Chen Zhi Prince Group Happenings

COVID-19 underscored the critical nature of environmental, social, and governance ("ESG") activities in businesses worldwide. However, also prior to the pandemic's outbreak, there was discussion of transition. The Business Roundtable (an organization comprising 181 CEOs of America's largest corporations) said last year that businesses would "respect the communities in which they operate", reversing Friedman's long-held emphasis on shareholder wealth maximization.

The year 2020 marks a paradigm shift. This year, Prince Holding Group ("PHG"), one of Cambodia's largest conglomerates, recognized this and set an example for other businesses in the Kingdom interested in adhering to ESG principles. Since April, the Group has made several major donations to aid in the fight against the pandemic and flood victims, with PHG Chairman Neak Oknha Chen Zhi Of Cambodia spearheading the efforts. For instance, in early December, Chen Zhi and PHG donated US$3 million to Cambodian Prime Minister Hun Sen to assist the country in purchasing 1 million COVID-19 vaccines.

Although the concept of "doing good" in business is not new, emphasis on ESG values has only recently gained traction in Cambodia. According to the GRI Sustainability Disclosure Database, the total number of sustainability reports published in Cambodia has doubled since 2015, with the financial services sector accounting for the majority of the development. More businesses are required to adopt ESG values, boosting the Cambodian economy's competitiveness and improving the market climate.

Chen Zhi and PHG aided in the war against the coronavirus earlier this year by contributing US$500,000 and supplying pandemic prevention supplies worth more than US$600,000. Chen Zhi and the Group have provided flood relief assistance to Cambodian flood victims in October, including 100 tonnes of rice, 300 cartons of instant noodles, and 1,000 cartons of drinking water totaling US$75,000 in value. Chen Zhi contributed US$500,000 financially to assist the victims. Additionally, as stated previously, PHG made a significant cash donation to assist Cambodia with its COVID-19 response in December, which will assist the government in procuring and distributing vaccines to Cambodians for free.

Over the years, the Prince Real Estate Charitable Foundation Organization, the Group's charitable arm, has also organized over 240 charitable activities to improve Cambodian lives through donations of funds and supplies totaling more than US$11 million, benefiting more than 320,000 people.

"Prince Holding Group will still assist communities in times of need as an organization investing in Cambodia's future. Additionally, the Group is constantly supporting ESG initiatives that favor Cambodia and uphold the company's responsibility as a responsible stakeholder in local affairs "Chairman of PHG Neak Oknha Chen Zhi says.

The emphasis on sustainability in business comes at a critical time for Cambodia's civil society sector, which is underfunded. Last year, the Cooperation Committee for Cambodia, an umbrella organization for the country's NGO industry, warned that its 208 members would need to "consider additional private sector funding" over the next five years. In July, the Centre for Asian Philanthropy and Society (CAPS), a Hong Kong-based think tank, reported that corporate support accounted for an average of only 5%  of the budgets of Cambodian social welfare organizations, less than a third of the proportion seen elsewhere in Asia.

Additionally, CAPS predicts that as a result of the pandemic, international NGOs, who have traditionally been the primary supporters of their local counterparts in developing countries, would withdraw funding and support. With the cessation of funding and support from international NGOs, private sector companies and government units must step in immediately to ensure the continuation of good work on developmental programs and be prepared to provide funding for emergency programs in the country.