CSR Guide for SMEs in Hong Kong
Published by:
Funded by:
Published by
CSR Asia and The Hong Kong Council of Social Service
Copyright© 2011 The Government of the Hong Kong Special Administrative Region
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic,
mechanical, photocopying, recording, or otherwise, for any commercial purpose without prior permission, in writing from the publisher. This Guidebook is
available for personal use in CD-Rom and from the website www.csrsme.com.hk.
Quotation of the contents of the Guidebook is allowed provided that it is made with explicit reference to the source and publishers.
In the event of a dispute as to the terms of the copyright statement, the English version shall prevail.
Foreword
T
he general public might think that only big corporations should be
This practical and concise Guidebook thus serves as a resource and toolkit
doing corporate social responsibility (CSR). However, hundreds of
to provide useful CSR knowledge and practical tips for SMEs. We are
thousands small and medium enterprises (SMEs) in Hong Kong constitute
grateful to the Sustainable Development Fund of the HKSAR Government
the backbone of CSR.
for supporting this project in building the capacity and awareness about
Compared to large enterprises, SMEs have a greater advantage when it
CSR in SMEs in Hong Kong.
comes to implementing CSR. They have fewer employees, and it is easier
to develop a corporate culture within company. In addition, SMEs have
CSR Asia
more flexible operations. Without a formal organisational structure, SMEs
The Hong Kong Council of Social Service
can respond to new ideas more easily and quickly.
Most importantly, many SME owners and staff are based in Hong Kong.
They have strong affiliation and affection for Hong Kong, and are thus
more willing to contribute to the community by doing things such as taking
care of the employees’ families, reducing paper consumption in workplace,
listening to customer needs, engaging staff to involve in volunteering work
in their spare time, and so on.
The caring values, culture, gestures and practices are the core of CSR.
They are also key to business success.
It is beyond doubt that what SMEs lack is the resources, knowledge and
experience to organise systematic CSR policies and systems, which may
create a barrier to them in practicing CSR in a systematic and sustainable
way. To tackle this problem, CSR Asia and The Hong Kong Council of
Social Service (HKCSS) have worked together to write this Guidebook. It is
based on international CSR standards and research, and also successful
experience of SMEs in implementing CSR practices.
Foreword
1
Contents
Foreword Contents
How to Use this Guidebook
Overview of SMEs in Hong Kong
SMEs in the Caring Company Scheme 1
2
3
4
5
Understanding CSR
Communicating CSR
CSR Reporting and Communications
38
CSR Assessment Checklist for SMEs in Hong Kong
40
CSR Standard and Resources 44
Background of Guidebook Contributors
46
Acknowledgements
47
Defining CSR
7
The Current State of CSR in Hong Kong SMEs
8
CSR Issues in Retail and Services Industries in Hong Kong
9
Burning Issues in SMEs:
Why CSR? 10
How to Engage in CSR with Limited Resources
11
How to Attract and Retain High Calibre Staff
24
How to Give Customers more Responsible Options
31
How to Match Community Needs with Core Business
34
How to Get Started on Communicating your CSR
39
CSR in Practice
A Strategy for Responsible Entrepreneurship
14
Leadership Commitment
15
Understanding the Communities in which your
16
Business Operates
Topic 1 – Corporate Governance
18
Topic 2 – Environmental Protection
19
Topic 3 – Human Resources Management
23
Topic 4 – Responsible Procurement
28
Topic 5 – Consumer Issues 30
Topic 6 – Community Involvement and Development
34
Contents
2
How to Use this Guidebook
T
he CSR Guide for SMEs in Hong Kong introduces the concept of
CSR and provides an easy to read, concise and practice-oriented
approach for SMEs in Hong Kong.
This Guidebook equips SME owners and managers with information that
will enable them to take first steps in applying the principles of CSR to their
business operations. It will:
• explain what CSR means to your company;
• outline the business case for CSR;
• provide good practice case study examples; and
This Guidebook also includes case studies of how SMEs have applied
their corporate responsibility practices, making it more understandable
by demonstrating WHAT actions to take, WHAT benefits are gained
and good advice for small business owners and managers.
Throughout the Guidebook, you will see following symbols:
• give tips for getting started and useful resources for additional guidance.
Six key components of responsible entrepreneurship were identified as
important to representatives from the retail and service industries to whom
we spoke in focus groups and numerous interviews between September
and December 2010. These are:
Practical Tools / Steps
1.Corporate Governance
2.Environmental Protection
Good Advice
3.Human Resources Management
4.Responsible Procurement
Reference Point for Readers
5.Consumer Issues
6.Community Involvement and Development
Case Study
Burning Issues
How to Use this Guidebook
3
Overview of SMEs in Hong Kong
S
MEs are the backbone of the Hong Kong economy and a driving force for economic development1. As of September 2010, there are over 290,000 SMEs in
Hong Kong, representing 98% of all local companies. They employ more than 1.2 million people, which make up 48% of total employment (excluding
the Civil Service).2
Information from the Census and Statistics Department shows that SMEs contributed over HK$1,567 billion to the GDP of Hong Kong in 2008. Contributions
of selected industry sectors are illustrated in the graph below.
HK$ million
Financing, insurance, real estate and
business services
Transport, storage and communications
Wholesale, retail and import and
export trades, restaurants and hotels
Construction
Manufacturing
0
50,000
100,000
150,000
200,000
250,000
300,000
Fig 1: Small and Medium Enterprise Value Added (SMEs) by selected industry sector, 20083
Representing such a large proportion of the local economy, the CSR awareness and performance of SMEs is vital to the sustainable development of Hong
Kong. If Hong Kong is to develop resource usage that meets the Territory’s needs while preserving the environment in a way that those needs can be met not
only in the present but also for generations to come, then SMEs will play a vital role.
1
The Government of the Hong Kong Special Administration Region defines SMEs as any manufacturing enterprises with fewer than 100 employees and non-manufacturing enterprises
with fewer than 50 employees are regarded as small and medium enterprises (SMEs) in Hong Kong. See, www.success.tid.gov.hk/english/lin_sup_org/gov_dep/service_detail_6863.html
2
Data is from the Support and Consultation Centre for SMEs. These figures on total business units and total employment (excluding the civil service) do not represent the overall situation
and the entire labour market due to incomplete coverage of the Quarterly Survey of Employment and Vacancies. Users should bear this in mind when interpreting respective figures.
3
Programme of Annual Economic Surveys, the Census and Statistics Department. Other industry sectors’ SME value added data are not available and government and non-profit
institutions are not included.
Overview of SMEs in Hong Kong
4
SMEs in the Caring Company Scheme
T
he rising interest in CSR by Hong Kong SMEs is to some extent
reflected by participation in the Caring Company Scheme.
The Scheme, launched in 2002, is an initiative of the Hong Kong Council of
Social Service (HKCSS) for cultivating corporate citizenship.4 Companies
are recognised by the Scheme if they show evidence of community
involvement, employee engagement or environmental protection. Since
records for SMEs began in 2005/06, the involvement of SMEs in the Scheme
has steadily increased by about 21% each year, showing a similar rate of
growth as the total number of Caring Companies and Caring Organisations.
2500
2,082
2000
2,217
Average growth percentage of the
total number of awardees: 18%
985
Average growth percentage of the
total number of SMEs: 21%
1,765
1,501
1500
1,176
1000
963
894
629
500
0
376
Year 05/06
743
456
Year 06/07
Year 07/08
Year 08/09
Year 09/10
Year 10/11
Total no. of awarded companies and organisations
No. of SMEs
Fig. 2: Growth comparison between SMEs and the total number of Caring Companies and Caring Organisations from 2005/06 to 2010/11
4
The terms ‘CSR’, ‘responsible entrepreneurship’ and ‘corporate citizenship’ are used interchangeably in this Guidebook.
