Is Corporate
Social Responsibility [wiki] (CSR) really important to Singapore
companies?
Upon noticing Singtel's eye catching 'Red' advertisement in TODAY
30Mar2011 (2 facing pages-10 & 11 [pict]):
...
.. promising lucky subscribers prizes totaling in excess of
S$93,288 with better chances accrued to those who enlisted their
friends assistance as well in the scheme.
The temptation to participate in such lucky draw festivities by
Singaporeans (bitten by the casino bug) must be irrepressible- thus
spurring my curiosity into exploring Singtel's 2009/2010 annual
report [link][pict] to check out if besides engaging in the
cut throat commercial profit, Singtel, a publically listed company
majority owned [pict] by state funded Temasek holdings [wiki], was as much active in its performance of
CSR.
Details of which I found scant in terms of fiduciary amounts
revealed, this considering that Singtel (as a group) returned a
post tax profit of S$3,906.5million in FY-end Mar2010 [pict].
I could not find in any part the said report, any value estimate of
Singtel's total CSR though I guess Singtel has its reasons for not
publishing such, not least being the difficulty at calculating
intangible contributions (green efforts, staff time
volunteering).
I would however like to propose a benchmark of profits which
companies ought strive to donate annually through corporate
philanthropy.
The simple calculation of fiduciary donations being either:
(i) The sum total in remuneration paid to board and executive
management.
(ii) The sum total spent on advertisement, any luck based promotion
where the inducement to procure is not a genuine discount but a
small gamble. Advertisement expense because any useful product
would have sold by word of mouth, without much need of inducement
or otherwise.
The former ((i)- Board and Exec Mgmt) is premised upon the fact
that 'Corporations' despite not being real persons (they are
actually facades/ puppets personalities of share holder teams
granted 'legal personalities') are the construct of excess monies
of individuals or government, monies that but for the possibility
of investment, might have been spent on charity. Granted that
corporations might be significant tax contributors to public
coffers, still they remain a puppet and shield for which
shareholders suffer little but financial impairment even for
grievous crimes/ immoralities committed in the the conduct of these
'businesses' one example of which being the IBM's contribution to
the Nazi genocide on Jews [IBM and
the Holocaust' (2001) by Edwin Black], others being widespread
pollution/ degradation- nuclear, environmental or otherwise, arms
proliferation and not least banks and corporations 'too big to
fail' and needing bailouts.
Singtel's Board and Key Mgmt earned FY-end2010 [pict]= $18.6m salary + $2.6m worth director's
shares + $6.9m mgmt shares = $28.1m.
Considering that Singtel (as a group) returned a post tax profit of
S$3,906.5million in FY-end Mar2010 [pict], the suggestion that a sum equal to Board
and top management remuneration doesn't even touch 1% of Singtel's
post tax profits (@$39.1m).
Given that much of what capital corporations weld is actually the
extra savings monies of individual or governments invested for
profit, is it not fair then that in so far as shareholders strive
to attain profits on their excess monies, that these shareholders
should equally strive to do good by eradicating this world of
sickness and poverty?
Thus, at least 10% of profits accrued from such investment, OR the
amount spent on top management, OR the amounts spent on lucky draws
and advertisement, whichever greater ought be channeled as
corporate philanthropy before re-distribution to
shareholders.
It is thus no wonder that 1 billion people in this world everyday
remain hungry [WFP-Hunger]; of this 8 million die each year from
hunger, neglect and malnutrition [thinkquest.org]
End Hunger, end poverty; demand corporate social
responsibility.
~ "The King will reply, 'I tell you the truth, whatever you
did for one of the least of these brothers of mine, you did for
me.'"-- Matthew 25:40 (NIV)
Majulah Singapura,
Love and God bless,
Rgds
B.C.
Disclosure: The author is neither a CFA nor accountant, just
someone trying to live a good life premised on grace; your comments
welcomed.
