Corporate Social Responsibility (CSR) is about the actions that business can take, over and above compliance with minimum legal requirements, to address both its own competitive interests and the interests of wider society.

CSR is not just about philanthrophy. It’s about business providing benefits to society through its core operations, such as investing in community projects, enhancing environmental relationships and respecting human rights issues through fair working practices. CSR is about maximizing the economic, social and environmental benefits associated with the business and minimizing the downsides.

Although CSR places challenges on companies to not only focus on the bottom line, many companies who have endorsed the CSR philosophy have found that rather than be a cost, the approach has economic benefits. This is because CSR practices can help companies access new markets, finance, customers and business partners. And by taking a CSR approach, relationships with Government and communities can be improved. Ultimately CSR can enhance brand value and corporate reputation.

A third of a company’s share price, some analysts say, is accounted for by its reputation.

At the heart of Corporate Social Responsibility is trust. Trust in a brand, trust in a product, trust in a company to “do the right thing” and trust in a company as an employer. Such trust is increasingly important in order to recruit, and retain, high caliber staff, clients, business partners corporate financing, and to maintain reputation.

The United Nations Global Compact was launched July 2000, requesting that companies sign up in support of nine principles addressing CSR issues. Although the principles are by no means hard to meet, so far only 1247 companies have signed up to the Global Compact globally, and as yet there has not been any representation from Singapore.

Nine Principles:-
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence; and
Principle 2: make sure that they are not complicit in human rights abuses.

Labour Standards
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: eliminate discrimination in respect of employment and occupation.

Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies

Another interesting development is the International Finance Corporation's Equator Principles. The Equator Principles are directed at banks to help them manage social and environmental issues in project financing (for projects costing US$50 million or more). So far 20 banks worldwide have signed up since the principles were devised in 2002, including HSBC, ABN AMRO, Citigroup, Dexia and Standard Chartered, but unfortunately not any Singaporean banks as yet. The principles demand that projects are categorised as having either low, medium or high environmental/ social risk and then accordingly environmental assessments (covering specified issues) are made, environmental management plans are devised and adhered to and relevant parties, experts and NGOs are consulted. Project finance plays an important role in development throughout the world and through the Equator Principles we should start seeing development occuring in a more sustainable and ethical way.

What we can do
PAIA addresses many angles of CSR, helping companies move towards being more corporately responsible, working with companies to understand what CSR means to them, helping organisations engage stakeholders and publicy report on CSR performance.

We attempt to put the same principles into practice within our own organisation and adhere to be socially and environmentally responsible through the work that we undertake and the way in which we operate our business.