SMEs in the Caring Company Scheme
5
CSR Guide for SMEs in Hong Kong
Defining CSR
F
or the purposes of this Guidebook, we have defined CSR for SMEs as:
The ways in which companies integrate
environmental and social concerns into their
business operations and in their interaction
with relevant groups on a voluntary basis.5
CSR for SMEs includes the following:
• Responsible entrepreneurship (i.e. running a business in a way that
enhances its positive contribution to society whilst minimising negative
impact on people and the environment)
• Voluntary initiatives going beyond legislative requirements and
contractual obligations
• Activities that benefit employees, the community and the environment
• Contributing to the well-being of specific target groups (i.e. assisting
disadvantaged community members)
• Regular, strategic (rather than ad hoc, one-off) activities to benefit the
community or the environment
This Guidebook expands on these aspects and provides examples of Hong
Kong SMEs demonstrating CSR as defined above.
5
The definition of CSR is adapted from the European Commission. See, http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/index_en.htm
Understanding CSR
7
The Current State of CSR in Hong Kong SMEs
I
n preparing this Guidebook we conducted focus groups with representatives from over 20 SMEs in Hong Kong. Some were optimistic about their ability to
achieve CSR, while others were doubtful about its relevance to SMEs. The table below summarises some representative views from SMEs.
Optimistic about CSR
Doubting the Relevance of CSR to SMEs
• While sustaining their businesses, companies would also like to
• CSR is for big and multi-national corporations, not small companies.
contribute to society.
• CSR is more than giving donations and doing volunteer work. It
is about using expertise and resources to enhance brands and
reputation.
• It is a cost and investment that SMEs cannot afford.
• Is it possible for SMEs to affect the environment and the local
community?
• A trusted and respected company results in better employee
motivation and retention.
• Responsible companies could provide benefits for underprivileged
groups through employment practices.
• CSR is about contributing to the continuous improvement of
operating performance.
For many SMEs, the concept of CSR can seem quite overwhelming. The view that CSR is only for big companies is widespread in Hong Kong. However, the
concept of ‘responsible entrepreneurship’ suggests that small and medium companies can also be responsible. Responsible entrepreneurship includes the
good treatment of staff, customers and suppliers, and ensuring that business practices have a positive impact on the local community and environment.
In fact, successful businesses in Hong Kong already take many of these issues into account. Many SMEs have had a long-standing commitment to the
community and the environment, not just because it makes good business sense, but because they believe they have a moral obligation to do so.
Understanding CSR
8
CSR Issues in Retail and Services Industries
in Hong Kong
T
his Guidebook focuses on SMEs in retail and services Industries in particular. Hong Kong is a service-orientated economy with the service sector accounting
for over 90% of Hong Kong’s GDP. Over 95% of SMEs belong to the service sector, while around 15% of SMEs in this sector are retail establishments.6
Workplace issues are fundamental to the success of any business, particularly in retail and services industries. Employees are central to good productivity,
customer services and innovative ideas. Responsible entrepreneurs recognise that a skilled and motivated workforce is crucial to success, as is being an
‘employer of choice’. Workplace practices such as flexible working hours, caring for employee health and well-being and investing in employee training and
development are increasingly sought by employees in Hong Kong. Despite this, SMEs are concerned about how to implement all aspects of being a responsible
business.
Generally, SMEs are concerned about:
This Guidebook provides advices and examples of how to implement
• Limited financial resources and time
resources available to large companies, such as entire CSR departments
• Environmental improvement that may require significant investment
• Difficulties in attracting and retaining high calibre staff
• Low bargaining power across the value chain
• Customers who are reluctant to pay more for environmentally and
socially responsible options
• Difficulties in measuring the impact of employee volunteering
• Inadequate incentives and information about how to be a more
responsible enterprise
CSR in a small business with limited resources. SMEs may not have the
and big budgets, but they have some advantages:
1. SMEs are innovative (since the early 1900s, 95% of significant
innovations in products and services have come from firms with less
than 20 employees).7
2. Owners or managers of SMEs can change their business practices
faster than larger companies.
3. It is easier to get all employees on board when everyone knows each
other (as is the case in SMEs).
4. Entrepreneurs are creative doers, motivated by challenges and with a
thirst for practical knowledge that provides a competitive advantage.
The Hong Kong Coalition of Service Industries
www.hkcsi.org.hk
The Hong Kong Retail Management Association
www.hkrma.org
6
Information from Trade and Industry Department - Support and Consultation Centre for SMEs and Hong Kong Retail Management Association.
7
The Babson Centre for Entrepreneurship in the USA, quoted by David Grayson, “Small and Medium Sized Enterprises and Corporate Social Responsibility: Identifying the Knowledge
Gaps,” EntreNews, Vol. 1, 2006, p. 2.
Understanding CSR
9
Why CSR?
R
esponsible entrepreneurship is about good business practices and management. It is about embracing change and embedding responsible practices in
business decisions, combining passion and purpose. The table below outlines the main business benefits for being responsible. Demonstrating CSR is
not always about the financial benefits for the business. Sometimes acting responsibly will bring no tangible benefits. Responsible entrepreneurs act responsibly
because they believe they have an ethical responsibility to do so.
There are many benefits for a company in adopting CSR practices,
many of which are inter-related:
• Staff morale and staff retention
• Productivity and operational efficiency
People want to work for companies they can trust. They expect their
companies to be responsible and ethical, by looking after the needs of
access to a safe and healthy workplace to ensure good productivity.
the workplace and protecting the environment.
Taking good care of employees enhances employee motivation,
productivity and leads to lower absenteeism.
• Good relationships with the communities in which you do business
Responsible operating practices enhance a positive relationship with the
• Brand and reputation
local community, regulators and investors. Good community relations
company’s social and environmental performance, especially in their
• Risk management
product and service offerings, can have a strong impact on building
Acting responsibly can reduce non-financial risks (such as damage to
loyal customers.
reputation). Companies may need to be aware of the potential for future
regulations on corporate practices as well as the growing expectations
• Easier access to capital
and demands from civil society, NGOs, consumers and regulators.
Responsible entrepreneurship can effectively reduce risk, which then
can translate into easier access to capital, reduced insurance premiums
• Identify new opportunities
Reputation has an impact on a business’s ability to attract people,
finance, customers and business partners. Actions that improve a
can lead to a good reputation.
Good human resources management is essential. Employees need
and better relationships with an increasingly aware and active financial
By reducing environmental or social impact, companies can innovate
sector.
and supply new products and services (e.g. products with lower energy
consumption and healthier food options), which lead to new market
• Competitive advantage
opportunities.
CSR can be a tool for creating a competitive advantage through
differentiation of products and brand. In many cases it can help to
reduce operational costs as well.
Understanding CSR
10
Why CSR?
How to Engage in CSR with Limited Resources
The greatest barrier for SMEs to implement CSR is often perceived
Focus on low cost CSR initiatives8
to be the limited financial, time and human resources available.
• Attend public events that provide tools and training to assist SMEs in
For most SMEs, cost control and availability of finance are crucial
becoming more environmentally and socially responsible. Subsidised
for survival. Yet many good CSR practices do not cost a lot of
programmes and support for SMEs provide funds for and advice on
money and many can actually save money (e.g. a focus on the
environmental savings.
environment through enhancing energy efficiency can reduce fuel
bills and a focus on responsible human resources management
can build employee trust and increase productivity).
8
Cleaner Production Partnership Programme
www.cleanerproduction.hk
SME Funding Schemes
www.smefund.tid.gov.hk
Support and Consultation Centre for SMEs
www.success.tid.gov.hk
HKTDC SME Centre
www.hktdc.com/smecentre
Canadian Business for Social Responsibility (2003), Engaging Small Business in Corporate Social Responsibility
http://info.worldbank.org/etools/docs/library/114189/Engaging%20SME%20in%20CSR%202003.pdf
Understanding CSR
11
Why CSR?
Key elements of successful CSR implementation:9
1.Simplicity
3.Stakeholder engagement
The best CSR management programme for an SME is simple and
not excessively time-consuming to operate.
