ASEAN-Korea Relations_ Enhancing Development Cooperation

					            ASEAN-Korea Relations: Enhancing Development Cooperation 1



ASEAN and ASEAN Foundation

       The Association of Southeast Asian Nations or ASEAN was established on 8
August 1967 in Bangkok by the five original Member Countries, namely, Indonesia,
Malaysia, Philippines, Singapore, and Thailand. Brunei Darussalam joined on 8 January
1984, Vietnam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia
on 30 April 1999.




                                                                            ASEAN Member
                                                                             Countries are:
                                                                           Brunei Darussalam
                                                                               Cambodia
                                                                               Indonesia
                                                                                  Laos
                                                                               Malaysia
                                                                               Myanmar
                                                                              Philippines
                                                                               Singapore
                                                                               Thailand
                                                                               Viet Nam




        The ASEAN region has a total area of 4.5 million square kilometers. In 2007, it
had a population of about 576 million, a combined gross domestic product of around US$
1,282 billion, and a total trade of about US$ 1,405 billion. The diversity of the region is
apparent in the fact that the largest country in terms of land area is 2700 times larger than
the smallest country; the country with the largest population has 570 times more people
than the smallest country; and the richest country has a GDP per capita that is 160 times
the poorest country. All the major religions are present in the region: Buddhism,
Christianity, Hinduism, and Islam; and ASEAN countries have various forms of
government ranging from monarchy to presidential and parliamentary.

1
 Paper presented by Dr. Filemon A. Uriarte, Jr., Executive Director, ASEAN Foundation, during the 10 th
ASEAN Forum held at the Press Center Building, Seoul, Korea on 16 October 2008.


                                                                                                          1
                     Area and Population


                          Land             Population (million)
       Country
                       (1000 km2)                 2007
Brunei Darussalam            5.8                    0.396
Cambodia                   181                    14.5
Indonesia                1,891                   225
Lao PDR                    237                     5.61
Malaysia                   330                    27.2
Myanmar                    677                    58.6
Philippines                300                    88.9
Singapore                    0.7                   4.59
Thailand                   513                    65.7
Vietnam                    329                    85.2
ASEAN                    4,464                   576



                    Economic Performance

                       GDP per capita             GDP total
      Country             (in USD)             (in billion USD)
                            2007                     2007
Brunei Darussalam        31,076                     12.23
Cambodia                    598                        8.66
Indonesia                  1,920                   432
Lao PDR                     736                        4.13
Malaysia                   6,880                   187
Myanmar                     216                     12.63
Philippines                1,653                   146.9
Singapore                 35,200                   161.5
Thailand                   3,740                   246
Vietnam                      837                     71.3
ASEAN                      2,227                  1,282




                                                                  2
        The ASEAN Declaration states that the aims and purposes of the Association are:
(a) to accelerate economic growth, social progress and cultural development in the region
and (b) to promote regional peace and stability through abiding respect for justice and the
rule of law in the relationship among countries in the region and adherence to the
principles of the United Nations Charter.

        In 2003 the ASEAN Leaders resolved that an ASEAN Community shall be
established by 2015. In this connection, the Leaders adopted the ASEAN Charter during
their Summit in Singapore in 2007. The Charter establishes the legal and institutional
framework of ASEAN and defines its purposes and principles.

         In recognition of the fundamental importance of improving the well-being of the
peoples of Southeast Asia and the need to promote ASEAN awareness and people-to-
people contact, the ASEAN Leaders agreed to establish the ASEAN Foundation on 15
December 1997 during the 30th ASEAN Anniversary Commemorative Summit in Kuala
Lumpur. Its aim was to help bring about shared prosperity and a sustainable future to the
entire ASEAN region. The Leaders also adopted ASEAN Vision 2020 foreseeing
“ASEAN as a concert of Southeast Asian nations, outward looking, living in peace,
stability and prosperity, bonded together in partnership in dynamic development and in a
community of caring societies … as well as a community conscious of its history, aware
of its cultural heritage and bound by a common regional identity.” ASEAN Vision 2020
stipulated to “use the ASEAN Foundation as one of the instruments to address issues of
unequal economic development, poverty and socio-economic disparities.”

