The Star, tuesday 13 december 2016

CSR
Enriching lives,
making progress
Check out how corporations have empowered
communities to drive impactful change this year.

2 CSR
NESTL (Malaysia) Berhad has
been a Malaysian household name
for generations. Offering a diverse
range of food products, Nestl has
contributed significantly to the
nutritional needs of Malaysians.
Established more than a
hundred years ago, the company
has established trusted household
brands such as Nescaf, Milo and
Maggi, to name a few.
Only a fraction of Fortune 500
companies have survived these
many years. This is due to the fact
that we have been able to win the
hearts and minds of Malaysian
consumers over the years, says
Alois Hofbauer, managing director
of Nestl Malaysia.
However, producing nutritional
products is just one aspect of
Nestls growth as a key food and
nutrition corporation.
The heart of the company lies in
its Creating Shared Value (CSV)
initiatives, with the core principle
that the development of society
and businesses are mutually
dependent.
Nestl has been nourishing
Malaysians since 1912 by providing
high-quality, tasty, safe and
nutritious products to its
consumers.
Reflecting the companys
concept of Doing Well, by Doing
Good, Creating Shared Value is the
foundation of our belief that, for
the company to prosper, we have
to ensure the communities in
which we operate prosper too,
adds Hofbauer.
The community is where the
business begins. Hence, the worlds
largest food manufacturer is
looking for ways it can further
empower the community it works
with.
Nestl is putting huge emphasis
on community development by
continuously investing in it and
enriching people with high-quality
products while creating shared
value for the coming generations.
The three key areas we focus on
under our CSV initiatives are
nutrition, water and environment,
and rural development.
These are core to our business
strategy and vital to the welfare of
the people in the countries where
we operate. In Malaysia, we have
touched tens of thousands of lives
through our various CSV

THE STAR, TUESDAY 13 DECEMBER 2016

Sharing the joy

Reflecting the
companys concept
of Doing Well, by
Doing Good, Creating
Shared Value is the
foundation of our
belief that, for the
company to prosper,
we have to ensure
the communities in
which we operate
prosper too.
Alois Hofbauer

Rural development
Young participants designing creative food artwork during the Nestl Healthy Kids Programme.
initiatives, shares Hofbauer.

Nutrition
As malnutrition and undernutrition continue to be major
concerns in many countries
around the world, Nestl has
helmed the delivery of better
nutrition for the future.
The growth and profitability of
the company is galvanised by
nutrition, health and wellness. In
parallel, Nestl Malaysia is
encouraging Malaysians to be
healthier through the Nestl
Healthy Kids (NHK) programme
and MyBreakfast Study.
A global initiative to raise
awareness on nutrition, health and
wellness, the NHK programme
aims to promote physical activity
among school-age children.
Since it was established in 2010,
the programme has reached 10,000
students in 177 schools, 558 food

Initiatives such as the Nestl Chilli Club have helped rural farmers grow chilli
through good agricultural practices.
operators and 370 teachers
nationwide.
MyBreakfast Study a
collaborative effort between
Nestl and the Nutrition Society
of Malaysia is the first
comprehensive nationwide study
on the breakfast habits of
Malaysian schoolchildren.
Through this study, it was found
that four out of five Malaysian
schoolchildren are not getting
enough whole grains in their diet.
Whole grains are essential
sources of vitamins and minerals
and are associated with reducing
the risk of heart disease, diabetes
and obesity.
With nutrition-related
problems such as obesity,
non-communicable diseases and
chronic health conditions on the
rise, good nutrition is becoming
increasingly important.
As a responsible corporate
citizen, Nestl is focused on
offering tastier and healthier food
and beverage choices as well as
promoting healthy lifestyles, in
line with our promise Good
Food, Good Life, says Cher Siew
Wei, corporate wellness manager
of Nestl Malaysia.

Water and environment

More than 500,000 trees have been planted in 2,300ha of degraded forests
through Project RiLeaf.

