Companies can make a greater impact by incorporating corporate responsibility (CR) initiatives into their business model, say judges of the corporate responsibility (CR) component of The Edge Billion Ringgit Club (BRC) corporate awards 2018.

This, they say, can be done by putting more thought into being better corporate citizens for the community they are in as well as for their own people. By setting higher standards for their suppliers and business partners when it comes to the environment, human rights and supply chain issues, for instance, companies can help drive improvements in responsible business practices and improve the environment they operate in.

Returning to the panel of judges this year were The Edge Education Foundation CEO Dorothy Teoh, Malaysia Deposit Insurance Corp director and former deputy CEO of the Securities Commission of Malaysia Datuk Dr Nik Ramlah Mahmood, Mah-Kamariyah & Philip Koh senior partner Philip Koh Tong Ngee and OCBC Bank Malaysia Bhd senior vice-president and head of corporate and commercial banking Jeffrey Teoh.

Dorothy likes how Axiata Group Bhd utilised green sources such as bamboo for some of its tower infrastructures and how its tower operations in the region have incorporated energy-efficient measures to reduce its carbon footprint. The measures include the use of non-chlorofluorocarbon air-conditioning as well as an intelligent ventilation system that combines fans and air-conditioning to reduce energy consumption.

She also notes how Axiata is bridging the digital divide in the regional countries it operates in. Its unit in Sri Lanka, for example, connects 2,000 schools via its Nenesa television channel with content from the National Institute of Education. In Bangladesh, its unit provides solar power and livelihood support to more than 2,500 rural villagers in their Model Eco villages and helps ensures 50,000 passengers on trains benefit daily from their Clean Water project. The anchor Axiata Young Talent Programme, which nurtures future leaders in Malaysia, has also been expanded to Indonesia, benefitting over 250 future leaders.

Dorothy is also heartened by Ann Joo Resources Bhd’s occupational, safety and health practices. “The iron and steel industry is one of the industries that have a major impact on air quality, so it is good to know that the company places a lot of importance on environmental protection to control dust emissions and improve air quality not just for its workers but also surrounding communities.

“As a judge, it’s always a pleasure to see newcomers to The Edge Billion Ringgit Club practising good corporate responsibility,” says Dorothy, adding that she is also impressed with the company’s detailed environmental reporting.

While charitable giving is welcomed, the judges note that it is only one form of CR and urge corporates to place more emphasis on efforts that enhance the welfare and well-being of their people and the community they are in rather than just handing out monetary contributions.

“Vernacular schools face huge challenges with funding and there have been BRC members who have stepped in to refurbish run-down facilities and even build entirely new schools in the communities where they operate. Matrix Concepts, which joined The Edge BRC last year, is one of them. From a wooden structure with limited facilities first built in 1951, SJKT Bandar Sri Sendayan in Negeri Sembilan now not only has a new building but also a state-of-the-art library, computer lab, auditorium and a pre-school. This will hopefully transform the education landscape for the local community,” says Dorothy.

Commitment from the top can send a strong signal for others to follow.

“Talking about transformation, Malaysia Building Society Bhd shows that where there is commitment from the top, much can be achieved within a short timeframe in terms of corporate citizenship and responsibility. In 2017, MBSB was the first financial institution in Malaysia to take the Corruption-Free Pledge, an initiative by the Malaysian Anti-Corruption Commission (MACC). It’s notable that integrity was ranked as the most important material matter by both its internal and external stakeholders. To manage its environmental impact, it started tracking energy, water and paper consumption monthly last year. For me, these and other efforts show in its much-improved performance in the CR component of The Edge BRC in the last one year alone,” says Dorothy.

With more companies doing better at CR, the bar is now higher for companies that are already doing well to outdo themselves for the betterment of all stakeholders, the judges say.

The importance of CR is reflected in the 30% weightage assigned to the component in the total score for The Edge BRC Company of the Year award.

“There has never been a better time than now to build in sustainability and corporate responsibility measures that go well beyond the minimum standards and existing best practices of the industry. With a renewed sense of hope and purpose in the air and the reverberating call to be better than we ever have been, The Edge BRC has matured over these nine years to become Corporate Malaysia’s conscience for a stronger posture of self-regulation. This is particularly so in those areas that do not tangibly generate revenues. We look to every member of this club to continue to make its own growth in sustainability and corporate responsibility a measure of success, so that we will indeed be riding the crest of the welcome wave we find ourselves in [today],” says Jeffrey.