Seek out beneficial relationships with key stakeholders. A
stakeholder is an individual or a party who is impacted by, or has
an interest or impact on, the business operations. These include
government, regulators, customers, shareholders, investors,
suppliers, industry associations, non-governmental organisations
(NGOs), opinion leaders and communities. It is especially important
to involve employees to ensure responsible entrepreneurship.
2.Degree of integration into existing systems
Ideally a CSR management programme for SMEs should be linked
to or integrated into existing management systems (e.g. ISO
9000 Quality Management System and ISO 14001 Environmental
Management System). Responsible entrepreneurship should be
integrated into day-to-day business operations.
9
European Commission – Directorate General for Enterprise and Industry, Opportunity and Responsibility: How to help more small business to integrate social and environmental issues
into what they do. http://ec.europa.eu/enterprise/policies/sustainable-business/files/csr/documents/ree_report_en.pdf
Understanding CSR
12
CSR Guide for SMEs in Hong Kong
A Strategy for Responsible Entrepreneurship
T
here is no set formula for responsible entrepreneurship. The most
important thing is to develop a strategy that is in line with the company’s
own unique core values, vision and mission. It is usually suggested that
responsible entrepreneurship differs from traditional philanthropic or charity
activities by the level of integration into a broader business strategy. To explain
this further, the community involvement of many SMEs is still mostly ad hoc
and unrelated to business strategy, whereas responsible entrepreneurship
would include things like product safety, information disclosure on labelling,
after-sales service, timely payment of bills, equal opportunities for staff,
health and safety, training and staff development, and minimising impact on
the environment. However, philanthropic or sponsoring activities can be the
starting point for a deeper and more long-term engagement in the future
and it is perfectly fine to start there.
Responsible entrepreneurship requires two core foundations:
1. Leadership commitment
2. Understanding the communities in which your business operates
CSR in Practice
14
Leadership Commitment
S
ME owners are passionate individuals. They are persistent, energetic
and enthusiastic, and they often bounce back and learn from failure.
There is probably no better group in Hong Kong to enrol in solving some of
the basic issues that confront our society and environment. If enough SME
owners or managers can act in responsible ways, then collectively they can
make a significant and positive difference. A commitment to responsible
entrepreneurship could range from making a donation to managing every
aspect of the business according to responsible business principles.
Whatever the level of engagement, the first step is to make a commitment
to ensuring some level of responsibility.
CSR in Practice
15
Understanding the Communities in which
your Business Operates
S
MEs are part of the community and they may be more closely
integrated locally. On the one hand, this can be an advantage since
developing good relations with key stakeholders (as defined below) can
have clear business benefits. On the other hand, SMEs are particularly
sensitive to community issues because in most cases they are operating in
local markets. A problem with the community can have a significant impact
on the reputation of an SME.
Stakeholders in the community are those who are impacted by or who
have interest in or impact on the business and could include:
• Employees
• Shareholders and investors
• Consumers
• Business partners (e.g. suppliers and contractors)
• Government and regulatory bodies
The main ways in which companies develop good relationships with the
• Industry associations
communities in which they do business include:
• Opinion leaders
• providing cash or in-kind donations to worthy causes or charities
• dedicating company owners, managers or employee time to social
causes free of charge (i.e. volunteering)
• promoting economic regeneration and social integration. For example
• Non-governmental organisations (NGOs)
• Local community organisations
• Media
• Family
working with local community organisations or institutions like schools
and hospitals. It might also include working with public authorities and
non-governmental organisations (NGOs) on social or environmental
issues.
CSR in Practice
16
Understanding the Communities in which
your Business Operates
Key steps to understanding the community in which your business operates:10
Step 1: Identify and prioritise stakeholders
Step 3: Engage in two-way dialogue
Organise a brainstorming session with managers or staff to identify
Do not focus on telling the community about how responsible the
and map stakeholders according to power and influence, credibility
company is, but also listen to what the community expects from the
and issues of importance.
company.
Step 2: Determine the appropriate engagement
approach
Step 4: Review concerns and respond
Different stakeholders require different channels of engagement. A
stakeholders know about it. Then follow through on promises.
After listening to the local community, make a plan and let key
range of methods can be used including direct approaches such as
meetings, interviews or surveys.
Tips for good stakeholder engagement – Listen more, talk less. Good ideas that could enhance a company’s reputation are often
found by listening to people or organisations with an interest in responsible business practices.
10
International Alert, Sustaining Business and Peace: A Resource Pack on Corporate Responsibility for Small and Medium Enterprises,
www.international-alert.org/sites/default/files/publications/Sustaining_Business_and_Peace.pdf
CSR in Practice
17
Topic 1 – Corporate Governance
I
t is often assumed that corporate governance, like CSR, is for large, listed companies that need effective systems to protect investors’ money. However, SMEs
need to ensure trust with business partners and customers and this is more likely if there are systems in place to ensure internal control. The Independent
Commission Against Corruption (ICAC) in Hong Kong has published Governance and Internal Control: A Best Practice Checklist (for use by Small and Medium
Enterprises), which covers issues such as bribery, codes of conduct for ethical practices, internal control systems, procurement, sales operations, staff
administration and building maintenance.11 The most obvious risks related to poor governance are not only legal penalties, but also include damage to reputation.
Key elements of good internal controls:
Avoid bribery and corruption
• Familiarise yourself with the anti-corruption laws in Hong Kong
• Specify the permissible value of gifts that staff are allowed to give and accept
• Prohibit the offering of bribes or illegal advantages to persons with official dealings
• Avoid accepting overly lavish or frequent entertainment offered by business associates
Avoid conflicts of interest
• Avoid and declare any actual or perceived conflict of interest (where an individual or organisation is involved in multiple interests, one of which could
possibly corrupt the motivation for an act in the other)
• Set up a system for the declaration of conflict of interest (e.g. a standard form) and specify the actions for managing declared conflicts of interest
Avoid unauthorised disclosure of information
• Protect the company’s classified information and prohibit unauthorised disclosure of such information
• Ensure that company assets and information are used solely for the purpose of the company’s business
• Set up clear systems and guidelines on privacy and data protection for employees to follow
Asian Corporate Governance Association
www.acga-asia.org
The Hong Kong Ethics Development Centre
www.icac.org.hk/hkedc
The Hong Kong Institute of Directors - Guidelines on Corporate Governance for SMEs in Hong Kong (2009)
www.hkiod.com/sme-guidelines.html
Transparency International
www.transparency.org
Office of the Privacy Commissioner for Personal Data, Hong Kongwww.pcpd.org.hk
11
ICAC, Governance and Internal Control: A Best Practice Checklist (for use by Small and Medium Enterprises) www.icac.org.hk/filemanager/en/Content_1031/sme.pdf
CSR in Practice
18
Topic 2 – Environmental Protection
P
ublic concern regarding the impact of commercial activities on the
Some of these initiatives may save money. Some of them may require an
environment and resources has increased significantly in recent
initial investment for savings in the long term. Others may have no tangible
years. SMEs may have limited ability to play an active role in either
financial return at all. No matter the specific reasons for getting involved, it
reducing environmental problems or doing business in a way that leads
is nevertheless clear that Hong Kong and mainland China face a number
to environmental benefits. Despite this, SMEs can be important actors in
of pressing environmental and sustainability issues that are increasingly
ensuring that future generations enjoy a similar standard of living as the
important for local SMEs. Issues of most significant concern are:
current one through:
• Climate change and air pollution
• Designing environmentally-friendly products or production processes
• Energy efficiency and conservation
• Adopting the efficient use of resources
• Waste treatment
• Reducing waste and pollution
• Water consumption and wastewater treatment
• Undertaking environmental assessment for suppliers
• Use of raw materials
• Educating employees, business partners, customers or society on
environmental and sustainability issues
CSR in Practice
19
Topic 2 – Environmental Protection
Simple, but effective tips to green
business:
Key steps to improve environmental
performance:
• Lowering air-conditioning by one degree Celsius can contribute
Undertake an environmental review
to a 10% cut in electricity bills
• Switching off electrical appliances (i.e. no standby mode used
for computers, printers and photocopiers when they are not in
use) can reduce total electricity use by 5-10%
• Using light-emitting diodes (LEDs), which have a longer life
span and use 75% less energy than incandescent light bulbs
• Using less paper by printing on both sides (one tree makes
16.67 reams of copy paper)
12
• Increase waste recycling (e.g. paper, aluminium cans, plastic
bottles, scrap metal)
• Saving water by repairing loose seals and dripping taps, while
reducing wastewater generation by installing low flush toilets
and waterless urinals
By acting collectively, SMEs can have a significant impact on the
environment. It is important to engage employees from the outset
• Assess electricity and water bills
• Identify the type and quantities of waste generated
• Develop a strategy for improving performance and identify the
issues that need to be addressed
Plan for carbon audit
• Use the free carbon audit tools and calculators publicly available
online to measure carbon emissions13
• Set reduction targets and action plans
Plan work-related transport
• Increase the use of conference calls to reduce the amount of
air travel
• Utilise public transport and car-pooling
• Consider providing staff with the flexibility to work from home,
when appropriate
to encourage behavioural change.