One of Nestls priorities is to

ensure accessible and clean
waters for its factories, employees
and suppliers.
As a vital player of food
security, the lack of accessible,

clean water will dramatically

impact the quality of life of
Nestls shareholders as well as
the companys business
operations.
In tandem with this, Nestl
implemented Project RiLeaf in
2011 to encourage better water
stewardship and restore 2,400ha
of land along the lower
Kinabatangan River in Sabah.
As of today, the project has
successfully planted more than
500,000 trees in 2,300ha of
degraded forests in collaboration
with Yayasan Sime Darby. The
area is equivalent to more than
3,200 football fields.
The initiative has also expanded
the number of Roundtable of
Sustainable Palm Oil (RSPO)certified smallholders. A total of
115 oil palm farmers are now
certified under the RSPO Group
Certification.
Project RiLeaf is part of
Nestls CSV philosophy to unite
the needs of people, nature and
palm oil agriculture through
water the most common source
of vitality.
We are delighted that the
project has made great strides
in bringing life back to the
Kinabatangan River. In addition,
it has positively impacted the local
communities in the floodplains by
providing them with additional
income, on top of capacitybuilding initiatives, explains
Kertijah Abdul Kadir, agricultural
officer at Nestl Malaysia.

Nestl understands that the

overall well-being of its
stakeholders, including farmers,
rural communities, employees,
small entrepreneurs and suppliers,
is at the core of the companys
success stories and the
development of the country.
Nestl has established local
farming initiatives that will benefit
businesses and also improve the
living quality of the local farmers
by combating poverty and
communicating good agricultural
practices.
One of these initiatives is the
Nestl Paddy Club, which is a
rice-growing sustainability project
in which the company works
closely with farmers to produce
Nestl infant cereals using
environmentally friendly
approaches.
This has allowed Nestl to work
closely with the Northern Corridor
Implementation Authority and
Farmers Organization Authority of
Kelantan. As of today, more than
300 farmers have experienced
improved earning by 20%.
The Nestl Chilli Club (NCC) is a
chilli contract-farming scheme
initiated by Nestl.
This 20-year-old collaborative
effort between the Nestl
Agricultural Services Department
and Pertubuhan Peladang
Kawasan Bukit Awang has helped
rural farmers grow raw materials
through good agricultural
practices, offering them fair market
prices and a demand for their
products.
In addition to doubling the
monthly income of farmers, the
NCC has benefited Nestl by
ensuring that the company has a
sustainable supply of fresh chillies.
I am grateful to the NCC for
teaching us many new techniques.
We were taught to pluck the best
chillies. We also learnt planting
techniques to ensure the soil is
fertile and yield top-quality chillies
so that only the best produce goes
into Maggi Chilli Sauce, says Mek
Zaini, a local Kelantanese farmer
under the NCC.
The NCC and NPP ensure that
the company is able to source and
trace its raw material, especially
with growing consumer concern
on product traceability.
Giving consumers a greater
sense of confidence in its products,
these CSV initiatives not only
benefit society but Nestl business
as well.

n For more information, visit

www.nestle.com.my/csv.

THE STAR, TUESDAY 13 DECEMBER 2016

4 CSR

THE STAR, TUESDAY 13 DECEMBER 2016

Advancing education and learning

WITH close to 30 years of
experience in the Malaysian
education sector, the Sunway
Education Group (Sunway) has
been at the forefront of learning,
enabling talented individuals to
discover their true potential.
Comprising 16 educational
institutions, including Sunway
University, Sunway College,
Sunway International School, the
Jeffrey Cheah School of Medicine
and Health Sciences, Monash
University Malaysia and Sunway
Le Cordon Bleu Malaysia, Sunway
is committed to applying the latest
technologies, advancing innovation
and creating a competitive edge to
develop a global recognition in
education.
Besides raising the level of
education in the country, Sunway
is committed to giving to the
community. The Jeffrey Cheah
Foundation (JCF), which has
ownership and equity rights of
Sunways learning institutions and
is worth in excess of RM1bil today,
is the countrys largest educationfocused social enterprise.
In line with the guiding
principles of the foundation,
operating surpluses from the
various institutions are channelled
back to expand the faculty and
facilities towards sustaining quality
education for present and future
generations.

The Jeffrey Cheah Foundation has impacted thousands of youth by disbursing more than RM270mil in scholarships.

Forging international ties

Sunway Groups founder,
chairman and JCF founding trustee
Tan Sri Dr Jeffrey Cheah, AO, holds
education dear to his heart and
firmly believes in dedicating more
time in the areas of philanthropy,
education and sustainability.
Under his leadership, Sunway
has over the years worked
diligently to achieve its objectives
by synergising resources among its
educational institutions and
through strategic international
alliances.
In August 2013, the JCF
established academic ties with
Harvard University of the United
States, following a generous
endowment to the prestigious
university. Two Jeffrey Cheah
professors of South-East Asia
studies have since been appointed
to strengthen education and
research in the study of South-East
Asia as a growing influence in the
global community.
The contribution goes towards
facilitating a two-way flow of
faculty and scholars between
Harvard University and Sunway to
support and advance research,
conferences and workshops related
to South-East Asia studies as well
as scholarship collaborations, joint
publications and applications for
research grants.
The agreement is set to make
Sunway an attractive hub for
studies on South-East Asia,
consequently elevating teaching
and research standards in the
country and contributing to the
advancement of societies in the
region.
The Jeffrey Cheah Institute on
Southeast Asia at Sunway
University and Jeffrey Cheah
Travel Grants were also established
as part of this agreement.

