Companies can do more to contribute and give back to the community

Mr Kwek Leng Joo, President of Singapore Compact for CSR,
Distinguished Guests,
Ladies and Gentlemen, 

1. I am very happy to be here this morning to join you for this Summit. I am glad we take this issue of CSR seriously enough to devote significant time to discussing it – to reflect on what we have done in Singapore and how we can do more for our community.

2. Let me start by acknowledging the good work done by Mr Kwek and Singapore Compact in promoting responsible business practices in Singapore. They have been at it for quite a number of years and I am glad that they received the Institution of a Public Character (IPC) status.

3. I am also glad to see your efforts in getting our young people interested in CSR. Later, we will be giving out the Young CSR Leaders Award, set up in partnership with City Developments Limited. I would also like to congratulate all the award winners.  Through their involvement in the CSR projects, I hope our youths will learn how companies can operate responsibly and contribute to the community, and will continue to take this mindset with them when they enter the workforce. Indeed, when some of them become corporate leaders of the future.
   

Evolution of CSR

4. The concept of CSR started decades ago – the phrase was first used in the early 1950s, and by the 70s and 80s, there were more and more discussions about it. But at that time, CSR was still seen as something for companies to do on the sideline. In local terms, it was very much an Extra-Curricular Activity (ECA). Some analysts and investors regarded it as a waste of company funds.

5. Some were even opposed to the idea of CSR. If you recall, the economist Milton Friedman wrote an article in 1970 titled “The Social Responsibility of Business is to Increase its Profits”. His argument was that business leaders basically had no responsibilities other than to maximise profits for the shareholders.

6. Fortunately, over the past decade, attitudes begun to change,and CSR started making its way into the mainstream agenda. It took on greater prominence in recent years. Events like the Global Financial Crisis revealed the folly of business decisions based purely on short-term profits, and fuelled public sceptism and disillusionment with the business sector around the world.

7. This is why CSR is so important. To be sustainable, to avoid the excesses of capitalism we have seen over the years, businesses cannot operate in a vacuum. They must take a long-term view of their impacts on local communities and the environment. The reality is that responsible corporate behaviour and the pursuit of profitability must go hand in hand. This is what being a good corporate citizen is about.
   

Promoting CSR in Singapore

8. Within Singapore, I am glad that we have been making progress in instilling the importance of CSR in our corporate sector. Many Singapore-based companies have shown that they can operate their businesses profitably, and in a responsible and sustainable manner at the same time.

9. City Developments Limited (CDL), for example, influences its suppliers and contractors to raise the level of eco-consciousness in the supply chain, and also embraces solar technology in its developments, as a showcase to promote renewable energy.

10. Cerebos Pacific, which is an MNC based here with a long history in Singapore, sells food products and has its factories observe ISO environmental standards, and makes the effort to reduce packaging of its products while raising consumer awareness of sustainable packaging.

11. These are just two examples. There are many more, I am sure, we can highlight. All this demonstrates that there is a business case for CSR, and that balancing the triple bottom line of financial, social, and environmental performance is the sustainable way forward.

12. While our companies have done well so far, we cannot afford to be complacent or rest on our laurels. What more can we do to advance the CSR agenda in Singapore? Let me offer three suggestions.

13. First, I would like to make a call for more giving and volunteerism in our corporate sector. Our CSR efforts, on the whole, have been focused on issues like environmental and labour standards, and sustainable business practices. These are certainly important, and should rightly be emphasised.

14. But I hope that companies will also look at how they can do more to contribute and give back to the community. After all, the workplace is where most individuals spend a significant amount of their time. So if companies want to make an impact on the community, if companies want to truly serve the community that they are in, then the spirit of giving must be an integral part of the corporate DNA in Singapore.

15. Corporate giving is not just about donating to a charity, or giving employees volunteer leave. That is certainly a good start, but it is often not enough. In fact, I have seen several firms that offer volunteer leave, but when I ask how many staff apply for the leave, the answer is usually a very low figure, sometimes less than 10%.

