Companies can do well and do good at the same time with right CSR practices: Piyush Gupta
The outgoing chief executive of DBS was speaking at the City of Good Summit organised by the National Volunteer and Philanthropy Centre
[SINGAPORE] Although companies may think there is a trade-off between purpose and profit, they can do well and do good at the same time by having the right corporate social responsibility (CSR) practices in place, DBS chief executive Piyush Gupta said on Thursday (Mar 27) (*see amendment note).
There may be a trade-off if the timeframe is short, but over the long term, companies can generate profit for shareholders while staying committed to doing good – they just have to understand what is the right trade-off for them, he added.
Gupta, who is in his final week at the helm of DBS ahead of his retirement, was delivering the keynote address at the City of Good summit organised by the National Volunteer and Philanthropy Centre (NVPC) and held at Sands Expo and Convention Centre.
In his speech that touched on shareholder capitalism versus stakeholder capitalism, he said: “We have a role to serve shareholders… but equally, we have a second role to (serve) society.”
He said of stakeholder capitalism: “Companies not only maximise profit for shareholders, but also create value for a wider range of stakeholders, including the broader community and society.”
Gupta said that he believes companies should take a longer-term approach to CSR, as “it will not be difficult” to then make the trade-off between purpose and profit. “Purpose needs to be reflected in the course of business and day-to-day actions. It cannot merely be something on the side.”
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Companies’ CSR practices can be tied to purpose, which enables them to make a greater impact on communities.
Gupta cited DBS and the work it does through DBS Foundation. It actively uplifts vulnerable communities and nurtures businesses for impact, instead of just writing cheques.
When choosing which causes to support, he noted that the bank identifies the biggest problems in society and comes up with solutions to them, or funds enterprises that work at alleviating these problems. Recently, much of DBS Foundation’s efforts have focused on ageing – in sync with Singapore’s ageing population.
The bank has also made it easier for its employees to give back to the community: It created volunteering opportunities and implemented an internal system for them to sign up and track their efforts.
Suhaimi Zainul-Abidin, who is on the NVPC board and is the chief executive officer of Quantedge Capital, told The Business Times on the sidelines of the event that companies were now also working on being “responsible citizens in society”, instead of being purely profit-driven.
He noted that companies have become more intentional with the causes they support, and that many engage in sustained volunteering programmes. “As part of this shift, we have seen companies do a whole lot more than traditional grant-making or donations. They’ve activated their staff in meaningful volunteering initiatives, engaged in responsible sourcing, environmentally friendly practices, inclusive hiring and so on.”
Lin Sufei, director of corporate and industry partnerships at NVPC, said that having sustained volunteering programmes also improves staff retention and satisfaction.
Lenard Pattiselanno, senior director of community leadership and partnerships at NVPC, pointed out that companies’ CSR programmes have become more “curated”, and companies are looking for new ways to give back to the community.
Skills-based volunteering is one area that has grown over the years, both Suhaimi and Gupta indicated. For example, as a bank, DBS often engages in efforts to improve financial literacy among vulnerable communities.
Fostering partnerships to give back
The City of Good summit, which is its second edition, brought together more than 1,000 participants from the public and private sectors, as well as non-profit organisations and ground-up initiatives to foster more collaboration.
For the first time, NVPC held its Fundraising Forum to discuss evolving charity and fundraising trends. At the forum, it was announced that the S$27.2 million raised through donations last December on the giving.sg platform was a record.
At the summit, there were two panels – one about activating communities for impact and the other, about persuading the next generation to give back. For example, Michelin-starred chef Claus Meyer, co-founder of Noma and founder of Melting Pot Foundation, spoke about how food can be used for social impact.
The exhibition at the summit, called State of Play, showcased about 60 community partners from diverse causes, ranging from animal welfare to mental health. It aimed at fostering more partnerships between charities, ground-up initiatives and corporates.
One exhibitor was KampungKakis, an initiative that tackles senior isolation by matching volunteers with seniors. Dawn Chan, senior manager of fundraising and community management, said that being part of State of Play enabled KampungKakis to connect to corporates to share ideas and information.
Another participant was Impart, a charity that works with youth facing adversities to create opportunities in education, mental health and being part of a larger community. Executive director Narasimman Tivasiha Mani explained that State of Play helped Impart to link up with corporates and showcase the work they are doing on the ground.
*Amendment note: The article has been amended to reflect the correct date
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