Business leaders meet, discuss corporate social responsibility

August 11, 2004

The Industrial Development and Investment Center held the Forum on Overseas Investment and Corporate Social Responsibility on Aug. 10, which featured talks from Taiwan's corporate leaders.

As the operations of Taiwanese enterprises expand overseas, the impact on employment opportunities, employees and suppliers in host countries continues to grow. Thus, in the opening speech at the forum, Vice Minister of Economic Affairs Shih Yen-shiang urged Taiwan companies operating overseas to adopt the thinking of multinational enterprises as members of "the global village". Shih appealed to Taiwan multinationals to take on a role as Taiwan's "ambassadors-at-large" by allowing corporate social responsibility to guide a company's operations philosophy, and by using the OECD Guidelines for Multinational Enterprises as the minimum for business standards.

The IDIC noted that corporate social responsibility has already become a worldwide topic for discussion. In order to familiarize Taiwan multinationals with the concept of corporate social responsibility and its practice, the IDIC invited business leaders from prominent Taiwan companies to hold a discussion on corporate social responsibility and the associated advantages of investing overseas. Participants met at the Howard Hotel for the forum, with head management figures from Hewlett-Packard (HP), Morgan Stanley, Uni-President Enterprises, and Les Enphants featured as guest speakers. The forum brought in close to 200 participants, 70% of whom were middle to high level management level figures, indicating that corporate social responsibility is gaining more attention from mid-to-high level management figures in Taiwan.

In his speech, Huang Mao Siong, chairman of TECO and director-general of Business Council for Sustainable Development of the ROC, noted that poverty is a risk to an enterprise's operations as well as security and stability in a society, but it is also a business opportunity. Siong said that with overseas investment, corporate social responsibility is a necessity. He added that Taiwan must maintain a global view as its companies expand globally – thus, when facing problems with sustainable development at the global level, Taiwan won't be dismissed by the world, but will be relied upon as an active member of the international community to provide a solution.

Huang's speech was followed by a discussion panel moderated by Paul Hsu, chairman and CEO of PHYCOS International Co., Ltd.. The discussion centered on Taiwan enterprises and foreign companies' views, with talks given by Eric Lin, Chairman of Les Enphants Co. Ltd., Lin Tsan-shen , CEO of Uni- President Group, Susan Lin, CEO and managing director of Morgan Stanley Taiwan, and Hsiao Guo-kun, Asia-Pacific Purchasing Department Manager at HP. The panel shared their experiences and strategies and exchanged views on corporate social responsibility.

Eric Lin spoke about Les Enphants' experience with its 900 outlets in Asia, emphasizing that the importance of corporate social responsibility lay in using a company's success to let both the enterprise and workers pave the way for the next generation and "give back" to society. Les Enphants uses Taiwan's Labor Standards Law as the minimum labor standards for its personnel, while also providing premium benefits. The company strictly enforces transparency in its business operations, and is ranked 17 on the Taiwan External Trade Association's list of high-quality brands.

Tsan-shen Lin shared Uni-President's operations philosophy and vision for the future. He noted that Uni-President's positioned itself as a service provider for sales, and as a company that fosters youth and the corporate spirit. Lin added that in the 21 century, social responsibility will become the goal of corporate sustainability.

HP's Guo-kun Hsiao said that with today's changing business environment, corporate citizens play an important role in corporate success. Hsiao also said that HP holds corporate ethics and community involvement as its core values, consolidating these values by protecting its personnel and trade secrets, designing its products to accommodate environmental protection and recycling, and shrinking the "digital divide" with its "e-inclusion" program.

Susan Lin said that Morgan Stanley also attaches great importance to their personnel, demanding integrity and the pursuit of excellence from its workers. Lin added that Morgan Stanley emphasizes mutual respect and team spirit among its personnel through its "talent cultivation" program.

The speakers noted that laws and regulations were not the only solution to improving corporate social responsibility. The general conclusion was that corporate leaders should adopt more positive thinking as well as a "good heart," to find the healthiest direction for a company. The speakers also noted that the government should minimize market intervention, letting the strength of the market phase out unhealthy companies.

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