CORPORATE social responsibility (CSR) is not just a slogan and it does not simply involve handing out cash to charities.
It can, for example, mean better environmental practices, or adopting more transparent corporate governance.
Small- and medium-sized enterprises (SMEs) have been urged to step forward to seek support for implementing CSR programmes.
Having a good CSR programme will help SMEs distinguish themselves to a generation of more discerning consumers.
These were some points raised yesterday at the two-day 7th Asian Forum on CSR.
Dr Vivian Balakrishnan, Minister for Community Development, Youth and Sports opened the forum by urging SMEs to get support and assistance from the National Volunteer and Philanthropy Centre in areas that range from planning to implementing CSR strategies.
A survey by the Ministry of Trade and Industry last month found that less than a third of SMEs are aware of CSR, while those that are, need support to implement their CSR plans.
Under the ComCare Connection Scheme, firms can get advice and be matched with non-profit organisations to make a significant difference, Dr Balakrishnan said.
Ms Claire Chiang, president of the Singapore Compact for CSR, said that with a young generation more sensitive to sustainability, SMEs can distinguish themselves to customers through the good implementation of CSR programmes.
She said many SMEs still have a limited understanding of what CSR means, believing it is only about giving money away rather than the running of a business in a socially responsible way.
She added that smaller firms also feel that it is the work of multinationals (MNCs) and Western countries and not something Asian companies do. But this can be changed through a continuous process of education.
Mr Keith Kaerhoeg, Coca-Cola Pacific's group communications director, said large companies also have their part to play in raising SMEs' uptake of CSR activities. They should talk more about CSR as part of being a sustainable corporation and not just pure charity.
Dr Balakrishnan reinforced this idea. While a survey showed that some 71 per cent of Singapore firms had donated to charity in 2005 and 2006, he said that CSR is 'more than just writing a cheque for a worthy cause'.
He cited City Developments' work with the Singapore Environment Council as a good example. City Developments is nominated for tonight's Asian CSR Awards as part of the two-day forum.
Having a CSR forum at a time when the financial crisis is dominating headlines could make people either respond with higher aspirations or cynicism, he said.
But he urged for the former, and said that CSR is how firms can focus on more than just their shareholders and help to manage risk through trust building.
He believes that it is possible for businesses to have an 'enlightened view' to focus on 'people, planet and profit' - the model for sustainability - and not just exclusively on profit.
This article was first published in The Straits Times on November 21, 2008.
