Corporate Social Responsibility Growing Stronger in Singapore

Corporate Social Responsibility (CSR) has taken root in Singapore. To date, 240 organisations have adopted CSR and are working with a social conscience, while running a profitable business.

The companies include large corporations, small and medium-sized enterprises (SMEs), co-operatives, unions, federations and non-governmental organisations.

The steady growth in CSR has been achieved in the past four years since the setting up of Singapore Compact, the national organisation charged with promoting CSR  in Singapore.

In addition, 70 companies have signed up as signatories to the United Nations Global Compact (UNGC) network in Singapore. The UNGC incorporates ten principles covering human rights, labour standards, environment and anti-corruption.

Singapore Compact, which was set up by the National Trades Union Congress (NTUC) and Singapore National Employers Federation (SNEF) in 2005, is stepping up its efforts to encourage the take-up of CSR and to bring it to the next level.

CSR is essentially about businesses doing well and doing good by working together with stakeholders. It is about accountability to stakeholders rather than just shareholders. It is value driven, going beyond legal compliance, embedded within an organisation’s principles, policies and practices.  It is the way a business is managed.  It is about shared responsibility for mutual gains. It is about the triple bottom line – measuring economic, environmental and social performance.

President of Singapore Compact, Ms Olivia Lum, says:

It makes business sense to practise CSR. There is an increasing interest in the investment community , especially from overseas, in how a company manages its environment, social and governance issues.

A company must know its principles and core values. Once it has the right principles and core values, its policies and actions will be guided by these. Ultimately, it means making commercial decisions taking into account the people and environmental factors.

CSR is a growing global trend and Singapore has taken the first few baby steps. Much more needs to be done.

Vice-President of Singapore Compact and Executive Director of Singapore National Employers’ Federation, Mr Koh Juan Kiat, noted that intangible benefits brought about by CSR result in profitable operations. He says:

Adopting CSR brings intangible benefits such as a good reputation for the company, high morale among employees and improved performance and attracts investors. Employees will also take greater pride in their company and this will affect productivity.

Expected to be ready by 2010, the international guidance standard on Social Responsibility, known as ISO26000,  will act as an impetus for public and private organisations to embrace and promote CSR further.

The GRI, or Global Reporting Initiative, on the other hand, is becoming the most widely used reporting framework in the world. Comprising 480 organisational stakeholders from 50 countries, the framework has an additional 5,000 companies worldwide using it.

Executive Director of Singapore Compact, Mr Thomas Thomas, says CSR is about the way an organisation is managed, strategically and operationally, and involves inculcating a shared responsibility for mutual gains. He says:

Above all, CSR pertains to the triple bottom line – measuring economic, environmental, and social performance.

To increase understanding and wider adoption of CSR in Singapore, Singapore Compact will hold an inaugural International Singapore Compact CSR Summit from 6-7 October at Orchard Hotel.

The conference will feature a keynote address by the Guest-of-Honour, Minister for Manpower Gan Kim Yong, and distinguished names such as Madam Halimah Yacob, Deputy Secretary General, NTUC; Mr Kwek Leng Joo, Managing Director, City Developments Ltd; Mr Lee Tzu Yang, Chairman, Shell Companies in Singapore; Ms Ginney Lim, General Manager, SPH Foundation; and Ms Saw Phaik Hwa, CEO, SMRT. (Please click here for further details).

Topics to be covered include CSR and the Community: The Role of Corporate Foundations; CSR Global Trends; CSR: Strategy for Sustainability & Success; Investor’s Perspectives on CSR; CSR and Sustainable Development – The Environment and Beyond; and CSR – what can be done? There will also be concurrent workshops on CSR.

A book entitled, CSR for Sustainability and Success, will also be launched during the Opening Ceremony of the Summit. This will feature the experiences of 10 well-known companies in Singapore which adopted CSR.

The Ministry of Trade and Industry (MTI) conducted a survey on the state of CSR in Singapore in 2008, at the request of Singapore Compact for CSR. It covered a cross-section of 507 companies in Singapore. Mr Koh elaborates:

The survey findings suggest that, CSR as a concept, is still relatively new in Singapore. This may be explained by the difference between the global impetus behind CSR and the practice of businesses’ responsibilities towards society in Singapore, and the lack of a clear definition of the term.

Singapore Compact is working  with the Singapore Business Federation, the SGX,  government agencies, trade unions, consultants, NGOs and academia, to raise awareness and further promote CSR in Singapore. It hopes to organise more activities such as training while engaging directly with companies.