Responsible companies must deliver sustainable value over the long term

We read with keen interest the commentary by Dan W Puchniak ("No need for Asia to be woke - Responsible Capitalism through an Asian lens", BT, 3 March 2022), which articulates the importance of a diversity of approaches for companies to be responsible for maximising public good, alongside generating returns.

Temasek also believes that the fundamental responsibility of companies is to make a positive contribution to society. This cannot be decoupled from their aim to deliver profits for themselves or their shareholders and to achieve long term sustainable returns in the pursuit of multi-stakeholder capitalism. Indeed, the issues around balancing profit and purpose are as relevant in Asia as anywhere else in the world.

The piece also proffers that the unique institutional architecture in Singapore ensures state-owned companies can focus on profit maximisation, without the encumbrance of politics. While Singapore's fundamental governance structure allows these companies to operate commercially without interference, direction or promotion from the state, their purpose should transcend the drive for profit maximisation.