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HKQAA CSR Index 2013 Report

November 2013

Table of Contents Page

About the Hong Kong Quality Assurance Agency (HKQAA) ......... 3

About Hong Kong CSR Advocate Index ........................................... 4

Executive Summary .............................................................................. 5

Participating Organisations ................................................................ 7

Participating Organisations ................................................................ 8

Analysis of Seven CSR Core Subjects – Organisational Governance .......................................................................................... 12

Analysis of Seven CSR Core Subjects – Human Rights .............. 15

Analysis of Seven CSR Core Subjects – Labour Practices ......... 18

Analysis of Seven CSR Core Subjects – The Environment ......... 21

Analysis of Seven CSR Core Subjects – Fair Operating Practices ............................................................................................................... 24

Analysis of Seven CSR Core Subjects – Consumer Issues ........ 27

Analysis of Seven CSR Core Subjects - Community Involvement and Development ................................................................................ 30

Conclusion ........................................................................................... 33

The Way Forward ................................................................................ 34

Appendix A: CSR Advocate Index Scoring Approach .................. 35

About the Hong Kong Quality Assurance Agency (HKQAA)

The Hong Kong Quality Assurance Agency (HKQAA), a non-profit independent

Conformity Assessment Body (CAB), was established by the Hong Kong

Government Industry Department in 1989. The HKQAA mission is to promote

management excellence to the industry and to deliver world-class, value-added

assessment, certification, benchmarking, verification and training services.

To keep pace with the globaldirection and the changes in customer needs, the

HKQAA is relentless in exploring new opportunities for serving the market. In the past

24 years, not only has the HKQAA increased the number of certificates significantly,

but it has also strengthened the credibility of its services. The HKQAA holds many

accreditations for auditing quality, environmental, occupational health and safety, and

information security management systems, including accreditations from the United

Kingdom Accreditation Service (UKAS), the Hong Kong Accreditation Service (HKAS)

and the China National Accreditation Service (CNAS). For ethical auditing, the

HKQAA is accredited by SAAS for SA 8000, which is recognised by BSCI, among

others, and is approved for social auditing by Tesco (UK).

With over 5,000 certificates spanning various industries, the HKQAA is a leading

CAB in Hong Kong, serving client organisations in Hong Kong, mainland China and

other Asian countries. The headquarters of the HKQAA is located in Hong Kong. The

HKQAA also has offices in, Guangzhou and Shanghai, as well as a representative in

the Beijing.

With the growing concerns of various stakeholders on the environment, workforce

and the community at large, in addition to the ISO 26000 based HKQAA-HSBC CSR

Index launched in 2008, HKQAA also introduced a range of verification or certification

services based on Global Reporting Initiative (GRI) in 2006, SA 8000 Social

Accountability Standard and ISO 14064 for carbon emissions verification in 2007, the

and the Clean Development Mechanism (CDM) to aid the business community in

Hong Kong and China to address the need for sustainability of the society locally and

globally.

In addition to international management tools, we also launched local initiatives to

cater for the specific needs of the local community such as the HKQAA Sustainable

Building Index (HKQAA SBI), the HKQAA-HKJC Carbon Disclosure Platform (CDeP)

and the Barrier Free Accessibility (BFA) Management System Certification in recent

years. In the near future, we will continue offering many more other management

tools to assist organizations to achieve a balanced development in business results

and social responsibility.

About Hong Kong CSR Advocate Index To help far-sighted organisations translate their good intentions into action, in 2008 Hong Kong Quality Assurance Agency (HKQAA) launched the HKQAA CSR Index, with the initial support of the Hongkong and Shanghai Banking Corporation Limited (HSBC). Now run by HKQAA, the Index designed with reference to the ISO 26000 Guidance on Social Responsibility provides quantitative metrics for measuring the maturity of an organisation in managing their social responsibility. The guidance of ISO 26000 was consolidated into 45 recommended CSR practices (Refer to Appendix A: CSR Advocate Index Scoring Approach) under seven core subjects. There are five scoring categories which represent the level of maturity of respective CSR practices as follows: 1 - Starting Phase; 2 - Forming Phase; 3 - Implementing Phase; 4 - Confirming Phase; and 5 - Improving Phase. HKQAA professionals conducted on-site verification to i) interview representatives of the participating organisations to review the system setting; ii) validate the factual evidence of the implementation practices; and iii) confirm the scores of the respective forty-five CSR practices based on the defined scoring criteria. Furthermore, the “Carbon & Energy Management Advocate Sub-Index” under the umbrella of the HKQAA - HSBC CSR Advocate Index has been added since 2011 with the aim of providing more specific and in-depth analysis and opinions of Advocates’ performance related to carbon and energy management which has become rather imperative locally and globally. Such enrichment of the Index provides a new perspective for enhancing the publicity of the Index as a whole.

