Trustees of NTUC Co-operatives, Chairmen, CEOs and NTUC Central Committee members,
Good evening.
We're here this evening to thank and honour our trustees, for their service to the boards of Trustees of NTUC co-operatives. As trustees, you have played a vital role in helping the co-operatives achieved their business and social objectives.
The first NTUC co-operative was set up more than 30 years ago. Today, there are altogether 10 NTUC co-operatives. The NTUC co-operatives help moderate cost increases by setting benchmark prices.
Notably, during the recessions, the NTUC co-operatives come together and put together a package of price cuts and financial relief, $26 million in 1998 and $52 million in 2001 and 2002). This was well appreciated by the public.
Some years ago, we began a review of the objectives of our co-operatives. We re-affirmed the original objectives, or restated them. Each co-operative has clear social objectives. Three years ago, NTUC co-operatives started an annual report card, to show how well we have performed by those social objectives. The social indicators measure our role in benchmark pricing, our reach and impact on society, and the privileges and benefits for our members and to the community at large. In recent years, some multi-national companies have also decided to be socially responsible. We should lead, and not be outdone by them.
The subject of social and public accountability has come to the forefront of public discussion as a result of the scandals relating to the likes of Enrons and Worldcom. NTUC co-operatives have, and must continue to uphold the highest level of integrity and conduct. We must imbue in our management and staff a sense of shared mission, and values. This is just as important as fostering a strong governance structure for our co-ops.
Our co-operatives must set up a strong governance structure. NTUC has been facilitating this development by culling best practices for adoption by our co-operatives. We have taken the requirements on listed companies as reference, and adapted them for co-operatives.
Our early co-operatives were set up with trustees in their structure. The trustees act as a second check after the directors. At the same time, the presence of well-respected people of standing on the board of trustees inspired confidence in the co-operatives during their infancy. Today, our co-operatives are fairly large operations. It would no longer be appropriate to place undue responsibility on the trustees. We should rely on good governance standards being observed. Hence, we are taking steps to dissolve the boards of trustees of our cooperatives.
On behalf of the NTUC Central Committee, I want to express my gratitude to our Trustees, in making our co-operatives credible institutions, so as to effectively play a meaningful role in our society. Our co-operatives are home-grown enterprises owned by thousands of workers. I am sure it must give you great satisfaction to see these worker-owned co-operatives grow into big, competitive enterprises. We thank you for your prudent stewardship!
I am confident that we will be able to count on your continued support for the NTUC cooperatives, in your future capacities as a consumer, member of the society, and a well wisher of the labour movement.
Have an enjoyable evening.
