Business leaders join praise for late King
King Bhumibol’s philosophy of self-sufficiency has been a guiding light for their businesses, say top executives. By Post reporters
Despite a pervasive sense of grief among Thais as the royal funeral approaches, the late King Bhumibol Adulyadej’s philosophy remains a guiding light among executives running their businesses in Thailand for sustainable development and good governance.
The late King’s legacy as father of the nation will act as a reminder for businesses not to undertake a maximised profit-seeking approach, but consider the benefits to society as a whole, they said.
Business leaders also praised his sufficiency economy philosophy, which they said would help achieve harmony among people, and his work on Thai energy development, which they say who lit the flame for sustainable energy development.
Today marks the first anniversary of the passing of the late King Bhumibol Adulyadej. Gone but always in the hearts of his people, the late King’s philosophy remains a guiding light for businesses following sustainable development and good governance.
As a tribute to our beloved late Monarch, key executives reflect in their own words on the late King’s contributions to Thai business development.
SUPHACHAI CHEARAVANONT Chief executive of Charoen Pokphand (CP) Group
The private sector can learn about how the late King “has guided our nation through countless crises, and has led the nation to peace and prosperity,” said Mr Suphachai.
King Bhumibol passed down much useful advice to executives around the country, including being mindful of one’s financial situation, gratitude, innovation and invention. Mr Suphachai said the group has “integrated the King’s philosophy of economic sufficiency into its strategy in order to achieve sustainability in its business conduct.
While many groups may have already adopted the King’s framework, Mr Suphachai strongly urged “all of the private sector in Thailand to adopt the philosophy wholeheartedly.”
CP’s integration of the King’s teachings goes back to 1971, when the group worked on Hat Sai Yai farm, King Bhumibol’s personal farm.
The King’s philosophy is not only a tool for CP’s business performance, but also a reminder of the importance of giving back to the society that supports its success, said Mr Suphachai.
TEVIN VONGVANICH President and chief executive of PTT Plc
To Tevin Vongvanich, the late King was the father of Thai energy development who lit the flame of sustainable energy and should be the guiding spirit of all his people.
King Bhumibol encouraged PTT and other leading energy firms to start developing biofuel when global oil prices were below US$20 a barrel during the 1980s.
The soaring oil price shocks in the 1970s caused the country to realise that a cheaper alternative was needed. The industry started looking more seriously at biofuels as excess crops were increasingly used as raw materials.
In 1985, King Bhumibhol allocated 955,500 baht of his own money for R&D to produce alcohol from molasses. A trial test on vehicles was made at Chitralada Palace in 1994. The King also initiated other research to produce biodiesel from palm oil.
With the King’s initiative budget of just below 1 million baht, it helped the country cut oil imports that had swelled to 40 billion baht a year, said Mr Tevin. The biofuel projects created many jobs in related industries, he said.
Today, gasohol and biodiesel play a major role in Thailand’s energy sector and help sustain not only the energy sector, but also support the country’s agricultural sector. It is one of thousands of projects that the late King taught us about relying on ourselves to achieve long-term, true happiness, said Mr Tevin.
“We always respond to all of his initiatives because we know they lead to the happiness of all Thais,” said Mr Tevin.
CHAIWAT KOVAVISARACH President and chief executive of Bangchak Corp Plc (BCP)
One of King Bhumibol’s initiatives was the cooperative business model, which entails a fair trade system for all parties, particularly farmers, as cooperatives bring together all efforts to run businesses that benefit communities. Bangchak, as one of the leading businesses in Thailand, has taken these initiatives and made them the heart of their everyday operations, aiming to bring sustainable growth to the company and also the Thai community.
Bangchak will also follow the late King’s footsteps in bringing together all of Thai society as the company moves towards inclusive sustainable growth, said Mr Chaiwat.
Bangchak has been operating petrol stations under the agricultural cooperative business model in more than 500 stations nationwide, around half of the total number of petrol stations across the country, he said.
“This business model is one of the late King’s sustainable development philosophies that allows local people to participate in businesses through benefit-sharing, which we also keep in mind in our company,” said Mr Chaiwat.
ROONGROTE RANGSIYOPASH President and chief executive of Siam Cement Group (SCG)
Industrial conglomerate SCG recognised the late King’s as an icon who taught the company to learn to rely on itself under the self-sufficiency philosophy that helped the company to overcome the catastrophe created by the 1997 Asian financial crisis.
The company applies the self-sufficiency philosophy at every management level to protect itself against risks it may encounter in the future.
Mr Roongrote said the Asian financial crisis had a great impact on the company, pushing its debt to rise by more than 270 billion baht as the baht depreciated rapidly.
During this debacle, the self-sufficiency philosophy centred the company, making it sit back and cautiously consider the way forward, especially when expanding in the future. The late King’s hope and wisdom made the company decide to run the business on its strengths instead of expanding with foreign loans and expensive imported technologies.