Executive Summary

In summary, the Hong Kong CSR Advocate Index results over the years, which

represent the overall average score of the participating organisations, were 4.69,

4.65, 4.62, 4.57 and 4.53 in 2013, 2012, 2011, 2010 and 2009 respectively, bearing

in mind that the organisations participating this year are slightly different from those

of the previous years. The average scores of the seven core subjects over the last 5

years are summarised in the chart below. As illustrated, the scores rose slightly this

year demonstrating an improvement in the overall performance of CSR.

4.53

4.74

4.73

4.63

4.87

4.65

4.68

4.55

4.78

4.56

4.46

4.81

4.64

4.58

4.40

4.61

4.29

4.35

4.70

4.65

4.52

3.50 4.00 4.50 5.00

Community Involvement and

Development

Consumer Issues

Fair Operating Practices

The Environment

Labour Practices

Human Rights

Organisational Governance

Average Score of CSR Seven Core Subjects

Average score in 2009

Average score in 2010-2012


Average Overall Score in 2013

4.69

Average Score Change Compared to 2010-2012

+1.7%

Average Score Change compared to 2009

+3.5%

These scores represent the

general performance of participants

in corresponding subjects. In 2013,

Labour Practices remained the

highest scoring subject and this

showed organisational commitment

to consider labour needs and

increase their employability.

Unfortunately, scorings of

Consumer Issues as well as

Community Involvement and

Development have set back as

compared to last years’. In general,

participants have to be more

aggressive in responding to

community expectation and

development.

With rising awareness of

sustainable development in Hong

Kong, the average CSR

performance of organisations has

improved simultaneously.

4.00

4.10

4.20

4.30

4.40

4.50

4.60

4.70

4.80

4.90

5.00

Organisational Governance

Human Rights Labour Practices

The Environment

Fair operating Practices

Consumer issues

Community involvement

and development

Average Score of CSR Seven Core Subjects for Private and Public Listed Copanies

Public Listed Companies

Private Companies

All Rights Reserved

Participating Organisations

In 2013, 26 organisations showing their commitment of social responsibilities

participated in HKQAA CSR advocate index scheme. The list of participating

organisations covers a whole range of government department, education institution,

public listed companies and private companies.

This chart indicates the

company nature of 26

participating organisations.

This year, we had 17 private

companies, 7 public

companies, 1 government

department and 1 education

institution

The participants comprise 14 companies from construction and engineering services sector, 6 companies from service sector, 4 companies from manufacturing sector, 1 government department and 1 education institution.

65%

27%

8%

Distribution of Participated Organisations by the nature of organisation

Private Company

Public Listed Company

Governement and Education Institution

11%

27%

54%

8%

Distribution of Participating Organisations by the Idustrial Sector

Manufacturing

Service

Construction & Engineering Services

Government & Education Institution

All Rights Reserved

Participating Organisations

Alliance Construction Materials

Limited

Analogue Group of Companies

Café De Coral Holdings Limited

China Overseas Holdings Limited

China State Construction

International Holdings Limited

Chun Lee Engineering Company

Limited

David Decoration Limited

All Rights Reserved

DrilTech Ground Engineering

Limited

EGL Tours Company Limited

Fuji Xerox (Hong Kong) Limited

GP Batteries International Limited

Hang Seng School of Commerce

and Hang Seng Management

College

Hanison Construction Company

Limited

Hong Kong Trade Development

Council

All Rights Reserved

Housing Department

Hsin Chong Construction Group

Limited

Jumbo Orient Contracting Limited

Leo Paper Group (Hong Kong)

Limited

MTR Corporation

Shun Yuen Construction Company

Limited

All Rights Reserved

SOCAM Development Limited

Synergis Management Services

Limited

The Link Management Limited

Tong Kee Engineering Limited

Tsuen Lee Metals and Plastics Toys

Company Limited

Yau Lee Construction Company

Limited

All Rights Reserved

Analysis of Seven CSR Core Subjects – Organisational Governance

The performance of Organisational Governance has been steadily improving. Most of

the participating organisations made social responsibility an integral part of their

companies’ policies, strategies and operations. CSR awareness programmes were

commonly found in participating organisations. They were more sensitive to the

amendments of laws, ordinances, rules, regulations and relevant international norms.

