Redefining governance for accelerating sustainability success
The School of Business at Monash University Malaysia and UN Global Compact Network Malaysia & Brunei (UNGCMYB) convened a roundtable discussion on how Chairpersons can help Boards make value-based decisions to accelerate sustainability in their organisations. The event was held on 3 March 2023 at Monash University Malaysia.
Sustainability, incorporating Environmental, Social, and Governance (ESG) practices and the United Nations' Sustainable Development Goals (SDGs), is rapidly becoming a priority for many Chairpersons of Malaysian Businesses. They must make bold decisions about this key aspect of guiding the running of businesses, as sustainability is now an essential factor in corporate success and the ongoing success of an organisation. It has taken the spotlight in the boardroom and is the focus of attention moving forward.
The roundtable discussion aimed to draw on the insights of Chairpersons on Boards of Malaysian businesses in transforming organisations towards sustainability. The panellists included:
1. Datuk Yvonne Chia, Chairperson, Cradle Fund
2. Dr Tunku Alina Alias, Chairperson, J A Russell & Company
3. Alizakri Alias, Chairperson, Malaysia Venture Capital Management Berhad
4. Tan Sri Dato' Sri Zamzamzairani Mohd Isa, Chairperson, Malayan Banking Berhad
5. Tan Sri Che Khalib Mohamad Noh, Chairperson, Pelabuhan Tanjung Pelepas
6. Ms Foong Pik Yee (Moderator), Independent Non-Executive Director, AmBank (M) Berhad, Industry Advisory Board Chairperson, School of Business, Monash University Malaysia
The Roundtable discussion was based on four themes — from how the Board does value-based decision-making to developing purpose-based strategies to embed sustainability practices. This was followed by a discussion about how sustainability practices in organisations should be about "playing to win instead of playing just not to lose"; and, finally, the dialogue around governance and new requirements for Boards.
Members of the roundtable emphasised the need for a "Just Transition". They shared that, for many companies, the conversation is no longer about "why" but rather "how" firms can make value-based decisions on sustainability.
The panel cautioned that short-termism could be detrimental to a company's long-term success. It is crucial for Board Chairpersons to prioritise long-term value creation and ensure that executives and companies are not focused solely on short-term gains at the expense of sustainability and long-term growth.
Dr Avvari V. Mohan, the facilitator of the roundtable, highlighted a key insight from the discussion: "To truly integrate sustainability into a business, it must be a part of the company's culture and values, not just a compliance checklist. Chairpersons and Board see it as their responsibility to guide management to embed sustainability practices and create a purpose-based strategy for their organisations."
Panel members also shared their experiences approaching sustainability decisions, providing valuable examples and insights. The discussion delved into the development of a sustainable culture and the utilisation of both formal and informal governance structures to aid organisations in their journey towards sustainability.
Based on insights shared during the roundtable discussion, a thought leadership paper and report will be developed for Chairpersons, board members and business leaders to help guide their strategic sustainability agendas.
The roundtable discussion marked the beginning of a formal collaboration between the School of Business at Monash University Malaysia and UNGCMYB. This inaugural event paves the way for future collaborations and discussions on sustainable business practices.