Government and business representatives discuss corporate social responsibility at a round-table forum organized by Recruit and China Daily. Edmond Tang

Kwan Chuk-fai (left), general manager of corporate communication for NWS Holdings Limited, and Roger Lai, founder of Gingko House

Corporate social responsibility (CSR) is becoming increasingly important throughout the world, but the concept is still budding for many Hong Kong enterprises.

Grant Thornton recently conducted a survey to investigate the CSR awareness of private companies in 34 countries and regions, and Hong Kong ranked just 29th among the respondents.

At a luncheon organized by Recruit and China Daily, government officials and representatives of small and medium-sized enterprises (SMEs) gathered to share their views on the topic.

Developing CSR as a social culture

Secretary for Labor and Welfare Matthew Cheung said that the Hong Kong Special Administrative Region (HKSAR) Government should take the lead in promoting CSR in the city.

"I think the Hong Kong government has set a good example in this regard, introducing policies such as the five-day work week and maternity leave for civil servants," Cheung said.

But, he noted, society still has plenty of room to improve, especially in the private sector. He urged the public to change their mindset to take the development of CSR as a social culture.

Bernard Chan from the Hong Kong Council of Social Service said Hong Kong's business sector has recently become aware of the significance of CSR.

"Companies understand they are not only accountable to their shareholders, they need to be responsible for the public as well," Chan said.

HSBC's head of corporate sustainability in the Asia-Pacific region, Teresa Au, said the bank assimilates environment awareness into its corporate culture.

"For instance, our mortgage department offers some concessions for green business institutional applicants," she said.

The role of SMEs

Large corporations aside, SMEs can also play a role in promoting CSR. Gingko House is a good example. The restaurant was founded by a group of social workers, and its employees are mainly retired and elderly people.

Gingko House founder Roger Lai said that the restaurant's mission is to express concern about social minorities. "We give the old people an opportunity to prove their working abilities and value," Lai said.

Although the financial power of SMEs isn't as strong as that of large companies, Lai said small companies can still play their part.

"They don't have to make a huge donation," he said. "Sharing pleasures and pains with employees, for instance - these little things are easy to achieve."

HSBC's Au echoed Lai's view, saying every individual in society should take on his or her share of CSR.

CSR and the workforce

NWS Holdings Corporate Communication General Manager Kwan Chuk-fai said that it is easy for a corporation with good reputation for CSR to attract and retain talent.

"Financial power and profitability (are) no longer the only concerns for fresh graduates and job seekers," Kwan said. "They also consider whether they're working for a conscientious company."

Microsoft Hong Kong Legal and Corporate Affairs Director Winnie Yeung said her company adheres to a "people-first" principle and provides a flexible working environment for its employees to help them strike a balance between work and their family lives.

"Our employees are allowed to work at home once or twice a month, so they can have more time with their families," Yeung said.

Assessing the merit of CSR

To assess a company's CSR merit, Kwan of NWS Holdings cited an indicator developed by the World Bank as a reference point. "The World Bank categorizes a well-developed country as not only relying on gross domestic product (GDP) growth, but on 'social capital' as well," he said.

Kwan defined "social capital" as social stability and social harmony, noting that the promotion of CSR can enhance social capital.

Cheung said the government does not have a yardstick to gauge the effectiveness of CSR, but he believes better CSR increases social harmony.

He cited the SAR government's commitment to assisting disadvantaged residents of Tin Shui Wai a year ago as an example.

"The government recently assessed the progress of the plan, and we are satisfied with the progress so far," he said. "It has made remarkable headway with the help of the private sector."

Under the plan, many companies provide apprenticeships and set up branches to reduce the high unemployment rate in the working-class neighborhood.

Cheung said the partnership embodies the commitment of the private sector to its community.

KPMG director of corporate social responsibility Diana Tsui said the bottom line of CSR is to create a platform for helping the needy become better people.

"Many companies always ask themselves how they would benefit from performing CSR," Tsui said. "But, as a stakeholder of the society, they should be more generous and appreciate the beauty of 'give-and-take'."

The long-term goal of CSR

MTR China & International Business Director Francis Lung said the government, NGOs and the private sector should work closely together to ensure the continuity of CSR.

"The continuity cannot only rely on the government or any individual group," he said. "The result will be more tangible if different sectors in the society can collaborate with each other."

Tsui is optimistic about the future development of CSR in Hong Kong. "I believe the business sector will become a good model for the public to emulate," she said.

Lai urged the government and media to step up efforts to expand CSR awareness.

Kwan said the company shouldn't be myopic, saying: "New World Development management was heartbroken when it had to demolishHungdom Peninsula under public pressure, but eventually we came around in deference to their wish".

"Looking back, I think we made the right decision, because it was for the good of the society," he said.

Cheung said it is encouraging to see more members of the second generation of the rich families showing generosity toward the poor. He applauded them for setting a good example in popularizing volunteer work among the general public.

Charles Kwan (left), deputy general manager for the Department of Business Development of Sino United Publishing (Holdings), and Diana Tsui, director of corporate social responsibility for KPMG

(HK Edition 08/04/2008 page2)