Code of conducts or ethics, as well as staff guidebook or manual, were commonly

adopted within the organisations so as to define the organisations’ standard of

behaviour.

4.30

4.40

4.50

4.60

4.70

4.80

4.90

5.00

2009 2010 2011 2012 2013

Average Score of Organisational Governance for Different Years

Average Score of Organisational Governance in 2013

4.68

Average Score Change since 2009

+3.56%

All Rights Reserved

Most of the participating organisations have established two-way communication process with stakeholders between the organisations to understand their stakeholders’ interest. During the course, areas of agreement and disagreement were identified and negotiated to resolve possible conflicts. Aiming to sustain business in a rapidly changing business environment, participating organisations were able to build their corporate image as transparent, open and law-complying.

4.81

4.81

4.69

4.5

4.85

4.46

4.65

4.72

4.56

4.52

4.16

4.72

4.20

4.76

3.5 4.0 4.5 5.0

OG7

OG6

OG5

OG4

OG3

OG2

OG1

Average Score for Organisational Governance






All Rights Reserved

Good Practices Observed

This year, some organisations have enhanced their governance structures to oversee their local & overseas operational activities. By taking the initiatives to benchmark with international CSR protocol such as BS8900, participating organisations could methodically assess the maturity of their CSR performance. Also, some of them implemented systematic risk management models to ensure that CSR-related risks were under proper control. Besides introducing new systematic models in operational level, participating organisations developed new strategies to extend their coverage for stakeholder engagement. Activities were held to meet stakeholders’ expectation and identify areas of improvement. Top-management level personnel chaired regular meetings to monitor and review their company CSR performance progress. External consultants or internal compliance units conducted surveys to collect feedback from employees and stakeholders in a systematic approach. The analysis of the responses and subsequent formulation of strategies to act on expectation from stakeholders are appreciated and recommended in driving advancement of CSR performance.

All Rights Reserved

Analysis of Seven CSR Core Subjects – Human Rights

Most of the participating organisations had developed well-established systems to

prevent engagement of child labour or forced labour. Similar to last year, participating

organisations were well-aware of the discrimination issues. Working opportunities for

vulnerable groups and minorities were provided. Many of the participating

organisations have established different approaches of communication channels with

stakeholders of their organisation in which they allowed the stakeholders to express

their views, particularly in situations of disagreement with organisations’ decisions.

Average Score of Human Rights in 2013

4.65


+1.09%

4.30

4.40

4.50

4.60

4.70

4.80

4.90

5.00

2009 2010 2011 2012 2013

Average Score of Human Rights for Different Years

All Rights Reserved

As revealed by the analysis, the promotion of human rights was found in the

approach of organisation used in preventing from employing child and forced labour,

in which almost all of the participating organisations were endeavouring to avoid

engagement of forced labour and child labour in their businesses. Participating

organisations comply with the legal requirements explicitly laid down by the

government in a very high extent.

4.92

4.69

4.69

4.58

4.35

4.84

4.44

4.88

4.64

4.44

3.5 4.0 4.5 5.0

HR5

HR4

HR3

HR2

HR1

Average Score for Human Rights






All Rights Reserved


Similar to previous years, organisations continued their good work to prevent forced or child labours. Well-established systems and guidelines were constantly observed to tackle with this issue. The framework regulated decisions made in the supply chain management or partnership in relations to suppliers and contractors on this issue. This year, handling complaints from employees was considered a major issue for human rights. Some of the participating organisations developed new corporate policies and formed related committees, such as “Whistle-blowing policy” and “Grievance Handling Committee”, in response to employees’ dissatisfaction with strict confidence.

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5

2009 2010 2011 2012 2013

Average Score of Human Rights for Different Sectors

Manufacturing Sector

Service Sector

Construction Sector

All Rights Reserved

Analysis of Seven CSR Core Subjects – Labour Practices

Labour Practices scored the highest among the seven core subjects. Participating

organisations in general were showing great concern for labour needs, such as

occupational health and safety, labour relations, staff training and development, etc.

This demonstrates that organisations were paying more attention to the healthy

labour management. More participating organisations carried out measures to ensure

compliance with the Minimum Wage Law as compared to last year. In addition, more

organizations implemented programmes to enhance the productivity, employability

and capacity of employees.

