Singapore’s recent haze problem may have put a slight dent in its relationship with its neighbours, but there may be a silver lining in this ash cloud after all.
Late last month when the Pollution Standard Index in Singapore climbed to critical levels above 400 (in parts of Malaysia, state of emergency was declared as the index rose past 700!), the impact on corporate responsibility became the talk of the town overnight.
Not surprisingly, like the canary in the coal mine, people react when they experience a direct impact from a man-made disaster. It is only then, that fundamental questions get raised.
While the importance of Singapore as a regional hub for global and Asian companies has grown significantly over the years, the adoption of global CR standards here has somehow been slow to take off. According to a recent ACCA survey among five ASEAN countries, Singapore was found to have produced the least number of sustainability reports, with 21 companies producing 49 reports between 2002 – 2010. This may surprise many global business leaders who pass by Singapore’s green city, but local citizens and expatriates working here would probably concur with the view that this ‘fine city’ could do a lot more to encourage businesses to take care of their environmental and social responsibilities.
To be fair, several companies deserve credit for adopting a sustainability strategy in their business. The level of CR engagement varies by sector too of course – like the concept of the ‘social license to operate’, some companies acknowledge greater exposure to risks in their supply chain.
In the meantime, we’re now witnessing a flurry of news articles in the local papers and blogs voicing the importance of corporate responsibility, and turning the spotlight on corporations. The stance is clear that consumers today do care about what businesses are doing for society today. And with increasing affluence and better education, the millions of young voices in this region today – aided by the tremendous power of online social media – are a force to be reckoned with. And they certainly have the power to choose.
So if a business is looking at Southeast Asia as among their focus growth markets, I would say that now is the time to rethink their strategy. They must factor in the importance of corporate citizenship, and must remain conscious of the fact that a growth market like Southeast Asia – with its low-cost labour, rich resources and booming middle-class – does not always come cheap.