Corporate Social Responsibility & Community Development in Myanmar
SRIc Insights By Pyae Phyoe Mon
In Myanmar, corporate social responsibility (CSR) plays a complex role by balancing community development, ethical business practices, and the challenges posed by political instability and cronyism.
Key Takeaways
CSR in Myanmar has shifted from philanthropic to more strategic, internationally aligned practices, but the 2021 military coup disrupted its progress.
Multinational enterprises face ethical challenges, focusing on community resilience and a ‘do no harm’ approach, while domestic crony firms use CSR as a PR tool to legitimise their operations.
Today, impactful CSR is measured by local communities’ benefits and contributions to long-term stability.
Corporate social responsibility (CSR) is a responsibility of businesses to take up accountability for their impacts on society, a social responsibility to themselves, their stakeholders, and the general public. It also means companies' commitment to work in a socially, environmentally, and ethically responsible way while contributing to sustainable development. Indeed, CSR is an active force in community development as its activities are focused on enhancing the quality of society's life. The CSR initiatives cover education, infrastructure, healthcare, and skills development.
Given the country's socio-political and economic context, CSR in Myanmar is relatively new compared to international standards. Under decades of military rule, isolation, and international sanctions, CSR in Myanmar was neither encouraged nor institutionalised. Myanmar folk philanthropy is traditionally based on the ideas of Buddhism, according to which gift-giving is interpreted as a way to gain merit and ensure a fortunate reincarnation. Myanmar people tend to think that rich people have somehow done something good in their past lives, which earned them the current wealth, and that they need to do the same to achieve a good status in their next life. While businesses frequently participate in philanthropic contributions to monasteries or other religious initiatives, these actions are often disconnected from formal community development or sustainability efforts. Moreover, both crony business people and military elites have been known to manipulate these religious principles to justify and legitimize their wealth and activities, portraying themselves as responsible and benevolent actors while engaging in practices that can harm society and the environment.
CSR Landscape in Myanmar
Before 2011, businesses in Myanmar were often dominated by state-owned enterprises and crony companies that were closely linked to the military regime. At that time, corporate social responsibility existed as philanthropy driven by the religious community or a desire for social standing rather than a strategic commitment to responsible business practices. This checkbook approach, which provides tangible benefits such as building pagodas or schools, lacked the modern CSR's structured, long-term focus characteristic. In Myanmar, these charitable works tended to be directed towards the idea of prhitt (parahita). This word is based on Pali: para means “other”, and hita means welfare or benefit. In this way, parahita means the actions undertaken for the welfare of others, without expectation of return. The concept is culturally and religiously entrenched among the Myanmar people, particularly among Theravada Buddhism—many Burmese regard such voluntary activities as more authentic and moral.
Later, Myanmar’s dual transition from state socialism to capitalism and dictatorship to democracy in 2011 experienced changes in the country’s political economy. This transformation encouraged foreign investment and the implementation of Corporate Social Responsibility (CSR) practices, which were critical in defining the country's socioeconomic landscape. With Myanmar becoming a part of the global economy, CSR has become the center of attention among businesses looking to align with international standards and positively contribute to society.
The Myanmar Centre of Responsible Business (MCRB) followed the definition of CSR implemented by the European Union in 2011, emphasizing companies' responsibility regarding the impact on society. The emergence of extractive industries, development projects, and special economic zones highlights the need for CSR practices to address land rights, environmental protection, labour standards, and community engagement.
One of the key assets is the report by MCRB, entitled Pwint Thit Sa ( Transparency in Myanmar Enterprises, TiME ), in which the researchers evaluate the transparency and corporate governance of the largest corporations of Myanmar. In its 2022 release of 271 companies, including 31 banks, 71 criteria were assessed based on the ASEAN Corporate Governance Scorecard (ACGS) and the Integrated Reporting Framework. The report showed that the average disclosure score was 8%, slightly better than the previous year’s 7%. It is noted that City Mart Holdings Limited, UAB Bank, and FMI (First Myanmar Investment) were identified as best performers, especially in corporate governance and sustainability reporting. These results underscore the increasing significance of transparency and CSR in the Myanmar business environment, particularly in the context of corruption and weak enforcement of regulations.
