No. 63 / 2014
Tuesday 06 May 2014
Bangkok, May 6, 2014 – The SEC supports Thaipat Institute to develop “the first CSR and Anti-corruption progress indicators for Thai listed companies”, with a six level assessment of 0-5. In the first assessment, all listed companies are expected to achieve Level 1, signifying intent to comply with laws and regulations with ability to communicate with all stakeholders.
Vorapol Socatiyanurak, SEC Secretary-General said that “Besides performances, investors nowadays have shifted their investment attitudes towards sustainability of the companies. Thus, the SEC has underlined and pushed for sustainable development of the listed companies based on (1) Self Discipline, (2) Market Discipline and (3) Regulatory Discipline.
Although, CSR and Anti-corruption significantly contribute to sustainable development, there was no indicator to help clearly assess progress of developing either of them. The SEC therefore supports Thaipat Institute to develop the first progress indicators in Thailand, in line with international standard. The indicators will be of use in assessment of two aspects, namely CSR Progress Indicator and Anti-corruption Progress Indicator, ranging from basic to ultimate level of development. With information on progress level of CSR and Anti-corruption development resulted from the assessment, all listed companies will be beneficial to apply such information to formulate their business strategies. Once listed companies do their businesses by taking into account of all stakeholders from internal to community and society level, their businesses will become sustainable.
Despite listed companies’ effort in respect of CSR and anti-corruption has been appreciated, levels of progress among them remain vary. As such, the SEC urges them to give priority on and continuously develop to attain sustainability. In this year, at least Level 1 assessment results are expected for all listed companies, indicating intent to comply with all relevant laws and regulations with ability to communicate with all stakeholders. For much developed listed companies, they can apply the indicators to attain even better results. Besides, investors and stakeholders can use assessment results in making consideration to do business or making investment. Assessment results will be available on the SEC website approximately by the third quarter of this year.”
Pipat Yodprutikarn, Thaipat Institute Director revealed that “Thaipat Institute was selected to assess sustainable development progress for the listed companies in consistent with the Institute’s “collaborative effort” in combining strength and expertise of each organization to magnify the impact and eventually become “Social Partnership”.
Evaluating the listed companies’ level of CSR progress encompasses level 1 to 5 including-
Level 1 – Basic: indicating intent to comply with relevant laws and regulations, activities relating to strategic intent with ability to communicate with all stakeholders.
Level 2 – Engaged: indicating intent to mitigate impact from business operation on community and society.
Level 3 – Integrated: indicating intent to allow community and society to be a part of upstream and downstream in supply chain.
Level 4 – Innovative: indicating intent to establish a shared value between society and enterprise, including valued chain and collaboration with stakeholders.
Level 5 – Sustained: indicating intent to set a sustainable roadmap embracing mutual responsibility to ecology and disclosure of information in every aspect.
Anti-corruption progress indicator comprises level 1 to 5 as follows:
Level 1 Committed: indicating commitment of top executive and the organization with board of directors’ resolution and policy not to involve with corruption.
Level 2 – Declared: indicating determination by means of declaration to join Collective Action Coalition (CAC) Project by Thai private enterprises.
Level 3 – Established: indicating policy to oppose bribing government officials and those related to corruption as well as policy to communicate and educate employees regarding anti-corruption policy and practices.
Level 4 – Certified: indicating an implementation audited by audit committee or SEC-approved auditor, a certification by Collective Action Coalition (CAC) or an audit by independent external organizations.
Level 5 – Extended: indicating anti-corruption policy which extends to business partners, consultants, intermediaries and business representatives.