ACCA Conference

Corporate Social Responsibility - Changing the way you do business

Host organisation:
The Association of Chartered Certified Accountants (ACCA), Singapore

Supported by
ASrIA

Thursday 24th October 2002
Grand Copthorne Waterfront Hotel, Singapore

Invitation

Reference Website:
http://www.accaglobal.com/singapore

Post conference materials:

Summary:
by Megan Lewis on behalf of ASrIA

On Thursday 24th October 2002, the Association of Chartered Certified Accountants (ACCA) Singapore held its 5th Annual Conference. The ACCA is the largest global professional accountancy body, with nearly 300,000 members and students in 160 countries.

This conference was endorsed by Singapore's newly appointed National Environment Agency (NEA) and was supported by ASrIA.

Focusing on the topical issue of Corporate Social Responsibility (CSR), the one day conference was titled "Corporate Social Responsibility - Changing the way you do business." The aim of the conference was to give attendees insight into today's complex yet dynamic business world and provide a better understanding of the importance of CSR. The topics covered included:

• Lessons Learnt from Corporate America - Improving Corporate Governance & Financial Reporting Transparency
• Improving Transparency using the Global Reporting Initiative (GRI)
• The Media's Role in Promoting Corporate Social Responsibility
• Beyond ISO 14001 - Communicating Environmental Performance
• A Pioneer of Corporate Social and Environmental Reporting - The Co-Operative Bank PLC Case Study
• Environmental Sustainability - What it Means to the Corporate World
• SRI - An Investment Style

A recurring theme throughout all presentations was that to be competitive in today's world and to be responsible, organisations today must dictate and proactively manage the economic, social and environmental issues which are increasingly important in the wider business arena. While it was noted that governments play a crucial role in setting the pace with this more holistic and accountable approach, it was also stressed that there were many opportunities for corporations, and individuals, to take the lead. Support from organisations such as the NAE and GRI, plus positive business returns through investment methodologies such as SRI, were also shared in order to guide and motivate attendees to change the way they do business.

Dr Ho opened the conference by highlighting the important role accountants and financial planners play in promoting sustainability. He challenged attendees to translate the noble ideas encapsulated in the call of corporate social responsibility, reassuring them that if they take the lead, they will indeed reap the benefits. Rather then being daunted by the many opportunities, Dr Ho encouraged attendees to start with small goals as "doing a little, goes a long way."

Dr Kan issued a warning that the corporate collapses that had soured the US market in recent times could easily happen elsewhere and that professionals in Singapore should not be complacent. Dr Kan blamed the pressure to perform and meet both internal and external market benchmarks, and the opportunity to secure extravagant personal gains, as key reasons for these corporate misdemeanours. To restore investor confidence and gain credibility in the market, Dr Kan encouraged attendees to consider three critical areas of corporate governance:

1/ Improving Corporate Governance and the effectiveness of audit committees
2/ Rebuilding confidence in Financial Reporting through Legal, Structural and Transparent measures
3/ Strengthening Financial Management and Commitment to Ethical Conduct

Ms Kandiah introduced attendees to the concept of brand management and explained how corporate social responsibility, or a lack of it, can impact on a company's financial performance and market share. She shared the example of Nike, a leading sportswear company, that lost almost half its share price due to negative publicity relating to its use of slave labour. Ms Kandiah gave attendees some advice on how to harness the positive results of a company that is seeking to conduct themselves in a responsible way. One such strategy suggested was to give CSR a more human face through key people such as a company's CEO.

Dalson Chung of Sinagpore's newly appointed National Environment Agency explained Singapore's Green Plan 2012. While some of the people attending mentioned during the question time that they had not heard of the new plan, they expressed appreciation for the measures the government was taking to preserve and enhance Singapore's natural environment. Mr Chung highlighted the challenges Singapore faces as a small island with limited natural resources. He challenged corporations to consider the impact of products and processes and embrace a "fundamental change in mindset" that no longer sees environmental measures as a cost but a saving opportunity, that moves away from end of pipe solutions to preventative measures and that extends the responsibility for good corporate conduct from management to all employees. Dr Chung called upon the three Ps - people, public and private - to rise to the challenge of environmental protection.

The presentation regarding Socially Responsible Investment (SRI) introduced attendees, some for the first time, to this investment methodology that can positively affect the concept of value every time an investment is made, product purchased or service hired. Andrew Kwek explained how the current linear approach to the economy was unsustainable as it required 5 worlds to provide the necessary resources. Mr Kwek highlighted how SRI could assist in the transition to a one world ecomony, that is, one that operated within the constraints of our actual resources. After providing a general overview of the history of SRI, Mr Kwek highlighted the opportunity for SRI in Asia, a region with more than half the world's population and a rapidly industrialising economy.

Mr Victor Thevaraj commenced his presentation with a general overview of environmental protection strategies from the 1950s up to current initiatives. The most dominant trend emerging is the maturing of regulation and accreditation to include environmental management. Factors driving this change include an increased environmental awareness in consumer taste and preference and the direct correlation between the business environment and the health of the natural environment. Even more recently, it has been the call for a "green" supply chain that has been forcing companies to consider how they interact with the environment. Mr Thevaraj detailed the specific aspects of ISO14000 and the value it could bring to a company at both a local and international level.

Complementing ISO14000 accreditation, the Global Reporting Initiative (GRI) addresses economic, environmental and social reporting principles and practices. Ms Rachel Jackson of ACCA UK provided a comprehensive overview of GRI and the role it can play in assisting transparency with an organisation's stakeholders. Some benefits a company could enjoy through reporting on its business practices and performance include: increased accountability, stronger dialogue with stakeholders, demonstrable corporate responsibility, reduced risk and greater alignment between a company's corporate vision with internal business practices and activities. Ms Jackson encouraged companies not to hide from areas that did not yet meet a company's benchmark, arguing that by having the courage to admit these shortfalls and take steps to improve can actually increase a company's credibility and confidence. With regards to future developments within GRI, Ms Jackson highlighted the sector specific and issue specific supplements that would be released in the near future. With reference to Singapore, Ms Jackson noted that recent recommendations from the Singaporean Company Legislation and Regulatory Framework Committee may require listed companies in Singapore to report on social and environmental issues.

The conference concluded with a presentation by Paul Thompson, profiling an ACCA Environmental Reporting Award Winner, the Co-operative Bank plc. Established in 1998, this was the first UK bank to establish a full internet bank and by 2001-02 it was ranked joint 5th with regards to corporate social responsibility by Echo Research. While the bank itself may not have a huge impact on the environment, Mr Thompson highlighted the fact that the organisations it chose to lend funds to could have a very significant impact. With regards to Singaporean companies, Mr Thompson remarked that a recent ACCA study revealed that corporate environmental reporting appeared to be in its infancy with few reporting extensively on their environmental impact. Despite this lack of reporting, Mr Thompson thought that Singaporean companies were actually striving to behave in a sustainable manner, they were just not sharing such accomplishments with the public.