Speech at The Inaugural International Corporate Social Responsibility Summit
Mr Gan Kim Yong , Minister , Orchard Hotel
Ms Olivia Lum
President, Singapore Compact for CSR,
Your Excellencies,
Distinguished guests,
Ladies and gentlemen,
A very good morning to all of you.
Introduction
Let me first thank the Singapore Compact for Corporate Social Responsibility for organising the inaugural International CSR Summit, and for inviting me to be part of this very important event. I am heartened by the strong turnout for today's Summit. It shows the growing importance and interest on CSR issues among the international and business communities.
International Developments in CSR
2. The CSR movement has seen much progress over the years. The definition of what constitutes corporate social responsibility has also evolved through practice. We are also seeing more firms are pledging themselves to socially responsible behaviour.
3. For instance, the UN Global Compact, which was launched in July 2000 to champion the adoption of CSR practices globally, now has more than 6,700 participants. This includes over 5,200 businesses in 130 countries around the world. The International Organization for Standardization, or ISO, will also be publishing the ISO 26000 in 2010, to serve as a clearer benchmark for socially responsible practices.
4. However, CSR is not without its detractors. For instance, critics of CSR feel that businesses can contribute most to society by focusing on what they do best, which is to stay profitable and contribute to economic growth by generating wealth and employment. They think that CSR is an unnecessary distraction that results in a misallocation of resources.
CSR in Singapore
5. Singapore adopts a practical approach to CSR, and believes that economic and social progress should go hand in hand. In our pursuit for economic growth, we have also not forgotten to strengthen our social capital, which is what makes a nation strong and resilient. Indeed, the strong tripartite relationship we see today, which has been a source of Singapore's competitive advantage and enabled us to weather many difficult times, would not have been possible without strong social capital.
6. While a survey conducted by the Trade and Industry Ministry in 2008 showed that only about three in ten companies were aware and practising CSR, the tripartite partners' response to the current economic downturn is a clear manifestation of CSR at work in Singapore.
7. The tripartite partners jointly rolled out the Tripartite Guidelines on Managing Excess Manpower during this downturn to encourage companies to act in a socially responsible manner. They were urged to save jobs by implementing alternative ways to manage their excess manpower such as through shorter work weeks or to send their workers for training during downtimes and consider retrenchment only as a last resort. This creates a win-win situation for both the company and the workers as the company is able to retain experienced workers and reposition itself for the eventual upturn, while the workers are able to keep their jobs.
8. Such a concerted effort at the national level has yielded good results. Some 66% of the 1,900 companies surveyed indicated that they had no plans to carry out any retrenchment exercise. Of the remaining 34% which had planned to carry out retrenchments, 4 out of 5 indicated that they had postponed their retrenchment decisions or reduced the number of workers affected as a result of the above measures, with only 1 out of 5 companies reporting that they had proceeded or would be proceeding with their retrenchment plans notwithstanding the downturn measures.
Incorporating CSR as a Business Strategy
9. We encourage companies in Singapore to become more aware of CSR and to implement CSR strategies that focuses on the significant challenges that we, as a society, will face in the future. Some examples include putting in place age friendly policies amidst an ageing population; implementing bestsourcing, instead of cheapsourcing; making sure vulnerable workers do not miss out on the benefits of economic growth; and adopting environmentally sustainable practices to as a response to global warming.
10. Organisations in Singapore have responded to such challenges in the past, and in so doing, made important contributions to society. One well-known example is NTUC FairPrice, a supermarket chain. It was founded by the labour movement in 1973, as a response to a period of high inflation. It has played an important part in moderating the cost of living in Singapore. NTUC FairPrice is an example of how a successful organisation can meet both business and social missions. FairPrice's success today is in no small part due to its ability to provide value to its many stakeholders and respond to the needs of the communities it serves.
11. Another example is City Developments Limited, which has incorporated CSR as an integral part of its business strategy since the 1990s. In addition to encouraging volunteerism among its staff, City Developments also believes strongly in environment sustainability, and has taken the initiative to raise environmental standards in all of its projects. In recognition of its efforts, City Developments was awarded the Building and Construction Authority's inaugural Green Mark Champion Award last year, which was introduced to recognise developers with strong commitment towards CSR and environmental sustainability.
12. The experiences of NTUC FairPrice, City Developments and 8 other companies in their CSR journeys have been documented by the Singapore Compact for CSR, in a book which will be launched later this morning.
Conclusion
13. In conclusion, I am confident that with the good work put in by the Singapore Compact for CSR, more companies will soon recognise the value of CSR and incorporate CSR in their business strategies.
14. I wish all of you a fruitful and fulfilling Summit. Thank you.