Succeed or Sink CHANDOS ASIAN STUDIES SERIES: CONTEMPORARY ISSUES AND TRENDS Series Editor: Professor Chris Rowley, Centre for Research on Asian Management, Cass Business School, City University, UK; HEAD Foundation, Singapore (e-mail: [email protected]) Chandos Publishing is pleased to publish this major Series of books entitled Asian Studies: Contemporary Issues and Trends. The Series Editor is Professor Chris Rowley, Director, Centre for Research on Asian Management, City University, UK and Director, Research and Publications, HEAD Foundation, Singapore. Asia has clearly undergone some major transformations in recent years and books in the Series examine this transformation from a number of perspectives: economic, management, social, political and cultural. We seek authors from a broad range of areas and disciplinary interests: covering, for example, business/management, political science, social science, history, sociology, gender studies, ethnography, economics and international relations, etc. Importantly, the Series examines both current developments and possible future trends. The Series is aimed at an international market of academics and professionals working in the area. The books have been specially commissioned from leading authors. The objective is to provide the reader with an authoritative view of current thinking. New authors: we would be delighted to hear from you if you have an idea for a book. We are interested in both shorter, practically orientated publications (45,000+ words) and longer, theoretical monographs (75,000–100,000 words). Our books can be single, joint or multi-author volumes. If you have an idea for a book, please contact the publishers or Professor Chris Rowley, the Series Editor. Dr Glyn Jones Professor Chris Rowley Chandos Publishing Cass Business School, City University E-mail: [email protected] E-mail: [email protected] www.chandospublishing.com www.cass.city.ac.uk/faculty/c.rowley Chandos Publishing: Chandos Publishing is an imprint of Woodhead Publishing Limited. The aim of Chandos Publishing is to publish books of the highest possible standard: books that are both intellectually stimulating and innovative. We are delighted and proud to count our authors from such well known international organisations as the Asian Institute of Technology, Tsinghua University, Kookmin University, Kobe University, Kyoto Sangyo University, London School of Economics, University of Oxford, Michigan State University, Getty Research Library, University of Texas at Austin, University of South Australia, University of Newcastle, Australia, University of Melbourne, ILO, Max-Planck Institute, Duke University and the leading law fi rm Clifford Chance. A key feature of Chandos Publishing’s activities is the service it offers its authors and customers. Chandos Publishing recognises that its authors are at the core of its publishing ethos, and authors are treated in a friendly, effi cient and timely manner. Chandos Publishing’s books are marketed on an international basis, via its range of overseas agents and representatives. Professor Chris Rowley: Dr Rowley, BA, MA (Warwick), DPhil (Nuffi eld College, Oxford) is the founding Director of the Centre for Research on Asian Management and Research Professor at Cass Business School, City University, London, UK (http://www.cass.city.ac.uk/research-and- faculty/centres/cram). He has acted as an advisor to the HEAD Foundation, Singapore and is its Director of Research and Publications, helping to establish its Think Tank. He is Editor of the Asia Pacifi c Business Review (http://www.tandf.co.uk/journals/titles/13602381.asp), Book Series Editor of both Working in Asia and Asian Studies and serves on many Editorial Boards. He is well known and highly regarded in the area, with visiting appointments at leading Asian universities and Editorial Boards in the UK, Asia and the US. He has given various talks and lectures at universities, companies and organisations internationally with research and consultancy experience with unions, and business and government; his previous employment includes varied work in both the public and private sectors. Professor Rowley has published widely and researches on a range of areas including international and comparative human resource management and Asia Pacifi c management and business. He has been awarded grants from the British Academy, an ESRC AIM International Study Fellowship and gained a 5-year RCUK Fellowship in Asian Business and Management. He acts as a reviewer for many funding bodies, as well as numerous journals and publishers. Professor Rowley publishes extensively, including in leading US and UK journals, with over 400 articles, books and chapters and other contributions in practitioner outlets as well as knowledge transfer engagement and international radio and newspaper interviews. Bulk orders: some organisations buy a number of copies of our books. If you are interested in doing this, we would be pleased to discuss a discount. Please contact on e-mail [email protected] or telephone +44 (0) 1223 499140. Succeed or Sink Business sustainability under globalisation C R , HRIS OWLEY J M S AYANTEE UKHERJEE AHA D A AND AVID NG Chandos Publishing Hexagon House Avenue 4 Station Lane Witney Oxford OX28 4BN UK Tel: +44 (0) 1993 848726 E-mail: [email protected] www.chandospublishing.com Chandos Publishing is an imprint of Woodhead Publishing Limited Woodhead Publishing Limited 80 High Street Sawston Cambridge CB22 3HJ UK Tel: +44 (0) 1223 499140 Fax: +44 (0) 1223 832819 www.woodheadpublishing.com First published in 2012 ISBN: 978-1-84334-634-0 (print) (Chandos Publishing) ISBN: 978-0-85709-166-6 (print) (Woodhead Publishing) ISBN: 978-1-78063-331-2 (online) © C. Rowley, J. M. Saha and D. Ang, 2012 British Library Cataloguing-in-Publication Data. A catalogue record for this book is available from the British Library. All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the Publishers. This Publication may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published without the prior consent of the Publishers. