Overview

Philanthropy in ASEAN typically refers to giving without expecting financial return, with a focus on long-term solutions to social and environmental challenges. Corporate Social Responsibility (CSR) extends beyond this, encompassing company-driven community investments such as donations, skills transfer, pro bono services, and employee volunteering (ASEAN Business Advisory Council Malaysia & Centre for Asian Philanthropy and Society, 2025). ESG: Environmental, Social, and Governance adds a reporting lens, capturing non-financial risks and opportunities. Meanwhile, impact investing blends social purpose with financial returns, with “impact-first” approaches prioritizing social good over profit. At its core, sustainability means meeting today’s needs without compromising the future, whether through environmental stewardship or embedding responsibility into corporate strategy. As noted by Sigit Budi Darmawan in an exclusive interview, CSR should be seen not as a cost but as a strategic investment that builds resilience and long-term value.

CSR in ASEAN: Momentum Amid Fragmentation

CSR across Southeast Asia is gaining traction, but progress is uneven. Regulations remain narrow. In Indonesia, for instance, which mandates CSR primarily in its natural resource sectors, while global frameworks, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), are increasingly influencing corporate behavior.

ASEAN-BAC leaders see the need for a more unified approach. “The working group’s role would be to clarify definitions of CSR, harmonise disclosure standards, encourage enabling policies and incentives, and ensure that contributions are deployed more strategically for maximum impact,” said ASEAN-BAC in a statement reported by The Edge Malaysia (2024). Chairman Tan Sri Nazir Razak added that such efforts could transform CSR into “a strategic force for inclusive and sustainable growth in ASEAN,” aligning with Malaysia’s ASEAN chairmanship theme in 2025.

Ecosystem Enablers: Recognition and Partnerships

Recognition is proving to be a powerful driver of corporate participation. CSR awards not only enhance a company’s social standing but also encourage transparency and disclosure. Today, major awards are available in nearly all ASEAN countries except Brunei, with most organized by private actors such as chambers of commerce or media outlets. Government involvement is strongest in Singapore, where the President’s Volunteerism and Philanthropy Awards provide prestigious recognition (ASEAN Business Advisory Council Malaysia & Centre for Asian Philanthropy and Society, 2025).

Regional business leaders also emphasize the role of awards in strengthening CSR. Mr. Heang Vuththa, President of the Global Entrepreneur 1% Club, described them as a collective reflection of social responsibility. Speaking at a ceremony that shortlisted nearly 500 applicants and honored 75 winners from 19 countries, he said: “Today’s gathering reflects the important steps we are taking as part of promoting sustainable development, improving lives, and contributing to the well-being of the entire ASEAN society” (EAC News, 2024).

Case Study: Innovation from the Ground Up

CSR in ASEAN is increasingly tied to sustainability and innovation. In Prabumulih, Indonesia, PT Pertamina Gas (Pertagas) supported a local cooperative that transformed pineapple leaf waste into fibers for textiles, bags, and handicrafts. This initiative, rooted in circular economy practices, not only reduces agricultural waste but also empowers communities with new economic opportunities.

The project’s success drew international attention. A delegation from the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) visited the site in 2024 to study how it combines technology, environmental stewardship, and community empowerment. “This visit is a first step toward broader collaboration, whether in marketing or scaling up production,” noted Pertagas’ Communication, Relations & CSR Manager, Imam Rismanto, during the field visit (Dunia Energi, 2024).

CSR Spending Trends in ASEAN

Spending patterns of the region’s most prominent companies reveal how CSR is evolving across ASEAN. A review of the top 10 firms by market capitalization in six member states Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam shows a clear pivot: CSR is no longer framed as charity but increasingly tied to sustainability and long-term value creation (ASEAN Business Advisory Council Malaysia & Centre for Asian Philanthropy and Society, 2025).

Current Trend: A Clear Shift Toward Sustainability

Analysis of corporate communications over the past decade reveals the increasing prominence of sustainability in boardroom language. Messages from C-suite executives in annual and sustainability reports reveal that terms such as sustainability, climate, environmental, social, and governance (ESG), and energy have surged in frequency between 2014 and 2023 (Figure 1). This shift mirrors a global trend: companies are aligning more closely with regulatory and policy demands on climate change and environmental responsibility. 

Figure 1. Word Frequency Analysis of C-Suite Messages, 2014 vs 2023

 Sources: ASEAN BAC, 2025.

