Singapore’s SMEs are leading the way in purpose-driven business

As Singapore approaches the 10th anniversary of the National Volunteer and Philanthropy Centre’s (NVPC) Company of Good (COG) initiative, its latest milestone highlights how deeply corporate purpose has taken root across the business landscape. This year saw an inaugural Company of Good — 1 Heart Conferment, where 74 organisations were newly recognised for their commitment to responsible and purposeful business. Notably, more than 80% of these companies were small and medium enterprises (SMEs), which seems to show how deeply giving has embedded itself into Singapore’s local companies. 

The Company of Good recognition system was created to support companies at various stages of their corporate social responsibility (CSR) journey, providing tools, frameworks, and learning opportunities to sustain existing efforts. The programme also fosters a community of purpose-driven companies and encourages cross-sector partnerships. NVPC’s broader suite of initiatives — including the COG Fellowship and Grow with Purpose — further supports mentorship and structured learning.

In 2023, NVPC refreshed the Company of Good Recognition System. To be recognised, companies complete either a Simplified Questionnaire of 15 questions or a Full Questionnaire of 58 questions, assessing progress across five impact areas: People, Society, Governance, Environment, and Economic. Companies that complete the simplified assessment are eligible for the 1 Heart recognition, marking organisations that are making corporate purpose commitments and taking action. The full questionnaire allows companies to reach higher tiers: 2 Heart for organisations actively driving impact through corporate purpose; 3 Heart for leading organisations established in corporate purpose with intent to scale; and Champion of Good for organisations that have influence over stakeholders, creating a multiplied impact.

Since the system’s revamp, around 720 organisations have been recognised for their corporate purpose efforts, 495 of which are SMEs. Therefore, the strong representation of smaller companies this year is particularly noteworthy. While SMEs may not enjoy the same profit margins as larger corporations, it seems that these companies are deliberately choosing purposeful business anyway, demonstrating that positive effects can emerge, regardless of size. Perhaps local companies make up a majority as they see intrinsic meaning in showing up for their communities.

This year’s recognised companies illustrate the diverse ways organisations are living out their purpose. One such company is By Invite Only, a homegrown jewellery brand, that incorporates responsible practices in its very business operations. For example, the company’s products are made in factories that meet Business Social Compliance Initiative standards, ensuring quality and ethical sourcing with fair labour practices, safe working conditions, and adherence to environmental protection standards. The company has also arranged volunteering programmes and partnerships.

Another recognised company is QXY Resources Pte Ltd, a local construction firm, has raised funds for eldercare charities, organised befriending activities for seniors, and supported migrant workers during the pandemic. The company plans to extend its efforts to community-building initiatives in the region.

Lin Sufei, Director of Corporate and Industry Partnerships of NVPC said: “The growing participation of SMEs alongside large enterprises reflects a collective commitment to doing good, and demonstrates how purpose has become a shared ambition across Singapore’s business community. With the 1 Heart pathway via the Simplified Questionnaire, we hope more companies will move from intention to action, strengthening their contributions to a more caring, inclusive, and sustainable Singapore.”