Message From Group Chief Executive Officer
Dear Stakeholders
As a social enterprise, corporate social responsibility is part of NTUC FairPrice’s
DNA. Founded by the labour movement in 1973, FairPrice’s beginnings were
grounded on its founding mission to moderate the cost of living in Singapore.
The socio-economic landscape today has changed tremendously. We have
progressed with the economy and evolved with our customers. But we have
stayed true to our social mission to make sure that essential goods will always be
available to our customers at affordable prices.
We work towards our vision to be Singapore’s world class retailer with a heart.
Over the years, FairPrice has lent a helping hand to the community with
generous donations to the community and charitable organizations. In March
2008, FairPrice galvanized our philanthropic efforts with the launch of NTUC
FairPrice Foundation with the aim to provide a better life for the community. To
sustain our philanthropic efforts, NTUC FairPrice has pledged S$50 million in
donation over 10 years to NTUC FairPrice Foundation.
I am happy to share with you the contributions of NTUC FairPrice towards the
community and the environment.
We will continue to work with all our business stakeholders to ensure that our
policies and operations are aligned with the UN Global Compact principles.
Tan Kian Chew
Group Chief Executive Officer
NTUC FairPrice Co-operative Ltd
Our Commitment to our Social Mission Moderating The Cost Of Living
Against the backdrop of high oil and food prices, FairPrice took the lead to
moderate the cost of living in Singapore.
Everyday Low Price Items
In line with its social role, FairPrice maintains a basket of 400 essential items that
are competitively priced. At least 90 per cent of Everyday Low Price items are
among the lowest priced in the market. The initiative, verified through regular
price surveys, underscores our commitment to making essential items affordable
for all our customers.
FairPrice Housebrand Products
Priced about 10% to 15% lower than national brands, FairPrice range of over
2,000 housebrand products continue to offer valuable savings to the consumers.
Through diversifying of sources and importing products globally, FairPrice is able
to ensure a steady supply of products at stable prices, without compromising
quality.
Stretching The Family Dollar
The “Stretch Your Dollar” programme was launched on 19 December 2007 to
help consumers cope with inflation. In addition to offering eight tips to cut grocery
bills, 5% discount on FairPrice essential housebrand items was initiated. So wellreceived was the discount scheme that it was extended thrice till end October
2008 to help consumers tide over the difficult times.
Goods and Services Tax (GST) Absorption Programme
The GST Absorption Programme was started in 1994 when the GST was first
implemented. FairPrice took the initiative to help cushion the impact of the tax by
absorbing the tax for a year. FairPrice activated the GST Absorption programme
for short periods in 2003, 2004 and 2007 when there were GST increases.
FairPrice Food Voucher Scheme
The FairPrice Food Voucher Scheme has provided a boost to many needy
families over the years. The scheme was first launched in 2002, when $1 million
vouchers were given to needy families via the Citizens’ Consultative Committees.
In 2003, FairPrice again donated $1 million vouchers in July to the community
and another $1 million vouchers in December to help union members in need. In
2007, FairPrice donated $1 million vouchers to help the needy cope with the
impact of the 2% GST hike. This year, NTUC FairPrice Foundation donated $1.5
million vouchers to help needy families.
2 % Discount To Elderly Every Tuesdays
Since 2002, FairPrice has been extending a 2% discount to senior shoppers
aged 60 years and above when they shop on Tuesdays. This is to provide
financial relief for senior citizens who are no longer working and earning an
income. It also serves to encourage active senior citizens to shop for the family
and promotes an active lifestyle for seniors as well as family bonding. This
program reached out to about 40,000 senior citizens every Tuesday.
Strong Social Role in Times of Need and Crisis
FairPrice pledges to serve, care and share with not just its customers, but also
the society and nation. As Singapore’s leading retailer, FairPrice is fortunate to
be in a position where it can make a significant positive impact on the local and
global communities.
Gulf War
During the Gulf War, there was anxiety and panic buying. FairPrice took the
initiative to allay fears of rice shortage by ensuring ample supplies.
SARS in 2003
When SARS broke out in 2003, FairPrice helped to pack and deliver food to
those who were quarantined. When the Pasir Panjang wholesale market was
temporarily closed, FairPrice helped to stabilize vegetable prices with its prompt
response in importing more vegetables from other sources such as Australia.
