Corporate Social Responsibility In Smrt Corporation Management Essay

Corporate Social Responsibility In Smrt Corporation Management Essay This report is written and compound to discuss Corporate Social Responsibility in the worldwide international company. Corporate Social Responsibility is the adoption by a business of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders (Thorne, Ferrell, Ferrell, 2008, p. 5). The key stakeholders of an organization consist of employees, customers, investors, suppliers, stockholders, governments, as well as communities. SMRT Corporation Ltd (SMRT) is one of the company that implements Corporate Social Responsibility in their company. SMRT is Singapores premier multi-modal public transport service provider which established in 1987. Corporate governance is one of the most important aspect in Corporate Social Responsibility. The Board and Management of SMRT are fully committed to continually raising the standard of corporate governance and to build a respected, trusted and transparent organisation which is essential to sustainability of the companys business and performance. Some of the sustained programme that has been made by SMRT to enhance and improve the lives and welfare of the community are corporate philanthropy, environment, community outreach, as well as safety and security. 2. Introduction Corporate Social Responsibility is the adoption by a business of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders (Thorne, Ferrell, Ferrell, 2008, p. 5). The key stakeholders of an organization consist of employees, customers, investors, suppliers, stockholders, governments, as well as communities. Nowadays, the awareness and implementation of Corporate Social Responsibility in Singapore has been increased since the establishment of Singapore Compact in January 2005. Singapore Compact is a national society that functions as multi-stakeholder platform in recognising the role and contributions of all Corporate Social Responsibility stakeholders. SMRT Corporation Ltd (SMRT) is one of the company that implements Corporate Social Responsibility in their company. SMRT is Singapores premier multi-modal public transport service provider which established in 1987. This report is written and compound based on the company background of SMRT, corporate social responsibility by SMRT which includes corporate philanthropy, environment, community outreach, safety and security, as well as current issue in market and media. 3. Company Background SMRT Corporation Ltd (SMRT) is Singapores premier multi-modal public transport service provider offering integrated transport services island-wide. Established in 1987, SMRT provides Mass Rapid Transit (MRT), Light Rail Transit (LRT), bus services, as well as rental of taxis. In addition, SMRT leases the commercial spaces and provides advertising buying service within their network. Singapore MRT Ltd started operating the North-South and East-West lines (NSEWL) of Singapores first Mass Rapid Transit System in the 1987. Singapore LRT Pte Ltd was set up in 1997 and two years later, became the first operator for Singapores pioneer Light Rapid Transit System in Bukit Panjang (BPLRT). SMRT Corporation Ltd has been listed on the mainboard of the Singapore Exchange Securities Trading Limited (SGX) since 26 July 2000. As a holding company, it wholly owns SMRT Trains Ltd (SMRT Trains), formerly known as Singapore MRT Ltd, and SMRT Light Rail Pte Ltd (SMRT Light Rail), formerly known as Singapore LRT Pte Ltd. SMRT Trains has commenced operations of Circle Line Stage 3 in May 2009 and Stages 1 and 2 in April 2010. In December 2001, SMRT Corporation Ltd acquired SMRT Road Holdings Ltd (formerly known as TIBS Holdings Ltd) for $198.6 million and became Singapores first multi-modal land transport operator, providing bus and taxi services in addition to its MRT and LRT services. SMRT Buses Ltd (SMRT Buses) and SMRT Taxis Pte Ltd (SMRT Taxis) are wholly-owned subsidiaries of SMRT Road Holdings Ltd. 4. Corporate Governance Corporate governance is the formal system of oversight, accountability, and control for organizational decisions and resources. Oversight relates to a system of checks and balances that limits employees and managers opportunities to deviate from policies and codes of conduct. Accountability relates to how well the content of workplace decisions is aligned with a firms stated strategic direction. Control involves the process of auditing and improving organizational decisions and actions (Thorne, Ferrell, Ferrell, 2008, p. 75). Corporate governance is one of the most important aspect in Corporate Social Responsibility. The Board and Management of SMRT are fully committed to continually raising the standard of corporate governance and to build a respected, trusted and transparent organisation which is essential to sustainability of the companys business and performance. For its efforts to achieve the excellent corporate governance, SMRT received some of the corporate awards such as Best Investor Relations (Silver) and Best Annual Report 2009 (Bronze) at Singapore Corporate Awards 2010, second place in Business Times Governance and Transparency Index 2010, Best Managed Board (Gold) and Best Annual Report 2008 (Bronze) at Singapore Corporate Awards 2009, Board Diversity Award (Co-Winner) at Securities Investors Association of Singapore (SIAS) Investors Choice Awards 2009, first place in Corporate Governance Award in the Mainboard category at Securities Investors Association of Singapore (SIAS) Investors Choice Awards 2008, and more. 5. Corporate Social Responsibility by SMRT Corporate Social Responsibility (CSR) means that a corporation should be held accountable for any of its actions that affect people, their communities, and the environment. It implies that harm to people and society should be acknowledged and corrected if at all possible. It may require a company to forgo some profits if its social impacts seriously hurt some of its stakeholders or if its funds can be used to have a positive social impact (Post, Lawrence, Weber, 2001, p. 58). SMRT believes that their success has to be channeled towards the greater good of the community. SMRT Corporate Social Responsibility programme sets out to make a positive impact on the economic, social and environmental well being of the communities that they serve. Some of the sustained programme that has been made by SMRT to enhance and improve the lives and welfare of the community are: 5.1 Corporate