Learning from the best

Two years later in 2015, the
JCF continued to partner with
distinguished universities by
collaborating with the University
of Cambridge and the University

The exchange of agreement between John Bowers QC (left), principal of

Brasenose College, University of Oxford, and Dr Cheah.
of Oxford, England.
As part of both agreements, two
professors each from Gonville and
Caius College of Cambridge and
Brasenose College of Oxford will
visit Sunway University at least
once a year to provide public
lectures, conduct classes and
contribute to academic
development and research
excellence. The move aims to
elevate the standards of teaching
and research at Sunway and
support the nations ambition of
becoming a global education hub.
The Jeffrey Cheah Scholars-inResidence programme was also
instituted, which allows for two
academics or postgraduate
students from Sunway to reside in
Brasenose College for four weeks
each year to undertake research.
From these partnerships, the JCF
is also able to organise a range of
initiatives for local students and
academicians, such as the highlevel symposium on precision
medicine held at Sunway
University in March this year that
brought together world experts to
share their knowledge on this
important matter.
Last year, the 4th Southeast
Asian Studies Symposium was also
held for the first time outside the
University of Oxford at Sunway
University, where global thinkers
and thought leaders came together
to address South-East Asias most
important challenges.

Professional interaction
In September, Sunway
University, Sunway Medical Centre
and Harvard Medical School
agreed to provide healthcare
leaders and working professionals
throughout the Asia Pacific
region with a world-class

training programme.
Speaking during the signing
ceremony of the Harvard Medical
School Southeast Asia Leadership
Program (HMS SEAL), Dr Cheah
said, The 12-month programme
will be taught by leading
academics from Harvard Medical
School and supported by experts
from Sunway.
It aims to equip managers
and clinicians working in the

demanding healthcare industry,

especially in major hospitals, with
the know-how to become excellent
leaders capable of achieving the
highest quality standards in
healthcare delivery.
He shared his belief that by
working with top international
institutions, Sunway would be
able to bring global academics
to Malaysia to augment the
much-needed talent pipeline for
the country to be on par with the
best in the world.
Commencing early next year, the
programme that includes online
learning and collaborative group
work will also feature classroom
workshops held in Sunway
University and at Harvard Medical
School in Boston, US.
For more information, visit
https://hms.harvard.edu/
departments/southeast-asialeadership-program.

Acknowledging individuals
While elevating the nations
education standards remains a
significant focus of the JCF, the
foundation is devoted to
recognising deserving individuals

and giving to the community

through scholarships, research
endeavours and travel grants.
Out of the 100 participants who
will be part of the HMS SEAL
intake each year, Sunway
University and Sunway Medical
Centre will commit RM1mil worth
of scholarships for selected
healthcare professionals.
Moreover, since the foundations
launch in 2010, the JCF
Scholarships and Awards
Ceremony has been an annual
event that constantly makes a
difference in the lives of
thousands.
It is a platform to recognise the
accomplishments of those who
excel in academics, sports, music
and extracurricular activities.
The latest event in October saw a
total of 500 recipients of different
ethnicities and backgrounds
receiving their disbursement at the
Jeffrey Cheah Hall, Sunway
University.
This year marked JCFs highest
disbursement to date, with
scholarships and awards
totalling RM56mil. In addition to
need-based and merit-based
scholarships, the Jeffrey Cheah
Travel Grants for Southeast Asia
Studies at Harvard University were
also given out at the event.
While speaking to the scholars,
Dr Cheah shared, The pursuit of
excellence brings in its wake its
own rewards. The scholarships you
have earned are the keys that open
the doors to this world of exciting
possibilities.
At the event and in the presence
of chief secretary to the
Government Tan Sri Dr Ali Hamsa,
JCF trustees, senior Sunway
executives, representatives from
the Education Ministry and related
agencies, educators, parents and
students, Dr Cheah also reiterated
his lifetime pledge to disburse
RM1bil in scholarships.
The JCF has to date awarded
more than RM270mil worth of
scholarships to thousands of
young, deserving Malaysians.

n For more information, visit

jeffreycheah.foundation.

