The wave of construction of hydro-power plants in the central region of Vietnam is sparking fears of an environment disaster because streams and rivers are being emptied. It is feared that 1.7 million people will be short of water for nine months a year, from January to September. Moreover, over 20,000 hectares of agricultural land in the lower reaches of the Vu Gia river will lack water. The construction of many hydro-power plants on the same river will affect flows downstream. Da Nang will be one of locations that suffers the most once river flows dry up. It is a typical example of how one environmental solution (creating renewable energy) ends up causing another enviromental problem (water shortages). We should not always assume that 'clean energy' is good for the environment and in Vietnam it seems that hydropower is going to lead to serious environmental and social consequences. Full story here.

We rarely write about Mongolia in our blog, so I think it is about time we recified that and said something about the fact that CSR is very much alive there. I saw a recent article reporting on the Mongolian Forum on Corporate Social Responsibility. It  reported on a meeting involving the business sector, civil society, academic community and NGOs which discussed issues relating to CSR as well as initiatives taken by the Mongolian companies. But I have recently also come across CSR activities amongst Mongolian companies through some other projects I am involved with and what comes across is a huge enthusiasm for CSR and a real desire to know how CSR can contribute in a developing country like Mongolia. The problem is money, though. There is not much of it around and there is a real need for some capacity building and training. But when one considers that it is possible to do quite a lot in Mongolia for very little money, I wonder why some of the leaders in the CSR field don't try and partner with some of the local Mongolian companies that really have a thirst for engagement on CSR practices. For starters, I'll run a course there for free if someone stumps up some cash to help Mongolian companies attend. Any takers?

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As our global climate destabilizes, there will be an increase in water stress, food scarcity, the prevalence and intensity of diseases, and the loss of homelands and jobs around the world. Climate change is likely to affect human rights such as the right to life and security, the right to food, and the right to health. In spite of these interdependencies, the relationship between climate change and human rights has only recently been acknowledged but receives scant attention. One reason is that the human rights community needs to broaden its focus from specific, visible impacts on human rights to likelihoods caused by climate change over time. Another challenge is that business approaches to managing climate change have tended to focus on quantifiable risk as opposed to more holistic appraisals. But this article provides some much needed insights into the issue. It says that because the effects of climate change are cumulative, and, so far, those effects have been relatively slow and incremental, we have tended to overlook human rights impacts. There is a need for businesses to put in place long-term frameworks that take into account how climate change will impact business-relevant human rights issues. Based on this, risk mitigation strategies may deliver both climate and human rights benefits. More importantly, by taking an integrated look at these two challenges, businesses may help spark innovative approaches to accessible technologies, such as small-scale irrigation, drought-tolerant seeds, medicines, and weather-related insurance.

This is an interesting story from the BBC about how corruption is being tackled at Nepal's airport.  The 'Commission for the Investigation of Abuse of Authority' reports that it had sent a team to the airport to "observe the growing complaints about the behaviour of airport authorities and workers towards travellers".  The solution they came up with: staff at Nepal's main international airport are to be issued trousers without pockets.  Corruption is a unique challenge for all businesses, this is one practical step (although I have witnessed staff at airports hiding bribes under keyboards and in leaflets so perhaps the no pockets approach won't be 100% effective).   In this weeks CSR Asia Weekly we will have a review of Transparency International's 2009 Global Corruption Barometer, which includes information that shows half of surveyed respondents would pay more to buy from a corruption free company.  Is it feasible?

In a recent Robert Walters poll which asked if people were working harder due to the downturn, 55% out of the 2,600 respondents from 17 countries said they were working more hours per week. The stats from Asia are interesting:  59% of Singaporean respondents reported working between one to ten hours more a week, while in Hong Kong where workers report feeling the greatest impact of the downturn one-third of the respondents report working an average of eight to ten hours more per week. In Thailand, 40% of the respondents are putting in three to five extra hours in a week, while 30% of workers in China put in an average of six to eight hours weekly.  Perhaps the next survey will see if productivity has increased due to all those extra hours or if workers are simply scared to not be seen in the office in the current economic climate.

Stan Abrams has an interesting post on the so-called "Earthquake Coke Boy". Given the name by Chinese netizens, Xue Xiao is young boy who received a free college education from Coke after being rescued from the Sichuan earthquake; the first words he muttered through the pain were reportedly, "Uncle, please give me an ice cold Coke" (see more here and here). Quite a lot of commentary on this on the Chinese Internet; some critical of Coca Cola, some supportive.

The Thai paper The Nation includes an article today by two academics in Thailand who examine who should pay for climate change solutions.  They argue for the 'beneficiary pays' rather than the 'polluter pays' principle and then conclude that "Based on oriental wisdom, aligning economic development and climate change solutions must not only emphasise economic efficiency and green technology, but also tackle unnecessary and wasteful consumption. The Asia-Pacific region offers several alternative models, including Bhutan's Gross National Happiness and His Majesty the King's Sufficiency Economy theory, both of which may need to be discussed, studied and adopted in concrete ways".  It is very clear that new economic models are needed and that those who are benefiting should pay but it will be a mammoth task to address the issue of consumption - it would be interesting to see what discussions about responsible consumption would look like in the Bangkok malls that were bursting to the seams this afternoon!

A survey by the Singapore Business Federation says that only one in four companies in Singapore is prepared to deal with a H1N1 flu pandemic. I suspect that figure would be significantly lower amongst SMEs across the region, which will find it difficult to implement the kind of arrangements that bigger companies can (such as a business continuity plan that includes making healthcare equipment available, visitor management, making provisions for a holding area in case a suspected case surfaces within the company's premises, and a system for alternative working arrangements from home). In companies where employees can't work at home (such as in manufacturing), staff could be split into smaller teams to contain any disease should there be an outbreak. More here.