Average Score of Labour Practices in 2013

4.87


+3.62%

4.30

4.40

4.50

4.60

4.70

4.80

4.90

5.00

2009 2010 2011 2012 2013

Average Score of Labour Practices for Different Years

All Rights Reserved

Comparatively, Labour Practices is the most mature amongst the seven core

subjects. Comprehensive staff development programme, health and safety

management system and structured legal compliance mechanism were commonly

found in the participating organisations. Most of the participating organisations

maintained continuous dialogue with their staff for establishing a healthy labour-

management relationship. Many of them have implemented programmes to increase

the capacity and employability of employees.

4.96

4.88

4.88

4.88

4.85

4.73

4.76

4.68

4.72

4.68

4.92

4.44

3.5 4.0 4.5 5.0

LP6

LP5

LP4

LP3

LP2

LP1

Average Score for Labour Practices

Average score in 2009 Average score in 2010 Average score in 2011

All Rights Reserved


In view of community’s expectation of boosting employability and promoting healthy lifestyle, the number of innovative practices has increased in the participating organisations. Some organisations included child caring service provided by local child care centres into their employee benefits. This caring benefit would help their staff members focus on their own work without worrying much about their children. On the other hand, in-house training and after-work education were funded by most of the organisations in order to equip their staff members with modern job-related knowledge. Periodic directorate visits and company-wide activities demonstrated strong management commitment and provided opportunities to show care and empathy and build closer relationship with frontline staff members. Other employee-care activities, such as work-life balance week, were held to also promote healthy lifestyle.

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5

2009 2010 2011 2012 2013

Average Score of Labor Practices for Different Sectors


Service Sector

Construction Sector

All Rights Reserved

Analysis of Seven CSR Core Subjects – The Environment

Most of the participating organisations were more aware of the environmental issues

and the environment became a common element in organisations’ corporate policy

and strategies. Many of the participating organisations are implementing

programmes to promote the environmental caring culture to vendors, subcontractors

and employees. Environmental awareness programmes, as well as waste

minimisation programmes, were implemented in most of the participating

organisations.

Average Score of The Environment in 2013

4.63


+6.44%

4.30

4.40

4.50

4.60

4.70

4.80

4.90

5.00

2009 2010 2011 2012 2013

Average Score of The Environment for Different Years

All Rights Reserved

Similar to previous years, the environment has become a major topic in corporate

policies and strategies. More participating organisations actively address the concept

of resources efficiency and promote environmental-friendly culture.

Some of them implemented campaigns and measures to encourage energy savings

as well as reduce the emission of greenhouse gases. Stakeholder feedback on

organisations’ environmental behaviours was gathered by surveys and interviews.

4.62

4.34

4.77

4.69

4.73

4.09

3.80

4.48

4.56

4.80

3.5 4.0 4.5 5.0

EN5

EN4

EN3

EN2

EN1

Average Score for The Environment






All Rights Reserved


The Environment has been the weakest part among 7 core subjects of CSR over previous years. Resources input in environmental aspect by various organisations did not achieve satisfactory results. However, in this year, situation has turned around and organisations were encouragingly involved in international sustainable development protocol, such as ISO 14040 and green building assessment. Some organisations started to measure their product carbon footprint and import latest technologies from overseas in order to quantify and minimize emissions during production. Most of the participating organisations worked jointly with various local NGOs on environmental friendly and conservation campaigns. Through participating and co-organising events such as “Green Monday” and eco-tour, organisations could arouse the employees and stakeholders’ awareness of green living and lead in the community to combat climate change.

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5

2009 2010 2011 2012 2013

Average Score of The Environment for Different Sectors


Service Sector

Construction Sector

All Rights Reserved

Analysis of Seven CSR Core Subjects – Fair Operating Practices

Most of the participating organisations have developed programmes in relation to

corruption prevention and property rights protection. There were more practices to

incorporate social, ethical and environmental criteria into the purchasing, contracting

and distributing policies. Similar to previous years, more participating organisations

sourced fair trade products and raw materials and engaged accredited fair trade

companies and social enterprises. More participating organisations established plans

for compliance with the upcoming Competition Law.

