Companies today must look beyond simply making a profit and be mindful of the non-economic impact of their operations. No longer the domain of big companies where it was equated with philanthropy, corporate social responsibility (CSR) is now part of the triple bottom-line. Businesses, big and small, must take into account the interest sof `stakeholders’, not just `shareholders’. Singapore Management University law professor Eugene Tan, author of a working paper on the state of corporate social responsibility in Singapore, states: “CSR is very much an intrinsic part of the corporate landscape today, and any company not giving it the priority it deserves is out of touch with an increasingly important development.”
In Singapore where small and medium-sized enterprises (SMEs) make up 92% of all firms, account for 51% of the workforce and 34% of gross domestic product, SMEs as well as larger companies have a significant role to play in addressing CSR priorities.
Whether publicly listed or privately held, all businesses have to take into account not just the financial bottom-line, but also their responsibilities to employees, shareholders, consumers, business partners and the communities in which they operate. “It is a responsibility that goes beyond the borders for companies involved in overseas business. Such companies would do well to track global CSR trends that can impinge on their exports,” Tan said.
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