Avian Flu in 2004
During the bird flu crisis, FairPrice acted swiftly to put in place precautionary
measures to curb profiteering by traders. Measures that restricted the purchase
of eggs were unpopular but necessary to help deter traders from buying them in
bulk and re-selling them at higher prices to make big profits. When the import
ban was lifted and supply returned to normal, prices of eggs were sticky and
remained high. Again, FairPrice came to the rescue by working closely with
suppliers to bring down the prices of eggs. We took the lead to reduce the price
of Malaysian eggs from $2.10 to $1.50 for 10 eggs. This helped to restore the
price to the pre-ban level for the benefit of consumers.
When the ban was imposed on Malaysian poultry and eggs in August 2004, from
among the companies that imported eggs from Australia and New Zealand,
FairPrice brought them in the largest quantity. This helped to a large extent in
alleviating the egg shortage and moderated the prices of eggs.
Asian Tsunami in 2004
FairPrice contributed more than $50,000 worth of food essentials towards victims
affected by the Asian tsunami disaster. FairPrice senior management led
members of its staff volunteer club, Club V, in putting together 5,000 food relief
packages at its Upper Thomson Road warehouse. Each package contained
staple food items like rice, milk and biscuits. The items were dispatched to the
victims through humanitarian aid agencies such as Mercy Relief and Singapore
Red Cross.
Pakistan Earthquake in 2005
NTUC FairPrice contributed $5,000 worth of food through Mercy Relief and
placed Red Cross donation tins at supermarkets to garner donations from
members of the public.
United Nations Global Compact
In 2005, NTUC FairPrice became a founding signatory to the Singapore network
of the United Nations Global Compact, and is supportive of the 10 United Nations
principles as part of its Corporate Social Responsibility journey.
Partner in National Emergency Food Plan
In peace times, FairPrice continues to play its social role. As a major food
provider, FairPrice is an integral player in the national emergency food plan. We
have invested millions of dollars in a fresh food distribution centre and a central
warehouse. Apart from productivity gains, the distribution centres have also
enabled us to play our social role more effectively – lowering our cost of
operation and passing on the cost savings to consumers by charging lower
prices, and providing the public with quality products and food safety through
good cold supply chain management.
Contribution Towards China Earthquake Relief Effort in 2008
In May 2008, FairPrice helped to drive the Singapore Red Cross China
Earthquake Appeal by offering its network of more than 200 stores across
Singapore for the public to make donations. To kick-start the donation drive,
FairPrice contributed $20,000 towards the China earthquake relief effort. With
generous support from customers, FairPrice helped to raise a total of S$155,740.
Pro-Family Practices for Employees and Customers
As a pro-family retail partner, FairPrice aims to meet family needs through its
retail chain. It encourages families to shop together in FairPrice for family
bonding.
There is a range of pro-family measures in place to attract families to shop at its
chain of stores. For example, wide aisles for easy maneuvering of baby prams
and wheelchairs, a Baby Lane where a large selection of child-care related
products can be found and a wheelchair-friendly checkout counter.
FairPrice is not just a leading retailer in Singapore, it also makes continuous
efforts to invest in and improve the well-being and health of its 6,000-strong team
of staff.
FairPrice encourages employees to spend more time with their family. Family
leave is granted to celebrate immediate family members’ birthday or any
auspicious occasion.
Staff members are also granted up to 5 days of family care leave to take care of
their children or family members when they fall ill. Staff who need prolonged rest
to recuperate from illness are also granted paid leave, or in some instances, no
pay leave.
In recognition of its achievements in work life strategies, FairPrice won the Work
Life Achiever Award in 2006. The Award is conferred by the Tripartite Committee
on Work-Life Strategy. In addition, FairPrice was also recognized as a leading
employer in Singapore in 2006 when it won the Leading Corporate HR Award,
along with five Leading HR Practice Awards.
Serving the Community
The past year saw FairPrice pushing boundaries to take active and passionate
responsibility for the continued growth and vibrancy of the community in which
we live.
FairPrice Used Textbooks Project
FairPrice started the Used Textbooks Project in 1983, as part of its community
service initiative. This evergreen project has three main objectives: help needy
students, protect the environment and encourage thrift.
Since 1983, the FairPrice Used Textbooks Project has helped more than 100,000
needy students save more than $6 million in textbook expenses
The FairPrice Used Textbooks Project was hailed by the Global Compact
movement as one of the best practices in Asia for promoting Global Compact
principles of Human Rights and Environmental Responsibility.
In 2007, some 100,000 used textbooks were collected.
Boys’ Brigade Sharity Gift Box
Since 2000, FairPrice has supported the Boys’ Brigade Sharity Gift Box (BBSGB),
a longstanding charity project aimed at spreading the spirit of caring and sharing
with those in need through donation of food items and fulfilling special wishes of
beneficiaries.
