This week, we discussed about corporate social responsibility and the
companies practicing it. Corporate social responsibility is where
companies practice or participate in initiatives that works to benefit society. This can come in the form of environmental, philanthropy or even ethical labour practices. Corporate social responsibility should be encouraged in Singapore. The local CSR movement marks its official 10th anniversary last year in 2015, however, adoption of these initiatives can be considered low. This may be because companies may think that there is no need to adopt these practices as they do not bring about much good, on the other hand, it instead lowers the companys profits and economic efficiency. Companies, whose short term goals are to mainly maximize profits, are thus reluctant to adopt these practices. Furthermore, many small companies, with their limited size, do not think CSR initiatives are necessary, drawing out the fact that they cannot contribute much too due to their limited capacity. However, this is an incorrect perception. CSR initiatives are good as they not only benefit the society, but also improve the companys reputation. Consumers are increasingly buying products and services produced sustainably. Furthermore, youths do prefer working under sustainable workers too. According to the 2014 Nielsen Global Survey on CSR, 64 per cent of consumers in Asia-Pacific were inclined to buy from socially responsible brands. And the 2015 Deloitte Millenial Survey, which polled 7,800 people across 29 countries, found that millenials - or youth - prefer to work for a business with a heart and expect businesses to have a positive impact on wider society. Good corporate behavior is also increasingly becoming more important to other stakeholders, which include that of consumers. This can be seen by the incident of Breadtalk, the local bakery chain, who caused shock among the citizens when it was discovered that customers caught its staff repackaging Yeo's soya milk as "freshly prepared" Even though, this cannot be compared to other scandals such as Apple and Foxconn, or that of Volkswagon, this had caused a public uproar showing Breadtalks far from ethical actions and its reputation was ruined. Many of its customers commenting online also threatened to stop buying its products. Therefore, it can be seen that corporate behavior can be improved through CSR and this will greatly benefit the company. Therefore, other stakeholders such as consumers, investors, government and employees should also do their part in encouraging companies to play a more active part in CSR.