        In line with ASEAN Vision 2020, the Hanoi Plan of Action (1998-2004) was
adopted at the ASEAN Summit in December 1998 advocating to “use the ASEAN
Foundation to support activities and social development programs aimed at addressing
issues of unequal economic development, poverty and socio-economic disparities” and to
“support the activities of the ASEAN Foundation to promote ASEAN awareness among
its people.”

       Subsequently, the Vientiane Action Programme (2004-2010) adopted at the
ASEAN Summit in November 2004, pursued the comprehensive integration of ASEAN
towards the realization of an open, dynamic and resilient ASEAN Community by 2020. It
called for strengthening the role of the ASEAN Foundation under the political
development section of the document in the context of increasing the participation of
various ASEAN bodies in moving forward ASEAN political development initiatives
through promotion of people-to-people contact. The Leaders also adopted the ASEAN
Socio-Cultural Community Plan of Action, which outlined the priority areas to be
undertaken by concerned bodies to advance ASEAN’s social agenda. In this regard, the
ASEAN Foundation was mandated to play an active role in supporting the
implementation of the Plan of Action, which included promoting access to information
and communications technology resources, enhancing ASEAN awareness through
language training and mass media and youth exchange activities.




                                                                                         3
       The twin objectives of the ASEAN Foundation as reflected in the Memorandum
of Understanding establishing it are as follows:

      It shall promote greater awareness of ASEAN, and greater interaction among the
       peoples of ASEAN as well as their wider participation in ASEAN’s activities
       inter alia through human resources development that will enable them to realize
       their full potential and capacity to contribute to progress of ASEAN Member
       States as productive and responsible members of the society.

      It shall also endeavor to contribute to the evolution of a development cooperation
       strategy that promotes mutual assistance, equitable economic development, and
       the alleviation of poverty.

       In the same Memorandum of Understanding, the ASEAN Foundation is mandated
to support the following activities:

      Organize and support activities to promote education, training, health and cultural
       life.
      Provide assistance to uplift the social condition of the peoples in the ASEAN
       Member States.
      Provide fellowships to and support exchanges of ASEAN youths and students.
      Promote collaborative work among academics, professionals and scientists.
      Implement projects assigned by ASEAN Leaders or Ministers.
      Collaborate with the relevant ASEAN bodies.
      Organize its own projects and actively raise funds for the Foundation’s activities.

      Article 15 of the ASEAN Charter provides additional mandate to the ASEAN
Foundations as follows:

      The ASEAN Foundation shall support the Secretary General of ASEAN and
       collaborate with the relevant ASEAN bodies to support ASEAN community-
       building by promoting greater awareness of the ASEAN identity, people to people
       interaction, and close collaboration among the business sector, civil society,
       academia, and other stakeholders of ASEAN.

      The ASEAN Foundation shall be accountable to the Secretary General of
       ASEAN, who shall submit its report to the ASEAN Summit through the ASEAN
       Coordinating Council.

        Academic, cultural, economic, social and other relevant government institutions
and bona fide non-governmental organizations of ASEAN member countries are eligible
for assistance from the Foundation in conformity with its stated objectives.

       The day-to-day operation of the ASEAN Foundation is supported from the
earnings of the endowment fund and the operational fund coming from voluntary
contributions of ASEAN Member Countries. Project funds, on the other hand, come from


                                                                                        4
contributions from various donors including the Government of Japan, International
Development Research Center Canada, Republic of Korea, People’s Republic of China,
Government of France, Hewlett-Packard, and Microsoft.

       As of March 2008, the ASEAN Foundation has supported 121 projects in the
areas of social development, science and technology, environment, and culture and
information amounting to $17.6 million. Of these, 91 projects have been completed
amounting to $11.36 million while 30 projects are on-going amounting to $6.24 million.