Leading
with a
mission
THE Jeffrey Sachs Center on
Sustainable Development at
Sunway University will be a hub
to deepen technical knowledge in
sustainable development and
integrate this knowledge to create
world-class programmes that
train students, practitioners and
policy leaders.
The centres objectives:
l With support from the UN
Sustainable Development
Solutions Network (SDSN), it is
to be the regional centre of
excellence that advances the UNs
Sustainable Development Goals
(SDG) in Malaysia and South-East
Asia. It is to be a hub for research
and policy practice, creating
world-class programmes to train
students, practitioners and policy
leaders as well as develop
linkages with major universities

Tan Sri Dr Jeffrey Cheah (left) and Prof Jeffrey Sachs at Sunway University
before the launch of the Jeffrey Sachs Center of Sustainable Development,
which took place last Friday (Dec 9).
to achieve the SDGs.
l Launch a Masters in
Sustainable Development Practice
programme.
l Support the revision of the
Global Masters in Development
Practice curriculum, reflecting
on current challenges and
opportunities as well as influencing
participating universities around
the world.
l Support SDSN in developing a
Program on Sustainable
Development through the SDSN

Academy online education

initiative and develop up to 10
massive open online courses.
l Support and strengthen the
core sustainable development
activities of the SDSN Secretariat,
including the development of new
SDSN tools.
l Publish up to 10 textbooks
focused on the SDGs, thus creating
a global library of academic
and reference books as well as
case studies aligned with a
comprehensive SDG curriculum.

CSR 5

THE STAR, TUESDAY 13 DECEMBER 2016

Sunway City Ipoh is the company's pride of preservation and conservation.

An eye on sustainability
RAPID development has caused significant
problems for the whole of humanity,
particularly in the areas of climate change
and resource scarcity.
As a multi-industry corporation with a
wide range of businesses, including
property, construction, hospitality, retail,
education, healthcare and manufacturing,
it is only natural for the Sunway Group
(Sunway) to pay much attention to the
environment it operates in and related
issues pertaining to sustainability.
In an interview with Forbes Asia,
Sunways founder and chairman Tan Sri Dr
Jeffrey Cheah, AO, said, Climate change,
global warming, the changing environment,
urbanisation and population growth are
clear indications that we must find a path
towards progress that meets the demands of
our global community without upsetting the
ecological equilibrium that sustains our
planet.
For this reason, Dr Cheah is adamant in
leading his company to constantly strive for
sustainability, research new sustainable
activities and continue to educate a new
generation of practitioners, policymakers
and business leaders to ensure that Sunway
can grow the Malaysian economy while
preserving the planet.

An ongoing mission
Being a master developer of sustainable
communities, it is my hope that Sunway
communities including Sunway
educational institutions that have a
combined total number of students and
academic staff exceeding 30,000 and Sunway
Medical Centre, a leading private hospital in
the country will set a high benchmark for
education and sustainability in Asia, said
Dr Cheah during the Forbes Asia interview.
Yet, with a vision to have a fully
sustainable township, Dr Cheah recognises
that there are always improvements to be
made in the infrastructure, frameworks and
processes, including turning Sunway City
into a smart city, retrofitting world-class
components and facilities, and upgrading
connectivity within and among cities.
In recognition of Sunway City as a role
model for urban planning and its successful
implementation of low-carbon initiatives,
Sunway has been awarded the prestigious
Low-Carbon City Award by the Malaysian
Institute of Planners this year.
Priding itself in the transformation of
Sunway City from what was once an
ecological wasteland to a thriving, vibrant
and sustainable community, Dr Cheah will
continue to devote his efforts to ensure the
same success in other areas, including
Sunway City Ipoh and Sunway Iskandar.

A new step forward

Through the Jeffrey Cheah Foundation
(JCF) the not-for-profit social enterprise
that has ownership and equity rights to
Sunway Education Groups list of education