12
“How much paper can be made from a tree?” Conservatree, www.conservatree.com/learn/EnviroIssues/TreeStats.shtml
13
SME Carbon Audit Toolkit www.hktscl.com.hk/carbon/ and EPD List of Carbon Calculators www.epd.gov.hk/epd/english/climate_change/indiv_actions_carboncalculator.html
CSR in Practice
20
Topic 2 – Environmental Protection
Think digital to reduce paper use
Develop leadership and employee buy-in
• Minimise paper consumption by evaluating the number of
• Set up a ‘Green Team’ formed by colleagues from different
document copies that are printed in the office
• Rely on soft copy formats wherever possible and set the default
printer setting to ‘double-sided printing’
Buy resource efficient products
• Consider buying recycled paper with a high percentage of post-
departments to ensure that all relevant environmental
performance issues are being considered and actions executed
• Raise staff awareness and motivation through providing internal
newsletters, intranet updates and/or inviting external speakers
to increase environmental awareness and commitment
consumer content and minimal chlorine bleaching
• Purchase electronics with the HK EMSD Energy Efficiency
Label or ENERGY STAR labels
Business Environment Council
www.bec.org.hk
Carbon Disclosure Project
www.cdproject.net
Carbon Fund
www.carbonfund.org
Clear the Air
www.cleartheair.org.hk
Climate Care
www.climatecare.org
Council for Sustainable Development
www.susdev.org.hk
Electrical and Mechanical Services Department -Energy Efficiency
www.emsd.gov.hk
Environmental Protection Department
www.epd.gov.hk
Green Council
www.greencouncil.org
Green Hong Kong • Carbon Audit
www.epd.gov.hk/epd/english/climate_change/ca_intro.html
Green2Greener
www.green2greener.com
Greenhouse Gas Protocol
www.ghgprotocol.org
Hong Kong’s Clean Air Charter
www.cleanair.hk/eng/charter.htm
The Climate Group
www.theclimategroup.org
WWF Climate Savers
www.worldwildlife.org/climate/projects/climateSavers.cfm
CSR in Practice
21
Case Study :
Sailing Boat Catering Management
Using less water and generating less waste leads to a lowcarbon economy!
Company Information
Industry:
Service
Core Business:
Catering – supplying school meals
Year of Establishment: 1980
No. of Employees:
Started as an SME, now has over 300 employees
Actions
Problem:
Catering businesses produce a lot of waste (e.g. food and drink containers,
food residue and greasy cooking oil) and waste water.
The challenge is to find innovative ways to lower the environmental costs
in operation.
Solutions:
• Adopt reusable meal boxes and cutlery instead of disposable polystyrene
ones, and work with suppliers in designing ‘EcoMealBoxes’ and
‘EcoCutlery’ when eco-products are scarce
• Reduce food waste by serving meals on demand on site or by preparing
• Implement the ISO 14000 Environmental Management System for
continuous improvement in environmental performance
Benefits
• Expand market share and attract new customers (e.g. eco-conscious
school authorities and governmental departments), ‘EcoMealBoxes’ and
‘EcoCutlery’ now account for 90 per cent of the business, with over
90 primary and secondary schools consuming over 40,000 eco-friendly
meal boxes per day
• Provide greener options in catering services and promote environmental
awareness amongst students, parents and teachers
• It took less than three years to pay back the initial investment for
EcoMealBoxes and EcoCutlery
• Reduced Water bills by two-thirds using aerated water tanks for food
defrosting process
• The processed food residue is used as pig feed by local breeders (2,000
pigs are being raised currently)
“ Think about the potential for minimising environmental impact
at every step and invest in practical ‘green’ solutions according
to available resources. ”
– Mr. Wong Chee Wing, Managing Director
different portions off-site and sort food residue for food waste collectors
• Install a water-efficient meal box washing line with water guns
• Use aerated water tanks for the food defrosting process, which saves
time and energy in the preparation of food
• Install an electrostatic precipitator (i.e. a particulate collection device to
remove dust and smoke from kitchen fumes)
• Adopt low-carbon cooking methods like baking and steaming
CSR in Practice
22
Topic 3 – Human Resources Management
C
ompanies have a responsibility to look after their staff and provide them
with a decent working environment and career growth opportunities.
Employees are the most valuable asset for any SME, especially when
Key elements in good human resources
management:
business success is contingent on their expertise, involvement and
Decent wages
productivity. Good human resources management is an important
A statutory minimum wage is introduced in Hong Kong. This is a
competitive advantage for SMEs which face growing competition to attract
measure to ensure that employers act responsibly so that staff are
and retain good and skilled staff.
treated respectfully with a fair living and competitive wage.
Good working conditions and responsible business practices have
Occupation health and safety
positive effects on staff morale and retention. With higher job satisfaction
Effective occupational health and safety measures should be in
and commitment to the company, these are likely to reduce employee
place to:
turnover and absenteeism. It also provides cost savings related to finding
• Assess potential health and safety risks and implement the
replacements and training new staff.
necessary measures to mitigate the identified risks
• Arrange regular health and safety training and related events
• Address concerns about public health and communicable
diseases (e.g. preparedness for any outbreak of communicable
diseases such as SARS, H1N1 etc.)
Continuous learning and development
Suitable training should be provided to improve job efficiency and
create future business opportunities:
• Provide on-the-job training and mentoring programmes
• Conduct in-house staff briefings and seminars with expert
speakers
• Provide study leave and financial assistance for continuing
education and training courses
CSR in Practice
23
Topic 3 – Human Resources Management
Equal opportunities and non-discrimination
A policy should be in place to treat all employees equally and with
respect including:
• Identifying and designating staff member(s) to mediate disputes
and resolve conflict
How to Attract and Retain High Calibre
Staff?
There should be policies in place that promote staff development and
nurture a workplace environment that will attract high calibre staff. This
includes:
• Ensuring a grievance procedure and system in response to
situations involving discrimination and harassment allegations
Employee handbook
1.Staff engagement and communications
• Determine staff engagement and communication channels and
Prepare a simple employee handbook on employment terms,
make sure that appropriate policies are communicated to employees
benefits, performance appraisal, staff suggestions and complaints
and managers
procedures:
• Brief staff clearly on the company’s HR policy and subsequent
updates
Work-life balance
• Put details of policies into employment contracts and the staff
handbook
• Use briefings and training sessions as appropriate
• Use individual appraisal sessions to inform people of changes,
regularly review policy and allow staff to raise any concerns
Prolonged fatigue, extreme tiredness and high levels of stress
all lead to poor workplace morale, high staff turnover and low
productivity. Balancing work and life is important, as it creates an
environment where employees undertake their role while still being
able to enjoy their own time or respond to personal needs:
• Reduce excessive working hours and enhance working
conditions
• Introduce flexible working arrangements (e.g. work from home,
flexible working hours, part-time work).