As the Presenting Sponsor for the project in 2007, FairPrice hosted the first
Sharity Wish Tree at our hypermarket at AMK Hub to fulfill 500 wishes of the less
privileged. In all, 430,000 food and household items with an estimated value of
S$3 million were collected and distributed to the needy in Singapore last year.
Improving Life For The Elderly
FairPrice contributed S$2 million to the NTUC Eldercare programme in April
2007. Of this, S$400,000 went to building the Silver Circle social day-care centre
for the elderly at Jurong Central. FairPrice also stocked up the centre’s pantry
withhousehold products and provided a consultant nutritionist to plan nutritious
meals for the elderly. Residents at Jurong GRC can now look forward to social
activities, elderly-friendly facilities and more wholesome meals.
Feeding Young Hearts And Minds
In February 2008, FairPrice contributed S$100,000 to the Pupil Breakfast
Scheme to ensure that more needy students are able to start their school day
right.
Partner In Sports
In February 2008, Cheers - FairPrice’s subsidiary chain of convenience stores,
took the lead to rally for community support for Singapore’s bid to host the 2010
Youth Olympic Games. FairPrice and Cheers celebrated with the nation when
Singapore eventually won the bid on 21 February 2008.
A Foundation For The Future
The NTUC FairPrice Foundation, a registered charity that is fully funded by
FairPrice, was launched in March 2008. Aimed at building “A Better Life for the
Community”, the Foundation galvanizes FairPrice’s commitment to help the poor
and needy, promote nation building and community bonding as well as advance
the welfare of workers in Singapore. FairPrice made a pledge of S$50 million in
donation over ten years.
At the launch of the Foundation, a total of S$1 million was presented to four
beneficiaries, namely S$400,000 to NTUC Eldercare Trust, S$300,000 to the
Community Chest, S$200,000 to Food From The Heart, and S$100,000 to the
NTUC Childcare Bright Horizons Fund.
Most recently, NTUC FairPrice Foundation donated $3.5 million to the National
Trades Union Congress to help low wage workers cope with the rising cost of
living.
Towards a Greener Environment
At FairPrice, we understand that we are part of the environment in which we live.
Over the years, we have embarked on a number of greening programmes that
help us conserve energy and resources, reduce wastage and encourage
recycling.
A dedicated inter-departmental Green Committee was created in April 2007.
Designated Green Ambassadors ensure that the Committee’s green policies are
communicated across all levels of staff. These include encouraging staff to print
on both sides and setting up of recycling bins in the office.
In April 2007, FairPrice supported the National Environmental Agency (NEA)
initiative of “Bring Your Own Bag Day” (BYOBD). Customers were encouraged to
donate 10 cents to the Singapore Environmet Council for each plastic bag used
every Wednesday of the month. FairPrice took this a step further by introducing
the “FairPrice Green Rewards” initiative to encourage more customers to bring
their own bags. Customers who brought their bags were rewarded with a 10
cents rebate with a minimum purchase of S$10. Since the launch, shoppers have
benefited more than S$10,000 per month in Green Rewards rebates. More than
30 million plastic bags were saved since the launch of the “FairPrice Green
Rewards” initiative.
As a boost to our greening efforts, FairPrice teamed up with Keppel Corporation
in a “Colour Your Future Green” initiative on 6 June 2007 to distribute some
100,000 reusable bags to FairPrice shoppers.
At the inaugural Corporate Environment Outreach (CEO) run organized by the
National Environment Agency on 17 November 2007, FairPrice registered our
support as a Platinum Donor with a S$15,000 donation in aid of six
environmental Non-Government Organisations (NGOs).
Awards and Accolades
In 2003, the Far Eastern Economic Review hailed FairPrice as “a supermarket
chain with a social conscience.” FairPrice was also ranked one of the top 10
Singapore companies by the Asian Wall Street Journal in its 2004 survey for the
fourth consecutive year, based on criteria such as company reputation (good
corporate governance, social policies, workplace & environmental policies) and
quality of product and services. Most recently, FairPrice was awarded the
Readers' Digest Trusted Brand (Platinum) Award in 2008. Reader’s Digest had
commissioned AC Nielsen to conduct an annual regional survey with consumers
to find out the most trusted brands in various categories in the local countries as
well as in Asia.
Dissemination Of Information
At NTUC FairPrice, we strongly believe in the importance of sharing of
information. Details of the above sections have been communicated through
various platforms to our stakeholders which include our employees, media,
business partners and members.
Communication channels include:
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Annual reports
Media releases
Corporate website
Annual General Meeting
Internal email blasts
More information can be found in:
http://www.fairprice.com.sg/html/corp/aboutuspics/NTUC_AR0708_FA-lo.pdf