WITH the evolution of corporate social responsibility (CSR) from being singly philanthropic to a tool for competitive gain, companies have found themselves compelled to take on a more holistic approach to this dimension of business.

In our lifetime, we have seen the shift from a philanthropy-centred CSR (where CSR sits on the sidelines as a do-if-you-can activity alongside the “reality” that the business of business is business) to compliance (with its focus on ensuring no hurt comes upon anyone), to citizenship (where the role of business in society is more clearly defined) and to CSR as a means of increasing competitiveness.

Clearly, we have reached the stage where companies can no longer think of CSR simply in terms of how they spend their profits; today, they must reflect on how they make it as well. This is a theme that has been rightly trumpeted by those in the forefront of proper corporate governance. Companies that ignore the wider sweep of corporate social responsibility today do so at their peril.

In Malaysia, there are several standout exemplars blazing the trail of a holistic approach to CSR, including Sime Darby, which was recognised last year for this dimension of its business. A look at its approach reveals conscious attention to the well-promoted CSR framework that prescribes particular attention to the environment, workplace, community and marketplace.

Perhaps this is the best starting point for not just public-listed entities but the “rest” as well in their quest to emulate the more established proponents of a holistic approach to CSR. More recently, the April 14 launch of  “A Toolkit to Implement Green Business” by the Companies Commission of Malaysia and WWF-Malaysia marked yet another milestone in the ongoing journey towards creating workable starting points for corporations seeking to get started, specifically, in maintaining their green offices, implementing green procurement policies and greening their operations.

A useful start for a company embarking on a holistic CSR journey, as advocated by those in the know, is to establish where it sits on the so-called CSR map. The following questions, they rightly advocate, are useful for companies to ponder as they seek to establish a starting point for their onward thrust.

Does your organisation view CSR as an opportunity to be realised or a regulatory requirement to be met? Is the CSR policymaking company-driven or is it a process defined with stakeholder consultation? Is it focused on minimising harm or on maximising benefit? Is it conducted by dedicated CSR staff or by staff throughout the company in all areas of business? Is it philanthropic in nature or primarily aligned to business strategy?

Neither extreme is desirable to the exclusion of the other. Each merely provides a sense of where exactly the company currently resides in the CSR journey and thus the gaps that might need to be addressed. The aim of the exercise is, of course, to ultimately place the heart in the heart of the CSR effort so no stone is ever left unturned in the exercise.

Several lessons can be gleaned from even a cursory glance at how Sime Darby, which received The Edge Billion Ringgit Club top CSR Award (large cap) last year, performed.

Key to what Sime Darby, like several of the other exemplars, brings to the table is its starting point, stated in the straight, non-fluffy language of the corporate responsibility (CR) section of its 2013 annual report:

“At Sime Darby, CR exists as a spectrum of responsibilities. At one end, it focuses on financial and operational integrity, good governance and strategic growth, and on the other it emphasises a strong commitment towards sound environmental practices, conservation, stakeholder engagement and strategic philanthropy. Implementation and improvement is continuous and embedded through collaborative efforts. These are established through a network that is both multi-stakeholder centric and multi-disciplinary. Various functions and departments … all integrate elements of CR into their policies, procedures and practices.”

Three key lessons emerge from their example for everyone to learn from. First, there is no reductionist tendency here — every dimension of CR (of which CSR is a part) is important and never optional.

Second, CR, while perhaps coordinated centrally, is clearly seen as multi-disciplinary, with several different departments playing key roles toward the same end. And third, there is collaboration across departments to ensure a harmony of efforts for the ultimate good of mankind.

Clearly, the days of simply giving away a cheque for RM100,000 and thinking one has “done CSR” is way past us and a company cannot but establish its starting point by looking, at least, at the four dimensions prescribed by Bursa Malaysia. These are protecting the environment both in what we do and by attending to what we see around us; ensuring the workplace trumpets basic human rights while offering a conducive environment to practise CSR; becoming an integral part of the community through proper business practices and beyond; and working responsibly in the marketplace with the various stakeholders for the ultimate good of all.

Jeffrey Teoh is head of corporate and commercial banking, OCBC Bank (Malaysia) Bhd. He sits on the four-person panel that judges the CSR section of The Edge Billion Ringgit Club.

This article first appeared in Forum, The Edge Malaysia Weekly, on May 18 - 24, 2015.