corp so cresp mah tani
TRANSCRIPT
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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
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
The business case- a Hong Kong case study
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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
The business case- a Hong Kong case study