institutions Sunway proudly supports the

United Nations Sustainable Development
Goals (SDGs) and is a member of the United
Nations Sustainable Development Solutions
Network (SDSN).
The SDSN was formed to mobilise global
scientific and technological expertise to
promote practical problem-solving for
sustainable development, including the
design and implementation of its SDGs.
Signifying the largest financial
commitment towards SDG education
and implementation to date, JCF gifted
US$10mil to the SDSN Association with the
establishment of the Jeffrey Sachs Center
on Sustainable Development at Sunway
University.
Named after Prof Jeffrey Sachs who is the
director of the SDSN and The Earth Institute
at Columbia University as well as a worldrenowned economist, the centre represents
one of the efforts needed to achieve the
various SDGs that include collective global
expertise and collaborations between
academia, policymakers, civil society and
business communities.
The official launch was held at Sunway
University and the inaugural conference
was themed Moving Decisively Forward on
Sustainable Development Now!
Distinguished global leaders and speakers
in the area of sustainability were Prof Sachs,
science advisor to the Prime Minister Prof
Tan Sri Zakri Abdul Hamid, Prof Daniel
Schrag of Harvard University, Prof Angelo
Riccaboni from the University of Siena, Italy,
and Prof Xue Lan of Tsinghua University,
China.
The centre will work closely with other
SDSN country chapters in the region to help
launch a holistic process of enabling the
world to make decisive progress in the area
of sustainable development.
During the initial announcement
ceremony in April, Dr Cheah said, Countries
such as Malaysia face unique challenges in
combating the threat of climate change while
continuing to tackle problems of inclusive
development and job creation.
With the establishment of the centre in
Malaysia, I firmly believe that we have
taken an important step to develop the
global expertise needed to move Malaysia
and Asia forward in the area of sustainable
development and to protect and preserve the
planet.
Professor Sachs, who was also present at
the announcement, said the centre will
create and curate the worlds best
curriculum, academic and executive
programmes on sustainable development.
He also believed this partnership will
work well as the best way to address the
development challenges in South-East Asia is
to engage young minds and direct their
energies towards the complex challenges
and opportunities of the SDGs.

n For more information on the Jeffrey Sachs

Center on Sustainable Development, visit
university.sunway.edu.my/JSC.

6 CSR

THE STAR, TUESDAY 13 DECEMBER 2016

Advocating financial resilience

WHEN it comes to giving back to
the community, Prudential
Assurance Malaysia Berhad
(Prudential) has only one thing in
mind to provide financial
freedom and peace of mind for all
Malaysians.
As one of Asias leading life
insurers, Prudential understands
the steps necessary for individuals
and families to be financially
independent as well as the
hardships from not having a stable
income or financial security.
According to Khoo Ai Lin, chief
marketing officer at Prudential,
We want to give back to the
community, especially to the urban
poor, and provide them with
financial protection when they
need it most. This is our way of
giving back while still in line with
our core philosophies and values.
She adds that helping individuals
and families manage uncertainty
as well as safeguard their future
corresponds with the companys
mission of providing financial
protection and peace of mind.
Prudential believes basic
financial literacy and financial
protection are keys to financial
resilience. Hence, these areas
represent the pillars for
Prudentials corporate social
responsibility (CSR) activities.

Empowering communities
Introduced to support the
Governments initiatives in
alleviating poverty in the country,
the PRUkasih programme is the
companys main driver in
providing financial protection
offering temporary financial relief
to eligible families in the event that
the main breadwinner is unable to
generate income due to an
accident, illness or even death.
In addition to having to struggle
every day with little or no savings,
these families have to deal with the
emotional stresses surrounding a
death. The programme helps
families get back on their feet as
fast as possible.
The key thing about low-income
families, especially those relying on
a sole daily breadwinner, is that if
any unforeseen circumstance or
mishap happens to them, they are
the ones who will be the most in
need, particularly in an urban
setting where the cost of living is
far higher, says Khoo.
Nurzulfikar Ali, head of
corporate responsibility at
Prudential, says, PRUkasih is first
and foremost a community-based
programme or a form of group
micro-insurance policy. It provides
urban families with a safety net.
However, he adds, The reality is
that even though PRUkasih is free,
people are sceptical about the
programme.
More importantly, they do not

Prudential works closely with relief agencies to provide the necessary care in times of natural disaster.
understand the need for financial
protection and cannot visualise the
possibilities that can happen to the
family if something should happen
to them.
It is for this reason that
Prudential relies on collaborations
with non-governmental
organisations (NGOs), government
agencies, community elders and
community volunteers to help
convey its message of financial
security and its importance to the
communities it serves.

Continuous resolution

Nurturing from young

Nurzulfikar Ali.

Khoo Ai Lin.

Apart from financial protection,

we try to equip communities with
financial education. I believe
financial literacy is still lacking
and we have to reach not only
breadwinners or parents but
children as well, says Khoo.
Conducted at schools nationwide
as well as in countries, including
Singapore, Thailand, South Korea
and Taiwan, Cha-Ching is a
financial literacy programme
created by Prudential Corporation
Asia in Hong Kong in collaboration
with childrens education specialist
Dr Alice Wilder and Cartoon
Network Asia.
It was important to release an
education supplement in a big way
and, as there was already a quality
programme developed by the
regional office, we adopted the
content and localised it, says
Nurzulfikar about the programme
that has been implemented as an
official subject in certain countries
such as the Philippines.
Building on the four-stage
concept of Earn, Save, Spend and
Donate, Prudential incorporated
life values and tailored it to be
easily understood by Malaysian
children.

