CORPORATE social responsibility (CSR) is an essential ingredient of global business culture these days yet it struggles to gain a high profile here.
The problem is not so much that local firms do not instigate CSR practices, but rather that Singapore lacks a reporting process so the movement remains 'under-developed', said industry expert Richard Welford on Monday.
Mr Welford, chairman of CSR Asia, which aims to promote CSR throughout Asia, said organisations like stock exchanges could have a key role in encouraging it.
He suggested the Singapore Exchange could start an initiative to get 30 key firms in the Straits Times Index to report their CSR activities and in so doing boost CSR awareness.
The concept involves corporations taking responsibility for the impact of their activities on individuals, communities and the environment, and has been increasingly embraced by firms around the world.
It is also more common for global investors to look for such CSR practices before investing, said Mr Welford. 'Local investors might not demand such practices of their local firms. But having good CSR practices is like having a global licence to operate. It takes a company beyond its domestic market.'
Read the full story in Tuesday's edition of The Straits Times.