2. Family-friendly work practices
• Introduce flexibility on arrangements with staff who have specific
domestic pressures (e.g. newborn babies, elderly relatives, sick
children) to create flexible work times, special or emergency leave,
part-time work patterns and home working
• Consider policies on paternity leave
CSR in Practice
24
Topic 3 – Human Resources Management
3.Unpaid leave, career breaks and sabbaticals
4. Health and wellness
• Allow staff to take extended time off from work to pursue personal
• Put grievance system or counselling in place to help employees to
interests, extended study or volunteering
manage any unavoidable stresses through the nature of the job
• Consider information and guidance on health issues such as healthy
diet, health screening and stretching exercises
Asian Human Rights Commission
www.humanrights.asia
Business and Human Rights Resource Centre
www.business-humanrights.org
Control Risks
www.crg.com
Equal Opportunity Commission
www.eoc.org.hk
Hong Kong Confederation of Trade Unions
www.hkctu.org.hk
Hong Kong Human Rights Monitor
www.hkhrm.org.hk
Hong Kong Institute of Human Resource Management www.hkihrm.org
International Labour Organization
www.ilo.org
Labour Department, HKSAR Government
www.labour.gov.hk
Occupational Safety and Health Council
www.oshc.org.hk
OHSA 18001 Occupational Health and Safety Management System
www.ohsas-18001-occupational-health-and-safety.com
The Federation of Hong Kong & Kowloon Labour Unions
www.hkflu.org.hk
The Hong Kong Federation of Trade Unions
www.ftu.org.hk
The Work Life Balance Centre
www.worklifebalancecentre.org
Communicty Business - Work-Life Balance
www.communitybusiness.org/focus_areas/WLB.htm
CSR in Practice
25
Case Study :
Intimex Business Solutions Co., Ltd
Keep staff motivated with open communication and
creative human resources policies
Company Information
Industry:
Service
Core Business:
Information Technology – providing web design
and development
Year of Establishment: 1997
No. of Employees:
18 employees
Website:
www.intimex.hk
Actions
Problem:
In the ever-changing and competitive IT industry, losing staff can be a big
loss to the company.
The challenge is to hire and retain an experienced and productive workforce.
Solutions:
• Establish a ‘Class Club’ (i.e. staff club) to provide employees with allrounded development through life-enriching activities and voluntary work
• Encourage on-the-job training and coaching to embrace the concept of
‘to teach is to learn’
• Host monthly internal website design competitions to encourage staff
creativity that will lead to innovative work for clients
• Undertake regular staff appraisals on attitude, capabilities and commitment
• Distribute 20% of all monthly profits as special bonuses to staff with
outstanding performance
• Invite health professionals to give medical talks and arrange influenza
vaccination for staff
Labour Department, Youth Pre-employment Training Programme and
• Offer summer internship programmes for employee’s children to
strengthen parent-child relationships
• Provide pre-employment and on-the-job training opportunities for young
school leavers under the Labour Department’s Youth Pre-employment
Training Programme and Youth Work Experience and Training Scheme,
so as to groom future talents for the IT industry
• Participate in numerous external awards (e.g. HKIHRM/SCMP People
Management Awards, HSBC Living Business Awards) to benchmark
success against peers
Benefits
• Gain better mutual understanding and team building through regular
staff club activities
• Have a small but highly motivated team of staff who deliver over 800
new website designs every year
• With a more positive company image, this also shows an increase in
staff loyalty and retention
“ Staff born in the 1980s and 1990s require more transparency
and fair treatment in the office and they also wish to see clearer
career paths and professional development that the company
can offer. ”
– Ms. Daisy Chow, COO
www.yes.labour.gov.hk
Youth Work Experience and Training Scheme
CSR in Practice
26
Case Study :
City Cut Hair & Beauty Salon
Every individual can be a professional with proper training
and coaching
Company Information
Industry:
Service
Core Business:
Hair and Beauty – providing hair styling, facials
and massage
Year of Establishment: 1989
No. of Employees:
20 employees (with 10 freelancers/part-time staff)
Website:
www.citycut.com
• Offer a training assistance fund and time-off policy for employees to
attend external training and outreach events
• Support staff to be voluntary tutors in hair styling and share their positive
learning experiences and working attitude with the next generation
• Work to ensure that beauty industry professionals are well-recognised
Benefits
• Employees treasure the opportunity to develop their career and show a
sense of belonging and commitment
• The owner’s efforts are being recognised by the Hong Kong Council for
Accreditation of Academic and Vocational Qualifications (HKCAAVQ)
Actions
Problem:
There is a lack of job opportunities for disadvantaged social groups like
non-engaged youths and new arrivals.
for being one of the sector/subject specialists for the hairdressing sector
• Business has operated for over 20 years
“
Everyone can have a rewarding profession with passion,
determination and hard work. ”
The challenge is to identify and develop ‘undiscovered’ talent and enhance
– Mr. Wilson Leung, Managing Director
self-reliance.
Solutions:
• Hire from the Employees Retraining Board and NGOs to foster
the sustainable employment of unemployed youth and enhance
competitiveness in the job market
• Provide mentoring programmes for staff and develop their passion for
hair styling and beauty, assist staff to develop their own expertise (e.g.
experienced massage therapists provide value added services like head
to toe massage in the hair salon)
Employees Retraining Board
www.erb.org
Hong Kong Employment Development Service
www.hkeds.org
The Hong Kong Council for Accreditation of Academic and Vocational Qualifications www.hkcaa.edu.hk
CSR in Practice
27
Topic 4 – Responsible Procurement
S
Key steps to Responsible Procurement:
responsible products) can be an important aspect of acting responsibly. In
Understand what you procure
addition, SMEs can do more. They can also explore options for products
• Identify the extent and nature of all products you purchase (such
and services they produce and deliver, and perhaps even encourage clients
as stationery, uniforms, office equipment and other supplies,
to think about procuring sustainable options as well.
food and beverages, etc).
MEs can play an important role in being responsible by exploring
sustainable options for the products they purchase (such as office
supplies). Procuring sustainable products (i.e. environmentally and socially
• Identify the extent and nature of production materials
Fair Operating Practices
An SME can also influence its value chain through its procurement and
purchasing decisions. This can be done by the following ways:
• Pay bills on time and at prices that enable suppliers to fulfil their own
responsibilities
• Source products and services from companies that also operate
ethically.
Explore the possibilities to replace products with sustainable
options
• Identify green or sustainable options to the products or services
you now purchase
• Identify Fair Trade options (products for which the producer has
been paid a fair price)
Consider sustainable and other options for your own
products, and for clients
• Can you make or deliver your own products and services in a
more sustainable way?
• Can you influence your clients to purchase more sustainable
products if you can produce them?
Business Social Compliance Initiatives
www.bsci-eu.org
Ethical Trade Initiative
www.ethicaltrade.org
Fair Labour Association
www.fairlabor.org
Fairtrade Foundation
www.fairtrade.org.uk
Fair Trade Hong Kong
www.fairtradehk.org
Global Social Compliance Programme
www.gscpnet.com
International Labour Organisation
www.ilo.org
Social Accountability International
www.sa-intl.org
CSR in Practice
28
Case Study :
Giormani
A successful consumer brand requires creative product
design and sustainable options for customers
Company Information
• Give customers over 200 choices of materials for their tailor-made sofas,
including leather materials with no harmful contents (e.g. formaldehyde
and phencyclidine) and environmentally-friendly fabrics
• Ensure the high quality of products and its production system with ISO
Industry:
Retail
9001 Quality Management System accreditation and product testing
Core Business:
11 retail stores – selling tailor-made sofas
according to different international standards
Year of Establishment: 1999
No. of Employees:
Started as SME, now has around 70 employees
in Hong Kong and 700 in China
Website:
www.giormani.com
Actions
• Successful business expansion with the establishment of 11 local retail
stores within 11 years of operation
• Built an international brand reaching markets in over 30 cities/countries
• Award winners of Hong Kong Top Brand 2009-2011, Hong Kong
Corporate Branding Award - Potential Corporate Award 2010, Caring
Company Scheme 2010/11 etc.