                AF Projects (March 2008)

                              Number of            Amount
            Field              projects          USD (million)

  Social Development              94                    14,336,844

  Science & Technology            12                     1,357,519

  Environment                     5                        678,265

  Culture & Information           10                     1,210,467

  Total                          121                    17,583,095




                       Completed Projects

                                   Number of         Amount
               Field
                                    projects       (USD Million)

    Social Development                 72              8,622,974

    Science & Technology               8                 998,735

    Environment                        4                 577,793

    Culture & Information              7               1,146,229

    Total                              91             11,345,731




                                                                                    5
                           On-going Projects

                                              Number of           Amount
                     Area                      projects         USD (million)

      Social Development                           22               5,713,870

      Science & Technology                          4                 358,784

      Environment                                   1                 100,472

      Culture & Information                         3                   64,238

      Total                                        30               6,237,364



        To further achieve its mandates, the ASEAN Foundation will focus its efforts
during the next few years on promoting ASEAN awareness and identity; developing new
partnerships with various ASEAN stakeholders; further engaging the youth in ASEAN
community building; collaborating with corporate foundations in ASEAN and Dialogue
Partners; working more closely with non-government organizations in poverty
alleviation; and establishing regional scholarships and awards to develop and recognize
excellence in the ASEAN region.

ASEAN-ROK Development Cooperation

        The sectoral dialogue relations between ASEAN and the Republic of Korea
started in November 1989. The Republic of Korea became a full Dialogue Partner of
ASEAN in July 1991. The importance of ASEAN-ROK relations is probably summarized
in the following statement: “It is quite clear that as ASEAN’s ties with key regional
partners deepen, Korea will emerge as a pillar for economic integration in Asia, linking
China, India, and Southeast Asia.” 2 The importance of development cooperation between
ASEAN and Korea is driven by the deepening interdependence between the two
economies and it is expected to grow in importance in the coming years.

       At the 4th ASEAN Informal Summit held in 2000 in Singapore, ASEAN and the
Republic of Korea identified areas of information technology, human resources
development, cultural exchanges, medical assistance and Mekong Basin development
cooperation, as priority areas for cooperation. Since then, ASEAN-ROK development
cooperation has been expanded to cover areas of trade, investment, tourism, science and
technology, and environment. Cooperation in the areas of human resource development,


2
 Leong, H. K. (ed.), ASEAN-Korea Relations: Security, Trade and Community Building, Institute of
Southeast Asian Studies, Singapore, 2007. The quote is taken from the Introduction written by Dr. Ho
Khai Leong.


                                                                                                       6
people-to-people exchange and bridging the development gaps has been given due
attention.

        The Joint Declaration on Comprehensive Cooperation Partnership between
ASEAN and ROK, which was issued by the Leaders of ASEAN and ROK during the
ASEAN-ROK Summit held in Vientiane in 2004, provides a list of strategies of action
fro the comprehensive cooperation partnership in eight areas:

      Enhancing political and security cooperation
      Enhancing closer economic relations
      Narrowing the development gaps within ASEAN and between ASEAN and the
       ROK
      Enhancing competitiveness and promoting knowledge-based economy, and
       cooperation in the fields of education and science and technology
      Enhancing mutual understanding
      Promoting cooperation in coping with emerging global challenges
      Cooperation in regional and international arena
      Deepening East Asia cooperation.

         The ASEAN-ROK comprehensive cooperation partnership provides, among
others, for building a knowledge-based economy by strengthening human and
information capital and technology through knowledge-sharing by linking learning
institutes and promoting a cooperation mechanism for an information society. Under this
partnership, ROK will assist ASEAN in securing the necessary physical and knowledge-
based infrastructure to harness information, knowledge and technology to improve the
welfare, education and competitiveness of the local communities.

       In promoting mutual understanding, the ASEAN-ROK partnership will promote
educational and cultural cooperation through programmes and activities such as
scholarships and exchange of cultural performances; promote people-to-people
exchanges among the academia, youth, media practitioners, artists, diplomats and cultural
experts to deepen mutual understanding and friendship; and expand mass media
exchanges. These programmes and activities, in particular, are of great interest to the
ASEAN Foundation as they fall squarely within its mandates and priorities.

       The latest meeting between the Heads of Government/State of ASEAN Member
Countries and the Republic of Korea took place in Singapore during the 11 th ASEAN-
ROK Summit in November 2007. At this Summit, the Leaders noted with satisfaction the
steady progress achieved in the implementation of the Plan of Action to Implement the
Joint Declaration of Comprehensive Cooperation Partnership.

       A number of ASEAN-ROK development cooperation projects have been
implemented and supported by the ASEAN-ROK Special Cooperation Fund (SCF) and
Future Oriented Cooperation Project Fund (FOCP). From 2000 to 2004, 51 projects were
implemented, 11 projects were ongoing, and 21 projects were pending implementation.