16. Ultimately, it comes down to a commitment to get involved in serving the community, and designing programmes and opportunities for employees to do something impactful and meanginful. This can be done even in small companies. For example, a local civil engineering company, Feng Ming Construction, has a policy of donating one percent of the value of each contract that it clinches. Aside from cash donations, Feng Ming also organises visits to homes or orphanages, and beneficiaries go for movie day outs at least twice a year, with all the staff taking part. According to the managing director, Mr Lim Hong Beng, he does this to instil values in his staff.  He said, “If you take from society, you must give back to society. This is something I always tell my employees.”

17. So this is really about transforming the culture in our workplace – that all companies, big and small, have the ability to give. If you think about it, we have more than 400 Voluntary Welfare Organisation (VWOs) in Singapore and we easily have more than 400 companies. If every company were to adopt a charity, I think that will make a difference.  Making giving a workplace norm sends a powerful message. It says that giving can coexist with the demands of business, because we can be never too busy to empathise with others, and do our bit for society.

18. Second, we should do more to recognise outstanding companies that are contributing and giving back to society.

19. We have many corporate awards in Singapore, but I believe the majority tend to focus on business performance. For example, we have an Enteprise 50 award to recognise the most enterprising companies in Singapore. I hope the day will come when we can also have a Civic 50 award to recognise our most civic-minded companies.

20. This is why I am happy to hear Mr Kwek announcing just now that there will be a new Singapore Apex CSR Awards. I hope to see more of such recognition, not just by Singapore Compact, but also by other industry associations and groupings. It is about time we tilt the balance to have more recognition for companies that are committed to giving back and doing their part for the community.

21. Third, besides offering recognition, we should provide more support to help companies get started in corporate giving.

22. The National Volunteer and Philanthropy Centre (NVPC) has started Corporate Giving lunches with CEOs and business leaders, to see how companies can make a positive impact on society. Through these sessions, NVPC hopes to share best practices and build a network of like-minded companies who can lead the way in corporate giving in Singapore.

23. I know some corporate leaders are keen to give back to the community, but are not sure how to get started. They are not sure which community to approach, which charities to adopt, or how to get their staff involved in a meaningful way. So NVPC will be stepping up its efforts to facilitate the matching of companies with charities, VWOs and non-profit organisations. Likewise, our Community Development Councils (CDCs) will be doing to more to match companies with critical needs in the community.

Conclusion

24. I have sketched out some ideas on how we can move our CSR efforts forward, particular in the area of corporate giving and volunteerism. 

25. In fact, there is an excellent opportunity for our companies to get started on these ideas. Next year, as you are aware, we celebrate our Golden Jubilee, our 50th anniversary of independence. For SG50, we have several major plans.

26. First, the government has already announce the Care & Share movement where we will be providing matching grants for the social service sector. We have set aside $250 million for this and for every donation that the VWOs bring in, you will get one-for-one matching. This is one way companies can get involved.

27. Second, we have set up the SG50 Celebration Fund, to support ground-up projects that help to build our national identity and strengthen our community bonds. So if your company wants to do something contribute to our nation's birthday, you can apply for the SG50 Celebration Fund. There will be funding available  for you to do a project, as a company, for the Singapore society, for the community, for our nation's 50th birthday.

28. Third, we also have a full schedule of activities and events next year to celebrate SG50. And we welcome all companies that are keen to join us and come on board as our sponsors and partners in these events. We will be happy to link you up to specific events within our SG50 calendar. There is a lot that you can do, a lot that you can get started on. I hope that, as we celebrate our nation's 50th birthday, our Golden Jubilee, this will be an important milestone not just for society but also for corporate Singapore as whole.

29. Finally, let me thank the team in Singapore Compact once again for your efforts in promoting CSR. I encourage all our corporate leaders and representatives to take this seriously and to incorporate well-designed CSR strategies into your business plan. It cannot be an ECA any more. It is not just a 'good to have'. It must be integral to how you want to see your business developing ahead.This is vital if we are to secure Singapore's future, not just as a properous economic hub, but also a fair and inclusive society and a giving nation.

30. Thank you very much and have a fruitful and productive conference ahead.