By Goh Chin Lian, Senior Political Correspondent

SINGAPORE companies received a pat on the back from Manpower Minister Gan Kim Yong yesterday for saving jobs during the economic downturn.

Calling it a socially responsible act, he lauded them for working with the Government and labour movement to retain workers and retrench only as a last resort, averting massive layoffs and a high jobless rate.

But as the economy improves, he called on companies to continue their socially responsible ways by tackling other pressing issues such as an ageing population and a widening income gap.

His suggestions include implementing age-friendly hiring policies so that more older folk can find and keep jobs, and using best sourcing instead of cheap sourcing to ensure low-wage workers can enjoy higher salaries.

These practices will enable 'vulnerable workers' to benefit, and not miss out, on Singapore's economic growth, said Mr Gan, who was speaking at the start of a two-day international conference on corporate social responsibility (CSR).

Organised by Singapore Compact for CSR, a national society that promotes such practices, topics covered in the conference include the role of corporate foundations and strategies to help companies stay socially responsible.

Mr Gan cited a survey by the Trade and Industry Ministry last year which found that three in 10 companies here practised some form of corporate social responsibility, such as being environmentally friendly or helping the poor.

But he added: 'The tripartite partners' response to the current economic downturn is a clear manifestation of corporate social responsibility at work in Singapore.'

He was referring to the collaboration among employers, union leaders and government officials in coming up with guidelines on managing excess manpower such as shorter work weeks and sending workers for training during lull periods.

Such a concerted effort yielded good results, he said, citing a survey showing that 66 per cent of 1,900 companies had no plans to lay off workers in March.

Among the rest, four in five postponed their retrenchment plans or cut down the number of workers laid off as a result of government measures to help companies cope with the crisis.

Looking after the welfare of workers is a key component in corporate social responsibility, said Associate Professor Gilbert Tan of the Singapore Management University .

'Treating employees fairly and not unnecessarily laying off workers in a downturn are consistent with the concept of corporate social responsibility,' he said.

Mr Gan also launched a book showcasing the experience of 10 organisations that have integrated socially responsible practices into their businesses.

He zoomed in on two examples.

One, supermarket chain NTUC FairPrice, which has helped to moderate the cost of living by keeping the prices of essential items low; and two, Singapore-listed property giant City Developments, which has raised environmental standards for all its projects.

While such practices are gaining in momentum all over the world, he noted that there are critics who believe that businesses should focus on creating wealth and jobs for the economy instead of being distracted by other social missions.

Singapore adopts a practical approach, he noted, as economic and social progress should go hand in hand.

If not, it would not be possible to have a strong tripartite relationship, 'which has been a source of Singapore's competitive advantage and enabled us to weather many difficult times', he said.

This article was first published in The Straits Times.