                                                                                       7
From 1990 to 2003 the ROK contributed about USD 17.7 million and USD 7 million to
the SCF and FOCP, respectively.

       The ROK is also providing support for ASEAN’s efforts to narrow the
development gap. It has pledged US$5 million and has taken up five IAI projects in the
areas of ICT, capacity building in trade in goods and services, e-government and
undertaking feasibility study for the missing links and spur links of the Singapore-
Kunming Rail Link Projects in CLMV countries.

       During the period from March 2007 to August 2008, a total of 15 projects
amounting to nearly $5.4 million were funded by the ASEAN-ROK Special Cooperation
Fund while 13 projects amounting to almost $3 million were funded by the Future
Oriented Cooperation Fund.



    Summary of On-going Projects Funded by Special Cooperation Fund
                                 (March 2007-August 2008)



                                 Project                                    Cost (USD)

Restoration of Degraded Terrestrial Forest and Mangrove Forest Ecosystems
                                                                              1,350,000
in ASEAN Region - Phase 3

Homecare for the Elderly People in the ASEAN Countries                         896,819

Developing Regional Standard Operating Procedures for the Return,
Recovery and Reintegration of Trafficking Victims in ASEAN Member              500,000
Countries
Planning Workshop to Develop an ASEAN Consortium of Schools of Social
                                                                                38,091
Work and Practices
A Comprehensive Survey on Southeast Asian Perceptions of Korea: Knowing
                                                                               250,000
Where Korea Stands in Future Cooperation with ASEAN
Building ROK-ASEAN Public Management Forum and Conducting
                                                                               177,120
Comparative Studies

ASEAN-ROK Cooperation Project Programme Officer - Phase 3                       36,842

Human Resources Development Programme for the Officials of ASEAN
                                                                               109,845
Countries

Total                                                                         3,358,717




                                                                                          8
Summary of Completed Projects Funded by Special Cooperation Fund
                                  (March 2007-August 2008)


                                 Project                                    Cost (USD)

ASEAN-ROK Cooperation Technology Transfer Programme on Integrated
                                                                               150,000
Rural Development Planning
ASEAN Cooperation Project for Programming, Information Technology
                                                                                48,102
Management, Ubiquitous Computing

Workshop on the Use of Wireless Technologies to Bridge the Digital Divide       26,040
 th
8 ASEAN Science and Technology Week: Preparation of ASEAN and ROK
                                                                                53,223
Scientists in Exhibits and Scientific Conferences
ASEAN-ROK Cooperation on Industrial Use of Marine Biological Resources:
Assessment of the State of the Art of Marine Biotechnology in the ASEAN        279,650
Region
Technology Cooperation on Improvement of Efficiency in the Handling of
                                                                               230,000
Perishable Crops in ASEAN Countries

ASEAN-ROK Training Programme on Aquaculture Technology                          51,518

Restoration of Degraded Forest Ecosystem in the Southeast Asian Tropical
                                                                               372,200
Regions - Year 7
Restoration of Degraded Forest Ecosystem in the Southeast Asian Tropical
                                                                               322,300
Regions - Year 8

ASEAN Post-Doctoral Fellowships Year 2002-2003                                 300,000

Study Visit on Integrated Solid Waste Management to ROK by ASEAN City
                                                                                68,728
Officials

ASEAN – ROK Cooperation Project Programme Officer - Phase 2                     35,040

The 4th Joint Planning Review Committee’s Informal Working Level Meeting        24,646

The 9th Meeting of the ASEAN-ROK Joint Planning Review Committee                31,512

The 10th Meeting of the ASEAN-ROK Joint Planning Review Committee               45,236

Total                                                                         2,038,195




                                                                                          9
    Summary of Projects Funded by Future Oriented Cooperation Fund
                                 (March 2007-August 2008)



                                  Project                                Cost (USD)

Completed (7)
                                                  th
ASEAN-ROK Future Oriented Youth Cooperation: 9 Korean-ASEAN Youth
                                                                           300,000
Exchange Programme 2007

Korea-ASEAN Academic Exchange Programme 2006-2007 (Year 1)                 299,500

Exchange Visit of ASEAN and ROK Officials 2006                             148,742

