp p j
 Environmental impact assessment / company footprint (69.6%)
 Reforestation (47.8%)
 Environmental project financing (43.5%)
 General conservation (34.8%)
 Climate change (21.7%)
Conclusion
4. CBD Articles and COP Decisions Currently
Being Implemented by Businesses
 Awareness of CBD is low in the private sector
 Most companies will not have the technical knowledge to link their
p g
activities to CBD Articles and COP decisions
Recommend: The ONEP, as CBD focal point agency, should take
lead in identifying linkages between business and CBD Articles and
COP decisions
Recommendations for Future Research
• Research into how private sector businesses prefer to be engaged
by other stakeholders like government
• Research should strive to increase the scale of participation by
focusing on wider distribution of the research mechanism (i.e.,
online survey)
online survey)
• Research to understand the demographic of the private sector in
Thailand (company size, distribution, etc.)
Thank you!
Thesis Title: “An Assessment of the Relationship of the Private Sector to the
National Implementation of the Convention on Biological Diversity: A Case
Study of Thailand”
Learn more atLearn more at::
Website: http://walker-young/publications/
(full access to published papers, articles, etc.)
Chulalongkorn Library: http://library.car.chula.ac.th/
Contact: walker@walker-young.com

Private Sector Engagement in Environmental Outreach Projects in
Thailand
Walker Young 1
1
Environment, Development and Sustainability Program, Graduate School
Chulalongkorn University, Bangkok, Thailand
Abstract. As a Party to the Convention on Biological Diversity (CBD), Thailand has to comply and
implement at the national level the articles of the Convention as well as the decisions adopted by the
Conference of the Parties (COP). At the same time, academic and public sector stakeholders involved in
Thailand’s implementation of the CBD have experienced low levels of interaction with the private sector. A
survey was undertaken to understand the sentiment of the private sector in Thailand towards corporate social
responsibility (CSR), the CBD, and public-private partnerships. A total of 36 companies participated, with a
response rate equal to or less than 6.58%. Respondents displayed low familiarity with the CBD (35.3%) but a
high level of engagement (65.6%) in environmental outreach projects. To better engage the Thai private
sector in environmental outreach partnerships, the public sector should consider tailoring engagement
requests to focus on those issues which appeal to the business community and those needs where private
contributions (e.g., financial, technological, managerial) are most likely to be provided.
Keywords: Private sector engagement, corporate social responsibility (CSR), Convention on Biological
Diversity (CBD)
1. Introduction
The Convention on Biological Diversity (CBD) is an international multilateral environmental agreement
which came about through the collaborative efforts of the 172 governments which participated in the United
Nations Conference on Environment and Development (also known as the ‘Earth Summit’) from June 3 to
June 14, 1992. As stated in Article 1 of the Convention, the objectives of the CBD: are the conservation of
biological diversity, the sustainable use of its components and the fair and equitable sharing of the benefits
arising out of the utilization of genetic resources, including by appropriate access to genetic resources and by
appropriate transfer of relevant technologies, taking into account all rights over those resources and to
technologies, and by appropriate funding [1].
More than simply a multilateral agreement on environmental management, the CBD can be envisaged as
the major international agreement governing sustainable development in that it goes into trade and
development alongside sustainable use of natural resources.
Thailand signed the Convention on June 12, 1992, and undertook ratification on January 29, 2004. As a
Party to the CBD, Thailand has to comply and implement at the national level the articles of the Convention
as well as the decisions adopted by the Conference of the Parties (COP). The implementation of the
Convention is meant to be a multi-stakeholder process inclusive of the business community. In the last three
meetings of the Conference of the Parties (COP) to the CBD (COP-8 in Curitiba, Brazil; COP-9 in Bonn,
Germany; COP-10 in Nagoya, Japan), the significance of the private sector and business community has
reached a high point. Each has issued a decision which focused entirely on business and private sector
engagement.1
1
See COP-8 Decision XIII/17 (“Private-sector engagement”); COP-9 Decision IX/26 (“Promoting business engagement”); and COP-
10 Decision X/21 (“Business engagement”).
211
2011 International Conference on Environment and Industrial Innovation
IPCBEE vol.12 (2011) © (2011) IACSIT Press, Singapore