The encouraging response from

schools over the years saw the
need to reintroduce Cha-Ching
from what used to be a classroom
programme to a larger-scale event
that can accommodate 500 to 600
students at a time.
Karnival Cha-Ching teaches
about smart money management
in an interactive and vibrant
environment through experiential
learning that includes game booths
and challenges.
Apart from Karnival Cha-Ching,
Nurzulfikar adds, Based on data,
statistics and interaction with Bank
Negara, secondary school students
also required a similar programme
even teachers need help in
financial literacy. With that, we
created Duit-Right.
Based on the same four-stage
concept, Duit-Right is run similarly
to a treasure hunt where students
work in groups and learn through
two-way interaction.
The programme is aimed at
inspiring students to cultivate good
money management habits and
providing them with lessons they
will remember later on in life.
For Khoo, financial literacy is all

the more important as students

enter their teenage years, saying,
Secondary school students start to
spend more and the things they
spend on are very different,
especially when they go out.
This is the stage where it is
critical to inculcate and imbue the
concepts of Earn, Save, Spend and
Donate in greater depth. This is the
stage where, many a time,
teenagers are often neglected as
parents are working and when
things are often given to them or
taken for granted, she says.

Karnival Cha-Ching teaches young children about smart money management.

Malaysia and neighbouring

countries.
We rebuilt 14 homes in five
weeks and made a difference for
these people. Sometimes, it is not
just about financial protection and
education when we give back to
families. It is all about protection
when Prudential is concerned,
says Khoo.
However, recognising the
companys limitations in such
efforts, Prudential works closely
with relief agencies such as Mercy
Malaysia, which can provide
additional services such as mobile
health clinics.
It is also through such
collaborations that Prudential is
able to channel relief items and
necessities such as blankets and
indoor emergency tents to those
affected.
Khoo adds, We also need to
understand the local culture and
work with the local council, local
governing bodies and village
headmen. It is important to make
sure everything is done right with
due respect.

Necessary precaution
The third CSR pillar is disaster
preparedness, where the company
drives awareness on natural
disaster preparation and sponsors
relief aid in the form of much
needed supplies and volunteering
hours.
Among the biggest projects
carried out by the company was
when it mobilised a team to work
with NGOs in Kelantan after the
massive floods at the end of 2014.
This effort drew 450 staff and
agency volunteers from across

The PRUkasih programme seeks to empower communities in the case

of misfortune.

As a company that has been

operating in Malaysia for the
last 92 years, Prudential has made
it a point to give back to the
community in the way it knows
best and by leveraging on its
strengths of financial protection
and education.
The company has already
reached 15,000 families via the
PRUkasih programme in 10
communities across Malaysia
and has so far disbursed up to
RM283,000 worth of claims
to 164 families.
The Cha-Ching and Duit-Right
initiatives, on the other hand, have
reached almost 15,000 students in
more than 50 schools.
Yet, with a RM50mil
commitment and a target to reach
50,000 individuals each in financial
protection and financial education
by 2018, there is still much to be
done and Prudential is happy to
accept this challenge as it wants to
make a big impact in the lives of
the beneficiaries.
Nurzulfikar says, As of last
month, we have already recruited
1,167 volunteers this year and
contributed 6,800 volunteering
hours.
We can put aside financial
commitment but when we talk
about giving back to society or
nation building, we need to go
beyond money and give employees
and agencies opportunities to
contribute and volunteer together.
Furthermore, Khoo believes
there is an obligation to think
about bringing Prudentials CSR
activities to the next level and
have repeated CSR activities.
We too must learn and
customise to make our
programmes better. There will
always be a part of us that will
continue to reach out in whatever
form or manner. CSR is definitely
not something we will have an
abrupt stop to as it is not within
our philosophies at Prudential.
She concludes, We have heard
many heart-warming stories from
our CSR activities and this drives
our employees to ensure these
efforts go on. We want to leave a
footprint in touching lives and it is
all about being there for people
who need it most.

n For more information, visit

www.prudential.com.my.