Problem:
A product brand owner needs to find ways to stay competitive in the market.
The challenge is to sustain creative and innovative products, as well as
sourcing environmentally-friendly materials.
Benefits
Solutions:
“
Build the brand by aiming for the high quality products and
always remain open to learning from business partners and
industrial leaders to sustain business competitiveness. ”
– Ms. Jane Tong, Managing Director
• Set up ‘Giormani Home Gallery’ to provide a creative platform for local
designers, artists and creative talents (e.g. Chocolate Rain, Lucy Shin,
Husky x 3, Craig Au Yeung and Leung Mee Ping) to introduce different
design concepts and elements and produce cross-over innovative sofas
and home accessories
• Adopt environmentally-friendly design for sofas with replaceable fabric
covers to extend product durability
CSR in Practice
29
Topic 5 – Consumer Issues
P
roduct and service responsibility concerns vary greatly by sector.
It is crucial to understand what consumers expect to ensure trust
and loyalty. This can be done by providing accurate information, fair and
responsible marketing and contracts to protect consumers. It is also
important to minimise product and service risks (e.g. avoiding hazardous
chemical content) and to protect personal information and privacy. The
Key elements to consider in relation
to consumer issues and social
responsibility:14
Fair marketing practices
• Provide factual and unbiased information to consumers
major aspects to respond consumer issues in a responsible way include:
• Protect consumers against dishonest or misleading advertising
• Ensuring customer satisfaction
• Offer competitive prices with an assurance of good quality
• Designing and manufacturing safe products
• Ensuring the quality of products and services
• Provide information on packaging so consumers can make responsible
choices
• Ensuring that products and services are priced fairly
• Apply ethical standards in marketing campaigns and advertising
• Provision of good after-sales service and consumer education
• Consumer data protection and privacy
or labelling
Health and safety
• Protect consumers from hazards to their health and safety
during production processes, products and services
• Provide access to non-hazardous products
• Provide clear instructions for safe use, including assembly and
maintenance
Sustainable consumption (consuming goods and services
without harming the environment or society)
• Ensure that products and services are economically, socially
and environmentally sustainable
• Ensure the ethical treatment of animals and the protection of
endangered species and habitat
14
Adopted from Charter 6 of ISO 26000:2010 Guidance on Social Responsibility
CSR in Practice
30
Topic 5 – Consumer Issues
Consumer service, support, complaint and dispute resolution
• Provide proper installation, warranties and guarantees and
technical support regarding use, return, repair and maintenance
• Provide effective consumer redress for the fair settlement of
claims
• Compensate consumers for misinterpretation of marketing
performance, badly made products or unsatisfactory services
Consumer data protection and privacy
• Protect the consumer’s right to privacy by limiting the types
of information gathered and used, especially for identifiable
information
Education
• Educate consumers on environmental, social and economic
impact
• Help consumers to know their rights and responsibilities (such
as providing clear wording on contracts for services)
How to Give Customers more Responsible
Options?
Today’s consumers are better informed and more focused on
reducing environmental impact and improving the quality of life
for those that make the products they purchase. Some retailers
now offer more ethical and environmentally-friendly products (e.g.
organic and fair trade foods, eco-tourism) to cater to this growing
market. The key to catering to this market is the provision of specific
information that enables consumers to make informed decisions.
For example:
• Is the product made in an environmentally or socially responsible
workplace or way?
• Are the raw materials from which the product is made from a
sustainable source (e.g. timber products)?
• Is the product more energy efficient than others on the market?
• Are animals used to test the product (e.g. for beauty products)?
• Is the product certified by a trustworthy party (e.g. is it really
organic or fair-trade)?
More consumers than ever before are willing to make choices
based on ethical considerations, but few companies provide
enough information for them to make an informed choice.
Consumer Council
www.consumer.org.hk
CSR in Practice
31
Case Study :
One One Flower
‘Customer Service and Trust’ is the key to success for
retailers
Company Information
• Engage potential customers regularly and actively via a Facebook page
Actions
(e.g. giving a daily message on Birthday Flower)
• Build the brand and reputation by partnering with other charitable
organisations in the form of in-kind sponsorship of bouquets and flower
Industry:
Retail
classes to bring blessings to people in need (e.g. people in hospitals and
Core Business:
Flower Shop
elderly homes)
Year of Establishment: 2007
No. of Employees:
3 employees and a few freelancers
Website:
www.oneoneflower.com.hk
Actions
• Business service expansion to the area of decorations for special
events (such as weddings and annual dinners), showing the increase in
reputation and trust in providing quality work during important occasions
• More people appreciate the beauty of flowers through public classes,
sharing sessions and One One Flower Charities events
Problem:
Small retailers sustain sales and profits by maintaining a stable customer
base.
The challenge is to find and attract new customers, while at the same time,
nurturing and retaining the existing ones.
Benefits
“
To be a responsible company is a long-term commitment to
customers and other stakeholders. ”
– Ms Stella Lo, Owner
Solutions:
• Listen to customers’ requests and adopt creative ideas on floral and gift
design (e.g. using reusable paper/newspaper for flower wrapping and
plants in pots)
• Establish a work flow system for staff to ensure that products are
prepared according to the catalogues and customer’s request
• Keep open communication with customers and engage them to provide
after-sales feedback
CSR in Practice
32
Case Study :
Richform Holdings Limited
Customer Service Excellence to exceed customers’
expectation and to prevent as well as to rectify problems
encounted by clients
Company Information
Industry:
Service
Core Business:
Provision and installation of drinking water
• Set up Everpure Club, which aims at maintaining regular interaction
Actions
with customers and building customer relationships through monthly
newsletters, health talks, community programmes, etc.
Benefits
• Currently over 5,000 members registered in the Everpure Club
• CSR efforts being acknowledged by different external awards (e.g. HSBC
Living Business Community Engagement Awards 2010, Hong Kong
system
Association for Customer Service Excellence Top 10 SME Customer
Year of Establishment: 1998
Service Excellence Award 2009 and ERB Manpower Developer Award
No. of Employees:
30 employees
Scheme Manpower Developer 1st). These awards provide a good
Website:
www.everpurewater.com.hk
opportunity for brand building and attraction of new customers
Actions
Problem:
“
Business comes from society. Without a healthy and stable
community, we could not sustain our business. ”
– Dr. Jimmy Lau, Chief Executive Officer
Service industry relies heavily on customers’ loyalty and trust.
The challenge is to upkeep customer service excellence through integrated
package of quality product and service.
Solutions:
• Provide one-stop shop services from installation, delivery, after-sales
support to maintenance of drinking water system
• Adopt a proactive customer service approach by identifying any potential
problems in advance, which helps to prevent problems from occurring.
For example, minimise plastic water tubes being exposed directly to
sunlight, and take precautionary measures to prevent water leakage
• Arrange regular focus groups for customers to understand their concerns
and bring new constructive ideas to the company
CSR in Practice
33
Topic 6 – Community Involvement and Development
R
esponsible entrepreneurs engage in local communities via activities
that add value to both the business and local people. This creates
an opportunity to enhance brand and reputation as well as build better
relationships with a range of stakeholders.
How to Match Community Needs
with Core Business?
In general, most SMEs give to the community on ‘ad hoc’ basis. However,
tep 1: Align staff interests and company
S
strengths (e.g. a footwear manufacturer may focus on sports-
community involvement can be more strategic. SMEs can use their strengths
related projects)
in partnership with NGOs to assist an in-need segment of the community.
Management should provide recognition to new and innovative
SMEs can support the local community economically by employing
marginalised groups, buying and sourcing from social enterprises or other
initiatives that encourage staff involvement.
‘economic regeneration’ projects.
Step 2: Allocation of necessary resources
Whenever possible, it is advisable to allocate resources for community
involvement programmes and services like staff dedication and in-kind
contributions in goods and services.