Further, the frequency of references to business and private sector has also increased. The COP decisions
adopted at the COP-8 meeting contain 46 instances of the word “private” (as in ‘private sector’) or the word
“business”; the number of same word appearances increases to 51 instances in the COP-9 decisions and even
higher to 81 instances of “private” or “business” within COP-10 decisions [2]. This can be understood to
represent the growing importance which the Parties to the CBD place on engagement with the private sector
and on businesses in particular; indeed, the term “business sector” appears with higher frequency in the
COP-10 decisions as opposed to “private sector”, something not previously seen in the COP decisions.
The increasing relevance of the private sector to the national implementation of the CBD does not seem
to have resulted in higher levels of engagement with the business community towards such implementation.
Limjirakan, et al. (2009) conducted a survey with the public sector and academic employees in Thailand who
are engaged in the implementation of the CBD and found that 35 of the 100 survey participants experienced
low levels of collaboration with the private sector and only 20 of the 100 experienced a high level of
engagement [3]. However, insufficient private sector representatives participated in the 2010 study
conducted by Limjirakan, et al. (2009), hence the sentiments of the business community towards public-
private partnerships which focus on emergent environmental issues representative of the CBD were not
assessed at the time. However, the initial study provided the basis for the research described herein.
There are emerging trends in the business community, such as the growth in corporate social
responsibility, which give precedent to the idea of businesses engaging in environmental projects. Corporate
social responsibility (CSR) can be defined as the treatment of a company’s internal and external stakeholders
in an “ethically or in a responsible manner” as is “deemed acceptable in civilized societies” in an effort to
“create higher and higher standards of living, while preserving the profitability of the corporation” [4].
“Social” here is understood to include environmental as well as economic target issues. In this view, CSR is
a voluntary mechanism whereby corporations could elect to address environmental issues which are relevant
to the kinds of thematic areas raised by the CBD, such as climate change adaptation, carbon emissions
trading, and reforestation to name but a few.
In order to understand the preferences of the business community and the interest of the private sector in
the thematic areas which comprise the CBD, many questions need to be asked. For instance, are Thai
businesses engaging in environmental outreach projects which could contribute to national implementation
of the CBD? If so, what are the most common thematic areas of engagement? Are Thai businesses
embracing CSR, and if so, are they focusing efforts on environmental issues or social development?
Answering these kinds of questions would be extremely helpful for Thailand’s national implementation of
the CBD. An online survey questionnaire is a simple and effective way to pose such questions to numerous
businesses.
2. Methodology
An online survey questionnaire was distributed via e-mail and accessible via the Internet. The survey
contained a total of 27 multiple choice questions, some with optional write-in answers. In order to give
greater accessibility to the diverse business community in Thailand, the survey was made available in Thai
and English languages.
2.1. Audience
The survey was targeted at private sector businesses with operations in Thailand. Other stakeholders
such as non-governmental organizations (NGOs) and academia were not eligible to participate in the survey
since the questions were specifically formulated to gauge certain elements of private sector sentiment and
decision-making processes.
Within the private sector, all business types were eligible to participate including small and medium-
sized enterprises (SMEs) and corporations. The reason for the open eligibility to all business types and sizes
is because the CBD literature does not preclude any business type from engaging in the implementation of
the Convention and actually encourages engagement with all [5].
212

2.2. Administration
In order to reach as many members of the business community as possible, business groups and
associations were approached and asked to disseminate the survey information to their contacts via e-mail
distribution lists. Several groups agreed to do so, including the Net Impact Bangkok Professional Chapter,
the CSR-Thailand Yahoo! Group list, the Management System Certification Institute of Thailand (MASCI),
CSR-Asia, and the Danish-Thai Chamber of Commerce. The survey information was also distributed via
individual e-mails to business leaders and other potential private sector participants.
3. Sample of Survey Results
Only a sample of the survey results is given in this section because the entire responses covering all 27
questions in the survey are too lengthy to capture and discuss herein. Results to questions regarding
environmental outreach and corporate social responsibility (CSR) appear respectively in sections 3.2 and 3.3.
3.1. Response Rate and Demographic of Participants
The survey was known to reach at least 668 persons through all available channels described in section
2.2 above. However, given that not all distribution contacts confirmed the number of persons to whom the
survey was sent, there is some margin of error whereby more persons may have received the survey
invitation. A total of 44 responses were received, resulting in a response rate equal to or less than 6.58%.
This rate is in line with expected rates of similar online survey responses as recorded by Marcussen [6].
Of the 44 responses, eight were declined access to the survey due to ineligible affiliations (i.e., academic
or public sector workers), leaving the number of participants at 36 unique businesses. These participants
came from a variety of industries as shown in Table 1. The variety of responses reflects the diversity
emblematic of the Thai private sector.
Table 1 Types of industries which participated in the survey
Answer Options
Response
Percent
Response
Count
Banking / Finance 11.1% 4
Mining / Cement / Paper 2.8% 1
Electricity / Oil / Power 13.9% 5
Legal / Consulting / Advisory services 16.7% 6
Food / Beverage 5.6% 2
Healthcare 2.8% 1
Retail sales 8.3% 3
Agricultural / farming / grocery 2.8% 1
Hotel / Hospitality 8.3% 3
Manufacturing 8.3% 3
Other 19.4% 7
The employee size of participating companies was as diverse as the number of industries. The majority
of respondents (52.8%) worked in companies which employed between 11 – 500 people, while 25% worked
for companies employing between 501 – 5,000 people. Only three participants (8.3%) worked for large-scale
corporations with more than 5,000 employees and only five (13.9%) worked for small-scale businesses with
ten or less employees.
Most of the respondents (47.2%) indicated that their company was international or global in scope. Only
six of 36 participants (16.7%) worked for companies within a national scope, equivalent to the number of
participants working for regional companies. The rest of the participants (19.4%) worked for companies
focused at the community and local levels.
3.2. Environmental Outreach
Participants were asked whether their company is involved in any environmental outreach projects, to
which 21 of 32 respondents (65.6%) stated that their company was involved and nine (28.1%) were not. Two
respondents were unclear while four participants skipped the question.
213

