We inspire, lead and support businesses to continually improve
their positive impact on people and communities
CORPORATE SOCIAL RESPONSIBLITY
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Shalini Mahtani, CEO, Community Business
Community Business
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A unique non-profit organisation, working in Corporate Social
Responsibility with member companies
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Focus Areas:
• CSR Strategy and Policy
• Diversity in the workplace and work-life balance
• Corporate Community Investment
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Research/advice/training and facilitation/assessment
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Community Business Leadership Team
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Members of Community Business
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ABN AMRO
Allen & Overy
APCO Worldwide
Baker & McKenzie
Barclays Capital Asia Limited
BP Asia Ltd
British Council
CLP Holdings
Coca-Cola China Ltd
Credit Suisse First Boston
Fleishman-Hillard Hong Kong Ltd
Freshfields Bruckhaus Deringer
Hang Seng Bank Limited
Hewitt Associates LLC
Hong Kong & China Gas Co Ltd
Hong Kong Quality and Assurance
Agency (HKQAA)
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Johnson, Stokes and Master
JP Morgan
Lehman Brothers
Manpower Services (Hong Kong) Limited
Merrill Lynch
MTR Corporation Ltd
PepsiCo International, Asia Region
The Prudential Assurance Co Ltd
Schroder Investment Management (HK) Ltd
Serco Group (HK) Ltd
Shell Hong Kong Limited
St George’s Group
Standard Chartered Bank (Hong Kong) Limited
Starbucks Coffee Asia Pacific
The Timberland Company (Asia Pacific) Pte Ltd
UBS
The Walt Disney Company (Asia Pacific) Ltd
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Zurich Insurance Group (Hong Kong)
Agenda
• Corporate Social Responsibility
• Corporate Social Responsibility in Hong Kong
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CORPORATE SOCIAL RESPONSIBILITY
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Definition- CSR
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“Achieving commercial success in ways that honour
ethical values and respect people, communities, and the
natural environment.”
Business for Social Responsibility
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Definition - Sustainable Development
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“Development that meets the needs of today whilst not
affecting the ability of future generations to meet their
own needs”
Brundtland Commission Report
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Sustainable Development has 3 pillars: Economic, Social and
Environmental
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SD applied in companies in known as the: Triple Bottom Line
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CSR Components
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Because there is NO single accepted definition of CSR
there is no commonly accepted classification of the
main components of CSR.
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Some agreement that it CSR components can be
divided into:
•Workplace
•Marketplace
•Community
•Environment
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CSR Components
Leadership Commitment
Integration into business
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WORKPLACE
Equal Opportunity
Working Hours
Staff Training and
Development
Health and Safety
Freedom of Association
and Human Rights
Bribery and Corruption
COMMUNITY
Community
Investment
(cash/in-kind/
volunteering)
Community
protection
CSR
ENVIRONMENT
Environmental
protection
Impact on air,
water,
biodiversity etc
MARKETPLACE
Suppliers
Customers
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Engage with stakeholders
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Communicate CSR
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Growing Importance of CSR
1. Stakeholders are demanding it
Customers/ Employees/ Investors/ NGO’s/ government
2. Increased Role of Business
• Size/ influence of business vs. governments
3. Globalisation: New CSR issues
• Diverse cultures/ norms/ jurisdictions
• Need to achieve consistency globally
4. Complexity and risks
• Increasing complexity, likelihood and significance of risk and
wrongdoing
• New laws and regulations
• Greater influence of NGO’s and other stakeholders
• Increased merger and acquisitions
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Growing Importance of CSR
5. Greater likelihood of discovery
• 24 hour global news, media more aggressive
• High speed info access and dissemination
6. Greater cost of misconduct
• Fines, penalties, reputation damages
• Growing interest on softer CSR issues- social and environmental
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CSR – builds Profit
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Reduces and avoids costs and risks
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E.g. Costs of litigation on discrimination
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Cause related marketing
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E.g. Proctor & Gamble, Italy with Action Aid, 5% increase in sales
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Reducing waste, increasing efficiency
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E.g. MTR
Attracting and retaining investors
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Socially Responsible Investing in USA represents one in eight dollars
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Higher Growth
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Research done by Harvard University shows that “stakeholder” balanced
companies showed 4x the growth compared to “shareholder” focused
companies
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Creating New Business Opportunities
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Fair Trade Products, UK
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CSR - builds People
1. Easier to attract staff
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E.g. Allied Dunbar (now Zurich Financial Services) found that there
were four times as many responses to job advertisements that
mentioned the firm’s community involvement.