Exchange Visit of ASEAN and ROK Media People 2006                          154,814

International College Student Exchange Program Between ASEAN and ROK -
                                                                           256,353
Year 5

Forum for ASEAN Junior Diplomat on International Affairs                   109,859

ASEAN-ROK Knowledge Transfer Programme on Narcotics Crime - Year 1         335,634

Subtotal of completed projects                                           1,604,902

On-going (6)

The Korea-ASEAN Future Oriented Cooperation Project: Youth Exchange
                                                                           220,000
Program 2008

Korea-ASEAN Academic Exchange Programme - Year 2                           296,500

2008 Exchange Visit of ASEAN and Korean Media People                       148,852

2008 Exchange Visit of Korean and ASEAN Officials                          142,780

International College Student Exchange Program Between ASEAN and ROK -
                                                                           227,354
Year 6

ASEAN-ROK Knowledge Transfer Programme on Narcotics Crime - Year 2         335,000

Subtotal of on-going projects                                            1,370,486

TOTAL OF PROJECTS                                                        2,975,388




                                                                                     10
ASEAN Foundation-ROK Cooperation

         The share of the ASEAN Foundation in development cooperation funds from the
Republic of Korea is still rather limited. In December 1999, the Government of the
Republic of Korea, through its Ambassador to the Republic of Indonesia, H.E. Hong
Jung-pyo, contributed the amount of US$200,000 to the ASEAN Foundation to support
activities in the fields of social and economic development of ASEAN countries. The use
of this fund is guided by the Notes on the Financial Contribution from the Government of
the Republic of Korea to the ASEAN Foundation.

       As of August 2008, nine projects have been supported using the Korean Fund,
amounting to around $162,000, leaving a balance of about $38,000. The nine projects
cover various areas including science and technology and ICT, culture, and promoting
ASEAN awareness:

      Participation of ASEAN Scientists at the 2 nd ASEAN Science Congress of the 7th
       ASEAN Science & Technology Week

      Participation of ASEAN Foundation in the Academy of ICT Essentials for
       Government Leaders

      Phase II of the Youth@ASEAN Website

      1st ASEAN Puppetry Festival 2006

      1st Meeting of the ASEAN Puppetry Association

      ASEAN Awareness Survey

      ASEAN Awareness Forum and Workshop

      The Best of ASEAN Performing Arts: Rainbow of Indonesia – Mozaik
       Archipelago

      Increasing the Participation of ASEAN Women Farmers in IFAP Activities

       All projects are widely publicized and the support of the Republic of Korea is
duly acknowledged. In particular, the survey on ASEAN awareness and the subsequent
publication of the booklet on Awareness of and Attitudes Toward ASEAN, with funding
support from the Government of the Republic of Korea, provided widespread publicity
regarding the cooperation between the Republic of Korea and the ASEAN Foundation.




                                                                                     11
Prospects for ASEAN-ROK CSR Cooperation

        There is now broad agreement that corporate social responsibility encompasses
more than the traditional philanthropic activities and covers several key elements. These
elements generally include: corporate governance, human resource management,
regulatory compliance, environmental stewardship, community outreach and investment,
and human rights. In its most developed form, CSR is viewed as a core strategic function
in the enterprise. Accordingly, CSR activities must be consistent with the mission of the
organization and provide positive competitive outcomes. They must be aligned with the
concept of sustainable development and an equitable sharing of resources across society.

        Many companies implement their CSR activities through company-owned but
separately managed foundations. In Korea, there are three general types of foundations:
(a) corporate foundations or company-sponsored foundations, (b) small- and medium-
sized scholarship foundations, and (c) government-funded foundations established by
special laws or decrees.3 The major contributors to these foundations are companies,
wealthy people and the government. The contributed funds are then channeled by these
foundations into social welfare programs, scholarships and educational assistance to
needy students, the alleviation of social problems, and the like. In some cases the
foundations have taken over some of the functions of the government agencies or
ministries that established them.

        The Federation of Korean Industries (FKI) has recently set up a new committee
for corporate social responsibility and launched a program called the “1% Club”. The 1%
Club denotes the willingness of major member corporations of FKI to make social
investments. Although there has not been a major funding increase in the current
philanthropic program, the launching of the 1% Club clearly indicates that major Korean
corporations are now trying to redefine and reorganize their CSR strategies and activities
following a new paradigm.