For more than 100 years, SCG has been operating with a focus on greater profit, as is common among all global companies. But the crisis had cut demand for cement sharply at the time and further aggravated the debt, forcing the company to rethink the focus of its business model.
“The sufficiency [economy] philosophy made us to look at ourselves and also look at others in the community, as well as the environment. [This made us think of ] not only our own profit, but about [the benefit] to others. If society does not accept us, we cannot expand business as no one will accept our products. We have changed our philosophy by changing our focus from profit-seeking to risk management,” said Mr Roongrote.
KESARA MANCHUSREE President of the Stock Exchange of Thailand (SET)
King Bhumibol was the guiding light in every aspect. For example, the late monarch’s sufficiency economy philosophy can be applied not only to people’s daily lives but also to organisations, said Mrs Kesara.
“For people, the philosophy guides them towards savings and self-reliance. When they have enough for themselves, they can then start sharing. When Thais follow in the footsteps of the late King, sufficiency, self-reliance and happiness will follow,” she said.
“At the SET, this philosophy is applied to drive sustainability, promote social and environmental responsibility and uphold good governance. We have also promoted these good concepts among entrepreneurs and investors to ensure that investment in the stock market will benefit all sectors of society.”
Mrs Kesara said listed companies have also been pressed to realise that for their operations to prosper in the long run, they need to run their businesses sustainably. Those who have followed suit have yielded remarkable results, demonstrating the highest level of reliability and good governance both regionally and globally.
The sufficiency economy philosophy is internationally recognised now and matches well with the world’s sustainable development goals, she said.
“I am confident that foreign investors who have studied the concept of the late King will be impressed as well, because the initiatives of the late King are practical and benefit everyone,” said Mrs Kesara.
SUPHAJEE SUTHUMPUN Group chief executive of Dusit International
Many companies, big and small, have adopted the sufficiency economy philosophy to their organisations, and this is reflected in various corporate social responsibility campaigns that are genuinely improving the lives of the Thai public.
“With many of the country’s largest companies signing a memorandum of understanding to adopt the sufficiency economy philosophy in their organisations, I am sure over the years we will only see more companies come on board and ultimately drive more positive change for Thailand,” said Mrs Suphajee.
“In our own operations, both within Thailand and around the world, we always put community first and aim to have a positive impact wherever we set foot. This, again, can be seen in our upcoming mixed-use project and new flagship hotel, which will showcase our efforts for a sustainable and profitable business with strong community links,” she said.
“For a start, we have not spent beyond our means. We are not only focusing on the commercial value of the project, but we genuinely want to create a project that contributes to Bangkok as a whole — just as the original Dusit Thani Hotel did when it first opened in 1970 as the city’s first five-star hotel.”
LARS NORLING Chief executive of Total Access Communication Plc (DTAC)
In the wake of the Asian financial crisis in 1997, DTAC learned a lesson that giant corporates could not run themselves independently by striving only for growth and profits. The social and economic development ecosystem includes public administration, the private sector and society, which are all deeply connected. If societies collapse, private companies will also fall, like a domino effect. Therefore, companies must help contribute to societies and the ecosystem as a whole.
The lesson learned is aligned with the late King’s sufficiency economy philosophy. The theory highlights a balanced way of living — moderation, reasonableness, self-immunity and morality — which is an internationally accepted principle.
Mr Norling said sustainability has become a spotlight among businesses to create resiliency and survive shocks in doing business. DTAC adopted the philosophy into the core values of the company under the vision of “empowering society”.
A report from Groupe Speciale Mobile Association (GSMA) stated that prompting people in rural areas to have access to the internet is the way to achieve a digital economy.
For the past decade, DTAC has created a number of projects to address ongoing problems — inequalities, digital divide and cyberbullying — by using technology and educational programmes: DTAC Inter Volunteer, DTAC’s Smart Farmer and Safe Internet.
HARALD LINK Chairman of B.Grimm Group
King Bhumibol’s concept of the sufficiency economy philosophy with moderation, knowledge and selfimmunity will always be relevant for all economies, just as striving for harmony within and among nations is important for the well-being of the world.
The late King’s music and art also show us that He found it was important for art to flourish in a country to experience more happiness and wholesomeness.
“B.Grimm has for the last nearly 140 years been very active in promoting social welfare and social projects of all kinds, in line with ideas from the late King and the Royal Family. We think this should be seen as a whole on how the Thai Royal Family has been exemplary in social development activities,” said Mr Link.
Education is one of the examples of B.Grimm’s social activities as the company has strongly supported education programmes such as the Little Scientists House project of HRH Princess Maha Chakri Sirindhorn for kindergarten children, police boxing schools both founded and not founded by B.Grimm, nursing scholarships, dual vocational training, schools and colleges, university education and related charities.