Corporate Social Responsibility in Real Estate Construction: A Case Study Of Preuksa Real Estate Public Company Limited

In the past, developer companies usually engaged on CSR depending on management priorities or market drivers such as laws and regulations, and stakeholders. They always make their own strategic choices regarding how they want their image to be in the market. Even though companies know how to develop CSR, they will still face problems such as when should companies be considered as being a socially responsible business, how to put CSR concept into practice, and when should CSR questions be raised, companies are not ready to answer and often lack of information and knowledge (Panapanaan, 2006).

It shows that although companies know their goal and how to promote CSR, it is still difficult to succeed on CSR effects. One of the most important things that can lead companies to fail on their business achievements is how company’s mission, vision, and strategy apply in practice level. These can cause companies to face problem on both internal and external companies caused by owner or director’s decision making.

In order to overcome these problems, Mr. Jirachai Thaewthiang made a study that focused on developing the information for Developer Company to succeed their goals on CSR. His objectives are to (1) determine how developer company succeeds in real estate construction with Corporate Social Responsibility; (2) identify mechanisms and problems faced when developer company conduct business with Corporate Social Responsibility; and (3) propose recommendations to improve the implemented Corporate Social Responsibility.
He found out that generally, the developer company’s objectives are to construct and sell projects to customers. Evidently, this type of business dealing with real estates and construction projects in Thailand is in a highly competitive market and rivalries.

Therefore, there should be some mechanisms that can ensure or, at least, promote the successful housing business. Corporate Social Responsibility (CSR) is a tool that many succeeded developer companies employ in their business conduct. Preuksa Real Estate Public Company Limited applies this concept and prospers in its business.

In Mr. Thaewthiang’s study, he discussed on how company conduct its business on CSR. Five CSR areas are mainly focused for its long term succeeds: customer, community, employee/worker, environmental and subcontractor/supplier area. However, customer area is still the major target area that company focuses for CSR involvement according to market target. Yearly budget generally allocates from yearly target sell for CSR activities. This is the main key that easily brings company conduct business on CSR. Although there is high investment, it can improve company image and value for long term succeed. Finally, there are four easy steps to improve on CSR involvement through these improvement factors: understanding, identification, development, and integration. These steps can easily understand and conduct business on CSR and also how to involve step by step.

His thesis abstract is copied and posted.

ABSTRACT

Generally, the developer company’s objectives are to construct and sell projects to customers. Evidently, this type of business dealing with real estates and construction projects in Thailand is in a highly competitive market and rivalries. Therefore, there should be some mechanisms that can ensure or, at least, promote the successful housing business. Corporate Social Responsibility (CSR) is a tool that many succeeded developer companies employ in their business conduct. Preuksa Real Estate Public Company Limited, for instance, applies this concept and prospers in its business. Accordingly, this study investigates and observes how this particular company implements its CSR in the current project site as well as in its administration.

The purpose of this study is to: 1) determine how developer company succeeds in real estate construction with CSR, 2) to identify mechanisms and problems faced when developer company conduct business with CSR, and 3) to propose recommendations to improve the implemented CSR.

The data was collected in all levels from the top to the bottom levels, which comprise everything from the mission statement to the public interaction of the selected companies by interview, observation, and documentation on how it conducts housing business using CSR. This study’s findings are discussed and analyzed in detail to propose recommendations to improve housing business on Corporate Social Responsibility.