Average Score of Fair Operating Practices in 2013

4.73


+10.26%

4.30

4.40

4.50

4.60

4.70

4.80

4.90

5.00

2009 2010 2011 2012 2013

Average Score of Fair Operating Practices for Different Years

All Rights Reserved

Participating organisations employed legal consultants to evaluate the organisations’

existing operating practices in order to prevent their engagement in anti-competitive

behaviours. Measures for preventing anti-competitive behaviours and practices to

incorporate social, ethical, environmental and gender equality criteria in purchasing

activities are found in some of the participating organisations.

4.65

4.69

4.73

4.85

4.64

4.08

4.00

4.44

3.5 4.0 4.5 5.0

FOP4

FOP3

FOP2

FOP1

Average Score for Fair Operating Practices






All Rights Reserved


In last few years, policies and structures of organisations for anti-corruption and property right protection have continuously been improved. Most of the participating organisations have implemented proper mechanism against corruption and to protect property right. Instead of only focusing on self-improvement, some of them also took the lead to develop a platform among the peers to share their CSR experiences and engage their business partners to reinforce the awareness of economic, health, safety and equal opportunity. In view of the sustainability of the industry and community, supply chain and stakeholder management plays a key role in driving improvement. For example, some of them held the first industry sustainable development symposium in order to share the idea of corporate social responsibility and gather thoughts and opinions from their industry sectors.

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5

2009 2010 2011 2012 2013

Average Score of Fair Operating Practices for Different Sectors


Service Sector

Construction Sector

All Rights Reserved

Analysis of Seven CSR Core Subjects – Consumer Issues

Similar to previous years, participants focused on addressing consumers’

expectations and needs. The participating organisation were more conscious of

taking the consideration of potential impacts of the services and/or products to

consumer health, the society and the environment throughout their life cycle into the

development of services and products. Among the participating organisations, ISO

9001 certified quality management system was commonly adopted in order to

establish mature customer service management systems. Participating organisations

were actively enhancing consumers’ awareness of sustainable consumption by

providing instructions and education to consumers.

Average Score of Consumer Issues in 2013

4.74


+2.82%

4.30

4.40

4.50

4.60

4.70

4.80

4.90

5.00

2009 2010 2011 2012 2013

Average Score of Consumer Issues for Different Years

All Rights Reserved

Similar to previous years, the participating organisations are focused to address

consumers’ expectations and needs. Participating organisations actively enhanced

consumers’ awareness of sustainable consumption by providing instructions and

education to consumers. Due to the raising concerns of organisations’

responsiveness on social responsibility issues, more consumer engagement

programmes were implemented.

4.81

4.65

4.73

4.88

4.62

4.77

4.96

4.8

4.28

4.72

4.80

4.96

4.30

4.57

4.64

4.60

3.5 4.0 4.5 5.0

CI8

CI7

CI6

CI5

CI4

CI3

CI2

CI1

Average Score for Consumer Issues






All Rights Reserved


Nowadays, information security is getting more and more important around the world. In order to demonstrate commitment of quality information security, some of the participating organisations have implemented the ISO 27001 Information Security Management. With reference to ISO 27001, they could identify and control the information risk with preventive action in a high confidence level. For better disclosure and stakeholder engagement, some organisations added more language options and barrier-free versions to their websites. The improvements which were appreciated and recognized by government generally increased the website usability and message deliverability for their customers. In addition, their websites were not only awarded by Web Accessibility Recognition Scheme but also positively influence their industries and the community.

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5

2009 2010 2011 2012 2013

Average Score of Consumer Issues for Different Sectors


Service Sector

Construction Sector

All Rights Reserved

Analysis of Seven CSR Core Subjects - Community Involvement and Development

This average score for Community and Involvement and Development results from

the assessment on participants’ community support and volunteerism. Over the past

few years, philanthropy was the common approach towards community development.

Some participating organisations showed their commitment to support community

development by organising donation and fund-raising activities for vulnerable groups.

4.30

4.40

4.50

4.60

4.70

4.80

4.90

5.00

2009 2010 2011 2012 2013

Ave

rage

Sco

re

Average Score of Community Involvement and Development for Different Years

Average Score of Community Involvement and Development in 2013

4.53


+2.96%

All Rights Reserved

The overall result of this subject in 2013 indicated a downward trend when compared

to the score in 2012. The conservation and protection heritage was a relatively least

mature practice among all under this core element. However, philanthropy was a

common practice towards community development with vulnerable group assistance

and caring programmes being in place. Promotion of healthy lifestyles was also

emphasised by most of the participating organisations.

