Businesses can be agents of social change

THIS WEEK'S TOPIC: Should businesses take a stand on socio-political matters? To what extent should they speak out on issues that are important to society?

David Emery Chairman Reciprocus International Pte Ltd

Throughout history, businesses have been a vehicle for human ingenuity and enterprise to create knowledge, goods and services that have led to the prosperity we enjoy in the developed world. Thus, companies are not and should not be operating in isolation, solely representing the interest of shareholders, but should be an integral part of the society, together with governments and citizens and all other stakeholders. It is then only right if businesses take a stand and engage in constructive dialogue on important socio-political matters.

James Yi MD, Southeast Asia & Korea APCO Worldwide

Yes. In today's challenging socio-political climate, it is arguably more important than ever for business leaders to take a respectful stance on matters that directly impact the communities that they serve. Multinational corporations are an important part of the fabric that shapes policy as a whole. They have the influence to build bridges on behalf of their employees, stakeholders, and society. The times will only continue to push regional leaders to have a stronger understanding of their own corporate values. But now is the time for leadership that is clear and firm.

Victor Mills Chief Executive Singapore International Chamber of Commerce

Businesses are all about people. They are run by people and they serve people. It is entirely appropriate for businesses to take a stand on socio-economic issues and to consistently do the right things for their staff, customers, the community, and their shareholders. Inevitably, some of these issues will be affected by public policy or political power. Businesses should still speak truth to power by engaging constructively with governments and by offering specific recommendations for win-win solutions for their consideration. It is easier to do this when you have a listening government like ours. That is not the norm everywhere.

Simon Baptist Global Chief Economist and Managing Director, Asia The Economist Intelligence Unit

Many companies would like to separate business from politics, but it is getting more difficult to do so. In the last year, we have seen an increase in the number of firms being dragged into geopolitics against their will, including the NBA, Huawei, Cathay Pacific and FedEx, among many others. So it is not so much a question of whether firms should take a stand on political issues, but rather are they prepared for when their customers or governments of places in which they do business demand it.

John Bittleston Founder and Chair Terrific Mentors International Pte Ltd

Businesses must not only take a stand on socio-political matters; they often need to take the lead. The current most important matter is survival - mankind needs to save the planet or it will perish. This means curtailment of use of unsustainable resources and investment in technological replacement of those that cannot be curtailed. Many political systems are currently weak. Their financial resources are limited by social commitments. Those not so constrained soon will be. There may be some notable exceptions. The wealth necessary to deal with climate destruction is created by companies. Those running them must take a full part in developments to sustain the planet, including having a major say in how it is done.

Tripti Lochan co-CEO VMLY&R Asia

Data has shown that consumers today appreciate brands who take a stand for or against issues that they care about. However, any business speaking on an issue should keep a few key considerations in mind. Authenticity is imperative to success for brands and for businesses entering cultural conversations - you need to earn the right to participate in the conversation and it should be something that is relevant to your business. Above all, it's important to weigh the risks of polarising issues that can alienate some consumers. Done right, it can be a powerful and beneficial move for brands that want to operate in culture.

Dileep Nair Independent Director Thakral Corporation Limited

Businesses do not operate in a vacuum. They have always been expected to have social responsibilities. The difference today is the number, complexity and pace of change of the socio-political issues. Companies should be selective and choose issues that fit with the values and goals of their business. Drawing up a ''corporate social contract'' to address relevant socio-political expectations would help companies in their strategic decision-making process. In fact, the mandatory sustainability reporting introduced for listed companies goes some way in this regard. Ultimately, businesses should view socio-political issues not just as risks but also as business opportunities. Spotting emerging trends and taking a stand on socio-political issues that are of real import to the business and in a manner that is authentic, will help a company go beyond simply being an agent of wealth creation to also becoming an agent of social change.

