'Corporates should focus on the triple bottom line'

In today's corporate environment, making profits and meeting shareholder expectations are no longer the only objectives. Today, the process of wealth creation is measured, not just in terms of return on investment but also in terms of a corporate's impact on society and the environment, the Ceylon Chamber of Commerce President Suresh Shah told guests at the Best Corporate Citizen Sustainability awards ceremony recently.

Excerpts from his speech.

"The triple bottom line - profits, planet and people - is here to stay. In 2004, the Ceylon Chamber initiated the Best Corporate Citizen award to encourage and recognise corporates that adopted the triple bottom line approach to wealth creation.

During the formative years, the award was skewed towards a corporate responsibility platform.

However, as the name suggests, the award now goes beyond CSR to encompass sustainability, which is the triple bottom line.

Extraordinary results

This evening marks the 11th consecutive year in which the country's most successful corporates are recognised. We recognise and reward as the Best Corporate Citizens, the companies whose business ethos transcends the immediate objective of an increasing bottom line.

These are the companies that have achieved extraordinary results for their shareholders while protecting the environment and giving back to society in a truly meaningful manner.

We also recognise the Best Sustainability projects that have been conducted by corporates. We hope that the examples set by these organisations will motivate others along a similar path.

Each year, we have seen new benchmarks being set and no doubt this year will be the same. The Chamber is privileged to recognise the wonderful work done by the winners and we congratulate them.

Anomaly

While all applicants will not be recipients of an award, the invaluable work they have done and the results they have achieved, will be the greater reward. Undoubtedly, their work is bound to be recognised in the years ahead.

Too often, the private sector stands accused of being focused solely on the bottom line.

The work done by the private sector argue to the contrary. Yet, this information is not out there for society at large to see and experience.

While we have not failed to do good, we have - in a sense - failed to communicate the good, we do. This is an anomaly that needs correction. And correct it we must, if the private sector is to truly step up as the engine of growth.

As a sector, we must win the confidence, trust and respect of the community. Failure to do so will relegate the private sector to a secondary role, a taker of policy rather than an influencer.

Impact

While our businesses continue to enrich the lives of customers, employees and the communities within which we work, being fragmented efforts, they fail to make an impact at national level and private enterprise is rarely seen as the progressive segment of society.

This is a pity but if we combine our strengths, we can change perceptions. The first step along this path was taken two years ago when the Chamber, the IUCN and Dilmah Conservation launched the Sri Lanka Business and Biodiversity Platform.

This is a national level initiative that brings together policymakers, academics, the business community and the public to promote the conservation of our biodiversity. To date 55 businesses have enrolled in the program.

Joint initiative

A second initiative is the 'Sri Lanka National Platform for Disaster Management' launched in August, 2014. This is a joint initiative between the Chamber and the Consortium of Humanitarian Agencies and is affiliated to the Asia Pacific Alliance for Disaster Management, a transnational disaster aid alliance.

The main objective of the National Platform is to bring together the government, the private sector and NGOs when responding to disasters. This program responded efficiently and effectively to bring relief to victims of the recent drought that affected 14 districts and the landslide in Meriyabedda.

In the years ahead, the National Platform will focus more on disaster prevention since the real need is to avoid deaths, destruction of property and economic losses.

Third, we intend to launch an 'Adopt a Village' program soon. It aims at empowering and building capacity within a village, through programs such as mentoring, skills and knowledge transfer and supply chain links.

Small sum

These are low cost efforts that will take a very small portion of your CSR budgets. We anticipate an annual spend of not more than Rs 250,000 per village, an extremely small sum for an initiative that can lead to a significant impact within Sri Lanka.

The need is for our time and commitment, not so much for our money. With the help of a few lead corporates, we will pilot this project - most likely in a single district - and once fine-tuned, we hope to take it islandwide.

We are working towards creating a comprehensive data base of villages which we will share with you.

We will come to you with the details shortly with the hope that each Sri Lankan corporate will adopt at least one village in the years ahead. The role of the Chamber will be to match-make between village and corporate. Through this project the Chamber does not seek credit for itself but instead hopes to project the image of a responsible corporate sector.

This project, if executed successfully, has the potential to narrow the income and regional disparities that exist within our country."