Creating Shared Value and Social Enterprise
GC uplifts CSR projects to Creating Shared Value (CSV) projects and Social Enterprise (SE) to strengthen company business performance, and associate with the Corporate Sustainability Strategy to increase value to the communities.
Creating Shared Value (CSV) Projects
Plastic Product Development for Environmental Conservation in the Royal Project Foundation Area
GC is engaged in the joint research and development of agriculture plastic products between the Royal Project Foundation and the Thailand Research Fund (TRF) to create plastic environmental-friendly products. Initial research and development products for this project are greenhouse film, environmental-friendly veggie bags, bags that prolong the shelf life of agricultural products and biodegradable plastic salad trays.
The plan for this CSV project includes:
- Developing environmental-friendly products to serve the agriculturist needs.
- Promoting distribution of products to create value to product.
- Developing collaboration through communication by emphasizing CSR activities on Environmental, Social and Young generation aspects to enhance understanding and build confidence between local communities, the Royal Project Foundation and the company, which lead to positive social return on investment (SROI).
Moreover, in 2023, GC and the Royal Project Foundation collaborated to develop a five-year plan under the project for the segregation and management of community waste at the Ler Tor Royal Project Development Center. The aim is to establish a sustainable community waste management system by integrating cooperation between government and private sectors. The project connects with the waste management model of Wat Chak Daeng, Song Khanong Sub-district, Phra Pradaeng District, Samut Prakan Province, under the "Our Khung Bangkachao" project. Study tours were organized for community representatives from the Ler Tor Royal Project Development Center. Additionally, GC has shared waste management knowledge with the community through training activities on waste management for youths in four pilot areas: Ler Tor Village, Huay Pong Village, Mae Lah Kee Village, and Jor Kee Village. The plan includes establishing a waste management structure in the community, starting with the construction of a waste segregation building to serve as a waste collection point, with the goal of completion by 2024, to reduce excessive waste going to landfills.
Protect Risk Protect Life with Plastic Flapped Sack Project
GC has designed and developed plastic flapped sacks in cooperation with Chaipattana Foundation, Hydro Informatics Institute (HII) and Department of Mineral Resources, under the Ministry of Natural Resources and Environment to cope with natural disasters under the “Protect Risk Protect Life with Plastic Flapped Sack project”. Plastic flapped sacks are made from HDPE under InnoPlus brand and PP woven together in a cross-stitched pattern. Then, the twin-needle sewing is used to join a sack and 3 flips together to strengthen its seam, resulting in tough and durable structure. In addition, anti UV materials are added to make the sack resistant to sunlight which is expected to have a long design life.
In 2019, the plastic flapped sack was developed by adding recycled PP plastic pellets as an ingredient. The new version of the sack has been implemented, which has an effectiveness and a longevity.
Since 2016, GC has supported plastic flapped sacks to both public and private sectors for the construction of bank-reinforcing fronts to protect riverbank erosion, check dams, and Monkey Cheeks in 21 provinces and 1 neighboring country: Laos.
Apart from the support of plastic flapped sacks for CSR activities, GC has also launched a plan to commercialize the plastic flapped sack to create the sustainable shared value for both society and GC. During the year 2020 - 2022, sacks can be sold 93,308 pieces can be given to external agencies, amounting to 3,740,197.84 THB.
The plan for this CSV project includes
- Coordinating with external specialized partners to use plastic flapped sacks to solve and mitigate the effects of soil erosion, floods, and droughts at national scale.
- Publicizing the general information and benefits of plastic flapped sack to enhance understanding to the public leading to positive social return on investment (SROI).
Moreover, example of other social enterprise projects supported by GC are as follows:
SMART FARMING BY GC
SMART FARMING BY GC targets to implement social projects by leveraging the expertise of GC and PTT Group employees to improve the community’s sluggish economy, reduce costs, increase productivity, and improve quality of life. This includes enhancing farmers' capabilities to manage their produce to meet standards and run sustainable businesses. The initiative promotes innovative use of plastic products to add value, such as plastic bags extending the shelf life of vegetables, plastic greenhouse covers made from Carbon Footprint-certified polyethylene (PE) pellets, and InnoPlus water tanks made from special grade LLDPE plastic pellets. These efforts are implemented in three locations: the Rayong Children's Welfare Protection Center in Mueang Rayong District, Rayong Province; the Hom Mahad Organic Agriculture Community Enterprise; and the Pa Ra Hydro Farm Community Enterprise in Ban Chang District, Rayong Province.
At the Rayong Child Welfare Protection Center, “Sharing the Love Farm” (Suan Phak Pan Rak) aims to encourage the development of a prototype social project that enhances occupational and social skills and knowledge for children at the Center to prepare them for the outside world. It also stresses on sufficiency economy through the cultivation of agricultural crops for consumption as a means of reducing the Center’s expenses. Furthermore, Smart Farming innovation and technology help to upgrade production processes and enhance new-normal farming efficiency to better manage crop yield with stability and achieve produce of higher quality for distribution. The project also joined hands with Patom Organic Living to promote agricultural products processing skills to add value to products such as mulberry jam, mulberry leaf tea, ready-made curry pastes for further distribution. Proceeds are donated to support the Center’s “Sharing the Love Farm” (Suan Phak Pan Rak) Project.
SMART FARMING BY GC in Ban Chang district, Rayong province implements Smart Farming products and technologies to promote organic crop cultivation and agricultural yields for Hom Mahat Organic Farming Community Enterprise and Pa Ra Hydro Farm Community Enterprise. It also promotes the cultivation of medicinal plants that are unique to Rayong province, including “Rue Hom”, “Wan Sao Long” and Hydroponics lettuce, as well as the development of processed agricultural products partnered with LUFFALA Community Enterprise for distribution to generate income through offline channels at the Pracharath Rak Samakkee Company Limited (Social Enterprise) and GC Market Place.