         While the focus of corporate philanthropy in the late 1990s was providing needed
assistance to poor children and unemployed families, more recent programs are changing
their focus. The member companies of FKI are reorienting their activities and changing
their strategies on corporate social responsibility in the following ways:

       (a) The partial goal of corporate philanthropy should be the elevation of the
corporate image rather than of corporate owners. Therefore, FKI has minimized
acknowledging the donor’s name on major philanthropic gifts and instead has identified
only the corporation.

       (b) The pattern of giving has been changed from temporary one-time events to
employee-centered participatory fundraising campaigns. Many prominent corporations
have reported good responses from the public about their planned charitable events. For

3
 Asia-Pacific Philanthropy Consortium, “Strengthening Philanthropy in the Asia-Pacific: An Agenda for
Action”, Background Paper: Korea, July 2001. The related discussion in this section is taken from this
publication.


                                                                                                     12
example, Korea Highway Corporation installed charity boxes at the entrance of major
highways to collect money for the unemployed.

        (c) Many corporations have incorporated the win-win concept of corporate
philanthropy. This is the kind of cause-related marketing. Most notable among them is
SK Petroleum’s campaign to help children who miss regular meals because their families
cannot afford them. Whenever people buy gasoline, a portion of the price goes to the
campaign. Major credit companies have also launched a campaign to give a small portion
of their sales to disadvantaged children.

       In 2005 the Asia-Pacific Economic Cooperation (APEC) published a report
containing the results of a study on corporate social responsibility in 14 countries in the
Asia-Pacific region, including several ASEAN countries, namely, Indonesia, Philippines,
Singapore, Thailand and Vietnam. 4

        The APEC report noted similarities across all the 14 countries as follows:

       The origins and conceptualization of CSR is rooted in the historical and cultural
        traditions of each country, and is deeply influenced by ethical concepts and
        religious practice.

       There is common understanding that CSR is gradually moving from its historical
        focus on business philanthropy to a broader set of activities that engage business
        with the full range of its stakeholders and integrate the practice of CSR into the
        core strategy of the organization.

       For this transformation to occur to its full potential there must be a clear business
        case made articulating the benefits of CSR, and there must be buy-in to the
        concept by top management but this is difficult to achieve in practice in part
        because the practical tools to make CSR operational and to measure its benefits
        remain underdeveloped; nevertheless efforts at measurement and reporting are
        growing rapidly, in the belief that formal monitoring and evaluation of outcomes
        will enhance the credibility of CSR and make it easier to substantiate.

       Despite its strong roots in the traditions of each country, CSR has also evolved in
        response to profound external forces, including meeting legal and regulatory
        obligations and responding to the elite and broader public opinions that demand
        higher standards of accountability, for example, meeting environmental
        requirements and assuring appropriate labor standards throughout the supply
        chain.




4
 Corporate Social Responsibility in the APEC Region: Current Status and Implications, Asia-Pacific
Economic Cooperation, December 2005. The related discussion in this section is taken from this
publication.


                                                                                                     13
      To implement CSR activities, larger companies are increasingly turning to
       partnerships with other stakeholders including both governments and non-
       government organizations.

        The APEC report also observed that despite overall similarities among the 14
countries in the region, there were however notable differences between the experiences
of the developed economies and those of the developing economies.

        The CSR activities in the developed economies tend to have the following
patterns:

      There is great emphasis on the importance of environmental stewardship and the
       strengthening of environmental management practices.

      There is strong and active civil society involvement.

      The management of supply chain, including links to production in developing
       economies, often in response to well-articulated consumer concerns or activism
       serves as an important driver.

      There is tendency to have strong traditions of community outreach including
       corporate community investment that in both concept and practice extends beyond
       pure charity or philanthropy.

      Companies are increasingly engaged in strategic partnerships with stakeholders
       within communities in which they operate for mutual benefit.

      The major challenges tend to focus on the appropriate responses to globalization,
       identification and addressing gaps in CSR practices, the development of common
       standards of good practice throughout the supply chain, and in general assuring
       exemplary corporate behavior world wide.

        On the other hand, the practice of CSR in the developing economies tends to have
the following patterns:

      There is tendency to emphasize the role that multinational enterprises play in
       importing good CSR practices, which are then emulated by the local corporate
       community.