Furthermore, CSR is essential for multinational enterprises (MNEs) to maintain their reputation and social license to operate in host countries. Operating in a country with a history of human rights abuses and land conflicts brings evaluation from international investors, stakeholders, and civil society organizations. Thus, transparency and responsible corporate practices are crucial in reducing reputational risk. On the other hand, even though the domestic firms adopt international standards, many still view CSR through the lens of philanthropy in Myanmar.
CSR Practice: The Challenges Faced by Multinational Enterprises After the 2021 Military Coup
The 2021 military coup brings a new era of instability, affecting CSR and the community development context. The pre-coup CSR framework provided legal, environmental, and social impact assessment basics. It is difficult for companies to operate responsibly and for communities to seek justice.
The coup has also created an ethical dilemma for foreign companies. Many face pressure from human rights organisations and their home governments to withdraw their businesses from Myanmar. The reason is that their presence can be seen as legitimising the military regime and its actions. This has resulted in several high-profile withdrawals, including those by Chevron and TotalEnergies.
The challenge for remaining companies is navigating the uncertain environment while committing to human rights and community well-being. This requires a shift in focus from traditional CSR projects to more direct support for civil society, humanitarian aid, and initiatives that empower local communities, without providing resources to the military.
The current CSR framework is founded more on human rights and local resilience. Instead of large-scale infrastructure projects, businesses focus on small initiatives for local communities, providing local livelihoods to vulnerable populations. This "do not harm" approach is more critical than ever, as corporations must guarantee their operations do not directly or indirectly contribute to human rights violations or escalate violence.
CSR Practice: Crony Firms in Myanmar Today
Crony firms in Myanmar are businesses that have achieved success while maintaining close ties to the military government via corrupt partnerships. In Myanmar's "crony context," Corporate Social Responsibility (CSR) has a different meaning than its global definition. Instead of being a genuine commitment to ethical business practices and social good, crony firms often use CSR as a strategic tool to legitimise their operations and protect their political interests.
Crony companies use CSR as a way of public relations by providing funds for schools, clinics, monasteries, and disaster relief initiatives. They invest in high-profile philanthropy to build their brand image and distract from unethical or illegal activities, such as environmental destruction. Their CSR programs often align with the UN Sustainable Development Goals, particularly with health (SDG 3), education (SDG 4), clean water (SDG 6), and decent work (SDG 8). However, they neglect peace, justice, and strong institutions (SDG 16) or fail to deal with fundamental structural issues.
CSR in this crony context can also be seen as a public relations tool for their image and reputation. Engaging in community development and humanitarian initiatives, they seem like responsible corporate citizens, making building relations with international investors easier. This kind of act not only legitimizes their businesses but also helps them to enter the global economy. The fund for CSR programs is a relatively small investment compared to their profits from monopolistic positions. Furthermore, CSR practices frequently lack Monitoring and Evaluation (M&E) frameworks and transparent reporting systems. This absence makes it challenging to assess the actual social impact of these programs. In short, CSR in the Myanmar crony context is only for the interests of the elite group, not the general public. This practice also reflects a system deeply rooted in corruption and inequality.
Conclusion
Today, corporate social responsibility in Myanmar is a complex challenge defined by its historical background and precarious socio-political setting. The transition of an outdated, philanthropic, checkbook-style approach to a more strategic, internationally aligned one was prematurely stopped by the military coup in 2021.
The views of the major stakeholders portray a complicated reality. Although some companies care about communities, their actions are not usually taken seriously by the local people, who have a history of distrust towards companies and their claims. On the other hand, domestic crony firms have been using CSR as a PR instrument to justify their operations. Civil society organisations, important intermediaries, are facing a threat to put effort into delivering aid to people in need without strengthening the military regime.
Apparently, CSR in Myanmar is currently not as much about development on a large scale. It is about navigating ethical challenges and ensuring that corporate practices do not contribute to the deterioration of existing conflicts. Its success will be measured by how it truly serves local communities' interests and helps create long-term stability in a country with critical issues.
Pyae Phyoe Mon is a Junior Research Fellow at the Sustainability Lab of the Shwetaungthagathu Reform Initiative Centre (SRIc) and an M.A. Candidate in Social Sciences at the Faculty of Social Sciences, Chiang Mai University, Thailand.
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