Corporate Social Responsibility initiatives used “to undermine alcohol control policies”

Professor Parichart Sthapitanonda, from Chulalongkorn University presented research findings that showed that as marketing restrictions for alcohol in Thailand increased, the alcohol beverage industry turned to corporate social responsibility (CSR) initiatives as a means to drive publicity and brand loyalty, thus threatening to undermine the Thai Alcohol Control Act’s ambition of protecting young people from alcohol harm.

Professor Sthapitanonda’s study identified and analysed CSR activities promoted by the alcohol beverage industry in Thailand between 1997 and 2008. Results showed a marked increase in alcohol industry CSR activities following the 2002 announcement of the planned Thai Alcohol Control Act, which came into place in 2008.

Before this announcement, between 1997-2002, 56 CSR activities were recorded. Following the announcement of the planned marketing restrictions within the Act, between 2003-2008, 407 CSR activities were recorded, 171 of which took place in 2008, the year the Act was introduced.

Professor Sthapitanonda attributed the rise in prevalence of CSR initiatives to the increased restrictions on alcohol advertising introduced with the Thai Alcohol Control Act in 2008:

“The Alcohol Control Act set very strict restrictions on advertising, sales promotion tactics and executions to make it more difficult for alcohol beverage companies to promote their brands, particularly among young potential consumers. Therefore, the alcohol beverage companies had to look for loopholes in the legislation in order to find channels where they could reach consumers. One of the strongest has been CSR activities, which have been steadily expanding, particularly during the past decade.”

The majority of CSR activities recorded in this time period were based around corporate philanthropy, including direct donations to charitable organisations and sponsorship of sports and music entertainment activities. Other initiatives found by the researchers included drink driving prevention campaigns, environmental protection initiatives and disaster relief.

Focus groups were conducted with young people aged 15- 24, living in Bangkok, to gain insight into their perceptions of the alcohol industry and the CSR activities. News articles and promotional materials from CSR initiatives were discussed and the young people were asked their views. The focus groups showed a difference of opinion between young people who drank alcohol and those who did not; drinkers saw the CSR initiatives in a more positive light than nondrinkers. Professor Sthapitanonda explained:

“The young people who claimed to be light, moderate or heavy drinkers felt the alcohol beverage companies’ corporate social responsibility activities had positive results, returning a portion of their gains to society. They reported CSR activities would assist communities and could help reduce the burden on the government. Furthermore, these young drinkers also felt that these activities were good for an alcohol beverage company’s public relations as the public would know the brand better and see how it works to help society. The young non-drinkers felt that the alcohol beverage companies conducted their CSR activities to promote their brand image and not to really help society.”

Professor Sthapitanonda argued that the results of this study show how the alcohol beverage industry is able to gain publicity and increase brand recognition amongst young people through CSR initiatives, despite restrictions on marketing in place through the Alcohol Control Act. She calls for the Thai Government to recognize CSR activities as an extension of marketing practice, thus subject to strict regulations: “

The goal of CSR is purely economical, i.e. they want to profit from the investment. Therefore, these activities aim at building corporate image and reputation, which will impress consumers and could ultimately lead to increased sales.

“A major concern has been the alcohol industry organizing CSR activities that would attract Thai youth, such as sports and music entertainment related activities. This research shows that young drinkers see CSR initiatives in a positive light, providing evidence that CSR can achieve similar aims of marketing such as brand loyalty, which ultimately can impact sales.

“This is a danger that relevant government agencies must be aware of and must develop preventative measures and regulations to control the alcohol beverage industry and their CSR activities that are being used to target young people as potential consumers.“