Survey on Corporate Citizenship in Hong Kong (2006-07)

Survey on Corporate Survey on Corporate CitizenshipCitizenship in Hong in Hong

Kong (2006-07)Kong (2006-07)

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The CSR StudyThe CSR Study

BackgroundBackground The Committee on the Promotion of Civic The Committee on the Promotion of Civic

Education, HAB commissioned the Centre Education, HAB commissioned the Centre for Civil Society and Governance, HKU and for Civil Society and Governance, HKU and Policy 21 Ltd., HKU to find out the Policy 21 Ltd., HKU to find out the understanding and practice of CSR among understanding and practice of CSR among commercial establishments in HK.commercial establishments in HK.

The study consisted of focus group The study consisted of focus group discussions, interviews, and a territory-discussions, interviews, and a territory-wide questionnaire survey wide questionnaire survey

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The CSR SurveyThe CSR Survey

Using a multi-wave, multi-contact Using a multi-wave, multi-contact approach, questionnaires from 10 approach, questionnaires from 10 094 commercial establishments were 094 commercial establishments were collected between November 2006 collected between November 2006 and April 2007.and April 2007.

Response rate: 61%.Response rate: 61%. Sampling error : +/- 1%Sampling error : +/- 1%

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Four Dimensions of CSRFour Dimensions of CSR

The study examined a company’s The study examined a company’s continuing commitment to:continuing commitment to:

1.1. Improve the well-being of its Improve the well-being of its employees and their families;employees and their families;

2.2. Minimize negative economic, social Minimize negative economic, social and environmental impacts on and environmental impacts on society;society;

3.3. Behave ethically in operating its Behave ethically in operating its business; andbusiness; and

4.4. Contribute positively to society.Contribute positively to society.

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Highlight of FindingsHighlight of Findings

1.1. Less than a quarter of the Less than a quarter of the companies were aware of the term companies were aware of the term CSR (23%).CSR (23%).

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Highlights Highlights (cont’d)(cont’d)

2. Only a small minority of the companies 2. Only a small minority of the companies (9%) were both aware of CSR and had (9%) were both aware of CSR and had CSR institutional mechanismCSR institutional mechanism

• Institutional CSR mechanism includes: Institutional CSR mechanism includes: • CSR audit or stakeholders dialogue CSR audit or stakeholders dialogue • CSR reporting CSR reporting • overseeing CSR practices by a designated overseeing CSR practices by a designated

person or committeeperson or committee• communication of CSR mission to employeescommunication of CSR mission to employees• formulation of the CSR concept and setting formulation of the CSR concept and setting

up of CSR targets up of CSR targets

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Highlights (cont’d)Highlights (cont’d)

3.3. Among the establishments that were aware of CSR, Among the establishments that were aware of CSR, more establishments tended to take at least one more establishments tended to take at least one measure than those that did not take any measuremeasure than those that did not take any measure

At least one At least one measuremeasure

No measureNo measure

Better employee benefitsBetter employee benefits 26%26% 11%11%

More environmental protection measuresMore environmental protection measures 24%24% 12%12%

More anti-discrimination measuresMore anti-discrimination measures 34%34% 22%22%

Better customer service policiesBetter customer service policies 24%24% 19%19%

Higher contribution to societyHigher contribution to society 29%29% 14%14%

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4. There was broad acceptance of CSR 4. There was broad acceptance of CSR principlesprinciples

Support for continuing commitment in Support for continuing commitment in terms ofterms of

– ethical business operation (83%) ethical business operation (83%) – minimization of negative impact (81%) minimization of negative impact (81%) – improvement of staff’s well-being (68%)improvement of staff’s well-being (68%)– contribution to society (62%).contribution to society (62%).

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5. Companies were generally motivated to 5. Companies were generally motivated to implement CSRimplement CSR

Three out of four companies (76%) believed that Three out of four companies (76%) believed that they could benefit from CSR in the long run. For they could benefit from CSR in the long run. For example, they held thatexample, they held that– increased staff benefits could be offset by increased staff benefits could be offset by

improved efficiency (73%)improved efficiency (73%)– higher staff benefits reduced staff mobility higher staff benefits reduced staff mobility

(77%)(77%)– could improve the team spirit through could improve the team spirit through

participation in volunteer work (69%) participation in volunteer work (69%) – image could be enhanced by implementation of image could be enhanced by implementation of

environmental protection measures (66%) or environmental protection measures (66%) or contributing to community (67%)contributing to community (67%)

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Highlights (cont’d)Highlights (cont’d)CSR motivation cont’d CSR motivation cont’d

Some aspects of CSR have been Some aspects of CSR have been internalized to become a company traditioninternalized to become a company tradition– ethical business conduct (88% held that ethical business conduct (88% held that

providing safe and quality goods and services providing safe and quality goods and services was an obligation; 84% said fair treatment of was an obligation; 84% said fair treatment of customers was a corporate value) customers was a corporate value)

– 64% said environmental protection was part of 64% said environmental protection was part of the company’s corporate missionthe company’s corporate mission

– 61% stated that equal opportunity concerning 61% stated that equal opportunity concerning the employees was part of the company’s the employees was part of the company’s corporate culturecorporate culture

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Overall picture: CSR Overall picture: CSR practicespractices