      The key drivers for CSR are the requirements of the global marketplace and their
       supply chains, for example, there are strong incentives for exporters to adopt
       appropriate practices (e.g. human rights, labor practices, environmental practices
       and food safety) to access markets or to attract overseas investment.

      Where there are weaker regulatory frameworks or more limited capacity to
       enforce legislation, there is tendency for global protocols to influence CSR


                                                                                      14
       practices to overcome local weakness and promote the capacity of local
       businesses to compete in global markets.

      The major challenges generally relate to raising further awareness of CSR, to
       build capacity within existing institutions that can drive the adoption of CSR, to
       make the case to the local business community to adopt CSR, and to transfer
       competencies to individual companies.

        A review of the findings of these two studies clearly indicates that there is scope
for close cooperation between ASEAN and ROK in the area of corporate social
responsibility. The concept and practice of corporate social responsibility in Korea are
rapidly evolving towards the same general trend as the entire region. And yet a s shown
by the APEC report, while there are similarities in the practice of CSR among the 14
developed and developing countries of the region, there are also clear differences in
pattern. Although already a developed economy, CSR patterns in Korea are probably
closer to those in the developing economies of the region. Accordingly, CSR cooperation
between ASEAN and ROK could address the challenges identified in the study such as
raising further awareness of CSR and identifying and addressing gaps in CSR practices,
developing common standards of good practice throughout the supply chain, and
transferring CSR competencies to individual companies. Since a number of Korean
companies have significant presence in many ASEAN countries, there is great scope for
the transfer of best CSR practices between ASEAN and Korea.

       In the proposed Blueprint for the ASEAN Socio-Cultural Community (2008-
2015), which is expected to be adopted by the ASEAN Leaders at the Bangkok Summit
in December 2008, importance is given to promoting corporate social responsibility. The
Blueprint will include as part of its strategic objectives ensuring that corporate social
responsibility is incorporated in the corporate agenda and contributes towards sustainable
socio-economic development in ASEAN Member States. The actions called for in the
proposed Blueprint respond precisely to the aforementioned challenges and include the
following:

      Develop a model public policy of corporate social responsibility or legal
       instrument for reference of ASEAN Member States by 2010. Reference may be
       made to the relevant international standards and guides such as ISO 26000 titled
       “Guidance on Social Responsibility.”

      Engage the private sector to support activities of sectoral bodies and the ASEAN
       Foundation in the field of corporate social responsibility.

      Encourage adoption and implementation of international standards on social
       responsibility.

      Increase awareness of corporate social responsibility in ASEAN towards
       sustainable relations between commercial activities and communities where they
       are located, in particular supporting community based development.


                                                                                        15
        Promoting corporate social responsibility will be a novel and challenging area for
possible cooperation between the ASEAN Foundation and the Republic of Korea. The
ASEAN Foundation has already initiated some activities in this area. The ASEAN
Foundation, through the Asian Institute of Management Center for Corporate Social
Responsibility, is aiming to establish an independent, self-sustaining network of ASEAN
corporate foundations, with the ASEAN Foundation as the key convenor. The proposed
network, which will aim to promote corporate social responsibility in the ASEAN region,
will be launched during the Asian Forum on Corporate Social Responsibility to be held
on 19-21 November 2008 in Singapore.

        The ASEAN Foundation-funded project which AIM is implementing will also
identify gaps among CSR programs of different ASEAN countries; document best
practices in CSR; and promote exchange of learning/experience with a view of
replicating proven successes across the region. For this purpose, partnerships will be
developed with groups of corporate foundations in individual ASEAN countries,
including but not limited to the League of Corporate Foundation in the Philippines, the
Philippine Business for Social Progress, the Singapore Compact for CSR, the Indonesia
Business Links, the Asia-Pacific Philanthropy Consortium, and others.

        The ASEAN Foundation will also be launching a program called “Friends of
ASEAN.” Friends of ASEAN are individuals, corporations, and regional and
international organizations that have faith and confidence in the future of the ASEAN
Community. They support the mission of the ASEAN Foundation to promote greater
awareness of ASEAN and interaction among the peoples of ASEAN and to contribute to
equitable economic development and alleviation of poverty in the region.