Philanthropy Corporate philanthropy has become important as companies are expected to do more than just give back to the community. SMRT corporate philanthropy programme is directed at voluntary welfare organisations, national events, education, sports, arts and the environment. In Financial Year 2006, SMRT made community contributions totalling S$3.18 million in cash contributions and sponsorships such as media space and corporate gifts. Some others of the philanthropic contributions that have done by SMRT are: SMRT Silver Tribute Fund The SMRT Silver Tribute Fund (Fund) is SMRTs biggest corporate social responsibility initiative to-date. SMRT Silver Tribute Fund was launched in December 2006 as a holistic corporate philanthropy and community outreach effort. All money raised by SMRT Silver Tribute Fund will go towards the six beneficiaries such as: Alzheimers Disease Association   Specialised Caregiver Support Service (Dementia), Ang Mo Kio Family Service Centers -Ang Mo Kio Yio Chu Kang Community Carers Scheme, Asian Womens Welfare Association AWWA READYCARE Centre, Geylang East Home for the Aged (GEHA), Singapore Leprosy Relief Association Home, and Tan Tock Seng Hospital Community Charity Fund   Helping Elderly Patients Programme.   Donations and media support for National Day Parade and support of the birthday celebrations in various ways including provision of a SMRT Train for Singapore Express, a community project which brought together 12,000 Primary Five students from 42 schools island-wide to design National Day decorations for public transport and bus stop shelters. Train ride for 200 disabled persons to promote community awareness of the unique needs of the disabled. Sponsorship of three SMRT buses as exhibition space for exhibits on environmental care for the Marine Parade Town Councils Clean, Green and Hygiene Carnival. Donation of a de-registered SMRT taxi to Alexandra Hospital for its Car Transfer Rehabilitation Programme. Partnership with the National Council of Social Services for the Disability Awareness Public Education Campaign. 5.2 Environment SMRT is committed to be an industry leader in environmental stewardship. SMRT prioritize and responsible to contribute to create a cleaner and greener environment. To embrace environmentally-friendly policies and practices in their business, operations and infrastructure, SMRT launched SMRT is Green in April 2008. SMRT make a conscious effort to adopt green practices in their operations in terms of energy, water, air and waste management. With all their concern and hard work to preserve the environment, SMRT received some awards for their contribution such as Most Energy Efficient Metro award at The Metros Award 2010, Top Achiever, Singapore Environmental Achievement Award 08/09 from the Singapore Environmental Council, two awards at the Land Transport Excellence Awards (LTEA) 2010 as the Most Eco-Friendly Transport Partner and the Most Creative Promotion/Campaign, and many others. 5.3 Community Outreach SMRT is active in outreach programmes that add colour and vibrancy to community while promoting the SMRT brand name. These programmes have been done to entertain, educate and inform to the public through their transport network. Some of the programmes are: SMRT Courtesy and Safety Programme This annual programme serves to remind commuters to adopt safe and well-mannered behaviour while in transit. The highlight of the programme is the SMRT Challenge. Courtesy and safety messages were also publicised via action packed road shows at our train stations, publicity posters, as well as through an art competition for children. SMRT and National Library Board (NLB) Read and Ride Programme The magic of books come alive for children of the Internet generation on MRT train. This partnership with NLB is complemented by the annual SMRT Tales on the Trains. These are story-telling sessions on board SMRT trains and are held during the school holidays. Hui Chun at SMRT MRT Stations SMRT transform one of their stations into a place of celebration to spread festive cheer among their commuters every year. SMRT are always joined by calligraphers and artists from the Life Art Society who will give out auspicious couplets and brush paintings, all of which are completed on the spot. 5.4 Safety and Security Safety and security is the top priority and the forefront of SMRT business and operations. To encourage and train the community to play a more active and effective role in enhancing safety and security in the public transport system, SMRT make a programme which is called by SMRT Community Emergency Preparedness (SCEP). The SCEP is the first integrated transport security training programme by a public transport service provider and is develop as a Public-Private-People (3P) partnership, in collaboration with the Land Transport Authority (LTA) and Ministry of Home Affairs Home Team departments. The registration to join the SCEP programme is free and all the participants will undergo three hours of theory and four hours of practical lessons. 5.5 Current Issue in Market and Media In order to celebrate World Environment Day, SMRT launched its third Go Green with SMRT public transport education campaign on 5 June 2010. The campaign, which runs till 30 September 2010, highlights the benefits of taking the train and bus better air quality, reduction in carbon emissions and lower carbon footprint per passenger kilometre. The campaign which promotes public transport for cleaner air and better health launched with giveaway of 300 limited edition travel passes to commuters who wear special badges and pledge to add public transport into their travel mix. The 300 limited edition travel passes are on top of the monthly draw (3-month free rides for 1 on SMRT trains and buses) and grand draw prizes (1-year free rides for 4 on SMRT trains and buses). 6. Conclusion Nowadays, majority companies implement Corporate Social Responsibility (CSR) as a form of their commitment to take care of the community and environment. SMRT Corporation Ltd is one of the company which implements CSR programme. With the implementation of CSR in their company means that SMRT is the company which is responsible for the welfare of the community and environment. One of the CSR programme that has been done by SMRT is committed to a clean and green environment by using environmental friendly fuel. Other CSR programmes are including corporate philanthropy, community outreach, as well as safety and security.