The 21 respondents who confirmed their employer’s involvement in environmental outreach projects and
the two respondents who were not sure about their company’s outreach efforts were also asked to specify the
types of environmental outreach projects in which their employer is involved in. Their responses, shown in
Table 2 below, indicate a preference among the participating companies for energy and environmental
footprint issues (i.e., improving resource utilization efficiencies), followed closely by ecosystem restoration
and financial support for environmental programs.
Table 2 Types of environmental outreach projects implemented by participating businesses
Answer Options
Response
Percent
Response Count
Ecosystem restoration (i.e., Reforestation /
tree planting)
47.8% 11
Agricultural 13.0% 3
Marine / Coastal / Water-related 21.7% 5
Conservation-related 34.8% 8
Plant genetic research / technology 4.3% 1
Financial support or donations in support of
environmental programs or agencies
43.5% 10
Environmental impact (i.e., shrinking the
energy usage / company footprint)
69.6% 16
Climate change and biodiversity 21.7% 5
Other 26.1% 6
3.3. Corporate Social Responsibility (CSR)
Of the 32 participants who responded to a question on the presence of CSR within their organization, 23
(71.9%) indicated their organization has a CSR program while six (18.8%) did not. Pressed to indicate the
two main thematic priorities of their CSR program, most respondents indicate a higher preference placed
upon thematic areas with a social development aspect such as sustainable development (56%) or education
and job skills training (50%). Table 3 lists the two highest priorities of participating companies’ CSR
programs.
Table 3 Main priorities of CSR programs within participating businesses
Answer Options % Response Count
Sustainable development 56% 10
Education and job skills training for local
people
50% 9
Environmental enhancement, improvement or
restoration / Agriculture / Conservation
44% 8
Poverty reduction 22% 4
Preservation of local culture / historical sites 6% 1
Not sure 6% 1
Community infrastructure improvement 0% 0
Other 11% 2
4. Conclusion
With the understanding of environmental outreach and CSR based on the research findings above, many
answers are reached with respect to the questions posed at the introduction (section 1).
Are Thai businesses engaging in environmental outreach projects which could contribute to national
implementation of the CBD?
Yes; 65.6% of participating companies are engaged in environmental outreach projects.
If so, what are the most common thematic areas of engagement?
214

The lessening of environmental impacts (i.e., energy footprint), reforestation and ecosystems restoration, and
financial support for environmental programs are the most commonly cited types of outreach which
businesses engaged in.
Are Thai businesses embracing CSR, and if so, are they focusing their efforts on environmental issues
or social development?
Yes; 71.9% of participating businesses have a CSR program, focusing on both environmental and social
issues but with a slight preference for the latter.
These results provide a way for public sector stakeholders such as government agencies to improve their
collaborative efforts with the private sector towards implementation of the CBD. By focusing on those issues
which companies address already in their outreach efforts (i.e., energy efficiency, reforestation) instead of
low priority areas (i.e., genetic research, biotechnology, agriculture), government agencies may improve the
likelihood of finding a partner from the business community. If social issues such as sustainable
development, education and training into environmental programs, this may also make such programs more
attractive to the private sector to engage in via mechanisms like CSR.
5. Acknowledgements
This research paper stems from the broader body of research conducted as part of a Masters thesis in the
Environment, Development, and Sustainability (EDS) program at Chulalongkorn University in Bangkok,
Thailand. The thesis is entitled “An Assessment of the Relationship of the Private Sector to the National
Implementation of the Convention on Biological Diversity: A Case Study of Thailand”. Sincere thanks are
to be given to my thesis principal advisor, Dr. Sangchan Limjirakan, for her assistance throughout the
process. The survey respondents are also thanked for taking the time to participate in the research.
6. References
[1] SCBD. Article 1. Objectives. Convention on Biological Diversity. [Online] November 2, 2006. [Cited: August 17,
2009.] http://www.cbd.int/convention/articles.shtml?a=cbd-01.
[2] SCBD. COP Decisions. Convention on Biological Diversity. [Online] 2011. [Cited: February 2, 2011.]
http://www.cbd.int/decisions/
[3] S. Limjirakan, W. Young, N. Tontakul. Thailand’s National Capacity Self-Assessment: Convention on Biological
Diversity. Bangkok: Office of Natural Resources and Environmental Policy and Planning (ONEP), 2009.
[4] M. Hopkins. The Planetary Bargain: Corporate Social Responsibility Matters. London: Earthscan, 2003, p. 10.
[5] SCBD. COP 10 Decision X/21: Business engagement. Convention on Biological Diversity. [Online] October 29,
2010. [Cited: March 18, 2011.] http://www.cbd.int/decision/cop/?id=12287.
[6] C.H. Marcussen. Response Rates in Internet Surveys. Centre for Regional and Tourism Research. [Online]
September 11, 2001. [Cited: March 6, 2011.] http://www.crt.dk/uk/staff/chm/wap/survey/response.pdf.
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The Role of the Business Community in Environmental Governance: Biodiversity, CSR and Private Sector Engagement in Thailand

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