THE STAR, TUESDAY 13 DECEMBER 2016

8 CSR
By JOVIAL CHEN
ONE can rarely find an individual
these days who is unaware of
entrepreneur extraordinaires such
as Steve Jobs of Apple Inc, whose
passion drove the revolution of
personal computers and mobile
phones, or Bill Gates of Microsoft
Corporation, who paved the way
for computer software
development.
While a lot has been said of the
success of large corporations in
terms of their innovations, assets,
sales and market capitalisation,
less light has been shed on their
environmental and humanitarian
practices, which constitute their
corporate social responsibility
(CSR).
A good outline of CSR pratices
can be dated back to 1991 with
Dr Archie B. Carrolls CSR pyramid,
which provided a rather solid
notion of a corporations
responsibilities, placing economic
responsibility at the foundation (to
be profitable and create jobs in the
community) and philanthropic
responsibility at the tip (to
contribute to the welfare of
humans and spreading of
goodwill).
Hence, a traditional view of CSR
has been a focus on philanthropy
money spent on acts of goodwill
that demands only as much as one
is compelled to give.
The unintended result is an
uncoordinated effort by a nations
companies as a whole, which limits
the true potential of their social
and environmental impact.
Fortunately, Malaysias progress
into the 21st century did not come
without changes to the CSR
landscape.

A shift in perception
In September 2006, Bursa
Malaysia introduced the CSR
framework for public-listed
companies (PLCs) as a guide to
develop CSR strategies and
effectively communicate them to
stakeholders.
It focused on four main areas
the environment, workplace,
community and marketplace.
In December 2006, this ruling
was amended to impose an
obligation on listed issuers to
disclose their CSR activities in their
annual reports in particular, the
activities or practices undertaken
by the listed issuer and its
subsidiaries.
If no such activities or practices
were undertaken, a statement to
that effect was required in the
annual report.
The amendments will take effect
on a staggered basis over three
years, starting from Dec 31 this
year.
Other actions such as the
formation of the Institute of
Corporate Responsibility Malaysia
to build and strengthen national
capabilities in CSR and the
initiatives undertaken by the
Companies Commission of
Malaysia (SSM) helped raise the
visibility of CSR in businesses.
The effect of the new ruling and
Government-driven initiatives was
the introduction of a new, more
humanitarian and environmentally
driven side to businesses, which
had the potential to affect them in
terms of economics and reputation.
The ruling also raised
stakeholders awareness of
corporations commitment to their
corporate responsibilities and
brought attention to the disclosure
of a companys CSR activities and
practices.
However, the new ruling did not
spark Malaysias PLCs to greatly
increase the extent of their
disclosure on their CSR activities,

THE STAR, TUESDAY 13 DECEMBER 2016

Shouldering a
national responsibility
reflected in its actions to enrich
the biodiversity of where it grows
its ingredients and refusing to use
animal testing for its products.
The shared-value approach to
CSR may be considered a more
effective solution for Malaysian
companies to not only establish
a more sustainable approach to
CSR but also in fulfilling its
responsibilities to drive the
economy forward.

A call to arms

as shown in a working paper by

Harvard Business School (revised
in 2014).
This was attributed to the local
perception and emphasis of CSR as
a moral obligation and it rarely
being a core component of a
companys business model. Hence,
many corporations saw no need to
provide more information beyond
the given guidelines.
In comparison, PLCs in China
which emphasised CSR in terms of
bringing economic benefits and
harmonious growth as well as
helping organisational creativity,
reputation and employee
engagement showed a large
increase in the disclosure of their
CSR practices and activities.
Emphasis on the economic
aspects of CSR is lacking in
Malaysia as development
initiatives such as the Economic
Transformation Programme are
formed without clear outlines for
progress in CSR, which hinders its
potential in promoting greater
involvement in building
sustainable business practices in
both the public and private sector.
There is more economic
potential to be realised here, as
stakeholders are increasingly
interested in the sustainability of
companies to determine their
potential for growth and
investment.
According to The Impact of
Corporate Sustainability on
Organizational Processes and
Performance, a working paper by
Harvard Business School revised in
2014, highly sustainable companies
are more likely to have better
established processes for
stakeholder engagement, be longterm oriented and outperform
their counterparts in the long run
in terms of the stock market and
accounting performance.
Demonstrating the social and
environmental responsibility of a
company is becoming increasingly
important for investors and
consumers alike and companies
that dont feature should be asking
themselves if this may affect their

competitive advantage, says

Richard Welford, chairman of CSR
Asia, a company that specialises in
sustainability strategy and
reporting as well as development
and community investment.