-  Shell, human rights and corporate accountability
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A new study finds that 86% of consumers believe that profitable businesses can address social issues. The poll highlights the current state of key consumer perceptions in the area of corporate social responsibility. Nearly half of the consumers surveyed rank the economy as their top concern. But despite growing concerns about corporate corruption, economic recession and global instability, consumers believe companies can make a positive change in society through the products and services they sell. The research shows consumers' top expectations for business are that companies provide quality goods and services, provide good, stable working conditions for their employees, and operate profitably as well as responsibly (which I nevertheless still see as part of a good CSR strategy). Interestingly though consumers note that upon first impression, they are typically skeptical of business efforts to address social issues, with 31% feeling the efforts are a marketing ploy, and 16% feeling it takes a company away from its primary mission. You can see full results here.

A year and a half after a landmark labour law took effect in China, experts say conditions have actually deteriorated in China’s export-oriented factories. China’s exports are down and unemployment is rising because of the global slowdown. This is leading to growing evidence that factories are ignoring or evading the new law, and that the government is reluctant to enforce it. Many say that authorities fear that a crackdown on violators could lead to mass layoffs and even social unrest. Indeed, the economic downturn has given regulators the perfect excuse to ignore the law says this article. But the government has said Chinese courts are trying to cope with a soaring number of labour disputes, which have doubled to 693,000 in 2008. The article cites interviews with some factory owners who acknowledged that they were seeking ways to get around the lawit, complaining that its regulations were too costly and cumbersome. Lawyers say some local governments have issued their own competing rules or interpretations of the law that weaken it, to aid factory owners.

Earlier this month, the ITUC released its Annual Survey of Violations of Trade Union Rights, in which it denounces hundreds of cases of harassment, arrests, attacks and assassinations targeting trade unionists in 2008. According to the Survey, many governments in the region make themselves a party to the trade union rights violations committed by employers by tolerating a range of practices such as the massive use of temporary contracts, recourse to legal provisions prohibiting ‘the obstruction of business’ as a means of attacking unions, and the use of hired thugs or private security guards to intimidate trade unionists, etc. In several countries the procedures to be followed before strike action can be taken are so laborious that they render it virtually impossible. The Survey reveals that migrant workers are amongst the most frequent victims of fundamental rights violations. In South Korea, two leaders of the Migrant Workers’ Union were arrested and deported in 2008. In Singapore, Thailand, Malaysia and Taiwan, migrants are barred from holding trade union office. In Malaysia, the authorities are aided by a civilian volunteer corps to instil terror in migrant workers. Many of these migrants are domestic workers, who rarely have the chance to organise in order to defend their rights. You can see more here.

I think we should all be pleased to see the settlement of claims that Shell was complicit in the executions of Ken Saro-Wiwa and the other "Ogoni 9" in 1995, as well as numerous other human rights violations. This is an important development in an emerging system of accountability for international human rights violations and helps us to define corporate accountability. The case began in 1996 not long after the Ogoni 9 were executed by the military dictatorship of Sane Abacha. Ogoni is one of the oil-producing areas of the oil-rich Niger Delta. It has a population of a little more than half a million people. Shell's footprint loomed large in almost every aspect of Ogoni life. Oil operations contributed to the destruction of the environment. The Ogoni is a land of great poverty and few resources and remains that way today despite the billions of dollars of oil removed from it and other parts of the delta. Shell was the company alledged to be responsible for the human rights violations suffered by the plaintiffs because it actively assisted the military regime in a wide variety of ways. The public settlement provided $10.5 million to the plaintiffs and the estates they represented, including the fees and costs of litigation. In addition, the plaintiffs created a trust with an initial $5 million contribution for the benefit of the Ogoni people. Perhaps more importantly however, it demonstrates the need for much greater transparency and accountability in developing countries where issues of human rights are concerned. It means that any company exposed to potential human rights violations is going to have to look long and hard about its own operations and how they might be impacting people and the environment. Any company which doesn't start to think about this seriously might have to face court cases where a precedent has now been set. You can find the full account of the story here.

An interesting scheme in Japan: Three leading providers of electronic money services said they have asked the government to include their e-money cards on its list of goods and services exchangeable under the Eco-point system. The three companies are Aeon Co., IY Card Service Co., and bitWallet Inc. Under the Eco-point system, consumers receive points for refrigerators, air conditioners and digital terrestrial televisions designated by the government as environmentally friendly. Purchases must be made before the end of next March, and consumers can exchange their accumulated Eco-points for other goods and services. According to this report, the Eco-point system is financed by the government's economic stimulus package and aims to boost consumer spending and cut greenhouse gas emissions. You can see more the Eco-point scheme here.

-  Business, ecosystems and climate change 
-  Integrating sustainability on the board room agenda in Malaysia 
-  Corporate Foundations in Asia - Community Investment Roundtable, Singapore, 10 June 2009
-  The Amnesty International Report 2009 - Summary 

Is the question asked by a journalist in the unlinkable Business Times in Singapore today.  The article reviews a US faith based investment fund looking to expand in Asia. The article outlines the funds Environment, Social and Governance (ESG) criteria but then the journalist goes a step further and details the interviews with local Churches to ask whether any ESG criteria are applied to their investments.  The resounding answer at the moment is 'No'.  It will be interesting to see whether this changes going forward.

It's not an Asian story, but the new GM advertisement in the US (which aims to convince people that the company is reinventing itself as a "leaner, greener, faster...") has attracted a savage parody (posted on YouTube). GMreinvention.com is parodied as GMretardation.com, and on this site (where you can see both advertisements) the parody is lauded as the better of the two offerings. I wonder how long before we'll see this sort of thing in Asia...?

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