In Cambodia, Corporate Social Responsibility, or CSR, is still often understood narrowly as donations, scholarships, school buildings, sponsorships, or charity events. These activities can support communities and should not be dismissed. However, they should not be confused with the basic responsibility of operating properly.
The deeper problem is that some businesses create negative externalities through their products, practices, or operations. These may include public health concerns, environmental damage, excessive waste, or wider social costs. Charity cannot offset harm that should have been prevented or reduced in the first place.
For instance, in the real estate sector, some developers delay delivering homes to buyers who have already paid deposits or installments, even though delivery timelines were clearly agreed upon. They often explain these delays by citing funding shortages, construction difficulties, or other business challenges. Yet, at the same time, some of these companies continue spending on charity campaigns, donations, and event sponsorships under the name of CSR and build good images.
This is why Cambodia needs a clearer distinction between legal compliance, responsible business conduct, and CSR. Legal compliance is the minimum requirement. Responsible business conduct means reducing the harm created by business operations. CSR should go beyond both by creating additional value for society.
Large beer and sugary drink companies often sponsor concerts, cultural festivals, sports events, and community projects to build a positive public image. These contributions can be useful, but they should not distract from the social and environmental costs linked to their business models, including public health risks, alcohol-related harm, and plastic or aluminum waste. True corporate responsibility should begin with reducing these impacts before relying on philanthropy to gain public image.
According to modern CSR theory in the Business and Society book, companies move through five stages of responsibility: Elementary, Engaged, Innovative, Integrated, and Transforming. Cambodia’s business ecosystem appears to face a mismatch between the first two stages. In theory, companies should first secure the Elementary stage by complying with laws, labor standards, environmental rules, safety requirements, and accountability. Only after this foundation is secured should they move to the Engaged stage, where donations, sponsorships, and community support become meaningful.
Moreover, Cambodia, many sectors have not yet reached the Innovative stage, where CSR is understood as a tool for business trust, risk management, stakeholder relationships, and long-term competitiveness.
For instance, some banks have begun to see CSR as more than charity by promoting financial literacy and financial inclusion, which directly support public trust and long-term sector development. However, many still focus mainly on giving charity, while promoting the strength and resilience of the banking system through technical language that ordinary people may not understand. In some cases, media outlets simply repeat statements from the National Bank of Cambodia without clearly explaining the technical meaning to the public.
Instead of only telling people that banks are strong, banks should align their marketing interests with CSR by supporting basic financial education, explaining how the banking system works, and helping the public use financial services safely. This also means supporting more creators and communicators who understand banking and can explain it in a simple, accessible way.