4.35

4.58

4.62

4.69

4.42

4.36

4.56

4.32

4.60

4.17

3.5 4.0 4.5 5.0

CID5

CID4

CID3

CID2

CID1

Average Score for Community Involvement and Development






All Rights Reserved


Despite the financial support for community development by majority of the participating organisations, some of them took a huge step to go beyond money and offered invaluable opportunities to the needy people in the community. Last year, there were more career opportunities offered by organisations to underprivileged groups and it would be a platform to elevate their confidence by involving and contributing to our community. For better equipping our young generation, organisations took initiatives to cooperate with different local parties and set up industry-specified pilot training programs for teenagers. Working experience and job-related knowledge were enhanced for participating youth upon completion of these courses. One of the participating organisations co-organised a summer camp with a local university targeting employees’ children. The university students treasured this opportunities to practically apply their knowledge and teach children who were also able to learn and grow during summer break.

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5

2009 2010 2011 2012 2013

Average Score of Community Involvement and Development for Different Sectors


Service Sector

Construction Sector

All Rights Reserved

Conclusion HKQAA CSR Report 2013 marks the fifth consecutive year of promoting corporate social responsibility and quantifying performance of participating organisations in Hong Kong. Aiming to measure and improve the CSR performance, the index was launched firstly in 2008. Over the past 5 years, overall performance of participants has improved continually and encouragingly. Compared to the initial score measured in 2009, the overall score of seven core subjects recorded an increase of 3.5% and also positive change in every following year. Participants are more aware of stakeholders ‘expectations and competitive advantages brought by enhancement of CSR. There are different performance indicators observed and attributed to organisational promotion of corporate social responsibility. For Organisational Governance: The operational efficiency was generally increased along with advanced improvement of organisational governance. For Human Rights: The number of discrimination against sexual, racial and others dropped significantly among the participants. For Labour Practices: Staff morale, sense of belonging and responsibility and job satisfaction of staff members were improved resulting and reflecting in lower staff turnover rate. For The Environment: Participating organisations were benefited from reduction of energy costs and carbon emissions. For Fair Operating Practices: Development of a fair, open platform for suppliers and vendors attracted more bids of contracts and as a result reduced the costs of projects. For Consumer Issues: Participants generally suggest that HKQAA CSR Index helping them to build up a positive brand image and enhance customer satisfaction. For Community Involvement and Development: Business opportunities were explored in progress of involving conservation campaigns organised by various NGOs.

All Rights Reserved

The Way Forward We are pleased to announce that the Hang Seng Indexes Company Limited (HSIL) engaged the Hong Kong Quality Assurance Agency (HKQAA) to provide the sustainability rating and research services and enable HSIL to develop and maintain the Hang Seng Corporate Sustainability Indexes (http://www.hsi.com.hk/) which include a series of financial indexes and sub-indexes for the purpose of tracking and benchmarking the performance of corporate sustainability-driven listed companies in HKSAR and PRC. More than 700 Hong Kong and Mainland listed companies will be assessed by HKQAA proprietary sustainability performance assessment methodology which is based on ISO 26000 and GRI G4. At the same time, as HKQAA CSR Index enters the fifth year, with high anticipation, we will roll out an advanced version of Hong Kong CSR Advocate Index in following year. This advanced version and the Hang Seng Corporate Sustainability Indexes rating and research will be based on the same HKQAA proprietary sustainability performance assessment methodology and thus enable the HKQAA CSR Index participants to benchmark themselves with more than 700 listed companies in HKSAR and PRC on their CSR and sustainability performance.

http://www.hsi.com.hk/

All Rights Reserved

Appendix A: CSR Advocate Index Scoring Approach

The 45 CSR Practices

The criteria of the Hong Kong CSR Advocate Index were developed based on the

guidance and principles provided by ISO 26000:2010. The guidance of ISO

26000:2010 was consolidated into 45 recommended CSR practices under seven

core subjects as shown below.

CSR Core

Subjects Recommended CSR Practices

Organisational

Governance

OG1 Organisation should set its direction by making social

responsibility an integral part of its policies, strategies

and operations.

OG2 Organisation should establish programmes to raise

awareness and build competency in social responsibility

in the organisation.

OG3 Organisation should be aware of applicable laws and

regulations, as well as informing those within the

organisation responsible for observing these laws and

regulations to ensure that they are observed.

OG4 Organisation should disclose its policies, decisions and

activities about their known and likely impacts on

society and the environment.

OG5 Organisation should define its standards of ethical

behaviour with reference to available international

norms.