Wilf Blackburn CEO Prudential Singapore

To build a trusted brand, businesses need to focus on purpose, not just profits. This means taking a stand on matters that concern its customers and the community. It is about speaking up on issues that align with the company's purpose and values, and then following up with real actions. For Prudential, we want to challenge the traditional notion of ageing and inspire people to view longevity as a positive experience. This is core to our purpose of helping people live well for longer. We started by looking within on how we can help our employees. So we removed retirement age and raised CPF contribution rates for those above 55 - small actions we hope will reframe how ageing is looked upon in our society, and enable our people to be productive for as long as they are able to.

Lim Soon Hock Managing Director PLAN-B ICAG Pte Ltd

Businesses should be selective and prudent in choosing issues to support or champion. I happen to prescribe and subscribe to the philosophy that businesses should stay out of politics, especially that of host countries, and to keep strictly to business.

Any issues that a business would like to speak up for are more likely to be in the social sphere, within the context of the company's corporate social responsibility and sustainability. For example, businesses should champion for environmental protection and reduction of carbon footprint to curtail the ill effects of climate change.

Brands that do not get political are likely to risk less or nothing at all. On the other hand, focusing on good and legitimate social issues that can uplift a community will generate good returns, especially in the enhancement of brand equity.

For businesses, a line must clearly be drawn between politics and social issues. If a CEO wants to speak out on a political issue, it must be made abundantly clear that it is in his/her own personal capacity.

Maren Schweizer Director Schweizer World Pte Ltd

Studies have shown that consumers and employees are more receptive to brands that take a stand on social and political issues. Nevertheless, don't take a position just for the sake of it. We, as companies, are well-advised to pre-plan and think critically about our communications. When taking a stand, the message must be credible, coming from your brand, and be rooted in values demonstrably lived by your enterprise. That said, the most important thing to avoid is to use messages to elevate your brand by denigrating others.

I believe in the importance of making an effort to keep our critical thinking skills sharp. Let us always challenge our assumptions and biases while combining our experiences with proven data.

Manish Tibrewal CEO Maitri Asset Management

Being a trusted active asset manager of choice starts with being responsible custodians of capital. In order to survive - and thrive - organisations are increasingly rethinking their corporate strategy to address key social issues including climate awareness, green innovation and responsible investing alongside profitability and growth. Businesses have a key role to play in ensuring the responsible allocation of resources and, in a constructive way, advancing socio-political issues that contribute to the overall prosperity of society.

Being a signatory to the UN Principles of Responsible Investment and directing 25 per cent of Maitri Asset Management's earnings to the Ishk Tolaram Foundation - our single largest beneficiary which runs education, entrepreneurial training, and healthcare initiatives in vulnerable communities in Singapore, Indonesia and Nigeria - are a few ways we are taking a stand to build a more sustainable and inclusive economy for our customers, and the communities in which we operate.

Charles Tan Co-Founder & Executive Director The GIVEN Company

Multinational businesses whose operations serve and directly affect millions of people around the globe have a responsibility to speak out on socio-political matters to the extent that expressing such views are: a) unavoidable, b) affect the perception of their brand to consumers, and thus, c) directly impact their bottomline and the interests of shareholders. The direction in which businesses lean - whether liberal/left or conservative/right - is less important than the consistency of a firm's position in order to establish a culture of credibility, integrity, and a strong following from a loyal base.

David Leong Managing Director PeopleWorldwide Consulting Pte Ltd

Businesses exist in the socio-political arena in the markets that they operate in. They cannot be separated. The interactions between businesses and their customers are mostly transactional unless the businesses' intent is to change behaviours and habits through social movements like ''Go Green'' or ''Save the World''.

To take a stand on a political issue is therefore an expression and a posture that can attract supporters, detractors, naysayers, even enemies. It is not the business of commercial entities to get involved with the politics of the place and be drawn into all the angst and emotions of that political cause. Businesses do not need to divide-and-conquer. There is no sense in creating political divides within - or outside - the organisation.

