CSR trend in Hong Kong
This article first appears on BusinessAssurance.com by Richard Gunawan
Environmental issues, corporate governance and employee’s welfare are being taken more seriously now by Hong Kong companies. There is a gradual move to make CSR as a core business strategy in Hong Kong. Previously CSR reports were used by marketers to enhance the company’s image. These days, the stakeholders and the market are becoming more sophisticated and companies have to be more proactive in managing their CSR activities.
Richard Gunawan recently spoke to Gaby Oetterli, Head of Corporate Sustainability of Hong Kong’s Business Environment Council (BEC), to gain some of her business insights. BEC is the longest running independent, non-profit organization in Hong Kong promoting corporate social and environmental responsibility. Oetterli claimed that “Recession has provided some opportunities for businesses in Hong Kong to review their CSR policies to add more value to organisations. For example, by reducing their carbon emission, some companies also simultaneously cut down their energy bills”.
This effort is apparent in the real estate sector. As Hong Kong is a regional headquarter for multi national corporations, these companies tend to have ‘green’ guidelines on leasing agreement and office conditions. Commercial developers in Hong Kong are forced to adopt ‘greener’ practices to meet up with environmentally conscious customers.
Oetterli also commented that “as part of managing their supply chain, many European or American multinationals also issue guidelines to their suppliers to review their ethical conduct and green practices”. To mitigate their risks of losing business, local companies also embed a CSR framework within their management systems. Organisations understand that without proper planning, monitoring and review, CSR activities will never be done correctly.
The trend towards CSR reporting based on materiality will continue on according to Oetterli. CSR is not just about measuring new sets of key performance indicators, but it’s about showing organisational commitment to all stakeholders. CSR is no longer seen as ‘optional’ or ‘nice to have’. In the future, it will be a license to do business and provides competitive advantage.