corp so cresp mah tani

7/29/2019 Corp So Cresp Mah Tani

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We inspire, lead and support businesses to continually improve

their positive impact on people and communities

Shalini Mahtani, CEO, Community Business

CORPORATE SOCIAL RESPONSIBLITY


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Community Business

A unique non-profit organisation, working in Corporate Social Responsibility withmember companies

Focus Areas: CSR Strategy and Policy

Diversity in the workplace and work-life balance

Corporate Community Investment

Research/advice/training and facilitation/assessment

Community Business Leadership Team


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Members of Community Business

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)

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 Georges 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 Zurich Insurance Group (Hong Kong)


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Agenda Corporate Social Responsibility

Corporate Social Responsibility in Hong Kong


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CORPORATE SOCIAL RESPONSIBILITY


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Definition- CSR

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

Development that meets the needs of today whilst not

affecting the ability of future generations to meet their

own needs Brundtland Commission Report

Sustainable Development has 3 pillars: Economic, Social and

Environmental

SD applied in companies in known as the: Triple Bottom Line


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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.

Some agreement that it CSR components can be

divided into:

WorkplaceMarketplace

Community

Environment

CSR Components


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CSR Components

CSR

WORKPLACE

- Equal Opportunity

- Working Hours

- Staff Training and

Development- Health and Safety

- Freedom of Association

and Human Rights

- Bribery and Corruption

MARKETPLACE

- Suppliers

- Customers

COMMUNITY

- Community

Investment

(cash/in-kind/

volunteering)

- Community

protection

ENVIRONMENT

- Environmental

protection

- Impact on air,

water,biodiversity etc

Leadership Commitment

Integration into business

Engage with stakeholders

Communicate CSR


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1. Stakeholders are demanding it

Customers/ Employees/ Investors/ NGOs/ government

1. Increased Role of Business

Size/ influence of business vs. governments1. Globalisation: New CSR issues

Diverse cultures/ norms/ jurisdictions

Need to achieve consistency globally

1. Complexity and risks Increasing complexity, likelihood and significance of risk and

wrongdoing

New laws and regulations

Greater influence of NGOs and other stakeholders

Increased merger and acquisitions

Growing Importance of CSR


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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

Growing Importance of CSR


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1. Reduces and avoids costs and risks

E.g. Costs of litigation on discrimination

1. Cause related marketing

E.g. Proctor & Gamble, Italy with Action Aid, 5% increase in sales1. Reducing waste, increasing efficiency

E.g. MTR

1. Attracting and retaining investors

Socially Responsible Investing in USA represents one in eight dollars

1. Higher Growth

Research done by Harvard University shows that stakeholder balanced

companies showed 4x the growth compared to shareholder focused

companies

1. Creating New Business Opportunities Fair Trade Products, UK

CSR builds Profit


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1. Easier to attract staff

E.g. Allied Dunbar (now Zurich Financial Services) found that there

were four times as many responses to job advertisements that

mentioned the firms 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

E.g. In cases where staff whose volunteering had been supported bytheir 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

CSR - builds People


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1. It builds customer loyalty

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 E.g. HSBC UK: gay and lesbian network

3. Building political capital and government support

Especially through community involvement initiatives

4. Cooperation with local communities

CSR - builds Reputation


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Trends1. 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:

The process of stakeholder engagement

Su l chain and s here of influence


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4. Companies are measuring and reporting their CSR performance:

UK- Corporate Responsibility Index

Global Reporting Initiative

Trends


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CORPORATE SOCIAL RESPONSIBILITYIN HONG KONG


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CSR in Hong KongHONG 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 leaverequirements

COMMUNITY Not strategic- more reactive Cynicism as many think companies are doing it to just enhance public

image


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CSR in Hong Kong

MARKETPLACE Supply chain given large attention by some of the major MNCs

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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CSR is not new concept.

Fundamentally CSR is about engaging with your stakeholders

understanding their expectations, and aligning these with your

business objectives. Its about being clear about what you can andcannot do and setting reasonable targets for your company. CSR is

also about managing this process.

CSR will differ from company to company

CSR will always remain at the fringe of business as long as

businesses do not understand the business benefits of this.

Today businesses have to address CSR- there is little choice,

particularly with companies that operate in global markets..

Final thoughts


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Thank you

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

Contact Us

[email protected]

Visit us www.communitybusiness.org.hk


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The business case- a Hong Kong case study

CSFB- Race for Mentors

Set objectives:

Team building

Employer of choice

Feel good factor

Work with young people not

ordinarily supported by thecommunity

Longer duration project

Mentoring


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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%

Race for Mentors- BUSINESS BENEFITS



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Impact Area % Improvement

Self confidence 100%

Knowledge of the world of work 95%

Understanding of employers needs 79%

Race for Mentors COMMUNITY BENEFITS


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