OG6 Organisation should develop governance structures that

help to promote ethical conduct within the organisation

and in its interactions with others.

OG7 Organisation should establish a two-way

communication mechanism for stakeholder interests, as

well as assisting in identifying areas of agreement and

disagreement and negotiating to resolve possible

conflicts.

Human Rights

HR1 Organisation should prevent the abuse of human rights

resulting from the actions of any entities or persons

whose activities are significantly linked to those of the

organisation.

All Rights Reserved

HR2 Organisation should establish a transparent and

independent governance structure to ensure that no

party can interfere with the fair conduct of a particular

grievance process.

HR3 Organisation should provide stakeholders with channels

to freely express their views, even in situations of

disagreement with organisational decisions.

HR4 Organisation should ensure that it does not discriminate

against employees, partners, customers, stakeholders,

members and anyone else that the organisation has

any contact with or can influence.

HR5 Organisation should ensure no engagement with forced

labour or child labour.

Labour

Practices

LP1 Organisation should encourage the organisations in its

supply chain to meet legal labour requirements.

LP2 Organisation should ensure that the conditions of its

work comply with national laws and regulations.

LP3 Organisation should establish dialogue with staff

members to establish healthy labour-management

relations.

LP4 Organisation should implement measures to protect

employees from health risks and adopt an

occupational environment that meets the physiological

and psychological needs of employees.

LP5 Organisation should promote an occupational health

and safety culture for employees and contractors.

LP6 Organisation should implement programmes to

increase the capacity and employability of employees.

The

Environment

EN1 Organisation should implement measures to prevent

pollution and minimise waste.

EN2 Organisation should promote an environmental-caring

culture to employees and contractors.

EN3 Organisation should implement resource efficiency

measures to reduce its use of energy, water and other

materials.

All Rights Reserved

EN4 Organisation should implement measures to reduce

Greenhouse Gas (GHG) emissions associated with its

activities, products and services.

EN4.1 Organisation should demonstrate its commitment via

policy, strategy, improvement objectives and targets,

resource allocation, among others. to support the

energy management system and to continually

improve its effectiveness.

EN4.2 Organisation should develop, record and maintain an

energy review and establish an energy baseline.

EN4.3 Organisation should establish criteria for effective

operation and maintenance of significant energy use.

EN4.4

Organisation should consider energy performance

improvement opportunities in the design of new,

modified and renovated facilities, equipment, systems

and processes, and support the purchase of energy

efficient products and services.

EN4.5 Organisation should implement measures to reduce

Greenhouse Gas (GHG) emissions associated with its

activities, products and services.

EN5 Organisation should identify potentially adverse

impacts on the ecosystem and take measures to

eliminate or minimise these impacts.

Fair

Operating

Practices

FO1 Organisation should develop and implement

programmes to prevent corruption.

FO2 Organisation should prevent engaging in anti-

competitive behaviour.

FO3 Organisation should incorporate social, ethical,

environmental and gender equality criteria in its

purchasing, distributing and contracting policies.

FO4 Organisation should develop and implement

programmes to protect property rights.

Consumer

Issues

CI1 Organisation should ensure no unfair or misleading

marketing and information is delivered to customers or

consumers.

All Rights Reserved

CI2 Organisation should ensure that consumers are aware

of their rights and responsibilities when products and

services are delivered.

CI3 Organisation should ensure that its products and

services will not be inherently harmful to consumers'

health.

CI4 Organisation shall provide customers with socially and

environmentally beneficial products and services that

are able to reduce respective adverse impacts

throughout their lifecycle.

CI5 Organisation should review complaints and take action

to prevent recurrence.

CI6 Organisation should implement measures to resolve

disputes and enhance customer satisfaction.

CI7 Organisation should implement measures to protect

consumers’ data and privacy.

CI8 Organisation should educate customers or consumers

in order to enhance their understanding of the product

and awareness of sustainable consumption.

Community

Involvement

And

Development

CID1 Organisation should help to conserve and protect

heritage, especially where the organisation's operation

has an impact on it.

CID2 Organisation should contribute to programmes that

provide assistance or other necessities to vulnerable

and low-income groups.

CID3 Organisation should participate in skills development

for the organisations in its supply chain in the

community in which they operate.

CID4 Organisation should encourage healthy lifestyles in the

community.

CID5 Organisation should contribute to the development of

the community in which they operate.

