Business leaders need to do more than ever to help tackle challenges that undermine social cohesion, Deputy Prime Minister Heng Swee Keat said yesterday.
He identified three divides that all societies have to address: Growing inequality as a result of globali-sation and advances in technology, a widening divide among different generations and the deepening political polarisation that is made worse by social media.
Unless resolved, the tensions will make it difficult for countries, including Singapore, to weather the challenges of a slowing economy, Mr Heng added yesterday.
And companies can do more in this effort by becoming more socially responsible in areas such as gender equality, environmental sustainability, and promoting education and healthcare, he said in a speech to 400 business and thought leaders at the annual Singapore Summit, which discusses global trends.
Noting the economic and political influence of big businesses today, Mr Heng said companies can do even more to make a difference, by working together as well as with governments to create solutions to improve people's lives.
"More than ever before, business leaders must play a greater role - to renew the social order of the countries they operate in and revitalise the international system," Mr Heng, who is also Finance Minister, said at the Shangri-La Hotel.
In his broad speech on problems confronting societies and the way forward, Mr Heng urged the business leaders to do more to strengthen the social compact, saying that "doing well and doing good need not be contradictory".
He pointed out how some businesses have been championing "conscious capitalism", or the idea that companies should not only serve their shareholders, but customers, employees, suppliers and the environment as well.
He called on countries to work together to tackle global challenges such as climate change, poverty, food security and cyber security.
Likewise, he urged them "not (to) forsake multilateralism simply because the current ground sentiments are shifting away from it". "Instead, it is our role as leaders to uphold this system collectively and convince others that this remains the best way forward," he said.
The need for each society to renew its social compact is urgent amid global economic tensions.
Societal interests have fractured, he noted, making it difficult for governments to secure a mandate to make important decisions.
"Politics is increasingly marked by snap polls, hung Parliaments and government shutdowns, which in turn engender further distrust towards governments and the political system. All these point to a fraying of the social compact that holds societies together," he said.
The relationship between companies and societies has altered too.
"Singapore has so far been spared the full force of these challenges, but we are not immune to them," he added. "We are renewing our social compact. We do not have all the answers to these complex issues."
Every society has to find its own formula to give citizens a stake in shaping its future, Mr Heng added, citing the Singapore Together movement he launched in June to get citizens together to find common cause and create solutions.
Other countries have embarked on similar journeys, he noted, citing France's Great National Debate and Japan's Society 5.0. "We can all learn from each other," he said.