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The Publishers make no representation, express or implied, with regard to the accuracy of the information contained in this publication and cannot accept any legal responsibility or liability for any errors or omissions. The material contained in this publication constitutes general guidelines only and does not represent to be advice on any particular matter. No reader or purchaser should act on the basis of material contained in this publication without fi rst taking professional advice appropriate to their particular circumstances. All screenshots in this publication are the copyright of the website owner(s), unless indicated otherwise. Typeset by Refi neCatch Limited, Bungay, Suffolk Printed in the UK and USA. To Mr S. Huang in sincere recognition of our friendship and also your support for human capital development in Asia. List of fi gures and tables Figures Map of South East Asia xxi 1.1 Trade performances in real terms 6 1.2 Real economic growth 7 1.3 Share of GDP by industry 7 1.4 Investment 11 2.1 The triple bottom line of business sustainability 39 5.1 Integrated model of business sustainability 126 Tables 1.1 Singapore and Asian economies compared in key labour market dimensions 9 1.2 Number of organisations by type 13 1.3 Number of organisations by sector 15 1.4 Focus groups by number and type of organisations 16 1.5 Summary of case organisations willing to be identifi ed 18 2.1 International examples of long-existing companies 34 xi Succeed or Sink 4.1 List of key words (core values) 88 4.2 Key challenges faced by organisations (n = 50) 89 4.3 Reasons why organisations become unsustainable (n = 50) 91 4.4 Key measurements taken by organisations (n = 50) 96 4.5 Company reactions during the post-2008 economic crisis (n = 635) 98 4.6 Effects of retrenchment on employer brand (n = 409) 99 4.7 Risk management strategies adopted by organisation (n = 50) 101 4.8 Greatest challenges for organisations over the next fi ve years (n = 50) 106 5.1 Laughlin’s organisational elements 127 6.1 HRM-related key challenges, measures, risk management strategies and future challenges given by organisations 136 xii Foreword Dave Ulrich In the marketplace for business ideas, every few years an idea goes viral and shifts how people think and act in business settings. These ideas have included quality, strategy (called strategery by one American leader), vision/mission/values and globalisation. Recently, pressures for social responsibility have led many in business to seriously consider the concept of sustainability. As with other viral ideas, the concept starts simple and then becomes increasingly broad and complex. Business sustainability started with a need for businesses to participate in managing their social responsibility, primarily their carbon footprint. As the idea has evolved, it has broadened to a concern for the triple bottom line of people, prosperity and planet. When the ideas spin out of control and risk becoming meaningless because they are so pervasive that they mean everything to everyone, it is very important to recalibrate the premise behind an idea. Rowley, Saha and Ang in this book take stock of the multiple dimensions of business sustainability and synthesise how this broadening idea may be focused and useful. One of the strengths of this book is not only capturing the essence of sustainability, but also demonstrating how it applies in an exciting and rapidly emerging economy – Singapore. xiii Succeed or Sink Anyone who has visited Singapore recognises the vitality and energy of this diverse and growing city state. The city state is characterised by political stability (the popularised don’t chew gum legacy symbolises control and safety), modern skyscrapers (a trade centre bridging East and West), diversity (one Christmas holiday we noticed the Buddhists playing Christmas carols), and a stylish economy (my wife and I recently counted about 40 per cent jewellery stores in one of their new malls – in America 40 per cent of mall space is probably food). Yet behind this modern miracle are rich traditions and real disciplines. Political and business leaders in Singapore recognise that human capital is their primary asset, so they invest heavily in it. Parents work to educate their children. Leaders invest in their employees. Government establishes knowledge centres and universities in leadership and talent. People treat other people with enormous respect. Social differences are accepted and respected. My visits to Singapore have established not only professional colleagues but personal friends. And, Singapore business works. It balances the vision for a future with enormous attention to detail. One quick example: almost anyone who travels often can quickly appreciate why the Singapore airport (Changi Airport Group) has dominated airport awards for the last decade. Even casual passengers know that the airport works, with an emphasis on effi ciency, service, and responsiveness. Behind this success is a management team enormously committed to the detail. They recently recognised that the bathroom cleanliness might shape the image of the overall airport experience, so they put in passenger triggered electronic monitors that would signal untidy bathrooms and assigned a rapid response team to clean these targeted restrooms. This attention to detail ties to their vision for the overall airport. So, into this remarkable setting, Rowley, Saha and Ang synthesise what defi nes business sustainability. Their xiv