COMPANIES STILL FOCUS ON PHILANTHROPY AS PART OF SUSTAINABILITY PRACTICE

KUALA LUMPUR, Dec 3 (Bernama) -- Many Malaysian companies are still focusing on
philanthropy and charitable donations as part of their sustainability or
corporate responsibility practices, says Bursa Malaysia's chief regulatory
officer, Selvarany Rasiah.

"They focus on donations rather than improving their environmental
footprint, addressing labour standards in their supply chains or engaging
stakeholders," she said at the talk on "Business Sustainability: Rationale and
Challenges" organised by KPMG Malaysia here Friday.

She said listed companies lacked understanding on the benefits they could gain
by adopting sustainability practices which were vital as they were operating in
an uncertain global landscape.

However, she said, there were a number of real leaders among Malaysian listed
companies that adopted best practices and found innovative ways of addressing
social and environmental challenges.

"This was evident when Malaysia was ranked third among 10 countries in the Asian
Sustainability Rating 2010 by CSR Asia," she said.

Later, speaking to Bernama, Selvarany said, the level of adoption among
Malaysian companies varied across the market.

"Some have adopted sustainability practice in a holistic manner and
reporting adequately while some are less holistic due to lack of interest and
understanding.

"Most chief executive officers have been driving some aspects of
sustainability, probably not in such an all-encompassing framework, but it is
evolving," she said.

Selvarany said companies were well aware that to move forward to the next stage
in a competitive business environment and to sustain for the long term, they
needed to embrace sustainability practices to a larger extent in their business
operations.

"The environment is changing so rapidly and that is why it is important for
companies to realise and move forward to exist for a longer term and create
value for their stakeholders.

"Sustainability needs to be looked at in a more holistic manner rather than just
leaving it to the corporate communications department and company secretary.

"It's also important to understand that it is not a regulatory requirement," she
said.

Selvarany said sustainability practices needed to be part of corporate strategy
and be led by the board of directors.

Bursa Malaysia (Malaysia's Exchange) launched the Business Sustainability
Programme for Corporate Malaysia themed, "Powering Business Sustainability",
last November to shift their focus to value creation in the four core areas --
environment, community, workplace and marketplace -- and to help them drive
their businesses to new
heights.

Meanwhile, executive director, head of risk advisory services of KPMG, Hew Lee
Lam Sang, said the level of understanding of sustainability was low.

"The understanding is already an issue. How they link to business
competition and business risk is fairly low," he told reporters on the sidelines of
the talk.

On the challenges companies would face going forward, Hew said, the pressure of
supply chain, regulation, authorities, competition and customers would actually
force companies to quicken the phase of adopting sustainability practices.

"Probably in the next three to five years down the road, we can see full
holistic approach of companies in embracing sustainability in Malaysia," he
said.