In comparison to the government, most businesses in Singapore were not particularly concerned about environmental sustainability before the turn of the 21st century. In general, businesses valued the environment in a more utilitarian manner, as an avenue which provided resources for the production of goods and services, and a convenient avenue to dispose of waste, for some. The environment thus suffered from the tragedy of the commons, as businesses claim full benefits from it but do not fully bear the costs of extraction of resources and disposal of waste, to name some activities. Environmental costs have typically been categorized as negative externalities.
Due to increasing environmental awareness later on within society, with environmental issues being increasingly emphasized at the global and local levels, there is a shift towards a more moralistic view towards the environment. There is a high motivation to be, or seen to be, a morally sound enterprise to the the increasingly environmentally aware community of customers, investors and stakeholders.
Presently, many companies in Singapore continue to practise sustainability and more are becoming sustainable. Many company leaders have implemented environmental sustainability measures in their business practices as they believe that it is in the best interests of the company as well as the environment. The environment benefits from reduced demand of resources from companies, translating to longer preservation of resources, among others. Several benefits that companies enjoy are such as savings in costs, having a competitive edge, and enjoying a positive reputation as a concerned, responsible member of society.
Several quotations from company leaders are as such below and these indicate more internalized motivations to be environmentally-friendly:
Mr Lee Fook Sun, President of ST Electronics said:
“Being green is a differentiator for ST Electronics. One of our business thrust is to offer
eco-enabling information and communications technology (ICT) solutions that help our customers reduce their carbon footprints. In parallel, in our operations, we believe in being a responsible corporate citizen and a keen green practitioner. The alignment of the two efforts allows for a consistent commitment and message to our customers and staff.”
Mr Sharad Somani, Partner and Head, Climate Change & Sustainability Services, KPMG Singapore said:
“A sustainable future is not solely the responsibility of the government, but also of business organisations. Only when companies recognize their social responsibility and accountability, and act on it, can the world be assured of sustainable growth and development for the future.”