Companies need to be more creative in their efforts to improve the quality of life of their staff and the community they operate in, judges for the corporate responsibility (CR) component of The Edge Billion Ringgit Club (BRC) Company of the Year award say of this year’s CR reports.

Even some of the larger companies, which previously did fairly well, received only mediocre scores due to what appears to be a lack of innovation in their efforts.

“We noticed that roughly, it’s always the same plan. Perhaps the companies are running out of ideas when it comes to CR,” says a member of the judging panel. “The same reporting template was even used by some of the companies with the figures updated,” another judge remarks, pointing out that a similar trend was seen in the last two years.

“There is also a sense that the macroeconomic environment is not so great. That could be one of the reasons companies are doing less, I suspect,” adds another judge.

Like last year, the judges reiterate that more companies need to be more proactive in their CR initiatives instead of ticking them off as a one-off duty, stressing that measures need to be in place to monitor the effectiveness of money spent as well as find ways to improve.

“It serves us well to remember that CR isn’t just about sheer philanthropy but a business value proposition that aligns itself with corporate strategies,” says OCBC Bank (M) Bhd corporate and commercial banking senior vice-president and head Jeffrey Teoh.

An example is Axiata Group Bhd, this year’s winner in the Super Big Cap category, which made its mark in its commitment to training and developing talent. The company — a constituent of the FTSE4Good Bursa Malaysia Index that measures environment, social and governance-compliance — is also committed to bringing information and communications technology to the poorest across the region. It is also among a handful of BRC members that issued an integrated sustainability report with reference to the Global Reporting Initiative Sustainability Reporting Guidelines.

“From training future CEOs for Malaysia to efforts to close the digital divide, Axiata takes the long-term view when it comes to corporate responsibility [weaving] together affordable connectivity with innovative technology and nurturing talent,” The Edge Education Foundation CEO Dorothy Teoh says.

The manner in which United Plantations Bhd (UP) treats its employees also stood out — a positive sign for an industry leader that is also the world’s first producer of sustainable palm oil certified by the Roundtable on Sustainable Palm Oil. “In an industry that is under constant scrutiny, UP stands out for its focus on social and environmental awareness and its efforts to create a balance between the economy and ecology … UP even has a Danish bakery and a senior citizens’ home at Jendarata Estate where retired and aged employees are given free board, food and medical care,” Dorothy notes.

“United Plantations included a materiality matrix and was committed to improving its materiality assessment going forward,” says Bursa Malaysia chief regulatory officer Selvarany Rasiah in an email.

Gamuda Bhd’s tunnelling academy was also commended as it helps train young people in a very skilled job. Judges liked how its industry’s first Klang Valley MRT Training Centre focuses not just on skills but also on safety. Apart from providing for the welfare of its Malaysian employees, the company spent RM100 million on four centralised labour quarters with a range of amenities for foreigners working on the KVMRT Sungai Buloh-Kajang line.

Past BRC CR first-place winners Nestlé (M) Bhd, Sime Darby Bhd, Malayan Banking Bhd, CIMB Group Holdings Bhd and Sunway Bhd continued to score highly this year.

The judges also commended relief efforts for the 2014/15 east coast floods — the worst to hit the country in decades — which killed at least 21 people and affected some 200,000 others. Based on data collated from the 176 BRC members’ 2015 annual reports, at least half of them (78 members) provided humanitarian and financial support for the victims. At least five BRC members each sent over 100 employees as volunteers while 36 provided at least RM26 million in financial aid (see Page 18).

According to the judges, some of the corporates have done a great job during the disaster. “You’re looking at both the amount contributed as well as manpower support. Hap Seng Consolidated is one example, giving RM50 per month to the students for six months,” says one of the judges.