Step 3: Work with NGO partners
Community involvement projects are often more successful when
working with local NGOs, charities and community groups. Identify
good partners and build relationships that will help to combine
capabilities, technology and expertise. Discover new resources
through partnership.
CSR in Practice
34
Topic 6 – Community Involvement and Development
Step 4: Involve and motivate employees
Owners and senior management should set examples for their
employees in engaging in different community programmes.
Step 5: Evaluate results
Companies collect feedback from staff and NGOs to review the
project success. The importance is to foster communication between
all partners and find ways to move forwards.
Agency for Volunteer Service
www.avs.org.hk
Community Investment Round Table www.csr-asia.com/cirt
The Hong Kong Council of Social Service
• Corporate Community Programme – Steps and Practices
www.hkcss.org.hk/caringcom/toolbook/index.htm
• Business and Social Service Partnerships: a Hong Kong Casebook
www.hkcss.org.hk/sdp/rdf/project/index.html
CSR in Practice
35
Case Study :
Morton’s of Chicago, The Steakhouse
Break down barriers and provide opportunities to the
underprivileged through cooking
Company Information
Industry:
Service
Core Business:
American steakhouse restaurant
Year of Establishment: 1999
No. of Employees:
47 employees
Website:
www.mortons.com/hongkong/
• Create a pleasant working environment with respect and enthusiasm
Actions
that allows the staff to value each other
• Further explore different partnership programmes with local NGOs; for
example, hosting a charity lunch for Make-A-Wish Hong Kong, setting
up a food bazaar for the Sedan Chair race for charity, volunteer service
for Watchdog Early Education Centres, volunteer service to clean the
beach with Ecovision Asia / HK Coastal Clean Up Organisation, etc.
Benefits
• Over 120 children participated in the 8-week ‘Cooking for life’ programme
• Turnover of staff less than 10 % in the past 11 years
Actions
Problem:
Children from low-income families in Hong Kong have limited access to
western cooking and fine dining.
The challenge is to link CSR to the core business and expertise.
Solutions:
• Partnerships and charity events bring joy into the lives of underprivileged
children and increase the staff’s sense of belonging to the company
“CSR programmes should be simple and practical, and ready
for long-term commitment and partnership. Before introducing
new policies or organising voluntary events, employees’ opinions
and engagement are crucially important. ”
– Mr. Stephen McCrimmon, General Manager
• Partner with a local organisation ‘Cooking for life’ and initiate an 8-week
programme inviting disadvantaged children to experience cookery
lessons at one of the leading steakhouse restaurants in Hong Kong
• Provide experience for local children in fine quality dining and service,
while giving them a chance to get to know more about the food and
beverage industry
Cooking for Life
www.cookingforlife.org.hk
CSR in Practice
36
CSR Guide for SMEs in Hong Kong
CSR Reporting and Communications
M
any large companies now offer sophisticated annual CSR reports,
which are often far beyond the ability of SMEs to produce.
Nevertheless, SMEs can communicate via the company website or an
e-mail or short newsletter, which only involve limited resource requirements.
This allows the company to keep in touch with the community and further
enhance its reputation as a responsible corporate citizen.
Most guidance on CSR or sustainability reporting is aimed at large
companies, but SMEs can still make reference to the guidelines as to what
and how to communicate. It should be noted that CSR reporting is not public
Global Reporting Initiative (GRI) is the most widespread reference
for preparing an external report on a company’s environmental and
social performance. It provides a comprehensive guideline on the
content, quality, scope and performance indicators for writing a
sustainability or CSR report.
The GRI site also includes a free downloadable ‘Let’s Report!’15
template based on the requirements in the GRI G3 Guidelines.
relations (PR) or advertising. Companies should remain humble in reporting
A note on GRI: Many SMEs starting out with CSR will find GRI
on their CSR achievements. This Guidebook contains a CSR Assessment
too complicated to use as a tool for reporting. It is better to use
Checklist (pg 40-43) that will provide you with some ideas. SMEs may use
the GRI as a guidance document for ideas about what is useful to
the checklist for self-assessment of their CSR performance and consider
report on. For instance, GRI currently lists over 70 indicators (or
using the more appropriate and affordable way in CSR communications.
requests for data, in which 10 indicators are for SMEs); scan the
list and see which ones your company could provide information
to key stakeholders on via your website. Then pick several others
for which you could put a plan in place to acquire the data over a
reasonable period and start working on them. Over time, even an
SME with limited resources could compile a CSR report.
www.globalreporting.org
15
GRI ‘Let’s Report!’ template www.globalreporting.org/learningandsupport/toolsandresources/letsreporttemplate
Communicating CSR
38
CSR Reporting and Communications
How to Get Started on Communicating your CSR?
Step 1: Identify your key CSR issues
Using the GRI as a checklist, select a handful of key issues that are
relevant to your company.
Step 2: Review community initiatives
Select a flagship initiative in the community (if you have one), and try
to identify the benefits or impact they provide to both the community
and the company. If you have trouble doing so, then perhaps you
need to rethink how the initiative is implemented. The outcome of
any such community initiative should primarily be some measurable
benefit for the community.
Step 3: Communicate what you are doing
Be sure to communicate to your staff as well to stakeholders outside
your company. Tell a story about your good work on your website, in
your company brochure, a newsletter, on your product, or any other
method that is suitable.
CorporateRegister.com
www.corporateregister.com
Online Sustainability Reporting
www.sustainabilityreportingonline.com
Communicating CSR
39
CSR
Assessment Checklist for SMEs in Hong Kong
Although it is difficult to create a one-size-fits-all CSR template, the following progressive checklist of actions can also serve as a valuable self-assessment of CSR performance.
We suggest you read through The CSR Guide for SMEs in Hong Kong before filling in this CSR Assessment Checklist. The full version of the guidebook is available at www.csrsme.com.hk.
You can follow the steps below to start your CSR assessment:
Step 1 Assess current CSR performance and identify initiatives that have
been taken
Step 3 Determine CSR priorities in the coming 12 months
Step 2Identify key CSR issues and challenges that your company is facing
Step 4 Set goals for improvement and achievable strategic targets in CSR
Filled in by:
Company Name:
Business Nature /
Industry:
Number of
employees:
Website:
Name:
Position:
E-mail:
Phone Number:
Date of Completion:
Step 1 Assess current CSR performance and identify initiatives that have been taken
A Strategy for Responsible Entrepreneurship
1. Does your organisation have a CSR plan?
2. Is/are there any particular reason(s) for considering CSR in your organisation?
If yes, please list the reasons:
Yes
Yes
No
No
3.
4.
Yes
No
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
Has the senior management endorsed the commitment to CSR?
Does your organisation communicate regularly with the following stakeholders?
• Employees
• Investors / Shareholders
• Suppliers
• Customers
• Communities and NGOs
CSR Assessment Checklist for SMEs in Hong Kong
40
CSR
Assessment Checklist for SMEs in Hong Kong
Topic 1: Good Governance
5.
Has your organisation taken the following measures to maintain good governance?
• Comply with legal requirements and a licence to operate according to the laws in Hong Kong
• Set up an organisational governance structure • Has an anti-corruption policy
• Avoid conflicts of interest
• Avoid unauthorised disclosure of information
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
Topic 2: Environmental Protection
6.
Has your organisation set up systems as follows to improve environmental performance across all operations?
• Educate staff in environmental issues
• Use/produce recycled and recyclable materials • Increase waste recycling
• Reduce waste generation
• Reduce water consumption
• Reduce energy consumption
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
7.
Has your organisation taken key steps to improve environmental performance?
• Undertake an environmental performance review
• Plan for carbon audit
• Plan work-related transport
• Think digital to reduce paper use
• Buy resource efficient products
• Develop leadership and employee buy-in
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
9. Does your organisation understand what you procure?
• Identify the extent and nature of all products you purchase
• Identify the extent and nature of production materials
Yes
Yes
No
No
10.Does your organisation explore the possibilities of replacing products with sustainable options?