Sensibilities and sensitivities must prevail in businesses looking to survive in today's complex socio-political spaces. They should act with great restraint and tolerance when it comes to politics.

Ambica Saxena Director, Head Of YSC Singapore & Hong Kong YSC Consulting

Before they can take a stand, business leaders must first keep their environmental radar on and be attuned to the differing perspectives of any issue. This extends beyond understanding their people and includes appreciating the nuances of the broader climate they operate in.

In order for leaders to accurately gauge the interests of different stakeholders - including investors and employees - they need to keep communication lines open, enabling safe spaces within the business for everyone's voice to be heard. Leaders who are able to do this well can bridge conflicting viewpoints and represent their businesses effectively.

Juliana M Chan CEO Wildtype Media Group

Businesses should absolutely take a stand on important issues. Because I am a female editor-in-chief in an industry where only one out of five researchers are women, a topic that I am championing right now is calling out male-only panels (''manels'') at industry conferences - the worst one I've seen was a seven-member manel. It is not just the organisers that need to try harder; the speakers themselves can also refuse to participate. To date, individuals such as Francis Collins (NIH) and Jeremy Farrar (Wellcome Trust) have publicly pledged to never again speak on a manel. Of course, manels are a manifestation of a deeper problem in that most leadership positions are male, but we must start somewhere.

Lars Voedisch Founder and MD PRecious Communications

More than ever, customers want to align with brands that reflect their values and beliefs.

Traditionally, brands have shown restraint and chose not to engage with issues that did not directly impact their businesses. Especially in 2019 and beyond, brands will no longer be able to take the path of least resistance. We are witnessing a growing number of organisations stop being apolitical. They have become comfortable with taking a stand on hot-button issues and relate to their customers' core personal values and beliefs.

While doing so may alienate a section of their client base, it fosters brand loyalty with those who bought those ideas and converts new customers as advocates. With issues such as climate change, data privacy and social stratification taking the spotlight, we expect more brands to engage with their community on potentially controversial topics.

Joanne Wong Senior Regional Director, Asia Pacific & Japan LogRhythm

Businesses can take a stand on socio-political matters as long as it stays authentic to their values. Adopting a label in an attempt to enter a topical conversation can instead open your brand up to scrutiny. In taking a stand, businesses should take note of keeping their messaging consistent and clear across all offline and online channels. The ubiquitous nature of an online network can prove to be a double-edged sword, given the risks around content misappropriation and cyberattacks on digital platforms. Businesses should, therefore, take note to keep their accounts secure, lest they fall victim to unauthorised postings, which can be detrimental to their brand.

Mario Singh CEO Fullerton Markets

The iconic Mahatma Gandhi used to highlight social and economical problems across India in his widely popular weekly periodical, Harijan.

The Harijan archives revealed what Gandhi thought on the roles of businesses in society. In particular, he opined that companies must build reputations that foster trust with all sections of society, and that businesses must focus on creating value for communities.

To that end, I believe that all businesses must be a force for good for their respective communities. Hence, it is important that business leaders take a stand on socio-political issues, provided the issues raised - whether thorny or otherwise - ultimately add value to the greater good of the people and their communities to advance society as a whole.

Annie Yap CEO AYP Group

Businesses will feel some pressure when taking a position on socio-political matters as there is underlying risk to the brand image. For AYP HR Group, we must know our company culture and we must analyse our customer base. The issue concerned has to be of relevance or impact to our business. For example, the recent increase in the re-employment age has an impact on us. Thus, we shared our views on the matter on social media. Businesses wading into socio-political matters do incur substantial risks, and might subconsciously alienate their customer base.

Edwin Khew Chairman Sustainable Energy Association of Singapore

Recent years have seen many organisations and leaders becoming more comfortable with taking a stand on important socio-political matters. One of these issues, for instance, is climate change and sustainability.

Organisations are increasingly cognisant that climate change can lead to several problems such as prolonged droughts, new diseases, intense and extreme weather conditions, and sea level rise which will adversely affect an island state like Singapore.

