Kuala Lumpur Philanthropy Conference
By Amanda Coffin Nineteen speakers from seven countries shared their knowledge and opinions at “Create More Givers: A Global Conference on Enhancing the Role of Philanthropy in Challenging Times.” The Hotel Nikko in Kuala Lumpur hosted the event from 22-23 July 2009. Philanthropy Asia, Centre for the Advancement of Philanthropy (www.philanthropyasia.net) organized the conference to assess the impact of the global crisis on philanthropy, and to share ideas and views amongst charities, government agencies, corporations and other concerned individuals. Philanthropy Asia’s Managing Director is Josie Fernandez, sister of Tenaganita‘s Dr. Irene Fernandez.
Erna Witoelar, Chair for the Asia Pacific Philanthropy Consortium (APPC) and UN Ambassador for the MDG (Millennium Development Goals) opened the conference with her speech, “Turning Crisis Into Victory: Challenges for the Non-profit Sector.” Witoelar averred that corporate philanthropy in Indonesia has increased, in part because of the controversial new CSR legislation there, which has been given a lot of press space and stirred a debate almost every day. The new law obliges state-owned companies to set aside money for CSR purposes.
The law, she suggests, should be seen as a type of affirmative action, analogous to laws ensuring women a representative number of seats in Parliament. The law has met with mixed reactions – some corporations give voluntarily and feel there is no need for the law, while others are ignoring the law altogether. Indonesia Business Links (IBL) is lobbying for the legislation to be repealed or reviewed. Witoelar believes that philanthropy in Indonesia would not be developing the way it is if not for the media. The media is important, she maintains, to instill transparency and accountability in philanthropy. Three speakers represented their corporations. Mr. Azhar Osman Khairuddin, Senior General Manager, Group Legal and Corporate Affairs for PETRONAS and Mr. Virendra Gupte, Head Sustainability/Ethics Counsellor for Tata International (the Indian conglomerate) both indicated that philanthropy and CSR are integral parts of the firms’ mission statements and, indeed, of their corporate cultures. Each catalogued the types of programmes his respective firm has sponsored. 
Mr. Ralph Dixon, Director of Environmental Investments at YTL, Malaysia reported that his firm chooses to pass its philanthropic donations to the NGOs which best address the company’s issues of choice, feeling that the NGOs can most efficiently and effectively apply the funds. Mr. Dixon remarked that firms which exceed what is required of them by environmental regulations (as YTL strives to do) are also practising a form of “passive philanthropy.” Of the three corporate representatives, Mr. Dixon alone mentioned transparent CSR reporting, which he views as essential. YTL posts detailed sustainability reports on-line at http://www.ytlcommunity.com. The issue of accurate and transparent CSR reporting arose throughout the conference. Dr. Mohamed Reevany Bustami, Chair, CSR and Philanthropy, Trans-disciplinary Action Group, Universiti Sains Malaysia, found fault with the current reporting requirements in Malaysia. He expressed the need for “total disclosure reporting, not only the good things they’re doing.” The absence of comprehensive, audited CSR reports is hurting Malaysian firms, and not only with poor transparency ratings. Dr. Bustami added that foreign SRI (Socially Responsible Investment) firms are passing Malaysia by, as the country’s CSR reporting standards are deficient. 
During his talk, titled “Issues, Challenges and the Future of CSR”, Dr. Bustami pointed some comments at the very definition of CSR. He expressed outrage that British American Tobacco Bhd. had recently won a CSR award. “We need to look at the core business,” he maintained, questioning how a corporation in the business of selling “poisons” could be deemed socially responsible. He accused such firms of using CSR philosophy to “whitewash” the social ills inherent in their industries. Mr. Alan Feinstein, Asian Public Intellectual Fellow, Thailand, encouraged Asian charities to consider carefully before blindly following the models established by U.S. charitable foundations. He identified a number of trends in the American model that he deems negative, including:
- increasingly large staffs of “philanthrocrats”
- unrealistic promises of results in 3-5 years
- obsession with focus, resulting in aversion to entertaining unsolicited requests
- centralization of authority resulting in decisions from a main headquarters rather than better-informed regional offices.
Mr. Feinstein feels that community-based initiatives may work better in Asia than enormous foundations with very centralized control. He cited as an example the world’s largest charity, The Gates Foundation, which has a 3-person Board of Directors: Bill Gates, his wife, Melinda, and Bill’s father. A broader management structure, argued Mr. Feinstein, often brings broader vision. The final speaker of the conference (quipping “They’ve saved the best for last!”) was Associate Professor Nik Meriam, Research Head, Programme on Sustainability & Environment, Universiti Malaya. She discussed the relationships between academia and the philanthropic world. Universiti Malaya, she indicated, has acknowledged the increasing awareness of and need for knowledge about CSR and has in response devised a Sustainability Programme, spanning multiple fields of study. Find more information at http://www.susci.um.edu.my. The two-day conference closed with an address by YB Senator Tan Sri Dr. Koh Tsu Koon, Minister in the Prime Minister’s Department.◊