All Rights Reserved

Scoring Approach

The following scoring approach is applied to evaluate the organisation’s system

maturity in its CSR performance. There are five scoring categories representing the

level of maturity of the recommended CSR practices: 1 – Starting Phase; 2 –

Forming Phase; 3 – Implementing Phase; 4 – Confirming Phase; and 5 – Improving

Phase.

HKQAA professionals conducted on-site verification to i) interview the

representatives of the participating organisations to review the system settings; ii)

validate the factual evidence of the implementation practices; and iii) confirm the

scores of the respective 45 CSR practices based on the defined scoring criteria*. The

detailed scoring criteria of the 45 CSR practices have been defined in the HKQAA-

HSBC Scoring Handbook.

Scoring Category General Scoring Criteria

1 – Starting Phase

Organisation does not take steps to develop

programmes or control measures to realise the

recommended practice.

2 – Forming Phase

(i) The programmes or control measures are under

development; or

(ii) The programmes or control measures have been

established but without full implementation; or

(iii) The programmes or control measures are

implemented on an ad-hoc basis that lack advance

planning.

3 – Implementing

Phase

Organisation has established programmes or control

measures to realise the recommended practice.

The programmes or control measures have been fully

implemented with advance planning.

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4 – Confirming Phase



The programmes or control measures have been fully


Information gathering or risk analysis is conducted to

gather relevant information to confirm the effectiveness

of the implemented practice.

Stakeholders are invited to engage in the programmes.

5 – Improving Phase



The programme or control measures have been fully


Information gathering or risk analysis is conducted to

gather relevant information to confirm the effectiveness

of the implemented practice.

Stakeholders are invited to engage in the programmes.

There is a review of the implemented programmes for

identifying improvement areas.

* The average score of each subject is calculated based on the “rounded down”

averages (to two significant figures) of the participating organisations.

All Rights Reserved

Benchmarking Process

Step 1: Self-evaluation

The participating organisation conducted a self-evaluation based on the scoring

criteria for the 40 recommended CSR practices using a self-assessment scoring

sheet with supporting evidence for HKQAA’s review and comments.

Step 2: On-site Verification

The HKQAA conducted an on-site verification of the objective evidence, reached an

agreement with the participating organisation about the scores for individual

recommended CSR practices and communicated with the organisation’s

representative to identify further improvement areas.

Step 3: Verification Reporting

The HKQAA prepared a report to confirm the scores for the 45 recommended CSR

practices and provided recommendations for improving the organisation’s systems to

pursue better CSR performance.

Step 4: Benchmarking Reporting

The scores for individual organisations were analysed. Based on the analysis, the

HKQAA prepared a report to benchmark the organisation’s scores against other

participating organisations.

Information Security and Confidentiality

All of the information collected in the verification exercise, including the agreed

scores of recommended CSR practices, was stored in the HKQAA’s dedicated

computer system and the HKQAA has kept it strictly confidential. Comprehensive

information security procedures were implemented to protect the information related

to the participating organisations.

Quality Assurance

Internal quality assurance procedures were implemented to ensure quality of the

verification, research and analysis processes.

All Rights Reserved

Hong Kong 香港 Tel: (電話)：(852) 2202 9111

Fax: (傳真)：(852) 2202 9222

Email: (電郵)：[email protected]

Website: (網址)：www.hkqaa.org

Shanghai 上海

HKQAA Certification (Shanghai) Ltd 標準認證服務(上海)有限公司

Tel: (電話)：(86 21) 6876 9911

Fax: (傳真)：(86 21) 6876 9922


Guangzhou 廣州

HKQAA Certification (Shanghai) Ltd Guangzhou Branch

標準認證服務(上海)有限公司

廣州分公司

Tel: (電話)：(86 20) 8383 3777

Fax: (傳真)：(86 20) 8382 3066


Disclaimer: All information contained herein is provided to the respective participating companies for reference only. Hong Kong Quality Assurance Agency takes no responsibility for the contents of this report, makes no warranty or representation as to its accuracy, completeness or reliability and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

© 2013 Hong Kong Quality Assurance Agency The Hong Kong Quality Assurance Agency owns the copyright and other intellectual property rights in this report. All rights of the Hong Kong Quality Assurance Agency are hereby reserved. No part of this document may be reproduced or transmitted in any form or by any means, including photocopying and recording, without the written permission of the Hong Kong Quality Assurance Agency. Such written permission must also be obtained before any part of this document is stored in a retrieval system of any nature.

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