The institutional landscape is also adapting. Five of the 10 national business chambers in ASEAN have established dedicated working groups or task forces on ESG and sustainability (See Appendix 1). These groups serve as both strategy designers and capacity-builders for their members. Indonesia’s Chamber of Commerce and Industry (KADIN), for instance, combines ESG strategy and implementation support within its task force. The Singapore Business Federation went a step further, establishing the SBF Foundation in 2013 as a social impact arm with mandates for policy advocacy and capacity building. Meanwhile, Thailand stands out for creating two separate committees, one for CSR and another for sustainability under its Strategic Committee.

By contrast, many other national chambers across the region, such as those in Brunei, Cambodia, Laos, and Myanmar, still need a progress for dedicated structures in the CSR, ESG, or sustainability. This uneven institutionalization underscores the broader challenge: while corporate rhetoric increasingly highlights sustainability, the degree of systemic support varies significantly across ASEAN.

Practitioner’s Perspective: CSR as Strategic Investment

In an exclusive interview, Sigit Budi Darmawan, a sustainability consultant and Vice Chairman of KAGAMA MBA, emphasized, “CSR should not be seen as a cost, but as a strategic investment and a pillar of risk management.” He highlighted three priorities: “First, CSR must build strategic alliances that empower communities beyond short-term charity. Second, it must apply a risk-based approach to mitigate social and environmental risks. Third, companies need to measure ROI to show how CSR drives productivity and unlocks green financing.”

Sigit also stressed the narrative shift: “We must move from charity to sustainability-driven CSR, and that means localising global standards such as ESG and CSRD.” Through what he calls glocalization, he explained, “Co-processing waste into alternative fuels or running financial literacy programs are examples of how we can meet global expectations while solving local challenges and strengthening business ecosystems.”

Turning to ASEAN, Sigit argued, “Harmonising CSR standards is critical, and Indonesia has a pivotal role to play. SOEs can serve as living laboratories for integrated ESG, while KADIN can act as an extractor, unifying principles and standards through its vast networks.” Still, he cautioned that “capacity gaps, regulatory fragmentation, and the lack of standard metrics and data convergence remain the biggest hurdles for ASEAN.”

Trends and Shifts

ASEAN’s CSR journey reflects a broader transformation, captured in five shifts:

• From charity to strategic CSR – Moving beyond one-off donations toward long-term, aligned community investment.

• From local compliance to global accountability – Increasingly shaped by international frameworks such as CSRD.

• From narrow mandates to broader ecosystems – Recognition, volunteering, and partnerships now complement regulatory obligations.

• From philanthropy to sustainability narratives – CSR is increasingly linked to environmental protection and corporate sustainability.

• From domestic focus to regional leadership potential – With alignment, ASEAN could set benchmarks for Global South CSR.

The Path Forward

The region already has essential building blocks: recognition programs that enhance transparency, innovative grassroots initiatives, and an emerging consensus on the role of CSR in inclusive development. What remains missing is coherence. Without a shared definition and stronger oversight, CSR in ASEAN risks staying fragmented. However, through initiatives such as the CSR Working Group, the region has the opportunity to align its efforts, unlock greater private-sector engagement, and position itself as a global leader in responsible business practices.

References

ASEAN Business Advisory Council Malaysia, & Centre for Asian Philanthropy and Society. (2025). Corporate social responsibility in ASEAN: Final report 2025. ASEAN-BAC Malaysia.

ASEAN CSR Network. (n.d.). ASEAN CSR Network [Facebook page]. Facebook. https://www.facebook.com/ASEANCSR

Dunia Energi. (2024, May 14). Three ASEAN countries study Prabumulih, learn about pineapple fiber innovation supported by Pertagas CSR. Dunia Energi. https://www.dunia-energi.com/tiga-negara-asean-studi-ke-prabumulih-pelajari-inovasi-serat-nanas-binaan-csr-pertagas/

EAC News. (2024, February 12). Global Entrepreneur 1% Club awards honor 75 winners from 19 countries.EAC News. https://eacnews.asia/home/details/32496

The Edge Malaysia. (2024, January 30). Asean-BAC proposes CSR working group to align standards, mobilize private sector for equitable development. The Edge Malaysia. https://theedgemalaysia.com/node/766990

Appendix

Appendix 1. Overview of ASEAN Business Chambers’ Working Group and Task Forces

 Source: Websites of the chambers of commerce, 2025.