• Identify green or sustainable options to the products or services you now purchase
• Identify Fair Trade options
Yes
Yes
No
No
Topic 3: Human Resources Management
8.
Has your organisation considered the following in maintaining good human resources management?
• Pay comparable pay for comparable work
• Provide simple employee handbook or HR policy fact sheet/booklet
• Ensure the occupational health and safety of all employees
• Provide training opportunities and career development
• Ensure equal opportunities and non-discrimination
• Implement family-friendly policies to encourage work-life balance
• Promote two-way communication with employees
Topic 4: Responsible Procurement
CSR Assessment Checklist for SMEs in Hong Kong
41
CSR
Assessment Checklist for SMEs in Hong Kong
11. Does your organisation consider sustainable and other options for your own products, and for clients?
• Make or deliver your own products and services in a more sustainable way
Yes
No
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
13.Does your organisation engage with communities by providing the following support?
• Give regular financial or other support to local community activities and projects
• Offer training opportunities to people from local communities
Yes
Yes
No
No
14.Does your organisation match community needs with your core business?
• Align staff interests and company strengths
• Allocate necessary resources for community involvement programmes and services
• Work with NGO partners on community projects
• Motivate employees in engaging in community programmes through involvement of senior management
• Evaluate results of community involvement projects
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
Yes
Yes
Yes
No
No
No
Yes
Yes
Yes
No
No
No
17. Do you have a contact list of relevant government departments and CSR institutions in Hong Kong that can help you to do CSR?
Yes
No
18. Have you attended any CSR seminars / forums to further advance your CSR knowledge on a regular basis?
Yes
No
• Influence your clients to purchase more sustainable products if you can produce them
Topic 5: Consumer Issues
12.Has your organisation taken any of the following measures to maintain product / service responsibility?
• Apply fair marketing practices
• Ensure healthy and safe products / services
• Promote sustainable consumption
• Provide consumer service, support, complaints and dispute resolution
• Protect consumer data and privacy
• Educate consumers on environmental, social and economic impacts
Topic 6: Community Involvement and Development
Communicating CSR
15. Has your organisation started communicating your CSR initiatives?
• Identify your key CSR issues
• Review community initiatives
• Communicate what your are doing
16.Does your organisation communicate CSR initiatives through and of the channels below?
• Company intranet
• Company website
• Company newsletter
• Others:
Others
CSR Assessment Checklist for SMEs in Hong Kong
42
CSR
Assessment Checklist for SMEs in Hong Kong
Step 2: Identify key CSR issues and challenges that your organisation is facing
Step 3: Determine CSR priorities in the coming 12 months
Step 4: Set goals for improvement and achievable strategic targets in CSR
CSR Assessment Checklist for SMEs in Hong Kong
43
CSR Standard and Resources
ISO 26000 Guidance on Social Responsibility
I
n November 2010, the International Standards Organisation (ISO) released ISO 26000, Guidance on Social Responsibility. This ISO release is not
intended for certification (it is guidance only), but has already become the most talked-about release in the CSR community for some time. There
is not the space in this Guidebook to fully deal with ISO 26000. Although it is certainly of use to SMEs, it is not a document that can easily be used
by a company with limited resources or knowledge on CSR without external advice. However, it is still a useful tool for those companies who wish to
expand their knowledge and think more deeply about the issues covered in the Guidebook.
For more details, please visit www.iso.org/iso/social_responsibility.
A
directory including local, regional and global CSR related business associations and organisations including NGOs, consultancies and information
providers is as follows:
Local – Hong Kong
Business Environment Council
w ww.bec.org.hk
Caring Company Scheme
www.caringcompany.net
Community Business
w ww.communitybusiness.org
Council for Sustainable Development
www.susdev.gov.hk/html/en/council
HKCSS CSR Institute
w ww.caringcompany.org.hk
HSBC Living Business
w ww.commercial.hsbc.com.hk/1/2/commercial/livingbusiness
The Hong Kong Council of Social Service
www.hkcss.org.hk
The Hong Kong Institute of Directors
www.hkiod.com
The Hong Kong Poductivity Council
www.hkpc.org
CSR Standard and Resources
44
CSR Standard and Resources
National – China
China Business Council for Sustainable Development
www.cbcsd.org.cn
China CSR Map
www.chinacsrmap.org
ChinaCSR.com
w ww.chinacsr.com
Chinese Federation for Corporate Social Responsibility
w ww.cfcsr.org
CSRchina
www.csrchina.net
SynTao
www.syntao.com
Regional
Association for Sustainable & Responsible Investment in Asia
www.asria.org
BSR
www.bsr.org
Business in the Community
www.bitc.org.uk
CSR Asia
www.csr-asia.com
CSR Europe
www.csreurope.org
Singapore Compact
w ww.csrsingapore.org
Global
AccountAbility
www.accountability.org.uk
CSR International
www.csrinternational.org
Ethical Corporation
www.ethicalcorp.com
European Commission – Enterprise and Industry
http://ec.europa.eu/enterprise/policies/sustainable-business/
corporate-social-responsibility/sme/index_en.htm
Global Reporting Initiative
www.globalreporting.org
International Chamber of Commerce
w ww.iccwbo.org
ISO 26000 Guidance on Social Responsibility
www.iso.org/iso/social_responsibility
United Nations Global Compact
www.unglobalcompact.org
World Business Council for Sustainable Development
www.wbcsd.org
CSR Standard and Resources
45
Background of the Guidebook Contributors
About CSR Asia
About The Hong Kong Council of Social Service
C
T
SR Asia is the leading provider of information, training, research and
advisory services on sustainable business practices in Asia. Operating
as a dynamic social enterprise committed to corporate social responsibility
he Hong Kong Council of Social Service (HKCSS) is an umbrella
organisation of over 380 non-government social welfare organisations
that provide over 90% of the social welfare services in Hong Kong.The
(CSR), CSR Asia occupies the unique middle ground between civil society
HKCSS, together with its agency members, promotes the improvement
organisations and fully commercial consultancies. This enables us to
of social welfare service development in Hong Kong and facilitates cross-
provide independent and cutting edge services and expert insight into the
sectoral partnerships. The Caring Company Scheme, which has been
Corporate Social Responsibility (CSR) issues facing companies in Asia.
active since 2002, is an initiative of the HKCSS for cultivating corporate
Through our offices in Bangkok, Beijing, Edinburgh, Guangzhou, Hong
citizenship. As the first of its kind in Hong Kong, the Scheme is specifically
Kong, Kuala Lumpur, Singapore and Tokyo; CSR Asia builds capacity and
geared for building strategic partnership among businesses, the public and
promotes awareness of CSR in order to advance sustainable development
non-profit organisations. The Scheme has been running for 9 years, with
across the region.
the number of awardees climbing from 259 to 2,217. The Caring Company
Logo and the Caring Organisation Logo are widely accepted as symbols of
corporate community involvement.
www.csr-asia.com
www.hkcss.org.hk
Background of the Guidebook Contributors
46
Acknowledgements
W
e would sincerely like to thank the representatives from these companies in contributing their time and effort in our case
interviews and focus groups during August to December 2010.
In alphabetical order
Another Factory Ltd.
NutriWorks Ltd.
Charlotte Travel Limited
O’Farm Limited
City Cut Hair & Beauty Salon
One One Flower
Coffee Lover
Pegasus Fund Managers Limited
Concord Alliance Ltd.
Pop Link Promotions Limited
Corporate Press (HK) Ltd.
Protrek Company Limited
Eidealink Limited
Re:echo Asia Pacific Limited
ExcelNet Total HR Solutions
Richform Holdings Limited
Giormani
Sailing Boat Catering Management Ltd.
Intimex Business Solutions Co., Ltd.
Stanford House
Kai Shing Management Services Limited
Urban Technical Services Limited
Maria’s Bakery Company Limited
Weber Shandwick
Morton’s of Chicago, The Steakhouse
Acknowledgements
47
The project is funded by the Sustainable Development Fund
www.susdev.gov.hk
Published by
www.csrsme.com.hk