E.g. In addition, a study conducted by Net Impact in 1997 found that
slightly more than half of 2,100 MBA students in USA would accept a
lower salary to work with a socially responsible company.
2. Easier to retain and motivate staff
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E.g. In cases where staff whose volunteering had been supported by
their employers, 70% of then had an improved perception of the
company, 58% had improved personal development and 35% had
improved professional development
3. It builds creativity and innovativeness in the way your people
think
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CSR - builds Reputation
1. It builds customer loyalty
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E.g. In HK: 38% of consumers in Hong Kong rate environmental and
social indicators amongst the top 3 factors in making purchases along
with quality and price. Centre of Urban Planning & Environmental
Management, HKU( Lam, J.C.K. Salahuddin, S. Tsoi, C.S.J (2003)
E.g. Millennium Poll, over 23 countries (including China) with over 25,000
citizens worldwide, found that one in five consumers report either
rewarding or punishing companies in the last year based on perceived
social performance.
2. Access to markets
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E.g. HSBC UK: gay and lesbian network
3. Building political capital and government support
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Especially through community involvement initiatives
4. Cooperation with local communities
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Trends
1. In many countries, CSR was initially about charitable giving.
Today, internal aspects seen as just as important as external
aspects.
2. Around the world, CSR has become BIG business- there are local
non-profit organisations working on CSR- advocacy organisations
and business associations
3. Companies are being watched by investors, consumers, media,
government, employees on their CSR performance- much more
emphasis on:
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The process of stakeholder engagement
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Supply chain and sphere of influence
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Trends
4. Companies are measuring and reporting their CSR performance:
• UK- Corporate Responsibility Index
• Global Reporting Initiative
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CORPORATE SOCIAL RESPONSIBILITY
IN HONG KONG
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CSR in Hong Kong
HONG KONG CSR CHARTER is the highest benchmark
LEADERSHIP
• Little commitment and engagement
• Limited understanding of the business benefits- view it as a PR stint
WORKPLACE
• Little focus on internal issues
• Freedom of Association and trade unions ignored
• Working hours long (compared to ILO standard)
• 8% of employers do not comply with the minimum annual leave
requirements
COMMUNITY
• Not strategic- more reactive
• Cynicism as many think companies are doing it to just enhance public
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image
CSR in Hong Kong
MARKETPLACE
• Supply chain given large attention by some of the major MNC’s
operating in China
• Hong Kong factory owners in China- known for poor working conditions
ENVIRONMENT
• Much more recent focus given air pollution
STAKEHOLDER ENGAGEMENT
• Limited
COMMUNICATION
• Reporting on CSR on the increase
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Final thoughts
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CSR is not new concept.
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Fundamentally CSR is about engaging with your stakeholders
understanding their expectations, and aligning these with your
business objectives. It’s about being clear about what you can and
cannot do and setting reasonable targets for your company. CSR is
also about managing this process.
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CSR will differ from company to company
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CSR will always remain at the fringe of business as long as
businesses do not understand the business benefits of this.
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Today businesses have to address CSR- there is little choice,
particularly with companies that operate in global markets..
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Thank you
• Contact Us
• shalini@communitybusiness.org.hk
• Visit us
• www.communitybusiness.org.hk
All information provided in this document is intended for discussion purposes only and is not in the nature of advice. Community Business
Limited reserves the right to make alterations to any of its documents and presentations without notice. Reproduction and dissemination of
these materials is permitted provided that the material is unaltered and ownership is acknowledged. Express permission of the Board of
Community Business is required for use of materials if such use will generate income for the licensee. © Community Business Ltd. 2006
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The business case- a Hong Kong case study
CSFB- Race for Mentors
• Set objectives:
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Team building
Employer of choice
Feel good factor
Work with young people not
ordinarily supported by the
community
Longer duration project
Mentoring
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The business case- a Hong Kong case study
Race for Mentors- BUSINESS BENEFITS
Impact Area
% Improvement
Pride in the firm
95%
Feel-good factor
84%
Insight into local community
79%
Perception of firm as an employer of choice
68%
Relationship with other colleagues
58%
Development of employees’ skills
· Listening
· Communication
· Interpersonal
53%
47%
42%
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The business case- a Hong Kong case study
Race for Mentors – COMMUNITY BENEFITS
Impact Area
% Improvement
Self confidence
100%
Knowledge of the world of work
95%
Understanding of employers’ needs
79%
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