Business Times (Malaysia): CSR schemes can help raise shareholder value: “forum, sponsored by The Coca-Cola Co, Shell and Genting group” (ShellNews.net)
Sep 03, 2004
CORPORATIONS can build up shareholder value by involving actively in more corporate social responsibility (CSR) programmes for the community, Permodalan Nasional Bhd (PNB) chairman Tan Sri Ahmad Sarji Abdul Hamid said.
PNB group is Malaysia's leading investment institution with a diversified portfolio of interests that includes unit trust, institution property trust, property management and asset management.
Ahmad Sarji said corporations should look at enhancing social responsibility to enhance its shareholders value, and not limit themselves merely by declaration of dividends and bonuses.
He was speaking to reporters after delivering a keynote address at the two-day Asian Forum on CSR themed "Driving Forces for CSR - Altruism or Economics?" in Kuala Lumpur yesterday. Ahmad Sarji and LIN Associates Sdn Bhd chairman Tan Sri Lin See-Yan are the two governors from the Asian Institute of Management who will lead the forum this year.
Ahmad Sarji said corporate leaders have to look at the wider responsibility to the communities within which they operate, and pay attention not just to economic returns but to the environmental and social impact of their business as well.
Developers, for example, who set aside a portion of their land to build community halls, library and schools, have seen the land value multiply and at the same time improve its shareholder value. By having higher CSR, a company can increase its reputation, and this will elevate its chances to secure contracts from the Government as it is seen as being socially responsible.
Companies with higher CSR can also attract and retain good employees, which would in turn benefit them financially in the long run.
Lin said in calculating shareholder value, most of the elements of CSR are not taken into account by corporations, and hence, more research by universities and funding for non-governmental organisations are needed to improve this situation.
Both agreed that the media plays a vital role in creating awareness among the corporate sector on the role of CSR. The forum, sponsored by The Coca-Cola Co, Shell and Genting group, is organised by AIM.