Your Excellency, Mr. Allan Collins, High Commissioner of the British High Commission,
Mr. Cedric Foo, Minister of State for Defence,
Participants of the seminar, distinguished guests,
Fellow comrades, ladies and gentlemen
Good afternoon,
Today’s launch of this National Tripartite Initiative on Corporate Social Responsibility is an important milestone in the promotion of CSR in Singapore.
The concept of CSR is of course not new to businesses or the labour movement here. In fact, the strong tripartism that exists in Singapore has provided a solid foundation for us to develop various CSR initiatives. Although we may not have been using the CSR label, many of the efforts that we had undertaken in the past, and are currently engaged in, are geared towards achieving the same outcome, that is, to ensure a balanced, fair and sustainable national development strategy, with the active involvement of trade unions as key stakeholders in the process.
CSR initiatives cover economic, social and environmental factors. A core element of corporate social responsibility is the observance of labour standards. The labour movement has been actively involved in promoting CSR initiatives in this area. Through our participation in tripartism and social dialogue, we have been able to secure substantial improvements in workers lives and ensure job creation.
Indeed, the involvement of trade unions in the development and promotion of CSR initiatives is important, as one of the common complaints that we hear about voluntary CSR initiatives adopted by companies in many parts of the world, is that they lack transparency and accountability, and appears to be more of a public relations exercise. Our involvement, as well as that of other key stakeholders in the CSR initiative, will also ensure that there are follow up mechanisms through industry sector groups or other networks. It will also give us the opportunity to highlight best practices which, over time, would constitute the norm for businesses that are responsible and want to engage in ethical trading.
The various examples cited by the previous speakers as well as those that will be showcased by subsequent speakers show that CSR is something that is doable by both big MNCs and the more modest sized SMEs. There is a strong business case for promoting good CSR. It can be a win-win strategy for both businesses and other stakeholders. Many businesses are aware that when they adopt good CSR practices they are in fact helping to build trust and confidence and contribute to the sustainability of their own businesses. The recent examples of corporate failures involving world renowned companies such as Enron and WorldCom show that lack of social responsibility and accountability is not only bad for employees and consumers but can also result in tremendous losses to the shareholders. Indeed, many companies, such as Shell already have social audits to show that they are responsible corporate citizens.
Consumers today are much more discerning and many companies know the value of being good corporate citizens. A few years ago I was in New Delhi and went to a souvenir shop, which also sold some carpets and rugs. On the wall of this shop facing the door, there was a big sign which said that the carpets in that shop were not made using child labour.
Globalisation and CSR are natural reinforcements of each other. We have often heard that globalisation will have to be more inclusive and protect the interests of the disadvantaged not only between countries but also within each country itself. CSR provides the means through which globalisation can be more humane and inclusive, and therefore breed less resentment.
In Singapore, CSR is strongly promoted through the NTUC Co-operatives. Our co-operatives were set up to fulfill social objectives. They help make a difference to the lives of ordinary Singaporeans by helping them to stretch their hard earned dollar. NTUC Fairprice, for instance, has kept the lowest or one of the lowest prices on 400 basic food and household items. During the Sars period last year, NTUC Fairprice helped moderate the price of vegetables by ensuring adequate supplies. NTUC Childcare sets fees below market rates and for standard centres its fees are among the lowest.
Another important CSR initiative is the direct contribution that our co-operatives make to the community, such as the $20.8 million relief package that the co-operatives provide to cushion the GST impact. The relief package covers daily essentials for most households, from supermarkets to food centres, to general insurance products and services and even to recreational activities such as the chalets at Downtown East.
Ladies and gentlemen, the labour movement’s efforts to build a better life for our workers are in line with the CSR initiatives. This National Tripartite Initiative that we are launching today provides an important platform for us to work with other stakeholders to develop effective strategies and approaches to further promote CSR.
Thank you.