Ethical business operationEthical business operation– CustomersCustomers: very good; policies/mechanisms : very good; policies/mechanisms

to:to: Provide clear & precise price information(86%)Provide clear & precise price information(86%) Protect customer personal data (80%)Protect customer personal data (80%) Provide quality after sale service (77%)Provide quality after sale service (77%) Provide full & accurate non-price information Provide full & accurate non-price information

(74%)(74%)

– SuppliersSuppliers: unsatisfactory; : unsatisfactory; policies/mechanisms to policies/mechanisms to Ensure suppliers comply with the law (31%)Ensure suppliers comply with the law (31%) Ensure suppliers have taken steps to protect the Ensure suppliers have taken steps to protect the

environment (18%)environment (18%) Ensure suppliers have good employment practice Ensure suppliers have good employment practice

(16%)(16%)

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Minimization of negative impactMinimization of negative impact – Environmental protectionEnvironmental protection: rather good: rather good

95% have certain environmental protection 95% have certain environmental protection policies or measurespolicies or measures

Gas & electricity conservation measures (71%)Gas & electricity conservation measures (71%) Water conservation measures (65%)Water conservation measures (65%) Reduction of plastic bags consumption (63%)Reduction of plastic bags consumption (63%) Keeping air-conditioned room at 25.5 °C (61%)Keeping air-conditioned room at 25.5 °C (61%)

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Minimization of negative impactMinimization of negative impact– Anti-discrimination guidelinesAnti-discrimination guidelines: poor, in : poor, in

recruitment and employmentrecruitment and employment No stated guideline or adopted measure No stated guideline or adopted measure

against discrimination (74%)against discrimination (74%) Have both guidelines and measures (9%)Have both guidelines and measures (9%) Only have stated guidelines (7%)Only have stated guidelines (7%) Only have adopted measures (10%) Only have adopted measures (10%)

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Employees’ welfareEmployees’ welfare: moderate: moderate– Regular workplace safety review (65%)Regular workplace safety review (65%)– Discouragement of long working hours (62%)Discouragement of long working hours (62%)– Regular salaries and benefits review (58%)Regular salaries and benefits review (58%)– Encouragement of continued education & Encouragement of continued education &

training (48%)training (48%)– Provision of medical insurance & benefits (48%)Provision of medical insurance & benefits (48%)– Provision of in-house training or subsidies (40%)Provision of in-house training or subsidies (40%)– Organization of recreational activities for staff & Organization of recreational activities for staff &

families (25%)families (25%)– Provision of benefits for staff’s family (15%)Provision of benefits for staff’s family (15%)

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Social contributionSocial contribution: unsatisfactory: unsatisfactory– 18% made monetary donations in last 18% made monetary donations in last

12 months12 months– 14% provided non-monetary support14% provided non-monetary support– 15% encouraged staff to contribute 15% encouraged staff to contribute

(giving recognition, organized company-(giving recognition, organized company-wide participation, allow time-off)wide participation, allow time-off)

– 37% were without any of the above 37% were without any of the above three types of social contribution three types of social contribution

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Overall picture: Overall picture: Perception of CSR DutiesPerception of CSR Duties

Importance of CSR principlesImportance of CSR principles::– Ethical behavior (83%)Ethical behavior (83%)– Minimization of negative economic, Minimization of negative economic,

social, and environmental impacts (81%) social, and environmental impacts (81%) – Improvement of employees’ welfare Improvement of employees’ welfare

(68%)(68%)– Social contribution (62%)Social contribution (62%)

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Overall picture: Overall picture: CSR incentive structureCSR incentive structure

Internal incentive structure appears Internal incentive structure appears to be more effective than external to be more effective than external incentive structure in the provision of incentive structure in the provision of CSR policies or measures.CSR policies or measures.

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Overall picture: Overall picture: Role of the governmentRole of the government

Take the lead by implementing CSR Take the lead by implementing CSR (84%)(84%)

Provide help and training (76%)Provide help and training (76%) Develop CSR charters for companies’ Develop CSR charters for companies’

reference (78.0%)reference (78.0%) Raise CSR incentive throughRaise CSR incentive through

– Giving public recognition (78%)Giving public recognition (78%)– According preferential treatment (71%)According preferential treatment (71%)– Providing tax incentives (69%)Providing tax incentives (69%)

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Difficulties facing good CSR Difficulties facing good CSR SMEs SMEs

From follow-up interviews with SMEs From follow-up interviews with SMEs that have good CSR practices:that have good CSR practices:– General context was not enablingGeneral context was not enabling– CSR practices were dependent on effort CSR practices were dependent on effort

of managersof managers– External & internal incentives were External & internal incentives were

lackinglacking– Shortage of resources & readily Shortage of resources & readily

available guidelines available guidelines

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ConclusionConclusion

Duty-based action – compliance with Duty-based action – compliance with basic ethical norms or legal measuresbasic ethical norms or legal measures

Beyond duty-based action:Beyond duty-based action:– Profit-based; practice CSR only when it Profit-based; practice CSR only when it

helps commercial interestshelps commercial interests– Weak in positively contributing to Weak in positively contributing to

employee welfare or society in general employee welfare or society in general (beyond the call of duty)(beyond the call of duty)

Government is expected to take the Government is expected to take the leadlead

Thank you!Thank you!

Survey on Corporate Citizenship in Hong Kong (2006-07)

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Transcript of Survey on Corporate Citizenship in Hong Kong (2006-07)