CSR cannot be compromised for business success - David Griffiths

SMEs represent 90 percent of the world's economy and it is the fastest growing segment in Sri Lanka driving growth through industries, exports and manufacturing.

The small enterprises need to improve productivity and manage businesses effectively in a responsible manner. Corporate Social Responsibility (CSR) cannot be compromised for business success, HSBC, CEO David Griffiths told the 'Living Business' seminar for the SME sector at the BMICH recently.

The seminar was organised to educate the SME sector on the importance of making profits and developing businesses in a socially and environmentally-friendly manner.

Griffiths said it is not only important to manage businesses properly but concern for environment is vital. Unethical business practices will be detrimental to society and the environment.

Deputy Governor Central Bank, Dr. Rani Jayamaha said the SME sector which makes a noteworthy contribution to the economy is neglected by the banking sector and an initiative of this nature will help enterprises observe good business practices in line with CSR.

Senior Lecturer, University of Peradeniya, Sena Peiris said people do business not only to make profits but also to provide products and services to enhance the quality of life.

Business enterprises have caused damage to society due to lack of compliance to social and health norms. Of the 6.5 billion population in the world only 30 percent of them are fed while others are not properly served.

He said there needs to be a balance among people, planet and profit. It is only then that sustainable economic development could be achieved.

Environment, society and economy are interlinked and need to be in harmony. Major environmental catastrophes have caused havoc in the recent past due to the violation of norms.

Today water, paper and other solid substances are discarded as waste matter in large proportions irrespective of the value they have.Around 90 percent of the resources do not find its way into the product. Nearly 35 percent of the raw material is discarded within two weeks after use.

The waste material is dumped in drains or blown into the air not considering the monetary value. A garbage truck is money and a valuable resource that could be made use of for a productive purpose, Peiris said.

(LF)