Leading movement towards corporate purpose

STEVEN Nilam used to think that it was natural for companies to focus on generating revenues, and corporate social responsibility (CSR) would always play second fiddle.

However, since joining Johnson & Johnson (J&J) in 2017, the associate manager of regional supply planning, consumer products, has witnessed how the twain have met - and has joined several of such initiatives since. "Seeing how the employees are motivated to contribute has inspired my loyalty to the company," he said.

His opinion is reflective of the current sentiment of employees nowadays: Creative agency Boston Consulting Group's survey showed that 9 out of 10 people would take a pay cut to have more purpose at work.

J&J, noticing this trend, further embedded its corporate giving efforts into the company's DNA.

Angeline Chin, senior director, global community impact APAC at Johnson & Johnson, said: "Giving back should be embraced by every employee and every function of the company should be guided by this shared corporate purpose. While it may be hard to get bad press when it comes to reporting on CSR, no amount of such reports can help a company if its actions go against good corporate citizenship."

The multinational corporation is a member of the Alliance for Action on Corporate Purpose (AfA-CP).

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AfA-CP is the first step in the National Framework and Blueprint, an initiative which aims to bring the corporate community together to develop a shared definition and vision of corporate purpose in Singapore. Company of Good, a programme of the National Volunteer & Philanthropy Centre (NVPC), is spearheading the co-design and co-development of the National Framework and Blueprint with this community.

"The idea of a corporate purpose - that companies should strive to do well by doing good and to serve a broader base of stakeholders other than just shareholders - is relatively new. We hope that, as a group, we can contribute to a national blueprint on corporate purpose in Singapore," said Chin, adding that the AfA-CP is a good platform for all companies to share best practices and experiences. "Most importantly, we are all working together to have something practical that Singapore companies can adapt and adopt."

J&J has been involved in giving for decades and she commented that in recent years, there is a stronger focus on environmental, social and governance (ESG) goals by companies as well as investors and regulators, and expectations on companies to align their corporate purpose with these goals. "For companies that want to stand out and be leaders in their industry, they will have to do more than the minimum."

Hence, in October 2021, J&J Impact Ventures - with funding from the Johnson & Johnson Foundation -- put US$50 million in innovative financing to support health impact entrepreneurs to improve healthcare in communities around the world where markets fail and governments alone are not able to meet the need. The company also aspires to help eradicate racial and social injustice as a public health threat by eliminating health inequities. Chin said: "With the launch of the Our Race To Health Equity initiative, we have committed US$100 million over the next 5 years to invest and promote health equity solutions, initially in the US."

When asked about the challenges faced by bigger firms in such efforts, she said that while larger firms have more resources and wider networks that they can leverage, the expectations (from all stakeholders) on reach and outcomes are also higher.

"We are always presented with many causes to support and many areas to do good in. Without a focused and deliberate strategy in contributing our resources and our time, our impact will be diluted. The challenge we faced was how to narrow down the areas of need and align those needs with our corporate purpose."

Hence, ambitious goals were set with clear measures of success for all the ways the company was changing the trajectory of health. "In the community impact work that we do, I'd describe the evolution of how we practise corporate purpose as moving from just mass volunteerism and funding many different projects that appeal to our employees to more strategic alignment that leverages our corporate assets to solve global health challenges. It is more than just ticking the CSR box; instead, a lot more strategic thinking goes into it. At the same time, impact and outcome are measured more vigorously."

All in, multinational and large corporations are in a unique position to use their reach and size for good, be it in terms of expert knowledge, human and capital resources, or as a voice in public policies, etc. By leading the drive in adopting a corporate purpose that creates value for people and planet, they can become practical and aspirational role models.

Chin added that to draft a comprehensive blueprint for Singapore and to create that shared vision of corporate giving, voices from all sectors need to be heard.

Hidekatu Shigekawa, finance and human resources director of H.A.M Creations, concurs: "I believe it is important to gather feedback and knowledge from all types of organisations as everyone offers a different perspective on corporate purpose. Hence, the AfA-CP's sharing sessions provide a better understanding on which areas are high priority. A good takeaway is that it is never too late to embark on the journey of doing good or having a corporate purpose."

H.A.M - also a member of AfA-CP - started its CSR efforts in 2019 with Nanyang Polytechnic (NYP) to support and sponsor a scholarship for design students.

Shigekawa said: "It led me to question how companies could do good in a systematic manner which does not disrupt our day-to-day operations, and I found that Company of Good provides resources on doing good. After joining its Fellowship programme, it has brought clarity on ways we could do good in a sustainable manner that would benefit the business."

Today, the giving back initiatives from the company encompass the social and environment aspect.

Besides the scholarship programme with NYP, the company has also embarked on inclusive hiring of marginalised communities such as persons with disabilities (in this case, autism), ex-offenders and the

homeless/displaced individuals. "This helps to bring diversity into our workplace and help to educate our staff on social issues."

H.A.M Creations also received its ISO 20121 certification in December 2020 and took part in NParks' tree-planting programme. "Being an event production company, we produce all types of waste and scrap materials. The certification will enhance the company's competitive edge by supporting its environmentally conscious clients to improve their reputation in sustainable event management as well as meet their sustainability goals."

About the obstacles facing small and mid-sized enterprises (SMEs) that want to contribute to society, the 45-year-old said that the initial challenge was to convince stakeholders, especially the management to support such initiatives. "Allocating time for staff to participate in the initiatives can also be a challenge. We therefore try to schedule the work during office hours to avoid disruption."

A framework and policies to empower individuals to suggest and lead initiatives was also created to encourage more suggestions and involvement, and through programmes such as inclusive hiring, staff have become aware of certain misconceptions about autism and understand the role a company can play to help the society. On encouraging such companies to take steps to give back, Shigekawa said SMEs should tap resources of other companies - such as NVPC - to understand how sourcing from a social enterprise has a ripple effect on society.

"It is not as daunting as it sounds; you will soon recognise that it is beneficial to your business in the long run," he said.

• Join the movement to build a purpose-driven business community at www.companyofgood.sg/corporatepurpose