Monday, April 7, 2008

NEWS: Giving it back to society

Corporate social responsibility (CSR) is a new buzzword among the information and communications technology (ICT) fraternity, and over the last couple of years, more and more companies have started to include this initiative into their business operations. This move shows
that these companies are not just established for profit, but have evolved to consider the impact that they would have on the community and their employees should they contribute back in whatever capacity.

Tech&U takes a look at how CSR practices are carried out by local ICT players, and how their activities have benefited the community as well as the nation’s development.

Making CSR an ongoing cause

TEN years ago, corporate social responsibility (CSR) was alien to many in the information and communications technology (ICT) industry, and there was hardly any company that have
activities aimed at contributing back to the community they operate in.

But today, a growing number of ICT companies, especially multinational companies and Government-linked companies (GLCs), are making CSR a part of their ongoing business activities.

CSR involves integrating socially responsible policies, practices and programmes into decision-making and business operations.

According to OWW Consulting, a leading company in CSR and socially responsible investing, Malaysia is well ahead of other countries in the region in terms of CSR activities carried out by the companies here.


Even Prime Minister Datuk Seri Abdullah Ahmad Badawi has placed great emphasis on CSR by companies and introduced reporting requirements anda number of incentives for companies to take it seriously.


The CSR activities that these companies implement are not just about giving money to charities, but more on engaging the community through initiatives such as computer training, computer donations, establishing computer labs and enhancing students’ ICT knowledge and know-how.


A GLC that has taken the lead in CSR is Time Engineering Berhad. Its managing director Amiruddin Abdul Aziz said CSR is significant to the company’s operations as it helps to strengthen the symbiotic relationship between the company and the community it operates in.


“It is a tacit social contract between the two parties. When the company helps to improve the conditions of the community it operates in, the community becomes more prosperous, and this ensures the company’s survival,” he explained.


Amiruddin said CSR, when managed and implemented well, can provide sustainable value to the recipients and the contributing company. Benefits include strengthening market presence and goodwill as well as brand marketing.

GLCs in the country have a Silver Book, which is a set of principles and guidelines to be implemented by GLCs so they can proactively contribute to society while still creating value for their shareholders.

Amiruddin said Time’s CSR supports key national economic development policies, including raising national capacity for knowledge and innovation, empowering youth for the future, ensuring Bumiputeras’ equity share in the nation’s economic growth, and addressing development gaps between the rural and urban areas.

Among the CSR initiatives that have been implemented by Time are establishing a one-stop multimedia centre, the Bumiputera Development Programme and Angkasawan to Schools.

Commenting on the budget for its CSR activities, Amiruddin said Time’s main drive is to make a difference.

“Financial resources is not the only criterion to ensure success to any project or programme. What’s more important is the commitment of the people involved, and we believe this is our strength or edge in our CSR programmes.


For Microsoft Malaysia, CSR has been part of its strategy to enable people and businesses throughout the world to realise their full potential.

Its community affairs manager Iriani Zulkifli said one of the ways the company fulfils its mission is by developing software that transforms the way people work, learn and communicate.

“Another way is by using our resources and expertise to help expand social and economic opportunities in communities around the world.”

Microsoft’s CSR efforts are called Citizenship initiatives, and they focus on delivering relevant, accessible and affordable solutions in three inter-related areas that are crucial to developing economic opportunity. The areas are enabling jobs and opportunities, fostering local innovation and transforming education.

For Microsoft, CSR is something that cannot be done alone. “That is why our activities are built on the strength of partnerships with governments, partners, NGOs (non-governmental organisations), educators, civil society organisations and academics, and implemented
together to bring valuable technology skills to teachers, students, senior citizens and others in Malaysia,” Iriani said.

One such example is the company’s collaboration with Global Knowledge Partnership for the upcoming Global Knowledge Summit.

For its CSR activities, Microsoft has set aside quite a considerable budget. Under its focus on enabling jobs and opportunities, the company last year awarded grants comprising cash, software and teaching curriculum totalling close to RM1 million, which reached about 39,000
people.


In growing the local software economy, Microsoft has invested up to RM26 million towards the development of the local software ecosystem.

Also, the company had spent up to RM10 million over the past five years for its Partners in Learning initiatives such as the Student ICT elpdesk Programme and project-based learning and peer coaching programmes.

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