From 2022 to 2023, this project generates a total income of 899,317 THB for Rayong Child Welfare Protection Centre and community enterprises. On the average, the revenue from selling vegetables and herbs increased by 30,000 THB/month. Also, the project reduced labor and operational costs by 522,000 THB.
Hom Mahat Organic Farming Community Enterprise
The Reforestation and Creation of Learning Resources and Sustainable Community (Khao Huai Mahat) Project commenced its operations in 2010 through the collaboration of four organizations, namely the Faculty of Forestry, Kasetsart University, the Air and Coastal Defense Command, Konrakpa Club under Chaklukya – Khao Huai Mahat Community, and PTT Global Chemical Public Company Limited. The project targets to restore forest ecosystems and improve the quality of local life, economy, and society by encouraging public participation in sustainable forest and environmental conservation, leading to the development and establishment of the Khao Hom Mahat Organic Farming Community Enterprise. It also encourages local farmers to organically cultivate medicinal plants that are native to Khao Huai Mahat Mountain, namely “Rue Hom” and “Wan Sao Long”, with “Sampran Model” as a consultant to create products, such as Wan Sao Long tea and green oil. The propagated plants are then planted in Khao Huai Mahat Mountain. In 2023, the project generated an income of 235,964 baht for the group. The cumulative income for 2022-2023 amounted to 323,353 baht.
Social Enterprise Quinine Cafe' Rayong Industrial Estate Technical College
GC, in collaboration with Rayong Industrial Estate Technical College, established the Department of Food and Nutrition to further extend community product development and launched the College’s “Quinine Café” based on social enterprise practices. The Café targets to utilize local ingredients which GC encouraged local communities to cultivate organically, such as “Rue Hom”, “Wan Sao Long”, Centella Asiatica, and ginger, to develop food products and souvenirs. This initiative adds value to the crops through healthy food recipes that boost immunity against non-communicable diseases (NCDs). The acquired knowledge has been incorporated into the College’s curriculum and in the development of healthy products as well as shared with the public to reduce risks of NCDs.
GC has encouraged the College to demonstrate its capacity through business planning, development of café business operation capacity and continuous market expansion to generate income as scholarships for students. This can also contribute to the enhancement of the College’s teaching and the establishment of its image and role as an educational institution that adapts to the new world perspective, especially in the creation of food sustainability for the health and environment. Interested educational institutions and individuals can apply for a short-term training course for further career development.
In 2023, GC promoted the development of cafe’s menus by bringing community chefs from the "Chefs of Rayong" project to teach 15 dishes to 15 teachers and students from the Food and Nutrition Department. This initiative aimed to make the café offerings more appealing, resulting in a total income of 408,888 baht. The Social Return on Investment (SROI) for this support was calculated to be 4.81.
Social Enterprise: Pracharath Rak Samakkee Rayong Company (Social Enterprise) Limited
Pracharath Rak Samakkee Rayong Company Limited was established on September 23, 2016, under the government’s Pracharath policy and operational guidelines. The objective is to drive grassroots and community-based economic development in local areas. The initiative operates under the principles of public sector (support), private sector (driving force), academic sector (knowledge provision), civil society (strengthening), and the public (action). All sectors collaborate to solve problems, promote development, and strengthen communities, resulting in national economic stability, prosperity, and sustainability.
GC is a co-founder of Pracharath Rak Samakkee Rayong (Social Enterprise) Limited, operating under the Pracharath model with the concept that Rayong is our home; when the community thrives, the company thrives. The operation follows the Social Enterprise (SE) model with the primary goal of returning benefits to society. Profits from the company’s activities are reinvested to support the community without shareholder dividends. Additionally, the company is managed based on good governance principles and is registered as a corporation. Its operations focus on three areas: agriculture, processing (SMEs/OTOP), and community-based tourism.
Key Roles of Pracharath Rak Samakkee Rayong is to drive the development of grassroots economic processes with systematic management from start to finish. It promotes the distribution of products and sales venues for goods from local shops and community enterprises and provides comprehensive consulting on agricultural, fishery, and tourism businesses. This increases revenue and market exposure to consumers and tourists, generating income to further develop and strengthen the local economy.
Project Outcomes
- Created income and jobs for the community by adding value to agricultural products, community products, and community-based tourism, leading to circulating income within the community.
- Enhanced the quality and recognition of Rayong’s community products by integrating local wisdom into unique and standard products.
- Strengthened the network of community enterprises in Rayong by establishing district-level centers for the sale of goods and tourism services.
- Exemplified good governance management of a social enterprise that reinvests profits into community development rather than distributing them to shareholders.
Operational Results for 2023
- Thai Helps Thai Project: Supported durian farmers in Rayong by promoting premium-grade Monthong durians grown using the innovative red bag wrapping technique, Magik Growth, developed by the National Metal and Materials Technology Center (MTEC) and the Eastern Economic Corridor of Innovation (EECi). This improved the quality control of durian production and provided continuous income for farmers. Additionally, training was provided to 100 durian farms in Rayong, creating new market opportunities to sell products online and promoting the Magik Growth innovation.
- Young Influencer Challenge Thailand 2023: Smile Creation Campaign: In collaboration with PTT Group and 10 universities, involving 30 teams of 137 students from 10 universities. The students developed marketing plans for community products in the "Smiling Community by PTT Group" project, sold through online platforms. The project involved studying the identity of community products with their owners and planning marketing strategies, resulting in total revenue of 547,048 baht for participating communities.