Graduate School for Professionals

CORPORATE SOCIAL RESPONSIBILITY: SINGAPORE COMPACT

Aventis School of Management is also a proud member of The Singapore Compact , a multi-stakeholder national CSR society. It is a membership-based organisation that is non-profit and largely self-financed. The comparatively low annual subscriptions as provided under the society’s Constitution aim to support its basic operating expenses, in promoting good CSR standards in Singapore.

ABOUT SINGAPORE COMPACT

The Singapore Compact for CSR is a national society in bringing the CSR movement forward in Singapore. Launched by the National Tripartite Initiative (NTI) on CSR steering committee in January 2005, the Singapore Compact functions as a multi-stakeholder platform in recognising the role and contributions of all CSR stakeholders.

Vision

To be a dynamic network of stakeholders to advance sustainability for global good. Working Together, Doing Good.

Mission

To be a credible and effective national society in promoting greater awareness, best practices, sustainable development and excellence towards CSR in Singapore, using a multi-stakeholder platform for wider collaboration through coordinated strategies and implementation.

Why Corporate Social Responsibility?

Corporate Social Responsibility (CSR) is generally used to describe business’s efforts to achieve sustainable outcomes by committing to good business practices and standards. While the concept may be relatively new in the region, the actual practices and related policies are not new. The key role and responsibility are often discussed in the aspects of business, social and the environment.

Your Source of Competitive Advantage

Most businesses compete either on price, level of quality or service as their competitive advantage. Non-profit organizations often use efficiency, values of service or societal benefit to generate their competitive advantage. Can your organization or direct competitors tap on additional economic, environmental or social advantages that can be used for competitive purposes, such as community support, better brand identity, reduced waste disposal costs or better employee working conditions?

Today consumers, investors, governments and even employees have become more sophisticated and more aware of good corporate behavior, or lack thereof. In this new business environment, a company's reputation has become one of its most valuable assets, and CSR has become one of the key components of corporate reputation.

Positive CSR experiences build confidence and goodwill with stakeholders. Many organizations have developed clear CSR efforts as strategic branding and management approach in achieving a win-win outcome. Their number continues to grow. What about yours?

The Business Case for CSR

CSR is increasingly being seen as an important and integral part of normal business operations. So h ow does responsible business help to enhance business operations, in achieving a sustainable outcome?

Create Shareholder Value: Investors are becoming more concerned to invest in company’s that act with good corporate governance and social responsibility. Increasingly, a company’s performance as a responsible business is key to its financial and stock market standing, helping to protect it from instability and share price volatility.

Increased Revenue Base: CSR can boost factors that drive revenue in important ways. CSR initiatives and cause-related marketing could build reputation and goodwill among suppliers and customers. Employees who identified with the social mission are likely to be motivated, committed and more prepared to make sacrifices as a team member.

Strategic Branding: A company’s reputation is fundamental in maintaining and attracting new customer base. Consumers today are more sophisticated, becoming more selective and sensitive to a company’s image and CSR efforts. A distinctive CSR profile serves as a strategic branding tool in differentiating from competitors.

Operations Efficiency: The efficiency of a business is about productivity and effective use of resources. CSR can help to increase efficiency through environment conservation and recycling initiatives, as part of Eco-efficiency strategy. Positive management-employee relations are also crucial in bringing about good customer service, productivity and product innovation.

Better Access to Capital: Access to capital enables a company to grow and make timely investment. Companies with good CSR standing are likely able to secure equity and debt capital with most ease. The growth emphasis in Socially Responsible Investment (SRI) is a clear indication of likely future trends.

Human & Intellectual Capital: A company’s human and intellectual capital is one of its most valuable assets. Good workplace conditions and relations can help a company to attract, keep and develop human capital, keeping operations and staff morale high. Community involvement can play a complementary role in developing new skills set, encouraging participation, sharing and team spirit in the workplace as well.

Lower Business Risk: Companies are being held increasingly accountable for their actions today. Such business risk could affect reputation, access to capital and even long-term viability in some instance. Proactive dialogue with external stakeholders can help to foster understanding, in preempting and minimizing the repercussions.