Promoting and strengthening corporate giving in Singapore

Parliamentary Colleague Ms Sim Ann

Mrs Mildred Tan, Chairman, National Volunteer and Philanthropy Centre,

Mr Teo Siong Seng, Chairman, Singapore Business Federation,

Council members of NVPC,

Ladies and gentlemen,

1. First of all, let's us give all everyone a big round of applause for being in the Company of Good programme. The support has been tremendous, and your presence here is really heart-felt. I am very encouraged to see many companies and stakeholders joining us in this journey. To the founding companies participating in the programme, I would like to thank you for leading the way towards empowering our businesses to improve their giving practices.
   

Giving culture attracts customers and retains employees

2. There is a growing body of evidence, that developing a corporate culture with a strong element of giving will help businesses attract customers and retain employees.

3. These research findings are not new. A full decade ago, the Harvard Business Review published a study done by Michael Porter and Mark Kramer which suggested that corporate social responsibility can be a potent source of innovation and competitive advantage. This requires a shift in mindset away from seeing corporate performance and social responsibility as competing for resources in a zero-sum game; away from seeing corporate giving merely as a cost. We need to understand that being a good corporate citizen can be an opportunity for corporate growth.

4. Corporate giving programmes are vital for businesses seeking to build stronger relationships with their customers. Many customers now evaluate a business' social commitments when purchasing a product or procuring a service.

5. I know of customers who sign on with UOB and M1 because of their commitment to the arts. I have heard of other customers who go with OCBC and Deloitte because of their support for sports. I know of those who trust NTUC Income and Keppel Corporation for the great work that they do for the less advantaged. Just as we choose to be with friends of good character, customers will choose to identify with businesses that share causes close to their hearts.

6. A corporate's social identity also helps to attract and retain the best talent available today. Employees, particularly millennials, are looking for meaningful jobs in organisations that make a positive impact on society. The recent Deloitte Millennial Survey found that some 70 per cent of young people, including Singaporeans, are choosing to work in organisations aligned with their personal values and ideals such as environmental sustainability, or support for local communities. And a recent study by INSEAD found that not only were the employees participating in corporate social initiatives more likely to be the better performing individuals; they were 20 to 30 per cent more likely to stay with the firm for a longer period of time.

7. But making giving a core part of corporate identity is more than just good business sense. Businesses also find value in cultivating a social spirit because they recognise that giving back is a basic demand of being a member of their community. They are aware of their responsibility to be involved in their communities, and to be of service to the less fortunate amongst us.
   

Businesses are well-placed to contribute to society

8. Businesses are well-placed to contribute. They bring with them critical professional expertise, networks and resources for giving. They can create the opportunities for their employees to volunteer, as working adults often do not have the time to organise something on their own.

9. Take for example the giving practices of FoodXervices, a food distribution company that set up the Food Bank Singapore back in 2012. The company saw the large amounts of food wastage in the industry, and thought about how this food could help the less privileged in Singapore. Now it distributes around 60 tons of food per month to help over 100,000 needy individuals in welfare homes, soup kitchens, and family service centres. This is done with the support of over 900 volunteers, including their own staff, and the staff of their corporate partners who have been inspired by their efforts. The company has nurtured a culture of giving that has extended to others in their industry. Indeed, a commendable effort! Congratulations, FoodXervices!
   

Government's support for corporate giving

10. The Government sees businesses as natural partners to grow the culture of giving in Singapore. Whether at work or at home, we want Singapore to be a place where we have avenues to step forward and lend a hand to those who are in need.

11. This year, the Government has launched a number of initiatives to help businesses build giving capabilities. At the 2016 Budget, we introduced the pilot Business and IPC Partnership scheme which will extend tax deductions to organisations whose employees volunteer with IPCs.

12. We also boosted the ComChest SHARE programme with a matching grant, part of which can be used by companies participating in SHARE to develop their CSR capabilities. To complement these initiatives, I am glad to also support the NVPC's Company of Good programme.
    

Company of Good Programme an important resource to build giving capabilities

13. The Company of Good programme will be a resource for businesses looking to enhance their giving culture. While it is not difficult for companies to start giving, such as by simply making a donation, the challenge is to make these giving efforts meaningful, sustainable, and part of your company's culture. The Company of Good programme will help organisations to do so.

14. The Government has taken the lead by making giving a part of its workplace culture. Civil servants are encouraged to donate a part of their salaries through the SHARE programme and can do so easily through the government payment portal. From this year, the government has also instituted volunteer work leave for civil servants who now can take a day of leave a year to do volunteer work.

15. MCCY has taken further steps. We offer time off and organise at least two Corporate Social Responsibility (CSR) days each year for staff to participate in CSR activities; and our staff are also encouraged to do CSR in groups for team-bonding. MCCY has also adopted a nearby children care centre as our charity and every week our staff head down to the centre to read to the children.

16. Through these efforts, we hope to integrate into our workplace, the culture giving. I urge all of you to do the same at your organisations.
    

Conclusion

17. I would like to end by thanking NVPC, the Singapore Business Federation Foundation, and the various Company of Good Partners for their efforts on this important initiative. I am encouraged to see that many of our major trade associations and business chambers have signed on to be Company of Good Partners. You play an important role in leading your members to be active participants in the programme.

18. I encourage all companies and organisations to come on-board and commit to becoming Companies of Good.

19. Thank you very much for making a very positive impact on the future of Singapore.