Success as a measure of
responsibility?
While the responsibility for
environmental, social and
governance issues concerns
everyone, PLCs in particular
should be charged with a greater
portion of the responsibility,
having greater resources,
personnel and reach.
More importantly, they should
shoulder the responsibility for
establishing a strong commitment
to CSR practices among businesses
in the country.
This means corporations must
go beyond just adhering to CSR
reporting guidelines, they must
also ensure they are at least
nationally recognised for their
commitment to CSR practices and
activities such as being listed on
the FTSE4Good Bursa Malaysia
Index (comprising constituents
from the top 200 Malaysian stocks
in FTSE Bursa Malaysia EMAS
Index that show recognised
corporate responsibility practices).
In Malaysia, not every PLC in the
FTSE Bursa Malaysia KLCI is listed
in FTSE4Good Bursa Malaysia
what does this signify?
It means that in Malaysia, there
is still a need for PLCs to become
more proactive in making CSR
activities and practices an integral
part of their overall success as a
company and how their take on
CSR can affect their stakeholders.
All PLCs share this responsibility,
regardless of their market
capitalisation, which is by no
means a direct indication of their
CSR performance.
For example, DiGi Bhd and
Malayan Banking Bhd (Maybank)
are ranked (in order) among the
top in the country as leading firms
in corporate sustainability in the

Channel NewsAsia Sustainability

Ranking (an initiative led by CSR
Asia, Channel NewsAsia and
Sustainalytics), despite having
lower net market capitalisation
than some of their counterparts in
FBM KLCI or FTSE4Good Bursa
Malaysia.
In particular, DiGis net market
capitalisation of RM17,839 (source:
FTSE Russell as of June 30) is more
than three times less than that of
the leading PLC in FBM KLCI.
DiGis commitment to its CSR
practices is reflected in numerous
awards and a comprehensive
disclosure of the companys CSR
activities, which include detailed
explanations of its actions, progress
and stakeholders involved.
Similarly, Maybank is dedicated
to provide a detailed report of its
CSR activities in terms of budget
spent, involvement and progress
tracking.
By being committed to their
corporate responsibilities and
earning recognition for their
actions, companies such as DiGi
and Maybank play an important
role not only in doing goodwill to
the nation but also in inspiring
other PLCs as well as small- and
medium-sized enterprises (SMEs)
in the country to integrate and
execute CSR in impactful ways.

Towards full integration

As a philanthropic initiative, CSR
practices are often focused on
providing value to stakeholders
instead of creating shared value,
the latter being a more sustainable
practice of CSR.
Although true integration of
CSR into a companys core value
and supply chain is still eluded
by many, there are companies
that practise the concept well
such as Nestls efforts in
improving the livelihood of
farmers in its supply chains,
among other activities.
The Body Shop also exemplifies
this concept, having been founded
based on CSR commitments to the
environment, which have been

In driving the nations economy

forward, leading PLCs and the
Government should bear the
responsibility of educating
smaller PLCs and SMEs in
undertaking CSR practices and
activities as a cumulative effort.
Oxbridge & Mak (O&M)
Developments founder and
chairman Alan Mak says, We
track large corporations and their
CSR activities to understand how
we can benchmark, improve and
surpass our service standards to
give back to the society we love.
O&M Development (a sole
proprietorship) creates models of
property development that make
homes affordable, beautiful and
intelligent with a focus on
addressing the national housing
crisis and tackling environmental
issues.
Mak believes that while the
Government has shown
commendable efforts to
encourage CSR efforts and green
living such as through its Green
Building Index initiative, there is
more that can be done to reach
out to and collaborate with
developers such as O&M
Development to build more
affordable housing.
PLCs and the Government
could play a big role in
influencing and encouraging
more CSR efforts. For instance,
the procurement of contractors
can be set against a benchmark
of KPIs (key performance
indicators) that potential
contractors have to fulfil before
being given the job.
Aspects of these KPIs could
involve employability of valid
foreign workers, equality in the
workplace, commitment to
recycling as well as reducing
waste and pollution, he says.
By encouraging cumulative
efforts through these parameters,
PLCs can help establish a pattern
of CSR in Malaysian companies
that will lead to not only better
welfare and preservation of the
environment but also a healthy
perception towards CSR.
Therefore, there is a great need
for PLCs to realise that the
measure of their success
comprises not only their economic
impact but also the effectiveness
and execution of their CSR
practices and activities as well as
how well integrated their CSR
values are within the core values
of their corporation.
More importantly, PLCs should
realise their potential as key
influencers in encouraging CSR
practices among stakeholders, as
a cumulative effort by businesses
could contribute greatly to the
nations growth and recognition
as a socially and environmentally
responsible nation.