Therefore, a number of businesses have begun to incorporate sustainable business practices and highlight these initiatives to their stakeholders. Some of these efforts include adopting clean energy sources, introduction of energy efficiency in their business operations, and championing innovation and sustainability in the renewable energy space through investments. This can go a long way in accelerating the vision of a carbon-free society.

Renzo Taal SVP, Asia-Pacific Salesforce

The notion that businesses have to choose between doing well and doing good is outdated. Companies today need to have a purpose beyond profits and this requires taking a stand on socio-political issues affecting the communities we serve.

As a company that believes in the equality of every human being, Salesforce supports Pink Dot and their mission to repeal Section 377A and the freedom to love. We took a stand against HIV discrimination by leading the Inclusive Employers Pledge by Be Inclusive, Action for AIDS (AfA), Oogachaga, Project X and The T Project. Since Salesforce went public in 2004, we have created a 3,500 per cent return on investment for our shareholders. Values create value. Businesses can be the greatest platforms for change.

Seamus Phan Chief Content and Technology Officer McGallen & Bolden

Businesses in Asia would best stay away from political leanings. Whether East or West, harmony is the norm; thus the adage ''When in Rome, do as the Romans do'' that was inspired by Augustine of Hippo and Ambrose of Milan in the fourth century.

The Asian ethos is rooted in harmony and prosperity, and Asian nations and their peoples would rather build together for a prosperous harmony in society. Dissent that incites division and hate will never be tolerated. While civil dissent in a discussion is not uncommon, mutual respect is mandatory. What then, can businesses advocate on? Businesses perhaps should not simply be advocates, but also seek to provide solutions to solve social problems, including disability, employment, education, and other emerging social or even ecological needs. Such active community participation would be lauded.

Toby Koh Group MD Ademco Security Group

A fine line stands between socio-political ideology, commercial purpose, and responsibility to stakeholders. It is important to have clarity on whether corporate views and opinions reflect those of the business owner or CEO.

Public companies have a responsibility to shareholders, employees and other stakeholders. Communication of a particular stance may inevitably hurt the organisation in one way or another. It is often impossible to appeal to all parties.

Privately-held companies where owners hold a substantial stake play under a different set of rules and often have the freedom of expressing their thoughts. Owners answer to themselves.

The world will continue to have divided opinions. Communications will continue to tiptoe around contentious subjects for the most part. Staying neutral will be the path most trodden.

Zaheer Merchant Regional Director (Singapore & Europe) QI Group of Companies

CEO activism could sway public opinion, studies have found. Millennials (and other ''belief driven'' consumers), it seems, want to know the socio-political stand of businesses (and their leaders) and are influenced in their choices by such leanings. I personally eschew a stand on socio-political matters.

Any view expressed will potentially polarise one group against another. Pleasing any particular group of customers may not translate into business value nor benefit - the NBA in China saga being a clear case in point. Businesses are not political entities. Core beliefs important to society need not engender political comment on the part of a business, and personal opinion ought to be clearly distinct from business values, if it really needs to be stated. If anything, businesses ought to support and be aligned with neutral, non-polarising societal issues, of which there are many that are important. Unless a business is poised for fallout, internal/external critique or potential PR issues, a cautious path is better to tread.

Dora Hoan CEO Best World International Ltd

Everyone, including business leaders, keeps different political views, and we should all respect that.

As contributors and key members of society, entrepreneurs are of course obligated to have concern for socio-political issues.

However, whether entrepreneurs, citizens or students, the ways of expression and communication should be appropriate, without sacrificing national peace and economic stability, to avoid a crisis like Hong Kong's. In Singapore, the media always gets feedback from business leaders and the ground. The business associations serve as a bridge between the government and the business community, while the grassroots organisations link the lawmakers to the residents. By and large, the top-down and bottom-up communications across the country are fairly effective so far.