Mr Lim Ming Yan,

Excellencies,

Distinguished Guests,

Ladies and Gentlemen

Introduction


1. Good afternoon.


2. I’m pleased to join you today at the Singapore Apex Business Summit.


3. This morning, we have heard about changes in the global landscape, regional developments, and energy transition.


4. I would now like to turn our attention to Society, the context in which businesses operate.


5. Businesses are woven into the very fabric of society.
   
   Big or small, a business is fundamentally rooted in its context, from the employees that make up its workforce, to the suppliers it interfaces with and the customers it serves.


6. As businesses flourish, so does society. And as society thrives, businesses benefit.


7. This is why many businesses pursue the good of community in which they operate. We have coined different terms for these contributions. Some call it Corporate Social Responsibility, others the S in ESG. But the truth is this, many companies have already been working for the good of society for a long time. We do not have to go too far back in our own history here in Singapore to see that for many, doing business and doing good are two sides of the same coin.



Clarifying the ‘S’ in ESG


8. Over the years, businesses have affirmed that they want to do good in addition to doing well. The National Volunteer and Philanthropy Centre launched the Corporate Purpose Framework and Blueprint in 2023 to provide a shared definition and vision of corporate purpose in Singapore.


9. Just last week, NVPC named 300 organisations as Companies of Good, a five-fold increase from seven years ago. Of these 300 organisations, more than 50% were SMEs.


10. Still, there are requests for clarity. Many companies share - that it remains challenging to concretise their contributions, particularly to social needs. When I met with SGX-listed companies and SMEs alike last year, this was a common question. What exactly is the S in ESG? How do I know I am doing it, and how do I measure it?


11. These are valid questions. For if there are no common handholds, then each corporate has to put language to the S in the ESG in your own way. 
    
    There would be no common language to track and demonstrate value to your shareholders and your stakeholders.


12. We want to change this.



Launch of Sustainable Philanthropy Framework

13. Today, I’m pleased to launch the Sustainable Philanthropy Framework to support businesses in articulating your social impact. In distilling impact to a few elements, this Framework aims to guide businesses in crystallising your contributions and to enable businesses to deepen these contributions over time.


14. This Framework has been a year in the making. Over the past year, we examined both local and global standards.


15. Expanding on the Society Pillar of the Corporate Purpose Framework and Blueprint, we deliberated on how to scope businesses’ contributions to Society, and sought to design clear and meaningful metrics. We engaged with businesses, who helped to develop and validate the Framework through an Early Adopters Programme.


16. The Framework is a result of a concerted effort by National Council of Social Service and NVPC in collaboration with businesses, federations, regulatory bodies, and ecosystem partners, many of whom are here today - SBF, SID, ISCA, SGX, raiSE, and SG Enable.


17. Many would be familiar with the first two. I would like to touch on the third. This third category is unique as it embeds doing good into business practices. Today, businesses already go about your work, employing individuals, procuring items, and working with your supply chain. The suggestion is for businesses to conduct these practices in a more socially responsible manner.


18. I’m pleased to share the Sustainable Philanthropy Framework with you today. The Framework spans 3 areas in which businesses can generate impact: Through (i) giving, (ii) volunteering; and (iii) socially responsible business practices.


19. Many would be familiar with the first two. I would like to touch on the third. This third category is unique as it embeds doing good into business practices. Today, businesses already go about your work, employing individuals, procuring items, and working with your supply chain. The suggestion is for businesses to conduct these practices in a more socially responsible manner.


20. Some examples include the inclusive hiring of persons with disabilities and procuring from socially responsible suppliers.


21. What this also means is that social impact requires an ecosystem, where various players within each sector and across the supply chain lean in to multiply social impact together.


22. The Framework seeks to provide a structure while preserving flexibility. We recognise that companies are at different stages in their philanthropic journey.


23. Therefore, we have developed core metrics that are broadly applicable to all businesses.


24. At the same time, we have deliberated on expanded metrics for companies who would like to take the next step and deepen their contributions.
    
    
    • For instance, a company that currently already has a corporate volunteering programme and wants to deepen their volunteerism can use this framework to see how they can activate their employees for high-value volunteerism roles, moving beyond absolute volunteering hours to skills-based volunteerism hours.
    
    
    • UOB has found the framework useful in this area, and will continue to utilise the suggested metrics to shape its volunteer programmes, allowing their staff to contribute and augment the sector's manpower with their expertise.
    
    
25. All companies can take positive steps towards sustainable philanthropy. One inspiring example from the Early Adopters Programme is that of an SME, Novita, who some may know as a homegrown company that manufactures and sells home appliances such as air purifiers and water filters and has about 80 in its workforce. After partnering with us on the Framework, Novita was able to identify areas in which it could more systematically contribute and make a social impact in a manner that still made business sense for them.


26. Since coming on board, Novita is now deliberately directing its employee volunteering efforts towards specific needs in the social sector, to better serve children and elderly.


27. To help all companies get situated, whether you are an SME or a large MNC, NCSS has developed an accompanying Playbook. I hope that companies will find the Framework and the playbook useful in guiding your ESG efforts.


28. At this juncture, I would like to take the opportunity to recognise the 42 businesses that have come on board as Early Adopters of the Sustainable Philanthropy Framework. This is a diverse group of companies, and your invaluable insights and contributions are deeply appreciated. We invite more to tap on the Framework to guide your ESG efforts.



Sustainable philanthropy as sustained and impactful


29. The Sustainable Philanthropy Framework is our latest move to drive sustainable philanthropy. Philanthropy that is impactful, and philanthropy that is sustained.


30. First, impactful. Today, many companies, Foundations, and the social sector are already measuring impact, moving from being initiative-centric to outcome-oriented. We affirm and encourage this.


31. The Sustainable Philanthropy Framework therefore includes outcome metrics, encouraging businesses to track the impact of their efforts on the beneficiaries. We hope that the Framework will encourage businesses to identify areas where they can leverage their expertise to drive greatest impact.


32. Second, sustained. There is growing interest among businesses towards deeper partnerships and longer-term commitments. Many realise when they think further afield, they are able to embark on multi-year projects and generate wider impact.


33. For example, companies have entered into collaborations with organisations and committed to sustain certain initiatives over a period of time. Others have made multi-year funding commitments to drive social innovation.


34. This does not only benefit the social sector, it also enables businesses to share in the positive impact that has been created and to be recognised for their contributions. Their employees are also energised from the positive impact that they see that they are creating over time.


35. With more sustained and impactful philanthropy, we believe that businesses will be able to drive wider impact and be recognised for their contributions. A win for businesses and a win for society.



Conclusion


36. A key Singaporean trait is our ability to think longer-term. We believe that companies with a clear corporate purpose and that can also articulate their social impact are the ones that will differentiate themselves, now and in the future.


37. And as we have learnt with the E in ESG, the Environment, it is better for companies to start now and take small steps over time, than to play catch-up subsequently.Let me end by sharing an encounter I had with a young man in his early 20s just two weeks ago at SMU. It was a discussion with a panel comprising DBS Foundation, academics, and two social workers. We were talking about roles and responsibilities of the different actors in society towards those who are less fortunate.


38. This man made a comment which pleasantly surprised me. He said “the line between businesses and the community is an artificial one. Isn’t it the case that many of us are part of a business, and aren’t businesses part of the community?”


39. Businesses are indeed part of society, and they are responsible to the communities they are in. I believe he is not alone in his view, and the wise among us will appreciate that his view is shared with prospective employees, potential investors, and your consumers.


40. I look forward to more companies coming on board the journey to create and deepen social impact. Let us continue to do good and do well together.

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