        Individuals can become Friends of ASEAN by making a contribution of $10,000
to the endowment fund of the ASEAN Foundation while corporations and regional and
international organizations can do so by making a contribution of $20,000. As Friends of
ASEAN, they will be entitled to the following benefits and services:

      Participate in an annual meeting or conference to be organized by the ASEAN
       Foundation during which papers are presented or lectures delivered by
       distinguished experts and personalities on subjects that are of interest and
       relevance to the ASEAN region.

      Receive copies of all publications of the ASEAN Foundation such as project
       information materials and brochures, annual reports, newsletters, and relevant
       project outputs or technical and policy papers and reports.

      Request copies of selected publications of the ASEAN Secretariat and the
       ASEAN Foundation will exert its best efforts to provide these in a timely manner.




                                                                                       16
      Request for copies of technical reports of projects funded by the ASEAN
       Foundation and/or policy papers prepared by organizations supported by the
       ASEAN Foundation.

      Names of Friends of ASEAN will be acknowledged and listed in the annual
       reports of the ASEAN Foundation, which will be widely disseminated, and
       selected stories of outstanding contributions will be featured from time to time.

      Names of Friends of ASEAN, including brief descriptions and photographs of
       them, will be featured in the website of the ASEAN Foundation.

      An attractive brochure of Friends of ASEAN will be prepared and widely
       disseminated containing relevant information about the individuals and
       corporations.

      The Friends of ASEAN will be presented a distinguished certificate recognizing
       their support and active practice of individual or corporate social responsibility.

        There is no doubt that there is tremendous scope for cooperation between the
ASEAN Foundation and Korea in the field of corporate social responsibility. Such
cooperation will be in line with the proposed Blueprint for the ASEAN Socio-cultural
Community. It will also be fully consistent with the strategies of action contained in the
2004 Joint Declaration on Comprehensive Cooperation Partnership between ASEAN and
ROK. Indeed many CSR projects and activities could be implemented to help narrow the
development gaps within ASEAN and between ASEAN and the ROK; enhance
competitiveness and promote knowledge-based economy; enhance mutual understanding
and friendship; and promote cooperation in coping with emerging global challenges.

        Cooperation between the ASEAN Foundation and Korea in this area could be
initiated by convening an ASEAN-ROK conference on corporate social responsibility.
Other possible follow-up activities would be the convening of a regular (once a year or
once every two years) ASEAN-ROK CSR Forum where participants can discuss
effective ways of integrating CSR into the corporate mission and vision and contributing
to knowledge sharing on CSR best practices and success stories as well as provide
substantive inputs to the on-going process of formulating ISO 26000 – Guidance on
Social Responsibility, which is expected to be completed in 2010. An ASEAN-ROK CSR
Award may also be established to recognize outstanding work on corporate social
responsibility. Eventually, joint CSR projects may be developed and implemented among
and between ASEAN and ROK corporations and corporate foundations, particularly with
those Korean corporations that have significant presence in ASEAN countries.
Furthermore, Korean corporation and research and policy organizations may be
encouraged to join Friends of ASEAN and actively participate in and support the work of
ASEAN, in general, and the ASEAN Foundation, in particular.




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Conclusion

        The Comprehensive Cooperation Partnership that was agreed upon by the Leaders
of ASEAN Member States and the Republic of Korea provides a wide scope for
cooperation between the ROK and the ASEAN Foundation. To cite just one example, the
mandate of the ASEAN Foundation under Article 15 of the ASEAN Charter to promote
greater people-to-people interaction and close collaboration among the business sector,
civil society, academia and other stakeholders is consistent with the aim of the
Partnership to enhance mutual understanding by promoting people-to-people exchanges
among the academia, youth and others; and to promote educational and cultural
cooperation through activities such as scholarships and exchange of cultural
performances.

        The ASEAN Foundation provides an alternative institutional avenue for ASEAN-
ROK cooperation that is more flexible and more able to closely link with the business
sector, corporate foundations and non-government organizations. Being a small
organization, the ASEAN Foundation is also able to move more quickly in approving and
implementing projects. A closer partnership and wider cooperation between the ASEAN
Foundation and the Republic of Korea will greatly contribute to deepening the already
close ASEAN-ROK Dialogue Relations.




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